Thread: Iraq to remove three zeros from the dinar

Iraq to remove three zeros from the dinar

The Iraqi Central Bank announced the completion of a plan to remove three zeros from the dinar, replacing current banknotes with new ones. The Bank will re-print 30 trillion dinars (26 billion dollars).

According to Mazhar Mohammad Saleh, an expert in the Iraqi Central Bank, in a speech with the ALHAYAT of London, “our problem lies in the timing of the currency exchange, as we need to select a suitable time for implementing the project without obstacles.”

The Central Bank planned to remove three zeros from the Iraqi dinar, after suffering from inflation and the decline of the currency during the nineties, due to economic sanctions. The value of the dinar decreased internationally to its current value of approximately 1120 dinars per dollar.

In 2003, the Central Bank adopted a new mechanism to maintain the dinar’s exchange rate. It created a foreign exchange auction to sell dollars that Iraq obtained from the sale of oil in the global markets and then transferred to the bank to sell in local currency, which helped raise the value of the dinar over the last few years to more than 2000 points.

Saleh estimated the government will exchange more than 30 trillion Iraqi dinars, or more than $26 billion dollars. The most important change after deleting the zeros, is to reduce the number of banknotes in circulation, simplifying the payment system in Iraq.

Some economists have warned that the process of exchanging the Iraqi currency will be rife with corruption due to the inaccurate structuring of Iraqi banks. Previous attempts to exchange the currency resulted in major corruption, costly to the Iraqi economy. However, Saleh responds that the process of changing the currency in 2004, occurred under the exceptional circumstance of an occupation, was managed by a civil American governor, and was still successful.

The Central Bank sells, through a daily auction, between $150 million dollars and $190 million dollars daily to clients of private banks and the financial companies.

http://www.albawaba.com/main-headlin...s-dinar-386838

goodmorning all, I have a question that may have been answered somewhere on this forum, but for lack of reading every single post, I would like to ask this: when reading the deletion of three zero's...can you please explain in plain english for some of us newbies? Will it affect the current notes we have, or is it just the new ones they put in circulation? For instance: 1- 25,000 dinar, if it pops at just $1.00 USD, would that then mean it would be worth $25000 USD, or would it be just $25 due to removing of the zero's. This just confuses the heck out me who is just an ordinary non professional investor :( Can anyone advise me? Thank you very much. Hope everyone has a great day! KB from Florida

Thanks Seaview :)

it would be nice if here can be an answer for all because i, and for shure more here, wish to know that.

what's the answer neighbor:)

Interesting,

Good question, and one that has been asked many times due to the massive confusion with all these articles being released over and over which always seem to be in conflict. As I see it, you cannot remove zeros without revaluing at the same time. Heck, people would need to have a pickup truck filled with dinar just to fill up with gas, so does that make sense. The dinar is almost worthless now, so imagine if the removed three zeros without revaluing at same time.

All these many statements over all these years and we are still confused as to what will eventually happen. Simply amazing, and I blame much of the confusion on translation issues. We here remove zeros for years, yet we never saw it happen. We hear reform used over and over, and nothing has happened. Now we hear of wanting the strongest currency in region, sure sounds good, then we heard new lower denom notes, sounds good, then new coins, obviously of even smaller denom, also good, but the thing I liked was reform, they have used this word many times, so I wonder what reform really means in Iraqi language? Could it mean restore currency to former value before devaluation in 2003? Or does it mean revalue? Guess we will all know soon. lol

Success to all, Mike

Originally Posted by Offshore-Wealth.com

Interesting,

Good question, and one that has been asked many times due to the massive confusion with all these articles being released over and over which always seem to be in conflict. As I see it, you cannot remove zeros without revaluing at the same time. Heck, people would need to have a pickup truck filled with dinar just to fill up with gas, so does that make sense. The dinar is almost worthless now, so imagine if the removed three zeros without revaluing at same time.

All these many statements over all these years and we are still confused as to what will eventually happen. Simply amazing, and I blame much of the confusion on translation issues. We here remove zeros for years, yet we never saw it happen. We hear reform used over and over, and nothing has happened. Now we hear of wanting the strongest currency in region, sure sounds good, then we heard new lower denom notes, sounds good, then new coins, obviously of even smaller denom, also good, but the thing I liked was reform, they have used this word many times, so I wonder what reform really means in Iraqi language? Could it mean restore currency to former value before devaluation in 2003? Or does it mean revalue? Guess we will all know soon. lol

Success to all, Mike

What are your thoughts Mike?..Do you think we are getting close to an R/V? To me it seems like this with all that has been happening lately there!!...

Interesting,

With the BS from so many, combined with the numerous articles being published in recent weeks, sure makes you wonder what is holding things up. My contact in Kurdistan indicates there are still issues between ministers, and until they get resolved, he hears it won't happen. Now will these issues be resolved soon, he doesn't hear so unless Maleki is thrown out. Of couse the Kurds have never liked Maleki, so again, this is all I have heard which I can trust. All the rest is BS in my opinion and why I don't get too excited over these so called gurus who post it is done every day for years. lol It will happen, just not tomorrow or next day, but this year, yes, I feel it will happen before years end.

Success to all, Mike

Indonesia will also do that, indonesia will re denominate the IDR and hope it will improve the indonesia economic..
Right now, the IDR is very low against dollar...