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Iraq’s Central Bank Considers New Currency


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Iraq’s Central Bank says the country is in need of a new currency in which the current zeros are removed to facilitate commercial transactions, according to Azzaman.

The bank’s Governor, Sinan al-Shabibi, said he was in talks with the prime minister, Nouri al-Maliki, on how to go ahead with the bid to issue currency with a lower denomination and higher value.

Shabibi said Iraqis were now relying a lot on the U.S. dollar, particularly in settling cash transactions that required a lot of money.

The use of credit cards is still limited in Iraq and cash is still the main source in trade and commerce.

Allocations even for small projects and to carry out simple commercial deals are in millions or billions of dinars.

Three bundles of $10,000 require carrying or paying about 40 million dinars.

The new arrangement, once implemented, will make transactions simpler and easier, the Central Bank governor said.

Calculating and paying with the current currency makes trade deals rather “awkward and difficult” for a small country like Iraq, Shabibi said.

Other countries, like Turkey and Brazil, successfully dealt with the same problem by removing zeros from their currency.

In Turkey, people dealt with millions of liras for simple purchases and transactions. Today a dollar is worth about 1.6 new liras.

Shabibi said there was a lot for Iraq to learn from Turkey.

http://www.iraq-businessnews.com/2011/07/18/iraqs-central-bank-considers-new-currency/

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Iraq’s Central Bank says the country is in need of a new currency in which the current zeros are removed to facilitate commercial transactions, according to Azzaman.

The bank’s Governor, Sinan al-Shabibi, said he was in talks with the prime minister, Nouri al-Maliki, on how to go ahead with the bid to issue currency with a lower denomination and higher value.

Shabibi said Iraqis were now relying a lot on the U.S. dollar, particularly in settling cash transactions that required a lot of money.

The use of credit cards is still limited in Iraq and cash is still the main source in trade and commerce.

Allocations even for small projects and to carry out simple commercial deals are in millions or billions of dinars.

Three bundles of $10,000 require carrying or paying about 40 million dinars.

The new arrangement, once implemented, will make transactions simpler and easier, the Central Bank governor said.

Calculating and paying with the current currency makes trade deals rather “awkward and difficult” for a small country like Iraq, Shabibi said.

Other countries, like Turkey and Brazil, successfully dealt with the same problem by removing zeros from their currency.

In Turkey, people dealt with millions of liras for simple purchases and transactions. Today a dollar is worth about 1.6 new liras.

Shabibi said there was a lot for Iraq to learn from Turkey.

http://www.iraq-busi...s-new-currency/

old news

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Shabs is right.... they do have a lot to learn from Turkey.....

History shows that Turkey had a tremendous inflation and, as a result, removed many zeros from their currency. The problem was that the first time they did it, they ignored the advice given them from the IMF and it almost cost them their country. Then, after almost ruining their commerce and country, they finally followed the IMF advice and did it right. So.... IRAQ does have a lot to learn from Turkey... they had better do the RV correctly the first time following the advice from the IMF.

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Shabs is right.... they do have a lot to learn from Turkey.....

History shows that Turkey had a tremendous inflation and, as a result, removed many zeros from their currency. The problem was that the first time they did it, they ignored the advice given them from the IMF and it almost cost them their country. Then, after almost ruining their commerce and country, they finally followed the IMF advice and did it right. So.... IRAQ does have a lot to learn from Turkey... they had better do the RV correctly the first time following the advice from the IMF.

hmm.. very interesting i did not know that. Thanks for the heads up.

:)

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Shabs is right.... they do have a lot to learn from Turkey.....

History shows that Turkey had a tremendous inflation and, as a result, removed many zeros from their currency. The problem was that the first time they did it, they ignored the advice given them from the IMF and it almost cost them their country. Then, after almost ruining their commerce and country, they finally followed the IMF advice and did it right. So.... IRAQ does have a lot to learn from Turkey... they had better do the RV correctly the first time following the advice from the IMF.

your right, turkey f-ed it up so bad there country almost collapsed financialy, iraq has a ton to learn from turkey's mistakes, plus turkey had multiple currencies, and iraq only has one worthless currency. the rv is a noooooo-brainer, dont let slade (who is pretty funny) jmw, or dinarck ruin it for you guys they are close to flat out rv'ing.

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Iraq’s Central Bank says the country is in need of a new currency in which the current zeros are removed to facilitate commercial transactions, according to Azzaman.

The bank’s Governor, Sinan al-Shabibi, said he was in talks with the prime minister, Nouri al-Maliki, on how to go ahead with the bid to issue currency with a lower denomination and higher value.

http://www.iraq-businessnews.com/2011/07/18/iraqs-central-bank-considers-new-currency/

Keep your eye on the ball. I do not recall Shabibi ever using the statement above. Lower denomination and higher value in the same sentence. This is the first clear statement from Shabibi that he plan to revalue the currency at the same time the new lower denomination are put into circulation. But all of this is just my take on the article.

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I really wish "the powers that be" would get moving with this RV stuff. I've been following this on an almost daily basis for almost a year now and I don't understand what the hold up is.

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Other countries, like Turkey and Brazil, successfully dealt with the same problem by removing zeros from their currency.

In Turkey, people dealt with millions of liras for simple purchases and transactions. Today a dollar is worth about 1.6 new liras.

Shabibi said there was a lot for Iraq to learn from Turkey.

http://www.iraq-busi...s-new-currency/

thanks for posting QL...Turkey had a successful re-denomination after their inflation was stabilized....It's pretty clear to me that is what he is referring to...but I don't want to scare anyone.

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At this point, they will have to RV, and then RD. They need to increase the value now! It will take time to change the currency, and they have said before, that they will do that over time. They have printed news articles, that have said that they will have 2 currency's, and they will co-exist.

I think that we are getting inundated with lopping, and redenomination articles, and I think it is more to do with what the Iraqi government wants the news to report. They are only putting the negative news out there, and hoping to discourage investors.

This is just my opinion, but again, they need to increase value now.

Go RV!!!

:rolleyes::rolleyes:

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Iraq’s Central Bank says the country is in need of a new currency in which the current zeros are removed to facilitate commercial transactions, according to Azzaman.

The bank’s Governor, Sinan al-Shabibi, said he was in talks with the prime minister, Nouri al-Maliki, on how to go ahead with the bid to issue currency with a lower denomination and higher value.

Shabibi said Iraqis were now relying a lot on the U.S. dollar, particularly in settling cash transactions that required a lot of money.

The use of credit cards is still limited in Iraq and cash is still the main source in trade and commerce.

Allocations even for small projects and to carry out simple commercial deals are in millions or billions of dinars.

Three bundles of $10,000 require carrying or paying about 40 million dinars.

The new arrangement, once implemented, will make transactions simpler and easier, the Central Bank governor said.

Calculating and paying with the current currency makes trade deals rather “awkward and difficult” for a small country like Iraq, Shabibi said.

What does this have to be posted 3 times to get it done. Please, lets get on with it and make the world start working again already. IRAQ GET ER DONE!

Other countries, like Turkey and Brazil, successfully dealt with the same problem by removing zeros from their currency.

In Turkey, people dealt with millions of liras for simple purchases and transactions. Today a dollar is worth about 1.6 new liras.

Shabibi said there was a lot for Iraq to learn from Turkey.

http://www.iraq-businessnews.com/2011/07/18/iraqs-central-bank-considers-new-currency/

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Sonny1 is right and not only that but remember also, shabbibi worked at the IMF for years. He knows what he is doing. I do believe that Shabs will do this properly. Iraq cannot afford to delay or take unneccessary risks with their currency.

Thank you for sharing this info with us. I did not know that Shabibi worked for the IMF before...

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Iraq’s Central Bank says the country is in need of a new currency in which the current zeros are removed to facilitate commercial transactions, according to Azzaman.

The bank’s Governor, Sinan al-Shabibi, said he was in talks with the prime minister, Nouri al-Maliki, on how to go ahead with the bid to issue currency with a lower denomination and higher value.

Shabibi said Iraqis were now relying a lot on the U.S. dollar, particularly in settling cash transactions that required a lot of money.

The use of credit cards is still limited in Iraq and cash is still the main source in trade and commerce.

Allocations even for small projects and to carry out simple commercial deals are in millions or billions of dinars.

Three bundles of $10,000 require carrying or paying about 40 million dinars.

The new arrangement, once implemented, will make transactions simpler and easier, the Central Bank governor said.

Calculating and paying with the current currency makes trade deals rather “awkward and difficult” for a small country like Iraq, Shabibi said.

Other countries, like Turkey and Brazil, successfully dealt with the same problem by removing zeros from their currency.

In Turkey, people dealt with millions of liras for simple purchases and transactions. Today a dollar is worth about 1.6 new liras.

Shabibi said there was a lot for Iraq to learn from Turkey.

http://www.iraq-businessnews.com/2011/07/18/iraqs-central-bank-considers-new-currency/

WHAT DOES IT HAVE TO POSTED 3 TIMES TO MAKE IT LEGIT. GOOD GIEF THIS IS GETTING CRAZY. IRAQ GET ER DONE!

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Looking at news article of June 27 2011 CBI stated they have completed project of deleting the Zeros and giving steps to go forward. It was to be submitted to the Central Banks Administration 's next session. I know this is old news but according to this article they are spelling it out to everyone.

Any thoughts from anyone

Posted in Banking & Finance, Security1 Comment

Iraq Prepares to Redenominate its Currency

Posted on 27 June 2011. Tags: Central Bank, IQD, Redenomination, revaluation

According to a report from Al Sumaria News, Iraq’s Central Bank announced on Thursday that it is planning to delete the zeros from its currency, the Iraqi dinar.

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 zeros 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 adviser of Iraqi Central Bank governor Mothahhar Mohammed Saleh [Mudher Mohammed Saleh] told the agency.

“The Central Bank has prepared all requirements needed to delete the zeros from 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 zeros and will include the Kurdish language in addition to the Arabic language. It will also bear photos of Iraq’s civilization in addition to symbols of Iraqi intellectuals and figures”, Saleh noted.

Sanan Al Shebeibi [sinan Al-Shabibi], Governor of Iraq’s Central Bank, affirmed during the meeting of independent commissions on June 19 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, Erbil 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.

It’s six years since neighbouring Turkey redenominated its currency, making one ‘new Turkish lira’ equal one million ‘old Turkish lira’.

(Source: Al Sumaria)

Posted in Banking & Finance

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“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.

This is the plan that was submitted by Shabibi to Maliki. It will have to be accepted by Maliki, read a few times, then brought up for a vote - no time frame given

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

This is the second step - no timeframe given

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.

One of the goals is to reduce the money supply

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.

This about article 140 compliance and moving toward Erbil Agreement.

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

This pretty much sizes up the operation... Entire Currency to be replaced with new. No mechanism introduced or explanation given for how Dinar holders outside of Iraq get to exchange theirs.

****************

The article can be broken down paragraph, and ten folks may give ten interpretations.

Mine can be just as wrong as anyone else's..

Smoke and Mirrors???

Only time will tell.

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This is the plan that was submitted by Shabibi to Maliki. It will have to be accepted by Maliki, read a few times, then brought up for a vote - no time frame given

This is the second step - no timeframe given

One of the goals is to reduce the money supply

This about article 140 compliance and moving toward Erbil Agreement.

This pretty much sizes up the operation... Entire Currency to be replaced with new. No mechanism introduced or explanation given for how Dinar holders outside of Iraq get to exchange theirs.

****************

The article can be broken down paragraph, and ten folks may give ten interpretations.

Mine can be just as wrong as anyone else's..

Smoke and Mirrors???

Only time will tell.

I'd say that was a very good interpretation...the only real argument is if they are lying to everyone or trying to educate everyone.

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I'd say that was a very good interpretation...the only real argument is if they are lying to everyone or trying to educate everyone.

That, my Friend, is the 1,000,000 Dinar question.

The high voltage rectifier in my Crystal Ball went out in the middle of that post. :P:):D

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