A source in the Central Bank: It is too early to trade 20,000 dinars, and no old denomination will be withdrawn

[RJG]

A source in the Central Bank: It is too early to trade 20,000 dinars, and no old denomination will be withdrawn

 

·        Time: 11/21/2022 07:37:10

·        Read: 1,859 times

 

  {Economic: Al Furat News} An official source in the Central Bank of Iraq revealed that “it is still early time to launch a currency of 20,000 dinars for circulation.”

The source said in a press statement, “The bank is still in the process of preparing to study, design, and the extent of the impact of that currency on Iraqi society,” noting that “it is too early to print it and release it for circulation during the next near stage.”
And he indicated that “the issuance of that paper will improve the national chain of banknotes, in addition to adding an intermediate category that will facilitate cash circulation among citizens.”
The source confirmed that “no old cash denominations will be withdrawn, and this denomination will be added to the rest of the denominations with the aim of improving and enriching cash circulation.”
He pointed out that the bank is in the process of understanding and agreeing with discreet printing houses to choose the colors and security characteristics of the papers and other technical and procedural details.
And the Governor of the Central Bank, Mustafa Makhaif, revealed during his participation in the “Al-Rafidian Forum for Dialogue” on September 27, the bank’s intention to issue a new denomination of the Iraqi currency at a value of 20 thousand dinars (approximately $ 13) based on a study and research compared with neighboring countries, and is working to complete The form of the paper, and in the coming days it will be announced.”
It is noteworthy that Iraq has – so far – 7 categories of local currency issued by the Central Bank of Iraq, which are {250 dinars, 500 dinars, 1000 dinars, 5000 dinars, 10000 dinars, 25000 dinars, and 50000 dinars}.

https://alforatnews.iq/news/%D9%85%D8%B5%D8%AF%D8%B1-%D9%81%D9%8A-%D8%A7%D9%84%D8%A8%D9%86%D9%83-%D8%A7%D9%84%D9%85%D8%B1%D9%83%D8%B2%D9%8A-%D8%A7%D9%84%D9%88%D9%82%D8%AA-%D9%85%D8%A8%D9%83%D8%B1-%D9%84%D8%AA%D8%AF%D8%A7%D9%88%D9%84-20-%D8%A3%D9%84%D9%81-%D8%AF%D9%8A%D9%86%D8%A7%D8%B1-%D9%88%D9%84%D9%86-%D9%8A%D8%AA%D9%85-%D8%B3%D8%AD%D8%A8-%D8%A3%D9%8A-%D9%81%D8%A6%D8%A9-%D9%82%D8%AF%D9%8A%D9%85%D8%A9

 

Edited November 21, 2022 by RJG

[rvmydinar]

1 hour ago, RJG said:

A source in the Central Bank: It is too early to trade 20,000 dinars, and no old denomination will be withdrawn

If the CBI intends to print the new 20,000 dinar and release them to the public one day , that means the CBI won't delete 3 zeros from the banknotes and printing a new currency 20,000 dinar costs a fortune and they won't waste any more monies just to print a new lower denoms with deleting 3 zeros. No deleting 3 zeros means no redenomination means no LOP. And that means the CBI only deletes 3 zeros from the exchange rate , not the banknotes.

[screwball]

you would not print more large notes if you are planning on deleting zeros from rate, lower denoms already printed. agree

[screwball]

14 hours ago, RJG said:

It is noteworthy that Iraq has – so far – 7 categories of local currency issued by the Central Bank of Iraq, which are {250 dinars, 500 dinars, 1000 dinars, 5000 dinars, 10000 dinars, 25000 dinars, and 50000 dinars}.

says issued not printed.

[Officiallytook]

On 11/21/2022 at 7:05 AM, rvmydinar said:

If the CBI intends to print the new 20,000 dinar and release them to the public one day , that means the CBI won't delete 3 zeros from the banknotes and printing a new currency 20,000 dinar costs a fortune and they won't waste any more monies just to print a new lower denoms with deleting 3 zeros. No deleting 3 zeros means no redenomination means no LOP. And that means the CBI only deletes 3 zeros from the exchange rate , not the banknotes.

 

11 hours ago, screwball said:

you would not print more large notes if you are planning on deleting zeros from rate, lower denoms already printed. agree

 💰

[rvmydinar]

On 11/21/2022 at 8:33 PM, RJG said:

the bank’s INTENTION to issue a new denomination of the Iraqi currency at a value of 20 thousand dinars (approximately $ 13) based on a study and research compared with neighboring countries, and is working to complete The form of the paper, and in the COMING DAYS it will be announced."

 

11 hours ago, screwball said:

you would not print more large notes if you are planning on deleting zeros from rate, lower denoms already printed. agree

Let's just wait and see then. Only time will tell.

[tn vol]

45 minutes ago, rvmydinar said:

 

Let's just wait and see then. Only time will tell.

Lots and lots of time!

[rvmydinar]

On 11/21/2022 at 8:33 PM, RJG said:

It is noteworthy that Iraq has – so far – 7 categories of local currency issued by the Central Bank of Iraq, which are {250 dinars, 500 dinars, 1000 dinars, 5000 dinars, 10000 dinars, 25000 dinars, and 50000 dinars}.

 

12 hours ago, screwball said:

says issued not printed.

These 7 categories of local currency have already been in circulation. And the CBI intend to issue a new category of 20,000 and we can just wait and see if this new currency of 20,000 was really already printed and ready to be released them to the public or not. Only time will tell.

[rvmydinar]

25 minutes ago, tn vol said:

Lots and lots of time!

Just imagine how slow the snail walks. However, if given a little incentive, the snail can walk faster, too. Now, it also depends on the incentives ( big fat envelope ) to get the job done  because this is iraq we are talking about.

[RV-2-Day]

Doesn't make any sense to consider or print a $13 20000 note when they have a 5000, 10000 & 25000

[RJG]

Central Bank of Euphrates News: No denomination will be withdrawn from the Iraqi currency, and the 20,000 is in the process of being designed

11/29/2022

 The Central Bank of Iraq announced that the category of 20,000 dinars is in the design and study phase.

 

The director of the media office of the bank, Omar Assem, told {Euphrates News} agency, that: "The bank is still in the process of preparing to study, design, and the extent of the impact of the new monetary category on Iraqi society."
He added, "It is too early to print the new category and release it for circulation during the next near stage."
Assem said, "The issuance of this paper will improve the national chain of banknotes, in addition to adding an intermediate category of banknotes, and will facilitate cash circulation among citizens."

He stressed that "none of the old cash categories will be withdrawn, and this category will be added to the rest of the categories with the aim of improving cash circulation. The bank is in the process of understanding and agreeing with discreet printing houses to choose the colors and security characteristics of the papers."

And the Governor of the Central Bank, Mustafa Makhaif, revealed during his participation in the “Al-Rafidian Forum for Dialogue” on September 27, the bank’s intention to issue a new denomination of the Iraqi currency at a value of 20 thousand dinars (approximately $ 13) based on a study and research compared with neighboring countries, and is working to complete The form of the paper, and in the coming days it will be announced.”

It is noteworthy that Iraq has - so far - 7 categories of local currency issued by the Central Bank of Iraq, which are {250 dinars, 500 dinars, 1000 dinars, 5000 dinars, 10000 dinars, 25000 dinars, and 50000 dinars}.

https://alforatnews.iq/news/البنك-المركزي-للفرات-نيوز-لن-يتم-سحب-أي-فئة-من-العملة-العراقية-والـ-20-ألفاً-في-طور-التصميم

[screwball]

3 hours ago, RJG said:

Central Bank of Euphrates News: No denomination will be withdrawn from the Iraqi currency, and the 20,000 is in the process of being designed

11/29/2022

 The Central Bank of Iraq announced that the category of 20,000 dinars is in the design and study phase.

 

The director of the media office of the bank, Omar Assem, told {Euphrates News} agency, that: "The bank is still in the process of preparing to study, design, and the extent of the impact of the new monetary category on Iraqi society."
He added, "It is too early to print the new category and release it for circulation during the next near stage."
Assem said, "The issuance of this paper will improve the national chain of banknotes, in addition to adding an intermediate category of banknotes, and will facilitate cash circulation among citizens."

He stressed that "none of the old cash categories will be withdrawn, and this category will be added to the rest of the categories with the aim of improving cash circulation. The bank is in the process of understanding and agreeing with discreet printing houses to choose the colors and security characteristics of the papers."

And the Governor of the Central Bank, Mustafa Makhaif, revealed during his participation in the “Al-Rafidian Forum for Dialogue” on September 27, the bank’s intention to issue a new denomination of the Iraqi currency at a value of 20 thousand dinars (approximately $ 13) based on a study and research compared with neighboring countries, and is working to complete The form of the paper, and in the coming days it will be announced.”

It is noteworthy that Iraq has - so far - 7 categories of local currency issued by the Central Bank of Iraq, which are {250 dinars, 500 dinars, 1000 dinars, 5000 dinars, 10000 dinars, 25000 dinars, and 50000 dinars}.

https://alforatnews.iq/news/البنك-المركزي-للفرات-نيوز-لن-يتم-سحب-أي-فئة-من-العملة-العراقية-والـ-20-ألفاً-في-طور-التصميم

This contradicts the old articles of 2012 when they were set to change rate and delete zeros, 1.12 was the aim back in 2012. Both old and new countries would be in play for 10 years and lower denoms were part of this. I say BS

[screwball]

The most appropriate option for the conditions in Iraq as a developing country is to stabilize the exchange rate, both against the dollar or to a basket of currencies, and choosing the appropriate exchange rate because the official exchange rate of the previous $ 3.2 of the dinar was originally overstated and should be chosen exchange rate less may be the price at which the link dinar against Currently the dollar after dividing it into a thousand dollars to 1.125 dinars a good price. 

[screwball]

 تبطَل في نهايتها العملة القديمة، لكن المصارف ستستمر في استلامها لـ 10 سنين بعدها لأغراض التبديل وليس لأغراض التداول. And will be the new currency in 2013 and the establishment of the new currency will take place of the current two-year void at the end of the old currency, but banks will continue to receive for 10 years after the switch for the purposes and not for circulation. 

[screwball]

Abdul-Hussein Abtan, Economic Committee Member of Parliament in Baghdad stated in a press conference that there is an initial agreement between Parliament and the central bank to start the process of removing three zeros in September, and it will take a year to complete. The new banknotes will be printed in Arabic, English and Kurdish. 

 

The CBI will introduce three new banknotes: 50 dinars, 100 dinars and 200 dinars. For smaller transactions, the CBI will also issue 1-dinar and 2-dinar coins which Iraq currently does not use. **(Note..you can't have a value this low without an high exchange rate)

[screwball]

MP Abtan says "The grant agreement is to ensure that during the one year process, the old banknotes are traded in the market and replaced by the new one." 

[screwball]

According to the agreements, the new bill will be printed by a European company and introduced to the market gradually and in a well-planned schedule to ensure it will not result in shocks and would not have a negative impact on the market," explained MP Khalil. He added the exchange rate between the new banknotes and the old ones would be 1:1,000. 

 

The objective behind this move is to appreciate the value of the Iraqi dinar against the U.S. dollar, which would in turn increase the balance of the Iraqi dinar and there would be sufficient reserves of that currency," explained MP Khalil. "Additionally, the economy of Iraq would grow and oil sales would also increase." Khalil added that Iraq has a reserve of $60 billion in the CBI. 

 

The CBI previously stated it would consult with Parliament and representatives to see whether there would be a need for a law to be passed for this shift. The Economic Committee announced on 19 February it was introducing new legislation for the purpose and would also address the inflation issue in the country. 

 

The introduction of new banknotes and withdrawing the current ones from the market is generally expected to reduce and control the number of dinars in circulation and would also help facilitate payment systems and control the banking transactions in the country.
 

so many smokescreens….what will happen is Anyones guess

[screwball]

He noted the benefit to the new currency that contained the categories of paper and metal, stressing the importance of the project to delete zeros in facilitating financial transactions, and pointed out that government banks are the only outlet for the process of replacing the currency that will continue over two years. 

 

It is noteworthy that Article 36 of the Law on Central Bank of Iraq gives him the right to replace the currency 

[screwball]

In turn, the economic expert Ali gnathion NA (range): The process of deleting the zeroes do not affect the purchasing power because the exchange rate is linked to the dollar, whether zeros exist or not exist, adding gnathion NA: The state is worried about the economic adjustment due to lack of visibility and there are many things must to be completed but fear prevents them, stressing that reform needs to be bold and success needs to be big steps. 

 

For his part, the citizen just a gesture that the deletion of zeros under the conditions of volatile economic and security threaten the economic reality of the existence of financial mafias lie in wait for the occurrence of such projects. 

 

Meanwhile, a citizen Ali Kemash that the deletion of zeros will reduce the manipulation of numbers by adding zeros to the accounts in banks and thus reduce or eliminate the economic corruption, banking, and made the home of Saif Amer shop owner for the franchise that the deletion of zeros will reduce the big numbers that contribute to facilitating the processes calculation.

[screwball]

the central bank promised that he could make a change of currency and delete zeros in order to reduce inflation in the country.” 

[screwball]

The Central Bank of Iraq and on to San bank adviser appearance of Mohammed Saleh stressed the need for Iraq to the process of administrative reform of the currency cash and that the project to delete the zeros is a step comes as part of the country's need to the process of administrative reform of the currency in order to reduce the cost of cash transactions in the economic process as well as the need to provide currency cash used in small groups of small transactions daily circulation. 

 

The officials at the Central Bank as well as some politicians and economists urged the government to delete the zeros from the currency and the issuance of new currency denominations as well as large cash to the presence of small coins. 

 

Observers say that the government intends to delete the zeros from the currency as a step towards improving the purchasing power of the Iraqi dinar is that economists played down the importance of this step, considering that the cost of raising the zeros will be greater than the expected benefit of raising the zeros

[screwball]

Denied the deputy governor of the Central Bank of the appearance of Mohammed Saleh, the central bank measures to remove zeros from the currency in the month of May next.

 

He said in a press statement that “what appeared in the media about the start of procedures to delete the zeros in the month of next May, is unfounded,” noting that such a move begins with the beginning of the new fiscal year and not in the middle of it. 

[screwball]

When’s the new fiscal year? Jan?

[screwball]

The fiscal year begins on January 1st and ends on December 31 of the same year. The Iraqi Company Law No. 21 of 1997 establishes financial reporting requirements in Iraq.

[jg1]

Nooooooooo.

delete the zeros from the currency and the issuance of new currency denominations