Monetary policy to delete the zeros of the Iraqi currency

Thought I would put this here where everyone hangs out. How do you interpret this?

Monetary policy to delete the zeros of the Iraqi currency

Iraqi Central Bank is working on a strategy to delete the zeroes of the Iraqi currency in and out of their face value while maintaining the values of cash and purchasing power.

Central Bank of Iraq adviser to the appearance of Mohammed Salih said that this year will witness the launch of this strategy, stressing that the bank has completed 50% of the preparations that are working on since 2005.

Salih said the strategy was based on the principle of gradual substitution of the Iraqi currency with another is lower than in the nominal value, and pointed out that the positives of this strategy is that it will be less expensive and easier to trade.

For his part, sees Dr. Hilal Al-Tahan, that the application of such a strategy will not cause economic turmoil, or damage to the local market at the present time, while the economic analyst is willing to find satisfaction بليبل that the timing of the launch of this strategy is not appropriate, noting that the country's economy must be in a position of strength before the application of such changes.

http://www.iraqhurr.org/content/article/1946613.html

on face value, reading it sounds crappy... but as we know..so many stories and ideas floating. I refuse to believe this will end crappy for us!

Hi Friends!
That was an old article that was refreshed several days ago. The longer you hang around this saga the more you will become skeptical of anything that sounds like a "looping" or, "lop" of the IQD. Ain't gonna happen.. It has been disputed by Shabibi himself. (S runs the CBI- he is the Top Dog when it comes to the IQD.)

Thanks al.. Been in this so long, seems we have reached a point where "older" articles have started to recycle and trying to put a fresh spin on them. Oh where is the SD $0.18 when you need it,,LOL Hope everyone has a safe, warm and Blessed weekend. Looks like I get to shovel snow again... I left Florida for this guys.. tells you how smart I am... 67

This is how I intrepret what will happen but hope that it does not.

What is being said: Cancel the zeros and return the dinar to former value.

Example: 25000 note minus the three zeroes is now 25 x 3.35 new rate equals $83.75 US

ugh..that would suck =(

well, I mean would still be a nice return, but..um..yea.. suck

Iraq Planning Currency Redenomination

BAGHDAD -- The Iraqi Central Bank is planning to redenominate the national currency in an effort to ease transactions and allow people to carry less paper money, RFE/RL's Radio Free Iraq (RFI) reports.

Mudhhir Muhammad Salih, a member of a Central Bank advisory panel, told RFI that a plan has been made to remove three zeros from the currency and phase out the current banknotes late this year.

Salih said by the end of 2010 the new banknotes will be fully introduced while the old banknotes will be gradually removed from circulation. He did not specify when the new notes would be issued.

Both will be legal tender in Iraq until the old notes are completely withdrawn.

Iraqi officials have had a long-running plan to redenominate the Iraqi dinar. In 2006, the Finance Ministry recommended to the Central Bank that it carry out such a plan.

Salih pointed out that banks are having a hard time accepting cash savings and deposits, but by dropping the zeros it will make it easier for both the banks to deal with their customers and for the general public to carry money. He said some 80 percent of Iraq's money supply is cash in circulation.

Salih added that in 1990 the value of banknotes in circulation was about 25 billion Iraqi dinars but is currently some 25 trillion dinars.

Economic analyst Hilal al-Tahhan told RFI that the bank's move is overdue. He said he expects the currency change to go smoothly because of the decision to allow both the old and new banknotes to coexist, leading to less turbulence in the economy.

The current exchange rate is 1,167 Iraqi dinars to the U.S. dollar.

http://www.rferl.org/content/Iraq_Planning_Currency_Redenomination/1950504.html

so what exactly does that mean?....if they keep both the new denominations and the old ones,which we hold,will our 25,000 dinar bill be worth the same as a 25 dinar bill?....is that what they are saying?....anybody knows exactly what that statement by Salih with the Central Bank means??....help????....lol...Pat

of course until it happens, everything is specualtion.

Quote:

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25,000 dinar bill be worth the same as a 25 dinar bill?

---

but that wouldnt make sense. I do believe they intend to reward the surviving Iraqi people

They will, as we now do have that confirmation, announcement today, issue new low denoms.. 5, 10, 20

and both will be in circ. I cant see any logic suggesting that the 25k notes would magically be only worth the same as a 25 note. They plan to pull in and get of the street so to speak, the large denom bills. But I firmly believe the RV is a straight across the board RV

I still completely, and intuitively, believe that those of us holding large denoms, will be made rich!

go go Dinars! :banana:

Well here's how I understand it: if they remove 3 zeros from the current currency, so that a 25,000 dinar bill will be worth 25 dinar in the future, they will have to increase the value of the dinar accordingly. Otherwise everybody who owns dinars today would loose a lot of money and this can't be intended. As the article says today it's 1,167 Iraqi dinars to the U.S. dollar. If I calculated it right (I'm not a maths genius...) the exchange rate would have to rise to a minimum of 1.167 dinars to the dollar in the future, so our dinars would still be worth the same.

Or, to make it clearer: supposed one of us owns 1,000,000 dinars, today they are worth USD 856.90. In the future they would be 1,000 dinars only, but as 3 digits of the exchange rate are removed those 1,000 would still be worth 856.90. Of course they would have to do this at the same time at which they introduce the smaller bills.

To me it's good news that the old bills will be withdrawed gradually and not be invalid immediately.

This step absolutely makes sense, and we will will lose nothing!!!

Ouch - of course it's "withdrawn", not "withdrawed" ... :blush:

Quote:

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Originally Posted by antjesz2

To me it's good news that the old bills will be withdrawed gradually and not be invalid immediately.

---

Something else to consider: Will a Revalue of the dinar come before or after the zeros are removed.

Quote:

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Originally Posted by livefree

Something else to consider: Will a Revalue of the dinar come before or after the zeros are removed.

---

Well, we know now that they have basically officially acknowledged smaller denoms in banks for immediate distribution. Seaview already posted this link on another thread, but in case you hadn't seen it

http://www.rferl.org/content/Iraq_Pl...n/1950504.html

I'm parroting others, but I agree, this is not just a lop. It would of course mean a RV at the same time, other wise, the people on the street, would have no reason to have the new small denoms, given that the 25k notes are still usable.
:beer:

The Plot thickens!!

Financial describe the central bank attempts to remove the zeros from the currency as "useless"

February 7 (AKnews) - The Central Bank of Iraq that there is a plan to remove zeros from the Iraqi currency before the end of this year, while the Under-Minister of Finance of Iraq that such a step would not affect the physical and economic situation vs. Iraq.

In a statement issued by the Central Bank of Iraq that "this plan was developed five years ago and so far have been the end of 50% of the necessary preparations for its implementation, and we hope we can start implementation by the end of the year."

The statement added that "the objective of removing the zeroes of the Iraqi currency is to facilitate the use and trading them."

For his part, Undersecretary of the Ministry of Finance Fadhil prophet of the Kurdistan News Agency (AKnews) that "this move is useless in economic terms, since the value of the Iraqi currency against the dollar and the euro will remain as is" .. He explained by saying "the only benefit of this step may be psychologically for the citizens, and not in the economic and practical aspects."

http://translate.google.com/translat...ate.google.com

lol...ahhh....the only benefit is psychologically for the citizens...glad he clarified that for me....lol...does that mean if we own some dinars that we are citizens????....lol..i dunno anymore...as Seaview stated...the plot thickens....hahaha...GO DINARS...Pat....p.s. my saints won the super bowl....31-17...43 years of suffering have been answered.....it might be as good year....lol

Lop the zero's off, Not going to happen, do you realize how many investors world wide would come down on them if they did this, Cutting their nose to spite their face is what it would do.

If they were to remove zeros with no reval then the Iraq Dinar will be the biggest scam in history. I really hope it doesnt happen like that.

Looks like we will just have to wait and see. Everything will happen when it happens otherwise there would be chaos with dinar holders trying to maximize their position.

Iraqi Finance denies intention to delete the zeros of the national currency

U.S. Undersecretary of the Ministry of Finance and the Iraqi economy, the ministry's intention to delete the zeroes from the national currency of Iraq, adding that the Iraqi economy, do not complain about inflation, there is no need for the implementation of this strategy.

The Prophet told Fadel Kurdistan News (AKnews) that "the process of deleting the zeroes of the Iraqi currency has no economic gain, and any positive impact on the purchasing power of the process of Iraq, but will also create other problems, to issue coins of small denominations such as "10 money" and "50" penny quarter of a dinar and a half dinars."

He explained that "did not issue a formal decision on this matter, was not talking officially start work this fiscal policy to raise zeros from the Iraqi currency."

He noted that "the only win for the deletion of zeros from the currency is issued in small groups only, either in terms of their purchasing power will remain the same as dollar against foreign currencies and the euro, and there will be any increase or improvement".

For his part, said the economist is capable Rizgar that "if the replacement of the Iraqi currency, Nabgy we work to maintain the stability of buying and selling rates of the Iraqi currency against foreign currency, for a limited period, so the process does not cause loss of citizens who deal in buying and selling foreign currency, often What is this period of six months."

He said "the deletion of zeros does not help to increase the value of local currency, because the high value of the currency is linked to the security situation of the country, as well as the ability of local production and commercial activity and reduction of inflation rates in the country."

It is worth mentioning that the Central Bank of Iraq said in a statement issued on February 6 this year, announced a plan to delete the zeros of the Iraqi currency before the end of the year 2010, and has completed 50% of the preparations for the work according to this strategy. It is hoped to be completed this fiscal policy later this year.

http://translate.google.com/translat...F2%2F112476%2F

is everyone as confused now as I am???...Saturday Feb. 6th..they deleting the zeroes...then today,Feb. 9th,they not deleting the zeroes...I guess on the 12th we will be back to deleting them again....lol...sometimes i think the Iraqi's say things in articles in papers just to say them...its no wonder they are as backwards as they are and are not moving forward except at that snail's pace..IMHO...GO DINARS...Pat

Why can't they make up their mind. It's like the left hand doesn't know what the right hand is doing...lol:wacko:

I feel more secure than ever we are on the verge of it!

GO GO DINARS! :woohoo:

http://www.dinarbanker.com/informati...geability.html

It is more speculation, but makes good sense to me. Again, many Sources are pointing to this happening SOON.. before the 12th is the most logical time!

GO GO DINARS!

Two currencies coexist together and gradual replacement Central Bank (time): Delete the zeros start end of the year

CBI begins the end of the year and gradually replace the currency now in circulation a new currency which zeroes deleted within the strategy to reform the monetary system started in 2005.

Bank consultant and announced the appearance of Mohammed Saleh told (time) on that (the bank has completed 50 percent of a strategy switch in and out, delete the zeros of the nominal value of the new currency while retaining the cash value and purchasing power), said that (the replacement process will be gradually and spontaneously high and without fanfare, as will be There are two currencies to trade at the same time go hand in hand), but (that the purchasing power of the new currency will remain fixed).

Saleh said (there are multiple advantages of this strategy, including ease of trading between the citizens and facilitate the work of banks, counting, sorting, and stand on the counterfeit currency and to facilitate transactions of the citizens with the banks on the deposits and withdrawals in addition to facilitating the process of monetary reform after hitting a currency issued in circulation now 25 trillion dinars, while in 1990 was about 25 billion dinars and this in itself calls for the deletion of zeros).

In the answer to a question by (time) whether the Central Bank has set a deadline for the replacement of the currency said (we did not define this ceiling until now that the matter is still under study and the reality of work at that time will decide how long the replacement process).

Responding to another question about the Iraqi currency held abroad and how to replace it "(The right of a citizen is to remove the $ 200 thousand dinars and he could only replace it like any ordinary citizen here in Iraq, either from abroad, the banks in the States would be responsible to us of the assets of our currency). :eek: :wigged:

He pointed out that (a media campaign will precede and guide the process in order to raise public awareness of the importance of this and that our banks and our will all be ready to provide all facilities to the citizens and emphasize once again that the process does not affect absolute quiet in the market also note that many countries replaced their currency and benefit from their experiences in this area, including Turkey, Russia, Brazil and other).

http://www.azzaman.com/index.asp?fna...htm&storytitle=

Still confusing: That's just the way they are.

the replacement process will be gradually and spontaneously high - Which is it?

delete the zeros of the new currency while retaining the cash value - a RV?

that the purchasing power of the new currency will remain fixed - no future increase?

Nothing mention when NID will be accepted by World Bank and elgible for trading.

Guys, it sounds like to me that the Big payoff is not in the cards but atleast a good profit but I will be the first to admit if I am wrong.

They are talking alot about the dinar lately. Seems like if a major RV was to occur, it would be quiet instead of all this latest info, but who knows what will happen.

Proposal to abolish the zeros of the currency ... "Some may deem necessary and the government calls the "trivial"

Deputy in the Iraqi parliament on Wednesday, the central bank's decision to cancel the zeros of the Iraqi currency is expected Ttabekaya end of this year is a positive step for the Iraqi economy, what was described as an economic advisor to Prime Minister decision as "trivial."

He says a member of the Finance Committee in the Iraqi parliament, Sami Atrushi that "delete the zeros of the Iraqi currency will leave a positive impact on the Iraqi economy during the next phase," indicating that "the deletion process does not mean the removal of the monetary value of Iraqi currency, as understood by the other."

The Advisor to the Governor Central Bank of Iraq the appearance of Mohammed Saleh announced in a press statement, on Tuesday, the bank will work to replace the Iraqi currency is a gradual end of this year, indicating that the purchasing power of the new currency will remain stable.

Atrushi and adds in an interview with "Alsumaria News", that "the reality of change, which would be held in the Iraqi currency will change the face value of the dinar and not the real value is measured against which the value of the Iraqi dinar against the dollar and gold", as he put it.

Atrushi and stressed the importance of "the Central Bank has adopted a new strategy in the coming period to educate citizens about the change that will happen in the currency Kalistratejip adopted in the process of changing the currency," noting that "the strategy will spare the Iraqi economy, the risk of manipulation of traders in the new currency which will be available in the market" .

Attention Atrushi that "the plan, which will be followed by the central bank to delete the zeros do not necessarily begin in the year 2010", stressing that "the economic conditions that were experienced by Iraq during the past period, prompting the Bank to the failure of the process of deleting zeros from the currency."

For its part, considered an economic expert safety Smeisim that the process of deletion of zeros from currency is a good step but needs more information to the efforts of the economic efforts, "attributed to the fact that" the market will be exposed to vibration once the citizen's belief that the deletion of zeros would have a negative impact on the real value of the currency ".

Smeisim adds in an interview with "Alsumaria News", that "the real value of the coin is the value of goods received by the individual and strongly related to the national economy," asserting that "these things can be achieved stable security situation, in addition to significant economic information effort to educate citizens on positive results of the process of removing zeros."

For his part, describes the economic advisor to Prime Minister Abdel Hussein Anbuge in an interview for "Alsumaria News", the process of changing the currency to "fake".

Anbuge say that "there is the so-called" fool the money "or the illusion of monetary and this illusion can determine how an agent at the beginning of the zeros of the currency that the citizens will feel better but in practice it takes a very short time to discover something different non-citizen", calling the Iraqi Central Bank to "Cancel the zeros of the income of a citizen to improve its purchasing power," as he put it.

Anbuge and adds that "the monetary policy pursued by the central bank depends on the law of the bank, which put the civil governor Paul Bremer, after 2003, which gave almost complete independence of the bank in managing monetary policy for the country", pointing out that "The Iraqi government is not satisfied with that because of political problems economic problems of Iraq."

The Anbuge that "the main problems experienced by the Iraqi economy is concentrated in the private sector and the trade imbalance, in addition to the weakness of the expenditure structure of problems which must find swift solutions to them and not bother with minor issues", stressing that the deletion of zeros from currency manipulation is the process of the "figures do not economic value to them."

The Advisor to the Governor Central Bank of Iraq the appearance of Mohammed Salih said in an interview earlier for "Alsumaria News", last January, said that "the proposal to cancel some of the zeros of the Iraqi dinar is one of the priorities of the Central Bank of Iraq, to reform the currency and the organization", noting that "past wars fought by Iraq, has caused the rise and inflation in the money supply of 25 billion dinars in 1980 to 23 trillion dinars now."

Associated with changing the currency in Iraq permanently the political situation and related major changes when the Iraqi State was established in 1921, has been coined a new currency of the Kingdom of Iraq and continued until 14 July 1958, after the announcement of the republican system has been replaced by the currency of intellectual currency of the Republic, when he fell the former regime in 2003, changed the currency bearing the image of former President Saddam Hussein and the issuance of a new currency is traded on the market.

http://translate.google.com/translat...ml&sl=ar&tl=en

more confusing now then ever....i wonder at times if they really know what they are saying ...when they say it....either blowing smoke...or they about as stupid a people as i've ever seen....lol...i guess time will tell...GO DINARS Pat

One thing that I have noticed with all these articles coming out recently, is that they all appear to be coming from Kurdish Newspapers.

I have yet to see any of the main Iraqi region newspapers (i.e. Voices of Iraq, Aswat Al-Iraq, Alsabaah etc) publish this.

I find that odd.

that is odd indeed...you think the Kurds are pushing for the lop Seaview?...maybe Mike[OSW] could shed some light on this subject since he has friends who are Kurds....Pat

Quote:

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Originally Posted by orrkallen

Hi Friends!
That was an old article that was refreshed several days ago. The longer you hang around this saga the more you will become skeptical of anything that sounds like a "looping" or, "lop" of the IQD. Ain't gonna happen.. It has been disputed by Shabibi himself. (S runs the CBI- he is the Top Dog when it comes to the IQD.)

---

Thanks for this. When I read the article my heart sank. God Help and bless us all. Nidya:wacko:

This is now the first article I have seen in an Iraqi Paper - Al-Iraq

Minister of Finance: raise zeros from the Iraqi currency will be supported against the dollar

Finance Minister Bayan Jabr said the lifting of the zeroes of the Iraqi currency will support the currency against the dollar.

The Zubaidi, in comments broadcast by reporter That the proposal submitted by the Ministry of Finance to the Central Bank of Iraq has not been affected increase or decrease but it is just delete the zeroes vocation not only the case in many countries, Noting that the Iraqi dinar would be offset dollar or slightly more than after the application of this proposal.

According to an official source at the ministry The proposal to raise three zeroes from the currency will be in accordance with the right monetary policy is not gradual, as happened in Turkey and this policy will raise the monetary value of the Iraqi currency and will of the Iraqi dinar Strength of cash against all currencies.

http://al-iraqnews.net/new/local/54531.html

Iraq plans currency redenomination

Iraq expects to redenominate its dinar currency by knocking three zeros off the nominal value of bank notes to facilitate currency transactions, reported Reuters, citing a central bank official.

Emerging from years of war and sanctions, Iraq is trying to revamp its economy and boost oil production with a raft of crude deals that may vault it to one of the world's top oil producers.

"The goal is to improve the payment and receiving system in the country and consequently to reform cash management," Mudher Kasim, a senior advisor at the central bank, told Reuters.

Kasim said that the central bank expected to start rolling out new notes by the end of the year or the beginning of 2011.

An Iraqi cabinet committee ordered the change in 2007, but the central bank did not think it appropriate until recently, Kasim said. The dinar's value will remain unchanged, he said.

Speaking to Radio Free Iraq (RFI) Mudhhir Muhammad Salih, a member of a Central Bank advisory panel, pointed out that banks are having a hard time accepting cash savings and deposits, but by dropping the zeros it will make it easier for both the banks to deal with their customers and for the general public to carry money.

Salih said some 80% of Iraq's money supply is cash in circulation.
Salih added that in 1990 the value of banknotes in circulation was about 25 billion Iraqi dinars but is currently some 25 trillion dinars.

Economic analyst Hilal al-Tahhan told RFI that the bank's move is overdue. He said he expects the currency change to go smoothly because of the decision to allow both the old and new banknotes to coexist, leading to less turbulence in the economy.

http://www.bi-me.com/main.php?id=442...c=33&cg=4&mset

Note - From Mr I of Warka Bank :-

"The CBI has not provided official written notification to the banking sector
and banks regarding this matter thus it is considered null and void by the
Iraqi banking sector and this is the general law noting that we contacted
the CBI regarding this matter where they did not provide anything official
to comment on simply stating that this matter is under study and has been so
for the past few years nothing more nothing less.

The value the currency, shares, property...etc will be set in accordance
with the value of IQD applied and affected by the CBI in accordance with the
law where the value of the IQD is set in accordance with the value they set
and this standard general practice.

If a revalue takes the entire IQD will be revalued in accordance with the
rate the CBI sets.

From our prospective we can not comment and will not comment any further
unless the CBI officially announces that the removing of the 3 zeros or
revaluation will actually take place by providing the banking sector written
documentation where this would be the standard general verification and
confirmation currently practiced."

Is it the invariable "smokescreen"?

Quote:

---

Originally Posted by Seaview

Note - From Mr I of Warka Bank :-

"The CBI has not provided official written notification to the banking sector
and banks regarding this matter thus it is considered null and void by the
Iraqi banking sector and this is the general law noting that we contacted
the CBI regarding this matter where they did not provide anything official
to comment on simply stating that this matter is under study and has been so
for the past few years nothing more nothing less.

The value the currency, shares, property...etc will be set in accordance
with the value of IQD applied and affected by the CBI in accordance with the
law where the value of the IQD is set in accordance with the value they set
and this standard general practice.

If a revalue takes the entire IQD will be revalued in accordance with the
rate the CBI sets.

From our prospective we can not comment and will not comment any further
unless the CBI officially announces that the removing of the 3 zeros or
revaluation will actually take place by providing the banking sector written
documentation where this would be the standard general verification and
confirmation currently practiced."

---

Mr. I,

With all the currency redenomination news articles that have come out in the last week (almost daily), do we really think they won't?

Quote:

---

Originally Posted by Seaview

Iraq plans currency redenomination

Iraq expects to redenominate its dinar currency by knocking three zeros off the nominal value of bank notes to facilitate currency transactions, reported Reuters, citing a central bank official.

Emerging from years of war and sanctions, Iraq is trying to revamp its economy and boost oil production with a raft of crude deals that may vault it to one of the world's top oil producers.

"The goal is to improve the payment and receiving system in the country and consequently to reform cash management," Mudher Kasim, a senior advisor at the central bank, told Reuters.

Kasim said that the central bank expected to start rolling out new notes by the end of the year or the beginning of 2011.

An Iraqi cabinet committee ordered the change in 2007, but the central bank did not think it appropriate until recently, Kasim said. The dinar's value will remain unchanged, he said.

Speaking to Radio Free Iraq (RFI) Mudhhir Muhammad Salih, a member of a Central Bank advisory panel, pointed out that banks are having a hard time accepting cash savings and deposits, but by dropping the zeros it will make it easier for both the banks to deal with their customers and for the general public to carry money.

Salih said some 80% of Iraq's money supply is cash in circulation.
Salih added that in 1990 the value of banknotes in circulation was about 25 billion Iraqi dinars but is currently some 25 trillion dinars.

Economic analyst Hilal al-Tahhan told RFI that the bank's move is overdue. He said he expects the currency change to go smoothly because of the decision to allow both the old and new banknotes to coexist, leading to less turbulence in the economy.

http://www.bi-me.com/main.php?id=442...c=33&cg=4&mset

---

Thanks for this. I already asked Ali of Dinar Trade and Safe Dinar, if they change the currency, will we loose our investment in the dinars. I have purchased from them both and wasn,t sure. I am awaiting their reply. I you know what they say. Your post has made me feel a little better Seaview. Nidya:wigged:

Advisor Central Bank (Iba): monetary policy of the Bank over the past years will continue the successful

2010-02-14

Sign adviser CBI continued success of the monetary policy of the Bank during the past years. Stressing that the Bank's core function is the formulation of fiscal policy of the country.

Appearance, "said Dr. Mohammed Saleh told the independent press (Iba) today, Sunday, has been the Bank's important role in the process of reducing the effects of inflation through fiscal policy is working to curb the rising prices that may confuse the family income affects the situation of price stability in the country, where the Central Works at the moment to maintain the value of prices and seeks to pursue a policy of declining increases.

"Everyone knows that the previous situation was serious, requiring a new economic approach of the Bank and will lead to success, where inflation was far Mdyate in 2007 when it reached nearly 50 percent, which forced us to adopt a policy to limit the escalation of that alarming percentage.

He noted that conditions favor paid to the opening of the currency auction, which has contributed to the reduction of high rates of inflation and the increased value of the dinar against the dollar during that period.

Saleh also highlighted that the central bank seeks to be no price increases commensurate with the size of a normal intake of family and the nature of the salaries of employees in the public sector.

The parliamentarians called earlier to reserve the use of cash for the bank in the event of a shortfall in the state budget, which was born the reactions of opposition by the bank.

http://www.ipairaq.com/index.php?nam...onomy&id=21242

Hi Friends!
I've been away for a couple weeks or so. I was disappointed to find nobody came to the rescue to clear up the lop issue and the confusing articles lately. I have only limited time so I will keep this unusually brief- for me, anyway. I will cut to the chase.
For what it is worth- My Opinion is in total agreement with those saying that the action to be taken will be to gradually, but without lolly-gagging around, remove from common circulation the1K, 5K, 10K and 25K dinar notes. Why? Because they are going to Revalue the dinar to a higher rate. Some articles stated they didn't want the folks carrying a large amount of cash- VALUE. For the sake of illustration, if a 10K note buys a bag of groceries today, if they RV at 1 IQD = 1 USD, that same note would then buy what $10,000 USD buys now. This is the excuse being used for the removal of the large notes- the 3... 000's.
Alright then, what are they supposed to do to buy/sell if the value of the dinar is increased and it becomes impractical to use the larger notes? They will issue the "new" notes- the notes that were printed at the same time by the same Co. that printed the larger notes. Look in the archives to see the number of notes CBI said were printed. Presumably they are the 1, 5, 10 and 25 dinar notes, plus there are a couple of fills (their coins) to go along too.
Well, there will be a transition phase where the "new" (in time) lower denoms coexist with the larger denoms, as the larger denoms get exchanged for the lower ones, effectively "removing the 3...000's" from circulation by the CBI. It won't happen overnight, they expect it to take a few months.
These articles may be confusing but they are fantastic news for us!:banana:
When do I think this will happen and what rate do I expect?
OOOOPS! I gotta go now, my ELLIFIKNOW needs attention- pronto! :toofunny:
Hope this helps some.
Blessings On YOU!
AL

Karbala economists express their opinions about deleting the zeroes from the Iraqi currency

Many economists at Karbala University critisized the strategy of the Iraqi Central Bank to lift the zeroes from the Iraqi currency considering that the time is not suitable for that, while others reduced the importance of the process and the possibility of reducing the inflation that the economy is suffering from.

The value of the Iraqi currency is not by the number of zeros on it, but its real value is the cover that it provides to the State",The Head of Banking and Finance department at the Management and Economics faculty at Karbala university, Dr. Akram Yasseri told (AKnews)." The value of the Iraqi currency is not by the number of zeroes to add or delete but by the coverage it provides to the state." He also added that: " There are many points which must be available to the Iraqi Central Bank before initiating the process, including

First: The government must introduce new currency and to keep the old currency available in the local market to allow the citizens to deal with any of the currencies.

Second:The Iraqi banks must deal with the two currencies and at the same value and at same time.

The academic economist at Karbala University Dr. Alaa Farhan confirmed that "the decisions were hasty and not deeply reconsidered for the financial situation of Iraq."

Dr. Farhan asked about the difference that can result from replacing the new currency with the American currency (dollar), "adding that " this process has negative effects on the psyche of the Iraqi citizens and their economic situation especially the poor class. As regarding the personal debts, and whether the creditors will accept to recieve any amount that will, of course, be a small one in comparison to what they had already paid to thedebtors, this will for sure create problems between the dealers on loan terms.

Dr. Abbas Daami finds that changing the Iraqi currency is both positive and negative at the same time. He told (AKnews) that: "changing the Iraqi currency and deleting the zeroes from it has a positive effect that could serve the state depending on that a lot of people are still aspiring to the return of the old currency, which was called the (Swiss currency), which they are considering as better for them, since the phase that the currency was in, was a good stage in the life of the Iraqis.

Daami added that: "Thinking about bringing back that currency and issuing the accompanying small change (iron coins) is a valid and good one, but it includes many difficulties, such as the Iraqi economy is still suffering from the inflation that accompanied printing trillions of it which is not based on the Treasury and the hard currency available in it, but on the sole supplier which is oil, that can barely cover the requirements of reconstructions and the huge salaries of the ministries as well as external debts whicht are a heavy burden on the Iraqi economy."

He continued by saying that: "the Iraqi government must improve the industries that support the oil and depend on them as additional resources and end the foreign debts left by the previous regime's policies and then it will be able to change the currency, and gradually ,not through a quick decision that will increase the sufferings of the citizen in adapting such currency, as happened after the fall of the regime and changing the form of the currency that was used during that regime."

It should be noted that the Iraqi Central Bank Consultant Dr. Mazhar Mohammed Saleh has said earlier to some of the media that this year will see the launch of the new Iraqi currency, free of zeros and the CBI completed fifty percent of its preparations on which it was working since 2005.

http://www.aknews.com/en/aknews/2/117069/