Central Bank: Iraq plans to delete the three zeroes from the currency

[Pursuit0fHappiness]

Iraq plans to redenominate its dinar currency by knocking three zeros off the nominal value of bank notes to simplify financial transactions, a senior central bank official said on Saturday.

Central Bank Deputy Governor Mudher Kasim said he expected the new currency to be used in the market in three years and it would have no impact on inflation.

"This will facilitate the payments system ... instead of carrying a lot of money, we will carry less. This is an important reform," Kasim told Reuters.

Iraq is recovering after years of war and sanctions and oil still dominates the economy, accounting for 95 per cent of government revenues. Investors complain Iraq's still heavily centralized economy is mired in red tape and bureaucracy, and transactions are still often carried out in cash.

Kasim said planning and the preparation for reform was complete and the proposal would be handed to the government in the next month. It would also need parliamentary approval.

Iraq's central bank began discussing the redenomination of the dinar last year aiming to help ease financial transactions.

In Iraq many payments are still carried out in cash because of the underdeveloped banking system.

The Iraqi dinar is traded in auction at a fixed rate of 1.170 per dollar.

Iraq has 30 trillion dinars in circulation, Kasim said, and the project would bring liquidity to 30 billion.

He said the restructuring would include issuing higher categories of currency and the use of coins for the first time.

Iraq's higher denomination currently is a 25,000 Iraqi dinar bill worth around $21. – Reuters

http://www.tradearabia.com/news/BANK_203086.html

[Markinsa]

Central Bank: Iraq plans to delete the three zeroes from the currency

Translated Link

Sat Aug 6, 2011 2:19pm GMT

BAGHDAD (Reuters) - A senior official of Iraq's central bank said on

Saturday that Iraq intends to amend the categories of its currency the dinar

by deleting three zeros in order to facilitate financial transactions.

Qasim said the appearance of the deputy central bank governor, said he

expected the use of categories of the new currency in the market within

three years and shall not affect inflation.

He told Reuters that the aim is to facilitate the payment system.

Iraq is recovering after years of war, sanctions and the oil still

dominates the economy, accounting for 95 percent of government revenue.

Investors have complained that Iraq's economy, which is still subject to a

high degree of central planning suffers from administrative and procedural

complexities that most transactions are in cash.

Qasim said the planning and preparation stage of reform has been completed

and that the proposal will be submitted to the government next

month. It will require the approval of Parliament as well.

The Central Bank of Iraq began to discuss amending the dinar categories last

year. And is still a large part of the payments are in cash because of the

evolution of the banking system.

Qasim said the restructuring includes the issuance of the highest categories

of use of currency and coins for the first time. The highest category of the

Iraqi currency is now 25 thousand dinars, worth about $ 21.

Of Aseel Kami

[tjmunson]

Central Bank: Iraq plans to delete the three zeroes from the currency

Translated Link

Sat Aug 6, 2011 2:19pm GMT

BAGHDAD (Reuters) - A senior official of Iraq's central bank said on

Saturday that Iraq intends to amend the categories of its currency the dinar

by deleting three zeros in order to facilitate financial transactions.

Qasim said the appearance of the deputy central bank governor, said he

expected the use of categories of the new currency in the market within

three years and shall not affect inflation.

He told Reuters that the aim is to facilitate the payment system.

Iraq is recovering after years of war, sanctions and the oil still

dominates the economy, accounting for 95 percent of government revenue.

Investors have complained that Iraq's economy, which is still subject to a

high degree of central planning suffers from administrative and procedural

complexities that most transactions are in cash.

Qasim said the planning and preparation stage of reform has been completed

and that the proposal will be submitted to the government next

month. It will require the approval of Parliament as well.

The Central Bank of Iraq began to discuss amending the dinar categories last

year. And is still a large part of the payments are in cash because of the

evolution of the banking system.

Qasim said the restructuring includes the issuance of the highest categories

of use of currency and coins for the first time. The highest category of the

Iraqi currency is now 25 thousand dinars, worth about $ 21.

Of Aseel Kami

These far out timeframes and contradictions in press releases, in my opinion, are a very clear sign that we are getting very close. It has been said right along that the smoke will get very thick near the end of this ride. I think when the article is released by Saleh stating that "The Iraqi dinar will NEVER revalue" will indicate an immediate RV. Read between the lines. With everything going wrong in the world economy right now, it is Saleh's job to spew misinformation and throw people off from the reality that is actually happening.

I like this article. Thanks for the post Markinsa.

Peace

Edited August 6, 2011 by tjmunson

[Markinsa]

I combined these two topics, the first post is paraphrasing the second, Original one from Rueters.

[keylime]

Remember when they use the word "next" it means "this". And they have already stated it would begin "this week". Just a thought.

[Pursuit0fHappiness]

I combined these two topics, the first post is paraphrasing the second, Original one from Rueters.

Gotcha thanks!

[RICK C]

shabibi won't let it go that long, this is a BS scare tactic.

[easyrider]

like someone said the translation when they say next month they mean THIS month.

[sportfisher]

shabibi won't let it go that long, this is a BS scare tactic.

the increase in these redenomination/LOP (smoke) articles is a good sign we may see a revaluation soon

[Dalite]

I combined these two topics, the first post is paraphrasing the second, Original one from Rueters.

FWIW, the other article looks to present a more elaborate picture of the interview.

The flow is very much similar to Western journalism.

However, it did refer to it as a redenomination, and it had a very interesting line where it claims the CBI auction rate is 1.17 per dollar.

I looked for it on the Reuters website to confirm, but haven't found it yet.

It is on tradearabia.com., and sites Reuters as the source..

[spicolly]

Help!

"Iraq has 30 trillion dinars in circulation, Kasim said, and the project would bring liquidity to 30 billion."

I dont want a LOP...no! Does this statement refer to a LOP? I need someone smarter than me to comment. Thx!

[keylime]

A nominal dollar is the worth of a dollar or any currency in the present economy and does not take into account inflation. Because of this, the nominal dollar is often opposed to the "real" dollar when considering the value of money in different years. The "real" dollar accounts for inflation; the nominal dollar does not.

Read more: What Is a Nominal Dollar? | eHow.com http://www.ehow.com/about_6302416_nominal-dollar_.html#ixzz1UGNz50Gu

This definition helps to clarify what they are planning to do with the currency. Thus they are literally raising the value of the dinar or "raising the worth of the dinar" from what it is now in the "present economy" which is .00086 to .86. Now that doesn't necessarily mean they are settling for .86 but they are indicating it will be at least that for the dinar's NEW VALUE.

This also means it does NOT refer to the dreaded "LOP".

Any thoughts on this?

[zigmeister]

Any thoughts on this? /quote]

I am sure there will be.

[chris2k4]

see something strange, article in dates orders old ot new

•The CBI’s plan for reducing the Iraqi dinar

•CBI begins re-structuring of the local currency

•CBI announces completion of plan to remove zeros from currency; Reprint 30 trillion dinars

•CBI: Dont fear the dinar

•Iraqi Dinar will regain glory and coins in our pockets soon

•World Union of Arab Bankers: CBI is preparing to replace the currency soon*

•CBI is preparing to replace the Iraqi currency after the cancellation of three zeros from Monetary value of the mass

•CBI: Dont fear the dinar

•Iraq: Towards the abolition of 3 zeros from banknotes

•CBI: Project to lift zeros still on track just not implemented; Denies counterfeit currency is the delay

•Experts call for citizens to address currency, Central undertakes small and replacing the damaged

•CBI Advisor: Draft feminine change currency cash in line with economic growth

•CBI, Economist weigh in on pro’s and fears associated with the lifting of zero’s

•Senior banker calls for the activation of the reality of the work of private banks

•CBI decides to develop coins as part of plan to restructure the currency

•Ahzvo three zeros and stay tuned results

•CBI Advisor would be surprised if executive, legislative branch calls for a delay in changing of currency

•Iraq currency shops multiply as citizens trade IQD for USD; Officials say shops are flagrantly exploiting public ignorance

•Economist: The return of the coin guide to control inflation

•Iraq’s Central Bank mulling printing new currency

•CBI: The decision to raise zeros from the currency maker .. and it needs to field work

•Economist calls on CBI and Ministry of Finance to prevent corruption during the lifting of the zero’s from the currency

•CBI denies the lifting of the zeroes from the currency this year

•Delete the three zeroes from the Iraqi currency

•Ministry of Finance: The risk of corruption can emerge when you change the currency

•Economic Opinion: Deletion of zeros from the currency; Deceptively strong imbalances

•Opinion: New Dinars for Old (from Iraq Business News)

•CBI anounces that the deletion of zeros from the currency will be before the middle of next year

•Iraq Said To Be Planning Currency Overhaul, Redenomination

•CBI: “Structuring currency” includes lifting of the zeroes and the issuance of new categories

•CBI declares its readiness to start deleting zeros; CBI to submit plan to Parliament for vote ***

•CBI: Currency reconstruction needed to ease complex transactions***

•CBI has decided to execute monetary restructuring; Raising of the zeros ***

•CBI denies the exchange rate affected by deleting the zeros

•Iraqi dinar is trying to get rid of O’s … But!!

•CBI: It is time to re-evaluate the currency, commensurate with the price changes and the wage in the economy***

•Dow Jones: Iraq Central Bank Studies Procedure To Remove 3 Zeros From Dinar***

•CBI study how to raise the value of the dinar

•Iraqi central bank says that it will submit a law organizing the process of removing 3 zeros from the dinar ***

•Iraqi List MP: Deletion of zeros from the Iraqi currency would overcome all the economic difficulties

•CBI: The restructuring of the Iraqi currency inflation fit the cash block

•Citizen of Dhi Qar concerns and questions on change of Iraqi currency

•Iraq News Study: Raise zeros from the Iraqi currency, Part I and II

•Put the finishing touches on the project raise three zeroes from the Iraqi dinar

•CBI: Iraqi parliament is to decide to raise zeros from currency

•CBI in process of dropping zeros from IQD ****

•Delete the zeros from the Iraqi currency **

•Iraq economist calls for GOI to deal with inflation; Demanding quick procedures such as deleting the zeros from the currency

•Researchers at Mustansiriya Univ. assert that the cost of lifting the zeros from the currency of the largest utility

•Finance: Delete the zeros of the local currency enhances the value of the Iraqi dinar in the International Monetary Fund

•Restructuring of the Iraqi currency without issuance of new categories

•The central bank denies issuing currency class 100 thousand dinars

•Flashback Feb 26, 2010: Iraq Planning Currency Redenomination

•CBI adviser: Dinar will rise against the dollar in the coming period

•Abrihi Ahmed Ali: Delete the zeros of the Iraqi currency

•Experts: Delete the zeros from the currency will raise the value, Lead to revaluation

•Shabibi and CBI advisors brief Iraqi parliament

•Parliament questions CBI over deleting zeros

•Iraqi Finance: Deleting the zeros from the currency will strengthen the position of Iraq to the IMF

•Aljazeera: Call to delete the zeros of the Iraqi dinar

•As of tomorrow displays the file “to delete the zeros of the Iraqi currency

•Economists: Delete zeros will help to widespread use in the currency•Central Bank past by deleting the zeros of the Iraqi operation

•An Iraqi official announced the adoption of a new strategy intended to raise the value of the Iraqi dinar against foreign currencies.

•Al-Wazzan: Raising three zeros from the nominal value of the Iraqi dinar

•The central bank is ready to delete the zeros from the dinar after the formation of the government directly

•Central Bank project to delete the three zeroes from the dinar: objectives and risk

Edited August 6, 2011 by chris2k4

[tileman1814]

I wonder how many of these articles on dropping the zeros from the dinar there is.I bet it has to be somewhere around 100,000 including this one.

Semper Fi !!!

[Dalite]

FWIW, the other article looks to present a more elaborate picture of the interview.

The flow is very much similar to Western journalism.

However, it did refer to it as a redenomination, and it had a very interesting line where it claims the CBI auction rate is 1.17 per dollar.

I looked for it on the Reuters website to confirm, but haven't found it yet.

It is on tradearabia.com., and sites Reuters as the source..

Correction, it said 1.170 Dinar per Dollar.

Could just be a matter of hitting a period instead of a comma.

The quote that Spicolly references is from the other article, the the one in this post paraphrases.

[zaborniake]

Anyone else notice that this is the second or so article in the last few days that mentions removing zeros from the nominal value?

"Iraq plans to redenominate its dinar currency by knocking three zeros off the nominal value of bank notes to simplify financial transactions, a senior central bank official said on Saturday"

.00086 to .86

[Doctor Smith]

Gee. I wonder why this lop article keeps being posted every day by newbies with under 10 posts?

[RICK C]

there WON'T be a lop, finale- finished- dead. shabibi didn't come to Harvard and ask americas young to invest for no reason. forget the lop. Continue in a HOLDEN PATTEN. THE REVALUATION IS COMING AND iRAQ NEEDS IT JUST AS BAD IF NOT MORE THAN ANYONE ELSE. iRAQ WILL be on PAR with KUWAIT.I have been in this for nie on 8 yrs. forget the stupid lop,PLEASE,

[ashtray]

if iraq had 14% of its currency outside of iraqi borders , the best thing to do would be rv at 14% less than dollar for dinar exchange .. the over the next few years gradually increase its value up to dollar per dinar .. therefore getting all the currency back for free. thats right .86 cent per dinar for now

Edited August 6, 2011 by ashtray

[DAME1]

there WON'T be a lop, finale- finished- dead. shabibi didn't come to Harvard and ask americas young to invest for no reason. forget the lop. Continue in a HOLDEN PATTEN. THE REVALUATION IS COMING AND iRAQ NEEDS IT JUST AS BAD IF NOT MORE THAN ANYONE ELSE. iRAQ WILL be on PAR with KUWAIT.I have been in this for nie on 8 yrs. forget the stupid lop,PLEASE,

Okay that's it I love you.......I totally agree.....

[easyrider]

Anyone else notice that this is the second or so article in the last few days that mentions removing zeros from the nominal value?

"Iraq plans to redenominate its dinar currency by knocking three zeros off the nominal value of bank notes to simplify financial transactions, a senior central bank official said on Saturday"

.00086 to .86

yea ive noticed that it hasnt been saying the exchange rate but the nominal instead hmm makes u wonder. this goes along with what delta has been saying too come out at .86 cents.

Edited August 6, 2011 by easyrider

[RICK C]

Even at that rate, And I DO NOT AGREE with it, I would never ever work again in my life, Come to think of it Niether would my wife.and I would hold a lot for the Years to come. So bring it on. RV that is.

[BlueOrchid919]

Thanks for the post POH, this is even more clarity on what's coming re the new IQD.

Removing 3 zeros does take it from 30 trillion down to 30 billion.

The decimal on the 1.170 could be a typo, but it also could be the European version. IMO, typo.

It appears that the planning is done, draft form, to be submitted to the Council within a month. Hopefully during August? Then it will need to go to Parliament for final approval. How long that will take....who knows? There may be several amendments within the Council before the proposed draft plans make it to Parliament for a final vote.

Then it appears the new currency will be released for use in 3 years. There is a LOT to be done before that can happen. Design, printing, educating the people, etc. The Dev Plan made mention of 5 years to implement the transition of lifting the 3 zeros and moving to a new currency.

The lifting of 3 zeros will not happen this year. They state it will be done by mid year 2012.

The new currency will not have any new categories, but will be minus 3 zeros. The new currency will match the current currency. 25K will be 25, 10K will be 10, 1000 will be 1, 500 will be .50, etc. For the categories 1 dinar (= to the current 1000 dinars) and lower, they plan on creating coinage since it is far more durable.

This will be a slow process. It will not happen this year. They have now told us it will be 3 years for the new currency to be fully phased in.

There are more and more articles about the change in currency. It is not smoke and mirrors. This is how countries redenominate their currencies. There is nothing secret or hush-hush about it. It's all out in the open. The people are told, they learn, they adjust. It is a process that has existed for decades. It is not new.

Watch the news. Even though it's not what we want to hear, it is factual. No getting around that, no matter what we want to believe or wish for....

Note: nominal means stated, amount or face value of money

http://www.thefreedictionary.com/nominal

Edited August 6, 2011 by BlueOrchid919

[RVnow4meplease]

there WON'T be a lop, finale- finished- dead. shabibi didn't come to Harvard and ask americas young to invest for no reason. forget the lop. Continue in a HOLDEN PATTEN. THE REVALUATION IS COMING AND iRAQ NEEDS IT JUST AS BAD IF NOT MORE THAN ANYONE ELSE. iRAQ WILL be on PAR with KUWAIT.I have been in this for nie on 8 yrs. forget the stupid lop,PLEASE,

Well said!