2 articles - last hour

[WesParsons]

Iraq News

Iraq’s Central Bank plans to delete zeroes of Iraqi currency.

Friday, June 24, 2011 11:23 GMT

Iraq’s Central Bank announced on Thursday that it is planning to delete the zeroes of the Iraqi currency.

This step is one of the bank’s strategic missions; the Central Bank said adding that the new currency will include the Kurdish language in addition to the Arabic language.

“The zeroes that were added to the Iraqi currency previously constituted a large money supply up to 28.500 trillion Iraqi Dinar and 5 trillion banknotes”, the advisor of Iraqi Central Bank governor Mothahhar Mohammed Saleh told Alsumarianews.

“The Central Bank has prepared all requirements needed to delete the zeroes of the Iraqi Currency”, Saleh said.

“This step is one of the Iraqi central bank’s strategic missions. The monetary policy of the bank aims to structure and reduce the currency in a country moving towards an economic phase”, he added.

“The project of deleting zeroes is complete. It will be submitted to the central bank’s administration in the next session. Then, it will be passed to the ministerial council before presenting it to the Parliament for vote. The mechanisms of changing the currency will be gradual. It will be preceded by awareness campaigns for citizens”, the adviser of Iraqi Central Bank governor said.

“The new currency will be printed after deleting the zeroes and will include the Kurdish language in addition to the Arabic language. It will bear as well photos of Iraq’s civilizations and patrimony in addition to symbols of Iraqi intellectuals and figures”, Saleh noted.

On June 19, Iraq’s Central Bank Governor Sanan Al Shebeibi affirmed during the meeting of independent commissions with Prime Minister Nuri Al Maliki that the bank is preparing all requirements needed to replace the Iraqi Currency.

Iraq’s Central Bank has four branches including Basra, Sulaimaniah, Arbil and Mosul. It was founded as an Iraqi independent bank by virtue of Iraq’s Central Bank Law issued on March 6, 2004.

The bank is responsible for the prices stability and the implementation of monetary policy including exchange rates, the management of foreign reserves, the issuance of currencies and the organization of the banking sector.

Article 2

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.

They're busy over there today!

and it flat out says a 25K bank note will become a 25 bank note

[ThePeoplesChamp]

FANTASTIC ARTICLES! Except for the Saleh part.

Thank you for the posts!

Edited June 24, 2011 by ThePeoplesChamp

[Don & Rocio]

Have some links Wes? It also said "In the longer term" so maybe that means an RV will happen first then an RD?

Edited June 24, 2011 by Don & Rocio

[DRV1804]

What am I missing!? This isnt good!! We dont want our 25k note to become 25!!

[TPSprayduster]

interesting i just hope my electronic dinars does not suffer a LOP Go RV!!!!!!!

[STI4RV]

The first one came out yesterday

[easyrider]

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.

its not a done deal yet folks calm down we all knew it was an option here but this won't stick.

Misinformation if its coming from saleh.

Edited June 24, 2011 by easyrider

[jlopez]

Sounds like I lost some money....

[jocko129]

GREAT POST!!! :D

[dstem]

Article 2

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.

Read more:

Might not what you Think

[thompson25]

This is good news and bad news. The BAD news being that both talk about this being a gradual change so in no way shape or form can this possibly be done in one week as I see all these people talking about in the forums. The bad news (if you consider it bad news) is that the 25k note WILL BE a 25 note and so this investment will not make people millionaires unless of course they dumped a lot of money into this. The good news is that there is written proof that this will take place.

[dstem]

$100,000 dinar maybe??? Hard to understand what they really are going to do.

[Snatcher]

" 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."

This leads me to believe that, when they do revalue a 25,ooo dinar note will be worth face value 25,ooo dinar..But after a time limit (In the Longer term) the 000's will be dropped or taken away and it will then be the new 25 dinar note.

Edited June 24, 2011 by Snatcher

[SnowGlobe7]

i would really like to know when they are going to do....whatever they are going to do.

After reading all those articles...i know they are working on it, but did anyone see something that I missed as far as when???

[easyrider]

" 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."

This leads me to believe that, when they do revalue a 25,ooo dinar note will be worth face value 25,ooo dinar..But after a time limit (In the Longer term) the 000's will be dropped or taken away and it will then be the new 25 dinar note.

thats what i got out of it we will have a cash in window people get ready for it.

Edited June 24, 2011 by easyrider

[FishmanTx]

"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."

It does not mean necessarily the value of the 25k, but what bill is the largest denomination. Don't freak and read something into this that may not be there!

[dstem]

Its saying that in the short term they need bigger bills at the current value of the dinar to use effectively IMO.

[lechesuerte]

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.

its not a done deal yet folks calm down we all knew it was an option here but this won't stick.

Misinformation if its coming from saleh.

My thoughts exactly but let's hope brother. This is when I think a step RV makes the most sense. When you hear numbers like this it is a little scary. Glass all the way full.

lechesuerte

[SnowGlobe7]

Its saying that in the short term they need bigger bills at the current value of the dinar to use effectively IMO.

Right so .come in with a low RV then slowly go up...removing all the big bills and introducing the small ones...right???

Edited June 24, 2011 by SnowGlobe7

[dstem]

Right so .come in with an RV then slowly go up...removing all the big bills and introducing the small ones...right???

Exactly!!!!

[WesParsons]

Links for those who need them

Article 1 link for article 1

and

Article 2 link for article 2

[FishmanTx]

Looks like Marcus C. was close to spot on in his analysis.

[Hesalwayswithus]

all this worrying and speculation....I'm sure financial advisors are split on this too... which only means no one truly knows what's about to go down. I just hope for the best

[Matilda]

"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."

Huh??!! Can someone splain' to me what this sentence means. This can't be happening. Our 25k will be worth $25 USDs. I'm so confused.

Are they kidding?

[FrankenSLI]

Is this a valid news source or are they just giving their opinion on the articles recently released from the cbi? I am not saying that this is not true but I would feel more confident in what I do or dont belive if this came directly from the CBI site.