Currency damaged .. Financial and economic losses

[rockhound60]

Currency damaged .. Financial and economic losses

Date: Sunday 09/23/2012 07:50 AM

Baghdad / Ali Author

In memory many of us, paper currency that was in circulation during the past years, and known among Iraqis (b Swiss), which was an example of the currency paper most traded between citizens timetable with the lack of exposure to damage due to the characteristics of good, which is very different from the currency in circulation now that we heard it printed global Bmtaba and absent quality to become more susceptible to damage and disruption, which makes trading problem added to the problems of citizens.

He says the deputy governor of the Central Bank of Iraq the appearance of Mohammed Saleh (range): The bank has prepared a plan to replace the Paper denominations damaged, especially small ones for damaging them, whether such exposure to fires or damage in general, and here the role of the central bank to address this imbalance through stocks replacement (compensation).

And adds that the benefit the next two months will witness the withdrawal of currency damaged and replaced with new ones from the reservoir replacement and compensation, Banknotes with small groups of perishable which does not exceed the lifetime of the trading average of five years by about less or more percentages circulation and damaging them, especially from groups leafy small.

He points out that there are other solutions to include them central part of its future plans in the project to delete the zeros from the currency, which include put metal coins of small denominations as part of a restructuring of coins in Iraq, which are of greater benefit in use among citizens.

. For his part, explains Amir Abdulla, vegetable seller in the market neighborhood group People's (range): The vendors in the market are the most vulnerable to corruption issues paper currency because of the nature of work and the vocabulary to deal daily with people in the buying and selling of materials characterized by being more moisture and exposed to dirt, which lead to exposure of paper money to wetness, dirt and tear easily, etc., and Banknotes damaged private with groups large we were losses that exceed the profits that we achieve, where not received my owner Alwa vegetables and the customer, and forced then to go to the bank to substitute them undamaged.

While he says Ismail al-Azzawi, an employee at the Ministry of Commerce said paper currency current various categories is good compared to currency paper known (Swiss), and poor easily rigged and is resistant to atmosphere climate Iraqi and most susceptible to damage and damage, which makes trading them is very difficult, as The processors prosthetic paste torn parts of the paper currency not write her success when groups were large paper currency.

While recalling Sawsan Rasheed employee at the Oil Ministry said one of the most chronic problems suffered by the employee is generally received a salary which contains a lot of money damaged and torn and that do not accept people in the market, especially from Banknotes large, and keep the road some of them do not know how he has behaved markets, and banks do not receive money damaged and torn, knowing that the money Ntkadaha of salaries comes to our departments of banks themselves directly, and wonder why not re banks mechanism of action earlier in the receipt of cash damaged and torn a new one as it was in the past.

The economic expert in the development of sustainable development Raouf al-Asadi says that paper currency currently in circulation in the local markets and banks are no longer usable, and therefore there will be financial damage heavily on Iraqi citizens by and on the national economy, as these currencies lose value with the passage of days, without develop effective solutions to the problem are increasing day after day.

And wonder about not having this problem in many countries, even those that are classified by being less developed in the economic and developmental from Iraq, and most of the neighboring countries and regional do not suffer from this phenomenon, where they are trading the currencies and paper good and world-class multi-categories, the Unlike Iraq, which is trading where citizens Banknotes are the buttocks between currencies in neighboring countries.

He believes that part of the solution lies in the re-use of coins, especially those with small groups and the most heavily traded between citizens instead of staying in the use of paper currency damaged and torn, and keep in dealing categories paper on groups large exclusively to the fact that use is limited compared to groups small, to overcome the problems presented Currency rapid damage as a result of continuous trading in the markets.

And show emotions Jassim employee in one of the branches of the Rafidain Bank that the issue of changing the old currencies or damaged depends on the procedures and controls carried out by the management of the Bank itself according deal allowed in this area, there are banks deal subject recognizes categories damaged and torn and the other refuses to do so, and it may be turned off the percentage of damage, as in the vision of the Iraqi Central Bank does not see all the currencies damaged despite difficult trading, but the important thing here is to adopt a clear mechanism and fixed in delivery method that currency to the Central Bank, and of making inventory on the money deposited by the distribution of salaries and hold them for money financial fines on them.

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[srdedeaux]

Thanks for the Post......................! GO RV

[Butifldrm]

Thanks for the post rockhound. This article support the belief the money in circulation with in Iraq is old and mutilated,or should I say over circulated. It looks as if the CBI is not replacing the over circulated currency with new bills of the same denomination. If I remember correctly there was a similar article out about 6 month ago. My point is that, there must be something in the works on currency reform, or this situation would not be a problem . Why else would the CBI not be replacing the mutilated money?

[elmstreet61]

Thanks for posting this..... Dr Shabbs must be aware that there are a lot of big notes held by people such as us and some governments, no doubt....and could we suggest that all of those notes are still in almost brand spanking new condition?

Well then...Dr. Shabibi......all you need to do to get all those lovely crisp dinar notes back into local circulation is to initiate an RV or market float.

[RVPleaseToday]

The thing I don't understand about this is that Dinar dealers seem to have access to a seemingly endless supply of uncirculated Dinar, yet the Dinar on the street in Iraq is worn out? Why doesn't Shabbs put the new stuff on the streets rather than sell it to Dinar dealers in other countries?

On second thought, maybe Iraq is making a killing selling near worthless Dinar to Americans!

[Luigi1]

Could this render part of our IQD inventments null and void?

Inquiring minds want to know.

[RVPleaseToday]

Luigi, that has always been one of the concerns, that replacing the currency would make ours worthless. Only time will tell.

[yota691]

Could this render part of our IQD inventments null and void?

Inquiring minds want to know.

If your currency that you posses is damage and disruption, I say you would have a Problem!!

[The Machine]

Hey Shabibi ..... if you need some uncirculated notes I got a whole pile of them .... just raise the value and you can have them back !!

[rockfl9]

The CBI does not sell to the dealers.. The dealers get it from the small banks or through street money changers. The dinar was never expected to leave the country in any great amount...But since it has and the demand is for new notes out of country the CBI cant release them fast enough to replace all the damaged notes....If employees of the CBI are the ones suppling the notes this may be the corruption that the CBI is accused of?

[sportfisher]

this article is talking about the "swiss dinar" and " sadam dinar", they were both used at the same time, the swiss had more value and the sadam more easily damaged or reproduced. I'm thinking this is another old article meshed in with ? it doesn't make sense.

Edited September 23, 2012 by sportfisher

[Dalite]

Thanks for the post rockhound. This article support the belief the money in circulation with in Iraq is old and mutilated,or should I say over circulated. It looks as if the CBI is not replacing the over circulated currency with new bills of the same denomination. If I remember correctly there was a similar article out about 6 month ago. My point is that, there must be something in the works on currency reform, or this situation would not be a problem . Why else would the CBI not be replacing the mutilated money?

Very good observation.

If the goal is to replace the entire currency with the new, Article 140 compliant bills, ther is a concern for paying to also print older bills to replace soiled currency. So, the concept would have been to not pay for another yearly issue since reform was just around the corner.

When the plan was introduced last June, apparently Shabibi felt that the time was correct in terms of the wear factor of the currency in circulation, and it's life expectancy.

Now, 15 months later, the currency condition is forcing the CBI to the corner of walk and don't walk.

They either have to get the GOI to agree to currency reform, or continue on their merry way of overprinting the currency.

I don't think the printers run a buffet operation where the CBI can request odd quantities off each denomination.

Somehow, the terms "minimum order, quantity discount and 201x yearly issue" come to mind.

Shabibi may be facing a critical decision; refresh the currency and postpone the reform until the money spent on printing is properly utilized by time the new currency is exposed to wear on the street, give up on currency reform, and increase the circulation another ten trillion to give the GOI time enough to grow a pair, or simply retire and walk away.

But, you are correct; there is certainly something underfoot.

[supergirl]

"And adds that the benefit the next two months will witness the withdrawal of currency damaged and replaced with new ones from the reservoir replacement and compensation"

"He believes that part of the solution lies in the re-use of coins, especially those with small groups and the most heavily traded between citizens instead of staying in the use of paper currency damaged and torn"

[zigmeister]

Very good observation.

If the goal is to replace the entire currency with the new, Article 140 compliant bills, ther is a concern for paying to also print older bills to replace soiled currency. So, the concept would have been to not pay for another yearly issue since reform was just around the corner.

When the plan was introduced last June, apparently Shabibi felt that the time was correct in terms of the wear factor of the currency in circulation, and it's life expectancy.

Now, 15 months later, the currency condition is forcing the CBI to the corner of walk and don't walk.

They either have to get the GOI to agree to currency reform, or continue on their merry way of overprinting the currency.

I don't think the printers run a buffet operation where the CBI can request odd quantities off each denomination.

Somehow, the terms "minimum order, quantity discount and 201x yearly issue" come to mind.

Shabibi may be facing a critical decision; refresh the currency and postpone the reform until the money spent on printing is properly utilized by time the new currency is exposed to wear on the street, give up on currency reform, and increase the circulation another ten trillion to give the GOI time enough to grow a pair, or simply retire and walk away.

But, you are correct; there is certainly something underfoot.

And adds that the benefit the next two months will witness the withdrawal of currency damaged and replaced with new ones from the reservoir replacement and compensation, Banknotes with small groups of perishable which does not exceed the lifetime of the trading average of five years by about less or more percentages circulation and damaging them, especially from groups leafy small.

I am not sure they are speaking of printing more dinar because in terms of reservoir which means a place to store, sounds like they already have it printed and are holding on to it.

[Dalite]

I am not sure they are speaking of printing more dinar because in terms of reservoir which means a place to store, sounds like they already have it printed and are holding on to it.

Good point; one I overlooked.

And it could have just been a slow news day, but it would seem the the constant flow of replacing soiled currency with on hand printed " spares" would be SSDD.

Unless the reservoir is drying up.

Just like the lower denoms that were never released, or were withdrawn from use due to virtually no buying power, the excess currency to be used to replace soiled currency was off record, as it was not considered to be in circulation.

Certainly bears watching to see if there is more of this story to come.

[supergirl]

Looks like we'll know something in the next two months according to the quotes from saleh. And we know what must happen before the coins are released.

Edited September 23, 2012 by supergirl

[zigmeister]

Good point; one I overlooked.

And it could have just been a slow news day, but it would seem the the constant flow of replacing soiled currency with on hand printed " spares" would be SSDD.

Unless the reservoir is drying up.

Just like the lower denoms that were never released, or were withdrawn from use due to virtually no buying power, the excess currency to be used to replace soiled currency was off record, as it was not considered to be in circulation.

Certainly bears watching to see if there is more of this story to come.

Maybe its me trying to read something that isn't really happening. But I think the CBI is in a spot, they are in what you termed walk or don't walk. I feel they were given a jolt when the re domination was put on hold. They thought they had it in the bag, but apparently they were wrong. Which is good for us. Because of this bump in the road they had to figure a work around until they can actually begin printing new currency. Somewhere I remember an article they were told to use what they have in the time being. So they discussed taking the dinars and coins they already hold and put them back into

circulation until the issue of RD had been resolved and the country was more stable. Now I could have misread the article and I certainly can't resurrect it because I don't know where to begin. However this article could be suggesting what was proposed a while back.

I think the situation is two fold for CBI, yes it appears they did not replace the tattered dinar's for new ones because probably they expected to be replacing them with new dinar. What they did not count on it is these tattered dinars that are probably the counterfeit problem. The 10,000 dinar being the one used most to fake. It is much easier to counterfeit beat up dinar than brand new. So now they have a problem as whether accept the tattered dinar on face value risking that some may be counterfeit and having something to bring in the people to replace the old ones. They need some kind of reimbursement is what I am gathering.

Just some thoughts to put out there....

[Rayzur]

It looks to me like they are saying:

The money we printed to replace the Swis and Saddam dinar is far superior to those old and nasty Swiss bills bills.

The current dinar is far superior to the old ones.

The new bills are nonetheless paper and one day they too will get old and crumbly just like those Swiss ones did, albiet the current bills ae still so far superior in production

No matter how good the current bills are in the choices we made to produce them, their life is still only about 5 years.

When they get old and crumply... (it doesnt mean we were wrong about the superiority of our materials choice) and they will eventually get old and crumply....

When they do, not to worry, we have some of the very same in our reserve vault and we will gladly replace your old nasty (current) bills with crisp (current) new bills,

MEANWHILE:

How about them coins. Coins last much longer than do bills. Our poor vendors are targets of conterfeit ... but those shiney coins we want you to start using, are not nearly as vulnerable to fake, nor will they get all old and nasty as easily as does paper.

Have you ever thought about going back to the coins.

We kinow you haven't used coins in decades, and for whatever reason you continue to shun the use of coins...

We at the CBI think however you should consider it. It is far far better for you if you use coins intead of the smelly old nasty paper stuff. . We are here to protect your interests, and coins might just do the trick

We know you haven't thought about coins.... but think about them now.... just start thinking about them.

We'll be back in a week or so with more information subtly suggesting you start using the coins we want to introduce as part of our currency reform, and it will be so much easier if you could just start using them....

Okay.... thats how I read it. Maybe I need more go juice then read it again?

[zigmeister]

It looks to me like they are saying:

The money we printed to replace the Swis and Saddam dinar is far superior to those old and nasty Swiss bills bills.

The current dinar is far superior to the old ones.

The new bills are nonetheless paper and one day they too will get old and crumbly just like those Swiss ones did, albiet the current bills ae still so far superior in production

No matter how good the current bills are in the choices we made to produce them, their life is still only about 5 years.

When they get old and crumply... (it doesnt mean we were wrong about the superiority of our materials choice) and they will eventually get old and crumply....

When they do, not to worry, we have some of the very same in our reserve vault and we will gladly replace your old nasty (current) bills with crisp (current) new bills,

MEANWHILE:

How about them coins. Coins last much longer than do bills. Our poor vendors are targets of conterfeit ... but those shiney coins we want you to start using, are not nearly as vulnerable to fake, nor will they get all old and nasty as easily as does paper.

Have you ever thought about going back to the coins.

We kinow you haven't used coins in decades, and for whatever reason you continue to shun the use of coins...

We at the CBI think however you should consider it. It is far far better for you if you use coins intead of the smelly old nasty paper stuff. . We are here to protect your interests, and coins might just do the trick

We know you haven't thought about coins.... but think about them now.... just start thinking about them.

We'll be back in a week or so with more information subtly suggesting you start using the coins we want to introduce as part of our currency reform, and it will be so much easier if you could just start using them....

Okay.... thats how I read it. Maybe I need more go juice then read it again?

The thing about the swiss dinar...they were worth more than the Sadamm notes and I thought they were still valid? Anyone?

[MrFnHappy]

The thing about the swiss dinar...they were worth more than the Sadamm notes and I thought they were still valid? Anyone?

The Swiss dinar are no longer legal tender, but were in fact worth more. They were exchanged at 1 Swiss dinar to 150 New dinar back between October 15, 2003 and January 15, 2004.

Hope that helps...

Edited September 23, 2012 by MrFnHappy

[zigmeister]

The Swiss dinar are no longer legal tender, but were in fact worth more. They were exchanged at 1 Swiss dinar to 150 New dinar back between October 15, 2003 and January 15, 2004.

Hope that helps...

Thanks MrFnHappy I could not remember if it was still legal tender or not. Hey good to see you.

[MrFnHappy]

Thanks MrFnHappy I could not remember if it was still legal tender or not. Hey good to see you.

You're welcome Zig, and thanks.

[zigmeister]

You're welcome Zig, and thanks.

Well I do appreciate your knowledge, what is your take on this article, I am curious.