Don961: From 2011 … Mr. Saleh …
Iraq Said To Be Planning Currency Overhaul, Redenomination
June 24, 2011 16:03 GMT
BAGHDAD — A senior Iraqi Central Bank adviser says the government has adopted a two-pronged plan to restructure the national currency in order to facilitate large transactions and make government accounts more efficient, RFE/RL’s Radio Free Iraq reports.
Mudhhir Muhammad Salih, a member of the bank’s advisory panel, told RFE/RL on June 23 that in the short term, larger banknote denominations of the dinar would be issued to simplify major transactions.
He said that because so many Iraqis still dealt mainly in cash, it was cumbersome to carry bags full of money to pay for expensive items like cars. The inconvenience leads people making such purchases — as well as many entrepreneurs — to use dollars for those kinds of transactions instead of dinars, something the government wants to end.
He added that large denominations equivalent to around $100 would be issued to simplify major purchases, and new coins and lower denominations would be introduced for smaller transactions.
In the longer term, Saleh said a redenomination was needed wherein three zeros will be dropped so that the 25,000-dinar banknote — currently the largest denomination — becomes a 25-dinar note.
He said the change was inevitable, considering the economy is expecting high growth in the coming years with a planned increase in oil production to finance reconstruction projects.
Saleh said there were currently some 29 trillion dinars in circulation in Iraq, represented by some 6 trillion banknotes of various denominations, most of them quite small. He said this also caused complications for the Central Bank and government, as well as commercial accounting departments.
Saleh said the monetary-restructuring plan was drawn up with the help of foreign experts and financial institutions, including the International Monetary Fund, of which Iraq has been a member since 1945.
The plan will soon be presented to the cabinet, which is expected to subsequently send a bill to parliament.
Saleh noted that until 1980 the Iraqi dinar exchange rate was 1 dinar/$3.3 compared to $1/1,168 dinars now due to hyperinflation that occurred during the latter part of the late ousted leader Saddam Hussein’s reign. link
Mike4339: In the longer term, Saleh said a redenomination was needed wherein three zeros will be dropped so that the 25,000-dinar banknote — currently the largest denomination — becomes a 25-dinar note. He said the change was inevitable, considering the economy is expecting high growth in the coming years with a planned increase in oil production to finance reconstruction projects….. So confirm, our 25,000 notes will still be honored as such???
Richard: Mike short answer to your question is yes we can still exchange the 25k notes, however from the article we may not be turning into instant millionaires. Only time will tell.
MilitiaMan: “The solution is not to delete zeros or dinar floated, but substituting new Iraqi dinars and to link the rate of exchange in US dollars. Be issued any new Iraqi dinars equivalent to the dollar in the exchange rate of the dinar .oatkon per hundred fils and groups: one dinar, five dinars and ten dinars, and twenty dinars, and fifty dinars, and one hundred dinars. Minting coins from fils and five fils, ten fils fils twenty, and fifty fils, and one hundred fils. Thereby ensuring the stability of the monetary system and the elimination of the imbalance in the current system , which has allowed widespread corruption. FA (final article) #4
MilitiaMan: Notice they say the solution is not to delete the zeros. As in not just delete them for to have easy use or to just re denominate. As if that were the case they could have done that years ago for one, for two that would be a significant waste of the expense in just printing paper currency, let alone coinage, without bringing value back into to the equation.
Fairly sure Central Banks don’t throw away 100s of millions of Dollars on such endeavors, are at least any smart ones. So the article does imo support they had back then intention and noted in late October 2016 even, that they are bringing coinage back.
More recent data supports this as well. So back in 2011 they had value on their minds.. Not just reverse splitting “” the currency.
So one may infer that if they’re to re instate to a REER (Real Effective Exchange Rate) and peg it to the dollar, you very well may be instant and yes we can agree that time will tell. ~ MM
MilitiaMan: We have recent data that supports they have now over $60 billion in reserves along with about 96.5 tonnes of gold, they have taxes and tariffs that match their 4.6 million barrel out put a day at or over $69.00 a barrel which is far the $56 in the budget for 2019, if I read that correct. So I see support for them coming back to the glory days.. imo ~ MM
“.money year contributed to the decline in current reserves to 45 billion dollars He pointed out that” the Iraqi dinar is still safe despite the decrease in the reserve, is expected to return to its former glory after the end of the war on “.Daesh
Keywords: $ 45 billion in Central Bank reserves and turned to support budgets
MilitiaMan: This is another example found in FA (final article) #5 that supports they were and had intention to print new currency in 2017 and with recent data from the CBI they spent significant amounts of money in doing so this year and I believe it may be in the tune of $200,000,000.00 in doing so. Just deleting zeros with out value added does nothing for those on fixed incomes, as they to date have no or very little purchasing power. ~ MM
“This reinforces the confidence of investors monetary system and its stability and preserve the purchasing power of consumers with incomes limited.”
The Iraqi Central Bank Governor said the project to delete the zeros will be implemented in the beginning of 2017, indicating that the bank began to develop the first steps of the project.
and he said: ” the purpose of deleting three zeros from the Iraqi currency is to support the Iraqi dinar and make it a competitor of foreign currency”, returned him as “this strategic project will serve the country ‘s economy if will be inclusion of the Iraqi dinar in the global basket of currencies in the vital world stock markets. ”
He added that” the Bank is working on mechanisms for the implementation of this project is expected to start at the beginning of 2017 , “noting that” the central bank began the first steps of the project through the selection of the designs , companies and the country that will be the currency printing. ”
He pointed out that” the new currency entry does not mean the destruction of ancient coins, but will continue to trade for about ten years , “pointing out that” this period will enable the central bank to withdraw the old currency in accordance with the dynamics and mechanics in order to preserve liquidity In the market.
MilitiaMan: Then there is this back in March of 2017 in FA 21 that talks about value.. ~ MM
“He said either the Iraqi currency was within the currency is convertible which can not be used for international settlements , but turning it into another currency, or to the dollar (Oogerh), and goes to Iraq to be paid the proceeds of the sale of oil to the US dollar and that the equivalent of the dinar to $ 3.32.