Iraq Coinage One Step Closer to Reality - Article 10/18/2011

[Papster]

Iraq Coinage One Step Closer to Reality - Article

10/18/2011

Iraq Coinage One Step Closer to Reality

By Richard Giedroyc,

World Coin News

October 18, 2011 This article was originally printed in World Coin News.

Iraq may soon see its first circulating coinage since 2004, but it might be quite different from what was used in the past.

Alsumaria Iraqi satellite television reported on Sept. 3 that, “The denomination of the Iraqi currency reached its final stages as the study and draft resolution reached the Cabinet after being sent by [the] Iraq Central Bank. Iraq Central Bank said that it won't only delete the zeros, but it will also change Iraq monetary structure in order to provide bigger currencies. According to this project, coins will appear again in the Iraqi currency. As for the bank notes, the Central Bank will recourse to international institutions to print them.”

In a further reform, the central bank announced that the new bank notes will be printed in three languages, one of which will be Kurdish. The Kurds live primarily in northern Iraq and were enemies of the Saddam government and pro-Saddam insurgents who fought coalition troops following Saddam’s overthrow.

The new notes will carry vignettes from Iraqi civilization rather than Saddam’s portrait, which has appeared on notes in the past. Nothing was said regarding the coins and if they too will carry three languages.

The central bank stressed the changes are meant to decrease the enormous amount of currency it takes to make cash transactions, but it should not impact the purchasing power of the dinar. Plans call for three zeroes to be removed from all existing bank note denominations.

Coins were initially introduced in modern Iraq when Iraq was an independent kingdom, during 1931 and 1932. The coins were issued in denominations of 1, 2, 4, 10, 20, 50 and 200 fils. The 200-fils coin is also known as a rial. In 1953, a 100-fils coin was added to this mix.

A new series of coins initially in denominations of 1, 5, 10, 25, 50 and 100 fils was issued at the time of the establishment of the Iraqi Republic, with 250 fils coins being added in 1970 and 500 fils and 1 dinar coins in 1982. All Iraqi coin production ceased after 1990.

The Coalition Provisional Authority that followed the overthrow of Saddam authorized new coins and bank notes. In 2004, 25-, 50- and 100-dinar coins were introduced, however they proved to be unpopular and were quickly withdrawn.

Coins and low denomination bank notes are a problem since due to inflation, they have little purchasing power. Iraq’s highest currency denomination is the 25,000-dinar bank note, which has an exchange value of about $21 U.S. It will take a currency reform in which three zeros are removed from each existing denomination to make it practical for coins to circulate. Such a currency reform will also benefit the Iraqi government, since the government will be able to spend less on future bank notes when low denomination notes are once more able to circulate.

It is expected it will take three years for a currency reform to become a reality. Nothing was immediately available regarding where future coins or bank notes might be produced.

Iraq’s currency has been impacted by severe fluctuations in the economy between the later years of Saddam’s dictatorial rule and today. Economic sanctions imposed on the regime caused rampant inflation, which was quickly coupled with massive counterfeiting of bank notes, while all coins vanished from circulation.

Once the Saddam regime was blocked from receiving new supplies of high quality bank notes from overseas, the poorer quality notes produced domestically became the target of domestic counterfeiters. It has never been proven, but there is a possibility foreign countries also sanctioned counterfeit Iraqi dinar bank notes as well.

http://www.numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=24266

[Dalite]

The central bank stressed the changes are meant to decrease the enormous amount of currency it takes to make cash transactions, but it should not impact the purchasing power of the dinar. Plans call for three zeroes to be removed from all existing bank note denominations.

Coins and low denomination bank notes are a problem since due to inflation, they have little purchasing power. Iraq’s highest currency denomination is the 25,000-dinar bank note, which has an exchange value of about $21 U.S. It will take a currency reform in which three zeros are removed from each existing denomination to make it practical for coins to circulate. Such a currency reform will also benefit the Iraqi government, since the government will be able to spend less on future bank notes when low denomination notes are once more able to circulate.

Maybe this will remove some of the confusion resulting in 20 pages of response arguing the the 3 zeros are removed from the exchange rate only.

[fastarnie]

Maybe this will remove some of the confusion resulting in 20 pages of response arguing the the 3 zeros are removed from the exchange rate only.

Don't they still have to up the exchange rate in order for the coins to be effective in thier market?

[Dalite]

Don't they still have to up the exchange rate in order for the coins to be effective in thier market?

Yes.

It affects both the currency and exchange rate.

25000 dinar equals $21.50 at 1170:1

Divide by 1000 (equivalent of 3 zeros)

25000/1000=25

1170/1000=1.17

25 dinar equals $21.50 at 1.17:1

The old notes are reduced by a factor of 1000, while the exchange rate in increased by a factor of 1000

This is how the 2 currencies can coexist without any loss of value, until the older currency can completely be removed from circulation.

Is this what I personally want? Absolutely Not

Is this the way a 3 Zero redenomination would work? Textbook. Never any variation in redenomination, other than the number of zeros. They all work exactly the same as far as the math goes..

The CBI still seems intent on going through with this, otherwise the 3 zero articles would cease.

The country looks about ready to implode under the weight of corruption and power grabbing.

Let't hope that inflation goes back over 10% to stop the RD plans, and the country avoids civil war long enough for the money to increase in value..

[Darin]

Maybe this will remove some of the confusion resulting in 20 pages of response arguing the the 3 zeros are removed from the exchange rate only.

Arguing for the sake of arguing :D

This was released by World Coin News, not the CBI.

Therefore, they only have what the media has released to go by.

So, they may not know what the CBI intends to do, so they take what the media has portrayed as a sign.

Highly doubt they have full details in information from the CBI & released it to the public prior to the CBI doing so themselves.

So basically, this is just an opinion(s) article...

[Dalite]

Arguing for the sake of arguing :D

This was released by World Coin News, not the CBI.

Therefore, they only have what the media has released to go by.

So, they may not know what the CBI intends to do, so they take what the media has portrayed as a sign.

Highly doubt they have full details in information from the CBI & released it to the public prior to the CBI doing so themselves.

So basically, this is just an opinion(s) article...

Nothing is fact until it happens.

However, the picture of the coins didn't match any of the Saddam era ones I have. Nor do the match the pictures still on the CBI site.

I would give odds of the article being between 90% to 99.% accurate in every respect concerning the math and mechanics of redenomination.

When it comes to national and international publications, there is too much competition to throw the smoke and mirrors excuse for denial.

There is 0% deviation in the mathematical aspects of redenomination.

Anyone can speak authoritatively on it, once the number of zeros are decided.

For that I would project a 1% to 5% margin for error in the article, for possible historical errors, and possible improper picture used.

They just agreed with the CBI's press releases that coins are being considered, and gave a fact of how all coins and currency are treated in redenominations.

It may never be passed, but as far as plans for redenomination by the CBI; Stick a Fork in it- It is Done...

I doubt they ever planned on doing anything else.

If things keep going downhill, they may be forced to take measures other than their first choice of redenomination.

[dhardage]

I have to agree with Dalite. I am finding the "logic" in it all more and more confusing. If something that we want to hear is reported in the news, we are practically falling all over eachother shouting "YES, IT'S COMING". But when it is something that points towards a LOP, or even the RV taking longer, I am told not to believe everything I see in the news because it is all lies. I just don't get it.

[keepmwlknfny]

Maybe this will remove some of the confusion resulting in 20 pages of response arguing the the 3 zeros are removed from the exchange rate only.

It should, but you know it wont.....

Unfortunately articles like these dont get the attention that it should and Im sure someone (Aqua Dude) will be posting another RD article soon saying that we are that much closer to the RV and that all the "lopsters" can eat it and that we are wrong in what these articles mean cause he only follows legit news sources.....

I have to agree with Dalite. I am finding the "logic" in it all more and more confusing. If something that we want to hear is reported in the news, we are practically falling all over eachother shouting "YES, IT'S COMING". But when it is something that points towards a LOP, or even the RV taking longer, I am told not to believe everything I see in the news because it is all lies. I just don't get it.

Welcome to dinar land

[DinarProwler]

It's a crazy ride thats for sure !!

[dhardage]

Welcome to dinar land

Is that anywhere near Wonderland? Or closer to Candy Land?

[DayTrader]

Seen the article before. Not fresh news. It also talks about adding larger currencies. So Says.......................DayTrader

[keepmwlknfny]

Is that anywhere near Wonderland? Or closer to Candy Land?

Its actually further away then both of those....its REALLY out there!!

[oneremedy]

Reading info about Iraq and its currency plans from Coin Digest Weekly is like getting medical advice from Dr Dre. They dont have any "inside" info on whats going to happen and even if they asked shabibi or maliki or any Iraqi official, i highly doubt they would tell a coin mag about their true intentions.

[dhardage]

Its actually further away then both of those....its REALLY out there!!

got it, thanks. I'll see if my GPS picks it up

[keepmwlknfny]

Reading info about Iraq and its currency plans from Coin Digest Weekly is like getting medical advice from Dr Dre. They dont have any "inside" info on whats going to happen and even if they asked shabibi or maliki or any Iraqi official, i highly doubt they would tell a coin mag about their true intentions.

Of course they dont, they are just going off of what the CBI has been saying for sometime now....

The exact things that we are hearing but they are actually reporting it in english it would seem so translations dont seem to be a problem with this one.....

got it, thanks. I'll see if my GPS picks it up

Your gonna have to update your maps first....I had a heck of a time finding it!!!

But now I cant seem to get out of it hahaha....my GPS only knows how to get to one place now....

[dhardage]

Your gonna have to update your maps first....I had a heck of a time finding it!!!

But now I cant seem to get out of it hahaha....my GPS only knows how to get to one place now....

Click your heels, Keep. Click your heels!

[HopefulTxn]

Arguing for the sake of arguing :D

This was released by World Coin News, not the CBI.

Therefore, they only have what the media has released to go by.

So, they may not know what the CBI intends to do, so they take what the media has portrayed as a sign.

Highly doubt they have full details in information from the CBI & released it to the public prior to the CBI doing so themselves.

So basically, this is just an opinion(s) article...

It doesn't really matter who the article comes from.

If it is an article that can be viewed in a positive light, or in many cases a positive spin can be put on it, it doesn't matter what the source it will posted as the truth of 'the plan'.

When an article comes out from the CBI, if it is an advisor and is not able to be taken in a positive light it is discounted as only being from an advisor and not Shabibi. The same is true if it comes from the MoF.

When an article comes out from Shabibi that is not able to be viewed in a positive light, the argument quickly becomes that they cannot tell the masses what the plan is and that he is lying to curb speculation.

It's a predictable scenario based on the content and wording of the articles.

In the end, all we can do is wait and see what actually happens and hope for the best.

[oneremedy]

@keep...im still in denial! I know what it looks like but after all this BS we are gonna end up making nothing off this investment?

Ill never say LOP even if it looks like this is what will happen.

Go RV

[truthful1]

Maybe this will remove some of the confusion resulting in 20 pages of response arguing the the 3 zeros are removed from the exchange rate only.

This is exactly how delete the three zeroes happens. As someone said textbook example. A very clear explanation from a news source which received info from cbi. This article has more credibility than any intel peoples been listening to for years. I hope people pull their head out of the sand and realize this is has enormous potential for happening. Now that this topic is nondebatable by definition, now we can get back to looking and hoping for a straight rv.

[Carrello]

Is that anywhere near Wonderland? Or closer to Candy Land?

Margaritaville.

[DinarBot]

Arguing for the sake of arguing :D

This was released by World Coin News, not the CBI.

Therefore, they only have what the media has released to go by.

So, they may not know what the CBI intends to do, so they take what the media has portrayed as a sign.

Highly doubt they have full details in information from the CBI & released it to the public prior to the CBI doing so themselves.

So basically, this is just an opinion(s) article...

Agreed. Propaganda machine continues to rattle and hum.

[truthful1]

Reading info about Iraq and its currency plans from Coin Digest Weekly is like getting medical advice from Dr Dre. They dont have any "inside" info on whats going to happen and even if they asked shabibi or maliki or any Iraqi official, i highly doubt they would tell a coin mag about their true intentions.

This is anews source citing what was provided to them by cbi people. this is as close to the horses mouth as you can get, and the only reason there reporting is because the horse itself is talking, your favorite cbi personalities.

Imo best inside intel you can get, besides your local guru.

[DayTrader]

This is anews source citing what was provided to them by cbi people. this is as close to the horses mouth as you can get, and the only reason there reporting is because the horse itself is talking, your favorite cbi personalities.

Imo best inside intel you can get, besides your local guru.

No, it was translated by them or google. Old news. So Says............Daytrader

[Darin]

Of course they dont, they are just going off of what the CBI has been saying for sometime now....

The exact things that we are hearing but they are actually reporting it in english it would seem so translations dont seem to be a problem with this one.....

Your gonna have to update your maps first....I had a heck of a time finding it!!!

But now I cant seem to get out of it hahaha....my GPS only knows how to get to one place now....

I agree.. We should only take what the article states as opinion. Just like most of what we read in the media...

It's not like they couldn't make a switch at the last minute, saying, we decided this plan is better...

No one here knows, and if they were to know, they're not saying as it would destroy the plan..

[DayTrader]

This is exactly how delete the three zeroes happens. As someone said textbook example. A very clear explanation from a news source which received info from cbi. This article has more credibility than any intel peoples been listening to for years. I hope people pull their head out of the sand and realize this is has enormous potential for happening. Now that this topic is nondebatable by definition, now we can get back to looking and hoping for a straight rv.

Just like every other piece of intel..........how do you know it's true? Because it's in the news? It may be true, but I can't say for sure. So Says..............DayTrader