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The central bank's plan for reducing its Iraqi dinar

carlablum

By carlablum,
in Iraq & Dinar Related News

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carlablum Newbie

carlablum

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The central bank's plan for reducing its Iraqi dinar

04.08.2011

Faris Omar

The oil wealth and progress of the proceeds of abundant, secure the cover of the national currency with the Iraqi dinar has become one of the strongest currencies in the Middle East.

The central bank has the distribution of foreign exchange reserves in a basket of currencies like the dollar and the pound sterling and the Japanese yen as well as its reserve of gold so that the cover of the Iraqi dinar remains strong, regardless of fluctuations in the currency market.

Until the early eighties was the Iraqi dinar equivalent of more than three dollars U.S., but the damage to the Iraqi economy since the invasion of Kuwait at this time 21 years ago and subsequent wars and international sanctions, ensured all firing runaway inflation destroyed the value of the Iraqi dinar so that the price now spent more than a thousand dinars to the dollar.

Coupled with the erosion of the value of the currency and banking financial difficulties and administrative and accounting are still different, especially in trade and handle daily cash.

Faced with this situation since the central bank decided early in 2010 a plan to drop three zeros from the Iraqi currency nominal and pave the way for a gradual procedure that preserves the purchasing power and prevent the exposure of the Iraqi market to the economic turmoil hurt consumers.

Radio Free Iraq adviser met with the Central Bank of the appearance of Mohammed Saleh, who reviewed the falling value of the Iraqi dinar, referring to the deletion of zeros is part of a project to reform the management of the national currency.

The Chancellor said Mohammed Saleh, the burden posed by the mass cash payment system, as reflected in the revenue budget figures, for example, trillions. Mohammed Saleh pointed out that the draft dropping zeros from Iraqi dinar is based on optimistic forecasts the prospects for the development of the Iraqi economy in the coming period.

He revealed the central bank adviser said the bank plans to return to the coin because of their preferences on paper currency, especially from small groups that are not worth the trouble worth dealing with.

Mohammed Saleh refused to set a date to launch new dinar, saying that the management reform of the national currency a strategic project, but stressed that the central bank will be within a month of the implementation of an integrated plan to the Cabinet the last word in this regard.

Expert in the Ministry of Finance Crescent Miller predicted that the result in the deletion of zeros from lower inflation, noting that countries such as Turkey and Brazil prior to Iraq in this area.

Miller noted the characteristics of the new currency trading is expected after this procedure, including the adoption of the three languages ​​are Arabic, Kurdish and English, only the symbols of civilization and to prevent the use of pictures of any official.

The expert in the Ministry of Finance on the conviction that the process of replacing the currency will be smooth, especially as the old currency will remain in circulation alongside the new currency of time to allow a gradual withdrawal of steps does not affect the daily exchanges.

Economic analyst, Basil Jamil Antoine ruled economy is affected by changing money, but called for an awareness campaign to prepare public opinion and to the logistical procedures in financial institutions involved.

One benefit of the consumer citizen is expected to result directly delete the zeros of the possibility of using vending machines that are still unknown in Iraq because of the technical and practical difficulties in the mobilization of these ATMs in Iraqi dinars now.

Contributed to the file via Radio Free Iraq in Baghdad, Khalid Waleed

http://translate.google.com/translate?u=http%3A%2F%2Fwww.iraqhurr.org%2F&langpair=ar|en&hl=en&ie=UTF8

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lechesuerte Newbie

lechesuerte

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Why does everyone assume that removing 3 zeros is off the dinar and not off the exchange rate?

Not :

25,ØØØ dinar = 25 dinar

But instead:

Exchange rate:

.ØØØ85 = .85 (removed 3 zeros)

Because they keep mentioning nominal rate not nominal exchange rate. Hopefully just a translation problem but they also cannot come out and say, "hey buy dinar because we are going to raise its rate". We'll just hope!

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fastarnie Newbie

fastarnie

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12th paragraph states that the old currency will remain in circulation along with the new. Doesn't sound like lop to me. Sorry they wouldn't use the old currency with the three zeros at all if it was to lop. I could be wrong, but I'm thinking not this time.

Go Iraq, Go Rv

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FrankenSLI Newbie

FrankenSLI

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Let us pray for no lop but I hate to say that if they do I do not think the holders of lower denoms will be excluded. With talk of releasing 50 and 100 dinar coins it sounds like all currency will eventually be phased out. Let us just hope the opt for a 1 to 1.

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InItSince05 Newbie

InItSince05

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Why does everyone assume that removing 3 zeros is off the dinar and not off the exchange rate?

Not :

25,ØØØ dinar = 25 dinar

But instead:

Exchange rate:

.ØØØ85 = .85 (removed 3 zeros)

Because what they are saying is they are removing three 000's from the currency not the exchange rate. I hope its not a lop but they also keep mentioning Turkey also. :unsure:

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hoopdog Newbie

hoopdog

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Is it me or does every thread end the same damn way: LOP vs noLOP? Just an observation...

Yes, it does and it's quite laughable. Fact is neither side has a clue of what they are really going to do, but the debate continues and the tempers flare anyway. Gives people something to do I guess.

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hoopdog Newbie

hoopdog

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You are wrong. In previous lops both currencies have existed alongside each other.

So do I. That doesn't mean I can hand the clerk at Wal-Mart a dog turd and tell him it's worth 3.22 USD. Well, I can, I just don't think he's going to believe me.

How can somebody be wrong about something that hasn't happend yet? Sounds like you have a lot of time on your hands, give that dog turd idea a shot.

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DAME1 Newbie

DAME1

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You are wrong. In previous lops both currencies have existed alongside each other.

So do I. That doesn't mean I can hand the clerk at Wal-Mart a dog turd and tell him it's worth 3.22 USD. Well, I can, I just don't think he's going to believe me.

Hey newbie go back to the drawing board. It's not going to Lop .....THEY NEED CAPITAL TO REBUILD AND PAY THEIR DEBTS

Hug and kisses. NO LOP ;)

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estewart Newbie

estewart

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A genuine, realistic. . . POSSIBLE possibility. . . is that there will be no LOP, but that simply none of the new currency will have three zeros, and all the currency that does have three zeros will just be taken out of circulation when it reaches the bank. Simple.

MAN! I sure do hope this "possibility" will be the way it works out. . . . along with the main thing. . . . NO CANCELLATION DATE for the three zeroed bills. THEN we can just hold on to our three zeroed bills we all have and wait it out. RV or no RV, this money is going to go up in value.

I believe Iraq will be becoming the Hong Kong of the Middle East.

Now, remember, you heard that here first!

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nemesis760 Newbie

nemesis760

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So do I. That doesn't mean I can hand the clerk at Wal-Mart a dog turd and tell him it's worth 3.22 USD. Well, I can, I just don't think he's going to believe me.

PLEASE DOCUMENT THAT EXPERIMENT!!! I really want to see that happen!! I think the look on the cashiers face would be worth the $3.22 that she will inevitably not give you.

However, if you are a shady con artist you can pull that off, and what rhymes with shady con artist...... all together now: IRAQI GOVERNMENT OFFICIAL

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blessedman Newbie

blessedman

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You are wrong. In previous lops both currencies have existed alongside each other.

So do I. That doesn't mean I can hand the clerk at Wal-Mart a dog turd and tell him it's worth 3.22 USD. Well, I can, I just don't think he's going to believe me.

Somewhat self-righteous and full of yourself there newbie boy....................

I'll wager 25,000 dinar it doesn't lop, you game..................and that's not pre-rv............if you are so sure of your OPINION should be a no-brainer

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estewart Newbie

estewart

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Let us pray for no lop but I hate to say that if they do I do not think the holders of lower denoms will be excluded. With talk of releasing 50 and 100 dinar coins it sounds like all currency will eventually be phased out. Let us just hope the opt for a 1 to 1.

THIS article made a new statewment about coins. It said: "He revealed the central bank adviser said the bank plans to return to the coin because of their preferences on paper currency, especially from small groups that are not worth the trouble worth dealing with."

I interpret this translation to be saying: People don't want coins. Various groups have made their distaste for coins clear. So, there has been a change of plans. There will be no coins.

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