Iraq Said To Be Planning Currency Overhaul, Redenomination

[IQD1217]

June 24, 2011
BAGHDAD — A senior Iraqi Central Bank adviser says the government has adopted a two-pronged plan to restructure the national currency in order to facilitate large transactions and make government accounts more efficient, RFE/RL’s Radio Free Iraq (RFI) reports.

Mudhhir Muhammad Salih, a member of the bank’s advisory panel, told RFI on June 23 that in the short term, larger banknote denominations of the dinar will be issued to simplify major transactions.

He said that because so many Iraqis still deal mainly in cash, it is cumbersome to carry bags full of money to pay for expensive items like cars. The inconvenience leads people making such purchases — as well as many entrepreneurs — to use dollars for those kinds of transactions instead of dinars, something the government wants to end.

He added that large denominations equivalent to around $100 will be issued to simplify major purchases, and new coins and lower denominations will be introduced for smaller transactions.

In the longer term, Saleh said a redenomination is needed wherein three zeros will be dropped so that the 25,000 Iraqi-dinar banknote — currently the largest denomination — becomes a 25-dinar note.

He said the change is inevitable, considering the economy is expecting high growth in the coming years with a planned increase in oil production to finance reconstruction projects.

Saleh said there are currently some 29 trillion dinars in circulation in Iraq, represented by some 6 trillion banknotes of various denominations, most of them quite small. He said this also causes complications for the central bank and government, as well as commercial accounting departments.

Saleh said the monetary-restructuring plan was drawn up with the help of foreign experts and financial institutions, including the International Monetary Fund (IMF), of which Iraq has been a member since 1945.

The plan will soon be presented to the cabinet, which is expected to subsequently send a bill to parliament.

Saleh noted that until 1980 the Iraqi dinar exchange rate was 1 dinar/$3.3 compared to $1/1,168 dinars now due to hyperinflation that occurred during the latter part of the late ousted leader Saddam Hussein’s reign.

http://wp.me/pZC7o-8Ov

To all those loopers Hyperinflation !! I 29T dinars which is represented by 6T bank notes in 2011 ..The central bank said

it wants to reduce the 33T to 30BB dinar to raise the vaule 2013.

[bigwave]

June 24, 2011. Kind of old isn't? 

[IQD1217]

Yeah, but its shows where we are headed, 

 

 

Saleh noted that until 1980 the Iraqi dinar exchange rate was 1 dinar/$3.3 compared to $1/1,168 dinars now due to hyperinflation that occurred during the latter part of the late ousted leader Saddam Hussein’s reign.

no more hyperinflation

 

Higer value for the dinar, reduce the bills in circulation

[sandfly]

LOOK AT WHAT IT SAYS. 25,000 WILL BE 25

[DinarDana]

I remember this article as well. Yes it is old but it is another speculative article, because this is another way the shoe can drop, issue a 100 and lower denominations? This article made me think that there were other currency notes which have never been issued sitting in a vault somewhere waiting....like us just waiting to be distributed.

[IQD1217]

they will delete the 000 and raise the value!! so say it $1.13 which ministry of planning wants it to be around per dinar to $1 USD.

[JMULS31]

These are the type of articles we don't want to see

[dontlop]

 

Banks began international circulation of Iraqi currency in the first signs of the withdrawal of Iraq from Chapter VII, in conjunction with the announcement of the Iraqi Central Bank high volume of reserves of Iraq from foreign currency to $ 76 billion in addition to the 30 tons of gold bullion.

Read more: http://dinarvets.com/forums/index.php?/topic/153592-demand-for-iqd-rises-signs-of-international-circulation-post-ch-vii/#ixzz2YKCtgkEB

hey lets circulate the dinar internationally ,, while we delete 3 zeros and recall it

Edited July 7, 2013 by dontlop

[IQD1217]

$80B in currency reserves $1.23B in gold , DFI Fund!! That's just the beginning !! $$$$$

[dontlop]

bet this guy who is speaking for the cbi is in jail with the rest of shabbibis guys >>> Mudhhir Muhammad Salih

 

 

 

 

 

June 24, 2011

 

-
 

 

ya might as well forget all those guys from 2011 from the cbi they cleaned house

Edited July 7, 2013 by dontlop

[IQD1217]

bet this guy who is speaking for the cbi is in jail with the rest of shabbibis guys >>> Mohammed Qasim

Wed, 15/09/2011

-

The appearance of Mohammed Qasim

Deputy Governor of the Central Bank of Iraq

ya might as well forget all those guys from 2011 from the cbi they cleaned house

True!! Lol

[usndiver]

Stop posting old articles please. 

[dontlop]

The Iraqi authorities have reportedly released the deputy governor of the Central Bank of Iraq, Mohamed Salih, who has been detained for more than month on charges related to corruption.

In October, Prime Minister Maliki removed the head of the central bank, Sinan al-Shabibi, accusing him of mismanagement and currency manipulation. He is understood to be still outside the country.

Edited July 7, 2013 by dontlop

[JOLLY ROGER]

Stop posting old articles please.

I'll drink to that!

[IQD1217]

They are only old if you have been in this investment a long time , don't forget new investor all the time !! Have to help them out!! Refresher !!

[doctor robbins]

Can you show us any example of a currency that added zeros due to hyperinflation that regained its former value through appreciation rather than re-denomination?

[dontlop]

Can you show us any example of a currency that added zeros due to hyperinflation that regained its former value through appreciation rather than re-denomination?

i dont know of any countrys whos currency was removed and replaced by an invading military force backed by the united nations to compare this to.

most people here on this site believe iraq is a different  situation

different than say turkey ,,

 

iraqs entire govt  was removed and replaced

by force

cant be reguarded as typical  or just like any other country that   replaced its currency

when turkey redenominated did all their debtors get together and forgive turkeys debts ? .. iraq in my opinion isnt going to be held responsible for all of their dictators actions  especially his war debts  which caused the debt to gdp to spiral out of control

when turkey was done redenominating their currency removing 6 zeros from a 54 quadrillion turkish lira .. they still had the same govt in place ..iraq is all new

 

turkeys exchange rate was 1.56 million lira to one dollar .. iraqs is 1166 to one

85% of iraqs debts were forgiven . is that typical for countrys to delete zeros and their debts are forgiven ?

gimme my money ,, thats what i say

[dontlop]

iraq says it can support its exchange rate  by 2 and a half times with the reserves it has right now .. so that would be equal to 466.4 dinars to a dollar .. they can do that first then talk about removing 3 zeros

just get your calculator and devide 1166 by 2.5 and you get 466.4 .. thats how much reserves they have right now .. this 1166  rate is false ..

at minimum the rate should be 466.4 according to them

not 1166

Financial: dinar improvement after Iraq emerge from Chapter 7

 

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The size of text characters Experts Afif

05/07/2013

Banks began international circulation of Iraqi currency in the first signs of the withdrawal of Iraq from Chapter VII, in conjunction with the announcement of the Iraqi Central Bank high volume of reserves of Iraq from foreign currency to $ 76 billion in addition to the 30 tons of gold bullion. says advisor to the Ministry of Finance Hilal Taan that "This reserve will help to raise the value of the Iraqi currency compared to foreign currencies and thus will contribute to reduce the prices of goods and commodities." and supports the currency reserves of the Central Bank of the Iraqi currency inside and outside Iraq, and that the increase in oil imports may directly contribute to increase the reserve and thus give more support of the Iraqi currency. says economic expert Majid picture that "investing the surplus reserve as if he found must harnesses according to the policy of economic thought" and called on the House of Representatives to enact economic and development that will provide greater support for the Iraqi currency. For his part, criticized a member of the Finance Committee parliamentary Ahmed electrodes laws and banking systems followed in Iraq, uncertain that the House of Representatives is determined to enact laws regulating the banking business in the future. central bank had said earlier that Iraq is in control of his money and treasury of gold in the international banks also drew the bank to be out of Iraq from Chapter VII will give him freedom the largest to act and attract foreign investment

Read more: http://dinarvets.com/forums/index.php?/topic/153592-demand-for-iqd-rises-signs-of-international-circulation-post-ch-vii/#ixzz2YKbU3E5c

Edited July 7, 2013 by dontlop

[Sweet baby dinar]

Keepm should be posting to this thread any minute now.....

[rightsonword]

Keepm should be posting to this thread any minute now.....

I like to hear a good spin on good news, lol.

[jg1]

they will delete the 000 and raise the value!! so say it $1.13 which ministry of planning wants it to be around per dinar to $1 USD.

The only problem is once they take off the zero's you will have to change it in. Then they will raise the value. Malo.