Iraq Planning Currency Redenomination

[Roscoboy007]

BAGHDAD -- The Iraqi Central Bank is planning to redenominate the national currency in an effort to ease transactions and allow people to carry less paper money, RFE/RL's Radio Free Iraq (RFI) reports.

Mudhhir Muhammad Salih, a member of a Central Bank advisory panel, told RFI that a plan has been made to remove three zeros from the currency and phase out the current banknotes late this year.

Salih said by the end of 2010 the new banknotes will be fully introduced while the old banknotes will be gradually removed from circulation. He did not specify when the new notes would be issued.

Both will be legal tender in Iraq until the old notes are completely withdrawn.

Iraqi officials have had a long-running plan to redenominate the Iraqi dinar. In 2006, the Finance Ministry recommended to the Central Bank that it carry out such a plan.

Salih pointed out that banks are having a hard time accepting cash savings and deposits, but by dropping the zeros it will make it easier for both the banks to deal with their customers and for the general public to carry money. He said some 80 percent of Iraq's money supply is cash in circulation.

Salih added that in 1990 the value of banknotes in circulation was about 25 billion Iraqi dinars but is currently some 25 trillion dinars.

Economic analyst Hilal al-Tahhan told RFI that the bank's move is overdue. He said he expects the currency change to go smoothly because of the decision to allow both the old and new banknotes to coexist, leading to less turbulence in the economy.

The current exchange rate is 1,167 Iraqi dinars to the U.S. dollar.

[RVDinar4MyFamily]

LINK? date of article? looks like past articles that have been posted

[Roscoboy007]

LINK? date of article? looks like past articles that have been posted

It was emailed to me today from a buddy in Iraq...it may be old and if it is then SORRY.....just wanted to past it along

[RiverStyx]

What I have been blasted for saying this whole time.

I showed this letter of removing the zeros from the last few days to a corporate banking attorney friend of mine and he told me that is exactly what he read. To increase the value of the dinar for example by removing the 3 0's from the 25,000 notes would increase it by removing 24,975 dinar from the market... The revers of printing more money and how it makes the value go down. Thus allowing it to reopen at for example 3.00 US to the 1 Dinar. Making Iraq achieve all of its goals and was told also that the Iraqi people have been exchanging the large notes already thus saving the in country problem...

Still a x3 return on your investment if it happens that way. Using the 3 to 1 example. Saves them trillions of dollars and still accomplish their goals.

I asked him about the US payback. His reply was....."For that matter they could simply return it to the US by X amount of barrels of OIL. No money involved. To the US Government.

There are several ways to pay back the US.

[ThePeoplesChamp]

It all makes sense in every way we look at it. But what makes the best sense and what is more beneficial to the country,IMF, and world economy.

Either Way

It's time to RV!!!!!

[zeebra]

Here is the link, old news

http://www.rferl.org/content/Iraq_Planning_Currency_Redenomination/1950504.html

[Marilyn53]

Well blow my bloomers.....was hoping for another microsoft, but alas.....we read what we want to hear, but sometimes we just don't listen. I guess for all you that have invested quite a lot, that is a good return, but for the rest of us, it stinks! LOL....should have known. Something like this is always just too good to be true.

[RiverStyx]

Well blow my bloomers.....was hoping for another microsoft, but alas.....we read what we want to hear, but sometimes we just don't listen. I guess for all you that have invested quite a lot, that is a good return, but for the rest of us, it stinks! LOL....should have known. Something like this is always just too good to be true.

These are only interpretations not predictions and bottom line no one knows until it happens.

[ThePeoplesChamp]

These are only interpretations not predictions and bottom line no one knows until it happens.

Exactly!

[bowling4dinars]

What I have been blasted for saying this whole time.

I showed this letter of removing the zeros from the last few days to a corporate banking attorney friend of mine and he told me that is exactly what he read. To increase the value of the dinar for example by removing the 3 0's from the 25,000 notes would increase it by removing 24,975 dinar from the market... The revers of printing more money and how it makes the value go down. Thus allowing it to reopen at for example 3.00 US to the 1 Dinar. Making Iraq achieve all of its goals and was told also that the Iraqi people have been exchanging the large notes already thus saving the in country problem...

Still a x3 return on your investment if it happens that way. Using the 3 to 1 example. Saves them trillions of dollars and still accomplish their goals.

I asked him about the US payback. His reply was....."For that matter they could simply return it to the US by X amount of barrels of OIL. No money involved. To the US Government.

There are several ways to pay back the US.

Makes perfectly good sense. unfortunately

[bowling4dinars]

so if you have stacks of fifties you wouldn't be effected?

if you have 25,000 or other large denoms you would at least triple your money. is that right?

Edited November 21, 2010 by bowling4dinars

[bowling4dinars]

cool.

[djwebby]

so if you have stacks of fifties you wouldn't be effected?

if you have 25,000 or other large denoms you would at least triple your money. is that right?

If they LOP one note then they have to LOP them all.

[bowling4dinars]

If they LOP one note then they have to LOP them all.

[/quot

thanks for clearing that up.

[jandantexas]

Makes perfectly good sense. unfortunately

guess I'm missing something...why would that be unfortunate?? If the value is 1 dinar =3 USD...does that not mean that if you have 100,000 dinar (that you probably only paid somewhere in the neighborhood of $100 for) you can cash it in for 300,000 USD?

[Doc31]

It's a recycled article and Salih is the "chicken little" of Iraq. He yells "lop" and Shabibi has to come out and say, "no, of course not".

Salih doesn't even work for the CBI ... he MIGHT be a consultant ... at least that's what he says ... the CBI hasn't said that.

No sale ... but thanks for the post!

[dravmorris2]

EXACTLY. YOU GOT IT. $100 PAID OUT, $300,000 BACK AS YOUR RATE OF RETURN.

THAT'S WORKS.

DRAVMORRIS2

[royboyterry]

guess I'm missing something...why would that be unfortunate?? If the value is 1 dinar =3 USD...does that not mean that if you have 100,000 dinar (that you probably only paid somewhere in the neighborhood of $100 for) you can cash it in for 300,000 USD?

no ur 100,000 dinar will now be only 100

[letsroll]

Ok then, Adam stated he would buy all your dinar for more than Ali is paying....then just order up all the 100 / 500 notes you can get for the money you have since this article is talking only the 3 zero notes is that the new plan ...

[bowling4dinars]

It's a recycled article and Salih is the "chicken little" of Iraq. He yells "lop" and Shabibi has to come out and say, "no, of course not".

Salih doesn't even work for the CBI ... he MIGHT be a consultant ... at least that's what he says ... the CBI hasn't said that.

No sale ... but thanks for the post!

Thanks. think i feel better now....