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Iraq Said To Be Planning Currency Overhaul, Redenomination

MrOptimistic

By MrOptimistic,
in Iraq & Dinar Related News

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MrOptimistic Newbie

MrOptimistic

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7A6132D9-F595-42E1-AA05-F93B92754F1D_w64

 

 

 

Saturday, October 12, 2013

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 reports. 

Mudhhir Muhammad Salih, a member of the bank's advisory panel, told RFE/RL on June 23 that in the short term, larger banknote denominations of the dinar would be issued to simplify major transactions.

He said that because so many Iraqis still dealt mainly in cash, it was 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 would be issued to simplify major purchases, and new coins and lower denominations would be introduced for smaller transactions.

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

He said the change was 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 were 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 caused 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, 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://www.rferl.org/content/iraq_said_planning_currency_overhaul_redenomination/24245867.html

Edited by MrOptimistic
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MrOptimistic Newbie

MrOptimistic

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Yeah, it's from 2011.

Still, interesting time to rehash this article. 

Anyone else notice that Congress passed a law 11 days ago so that the Federal Reserve can use foreign exchange reserves to pay down the national debt?

Paris Club treaty eliminated 80% of Iraq's debt. Is it time to see the true value of the dinar? New basel III capital tier requirements phased in beginning Jan. 2014.

LOL this is what is printed under the photo on the articles website

 

"Iraq's 25,000-dinar banknotes apparently won't get you as far as they used to."

 

the 25,000 dinar banknote was never worth anything inside the country lol that's why all the citizens use the USD... jeez. these people publishing are about as smart as KEEP.

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easyrider Newbie

easyrider

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To me MOST articles like these are solely propaganda they mean absolutely nothing!! how many articles have we seen like this and have they ever did it? the answer is NO!!!!

Alot of articles are rehashed anyhow and opinions.

Edited by easyrider
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keepmwlknfny Newbie

keepmwlknfny

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Still, interesting time to rehash this article.

Anyone else notice that Congress passed a law 11 days ago so that the Federal Reserve can use foreign exchange reserves to pay down the national debt?

Paris Club treaty eliminated 80% of Iraq's debt. Is it time to see the true value of the dinar? New basel III capital tier requirements phased in beginning Jan. 2014.

LOL this is what is printed under the photo on the articles website

"Iraq's 25,000-dinar banknotes apparently won't get you as far as they used to."

the 25,000 dinar banknote was never worth anything inside the country lol that's why all the citizens use the USD... jeez. these people publishing are about as smart as KEEP.

Says the one who posted lop article as something to get excited about and who doesnt understand basel compliance....

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keepmwlknfny Newbie

keepmwlknfny

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LOP Incorperated Has Spoken - Bow Ur Head Sinners ! :o

:D :D :D

LOL....good one!! Hahaha

LOL KEEP, OKAY A LOP, MAKES CENTS  :twocents:

A REVALUE, MAKES MORE SENSE $$$$$$$$  :twothumbs:

 

I THINK THE GOVERNMENT AND CENTRAL BANK OF IRAQ IS SMARTER THAN A LOPSTER  :bravo:

Dont tell me....tell the CBI. Did you actually read what you posted? How is exchanging a 25k note at its current value for a single new 25 note gonna make you money?

Also care to explain to me your concept of the Basel 3 compliance? Cause apparently Basel, me and many others have it wrong.....

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MrOptimistic Newbie

MrOptimistic

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LOL....good one!! Hahaha

Dont tell me....tell the CBI. Did you actually read what you posted? How is exchanging a 25k note at its current value for a single new 25 note gonna make you money?

Also care to explain to me your concept of the Basel 3 compliance? Cause apparently Basel, me and many others have it wrong.....

I'm not exchanging my 25K note for a 25 note in Iraq. I'm exchanging for USD, in the US. At the new exchange rate and at face value.

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keepmwlknfny Newbie

keepmwlknfny

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I'm not exchanging my 25K note for a 25 note in Iraq. I'm exchanging for USD, in the US. At the new exchange rate and at face value.

I dont think you quite understand redenominations. Sure you can exchange your 25k note for USD, but you do realize that when they say the 25k note becomes 25 dinar, it means they are both equal in value! There are two rates, one for the old, one for the new. 

 

Your 25k note is worth a little over 21 bucks, if they redenominate the 25 note is also equal to a little over 21 bucks. They are both equal in value. 21 or so dollars. No profit to be made

I wonder how many people bought dinar to break even.....lets take a head count....please raise your hands if this is what you bought dinar for!

 

 

(chirp,chirp)

 

(chirp, chirp)

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keepmwlknfny Newbie

keepmwlknfny

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

 

Is this the part we're supposed to cheer?

 

 

According to MrOptimistic, yes.....apparently we all bought dinar for the wrong reasons! We were supposed to buy dinar to not make any money!

Yes, they can't redenominate w/o a revalue.

Thats where the NEW currency comes in. The NEW currency would be worth 1.16 USD.....the old will hold its current value of 1166.

 

That might be where you are confused mr optimistic! Why it doesnt make sense. But if you looked into things further, it would. No one loses anything, but no one gains anything either. Not what we want the CBI to do!

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SurfingTheDinarWave Newbie

SurfingTheDinarWave

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Sorry about the drop-in, but it's been so long and been so busy I haven't had time to mess with KEEP, so you finally figured out how to turn your lopsters into employees and read up on how to incorporate a business I see...Thax to the daily scoop from our favorite news clown!

 

I hope you got good business liability insurance, your going to need it when it RV's, lots of pissed off customers and pissed on employees, or is that the other way around!

 

:ph34r:

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