Iraq’s new currency
Said a member of the Finance Committee of the Iraqi parliament that the new currency will enter circulation in the markets and will be taken a thousand dinars from the citizen for one dinar.
She Najiba Najib Albamrna member of the Finance Committee in the Iraqi parliament that the new currency will enter the circulation from the beginning of the year 2013 and will be removed Asfarha “and will enter the dinar metal and 50 dirhams and 25 dirhams market and will be replaced by the dinar per one thousand dinars, and will be the 25 thousand dinars to 25 dinars.” .
It confirmed that the language “Kurdish, Arabic and English” will be on the currency will be charged images of the resorts and the deportation of the Kurds of Kurdistan, but the deal Faili old currency will continue for a period of two years from the issuance of new currency.
According to Najeeba “I have been diagnosed with a number of European companies and U.S. for the work of the new currency and to avoid fraud and will be approving the budget of 2013 on the basis of the new currency.”
There have been changes to the post-2003 Iraqi currency are translated to 1000 dinar dinars were printed like the old currency.
After entering the circulation for nearly ten years face many of the economics profession, criticism to increase the zeroes on the currency and considered a reason for rise in prices in the markets and lack of appreciation of the currency of other countries, and decided to Parliament and the Central Bank of Iraq to change the currency to what it was without the zeros.
Last edited by Mona Lisa; 07-05-2012 at 07:41 PM.
Sounds like a lop to me.
Hey Gypsy ... if you mean LOP as in cutting off a part (like lopping/chopping off a branch of a tree), then in a way it is a lop, because they are cutting the PICTURE of the zeroes off of the printed bills.
If you mean lop as in cutting off the zeroes in order to devalue the bills, then it is not a lop. This article states that a dinar will be replaced "25 thousand dinars to 25 dinars". In other words, 25K = 25. It takes a bit of head shaking to wrap your head around, but it works.
If we offer a child a choice of a quarter in one hand or 5 shiny nickels in the other they would invariably chose the nickels bc there are five of them, even though they are worth the same amount. But five coins are more bulky than one coin. The purpose of the new currency is to bring the volume down for those handling/carrying cash.
Last edited by Mona Lisa; 07-05-2012 at 08:03 PM.
If you think today is good, just wait til tomorrow!!
The article is vague and misleading.
It talks of the OUTCOME... not the PROCESS.
The same as a 25,000 note is used now..
is how a 25 note wll be used later.
We have seen recycled articles like this over and over...
it is not smoke and mirrors..
it is a poorly written article and probably a bad translation to boot.
This is NOTHING To get alarmed about.
What is interesting is the sheer amount of articles released from the real CBI..(Not just some hack , like in this article) in the past few weeks.
They really are doing thier best to educate the citizens, despite misleading articles like this one.
I see it as the last incarnation of the lower denoms will come out at the beginning of next year with the third language (Kurdish) on them. There are lower denoms that are ready now, but they do not include Kurdish on them. People will be using the 25 dinar notes the way they use the 25,000 notes now because the currency will have revalued by then, and the 25,000 dinar notes will be too unwieldy to use on common currencies. It would be like using a $25,000 bill to go to the food store here in the U.S.! So they will begin trading in the large notes for the smaller ones, and the large notes will be slowly removed from the marketplace over a period of two years. This is not a LOP, this is saying that the next phase, after the RV, will begin to take place as of the beginning of next year.
*I meant to say common purchases, not common currencies. Sorry, my bad!
10 reasons why the IQD will not LOP
1. Monetary policy was a success talking inflation from 35% or higher to around 7% currently.
2. Any type of currency devaluation (LOP) is considered a failure of monetary policy. Dr. Shabibi has not failed.
3. Lesser value notes in circulation such as 50, 250, 500. Devaluing the larger 3 zero notes would make them worth less than these lesser notes.
4. Iraq wants the dinar to be an international reserve currency. Cannot devalue the notes in reserve (25,000), circulate them as payment, or traded amongst countries.
5. Iraq holds arguable the second largest oil reserves and is mineral rich. They are too wealthy to not honor the value stated on the notes.
6. Iraq has stated..They want the “strongest currency in the Middle East” Any such type of LOP would be a devaluation and therefore not considered strong.
7. US holds dinar as a result of funding the CBI's initial reserves. This dinar will eventually payoff the war debt.
8. One of the authors of the currency exchange plan - Assistant Professor Dr. Fadel states in his documentation, “We must emphasize the extremely important issue is that if you remove three zeroes from the currency should not affect the actual value thereof to be trading in the old currency…”
9. In 2003 when the NID was introduced at it’s initial rate, the previous currency was in essence devalued taking all wealth from the country to prevent funding of terrorism. Raising the currencies value will in essence, return that wealth now that the GOI is stable and economic conditions have improved.
10. The CBI has stated “both currencies will co-exist” and the process will not change the “monetary value” of the dinar.