Posts By Jeff19 - Peoples Dinar Why we believe they are going to RV now, read these articles from 2012
For the newbies, this is why we believe they are going to RV the currency now. The 2013 approved budget will be back dated to January 1, 2013. Read the articles below from 2012.
Tuesday, 17 July 2012, 09:16 GMT
Iraqi currency change to take effect next year
The Kurdish Globe By Muhammed Tahir
Many doubt that removing the zeros on the Iraqi Dinar will strengthen its value.
As per a plan by the Central Bank of Iraq (CBI), new banknotes will be printed and introduced into the market starting from the beginning of 2013. The new banknotes will have three less zeros and the text and design will be modified as well.
Although, some economists argue that the disadvantages of the change outweigh the advantages, the CBI will start the implementation of the plan at the beginning of 2013 without the approval of the Council of Ministers.
"The zeros are removed for the purpose of increasing the value of Iraqi Dinars in a way that one Iraqi Dinar will be equal to one US Dollar," said Mahma Khalil, decision-maker of the parliament's Economic and Finance Committee, who argues that due to the increase in the oil and gas revenue of the country, the currency change is needed.
It is expected that this year's oil revenue will reach USD 100 billion; and by 2014, this number is expected to rise to USD 300 billion.
Dr. Ahmed Chawsheen, another member of the same committee, however, rejects this idea and argues that the value of money does not increase by removing zeros but rather by the development of industry and increase in domestic production.
By production, MP Shawsheen does not mean only oil and gas, but rather producing majority of market demands domestically, "then the value of currency increases automatically."
Aiyob Smaqayee, an economist, also argues that without a strategic planning for economic development, removing zeros would not only have little positive impact, but on the contrary may lead to negative effects on the economy.
A number of countries such as Turkey, Brazil and Argentine have in the past removed zeros from their currencies, but due to lack of strong economic policies, their currencies failed to gain notable value, and even depreciated afterwards.
Preventing or paving the way for money forging?
MP Khalil told the Kurdish Globe that by changing the currency, the possibility of forging money would be lowered, and hence he has expressed his support for the CBI initiative.
MP Dizayee, however, does not agree with his committee's head in this respectt, and states that changing the currencies will create a complication in the market and paves the way for corruption and misuse.
"The banks might change the currencies easily for a group of people but not for another group," Dizayee told the Kurdish Globe. "Moreover, there might be some wealthy people who keep their money to change it at a later stage if they think they make a profit out of it. These will create chaos in the market."
Reports have also indicated that in some countries, influential people had changed the old currencies in the banks and then withdrew them several times and changed them back again.
Iraqi is already at the top of the list of the world's most corrupt countries and this fact increases the possibility of further corruption through the currency change process.
Decreasing trust in Iraqi Dinars
In addition to internal chaos, Smaqayee also believes that changing the Iraqi Dinar several times would diminish the trust in the currency in the world markets and hence push its value down.
While Dizayee believes that printing new banknotes would cost a lot and is a burden on the CBI, Khalil states that the cost is only USD 125 million, which is not significant compared to the USD 65 billion balance of the CBI.
Smaqayee also argues that collecting the old notes and destroying them is yet another additional cost.
The nominations of the new banknotes
Khalil says the new currency will be in the shape of coins and banknotes. The coins will be in different nominations like IQD 0.25, IQD 0.5, IQD 1 and IQD 2. And the nominations of the banknotes will be IQD 5, IQD 10, IQD 25, IQD 50 and IQD 100.
Moreover, for the first time the Kurdish language will also be used on the new currency in addition to Arabic and English, with a proposal to print a picture of a historical site in the Kurdistan Region on one of the denominations.
According to the CBI plan, the new notes will be introduced in early 2013 and the changing process will be done gradually over a period of two years, during which both the old and the new currency will be used in parallel.
This gradual transition, according to Chawsheen, is a mistake and allows the possibility of corruption by the banks. He thinks that before introducing the new notes, an amount equal to the existent notes currently in circulation should be printed and thus the changing process should be conducted in one day, to prevent misuse and corruption.
Every day a different decision
Chawsheen told the Globe that the first mistake by the government was replacing the Swiss banknotes and adding zeros to it.
"Now they regret this and want to remove the zeros again," said Chawsheen. "By this they will confuse the public. Why adding zeros and removing them later?"
Three zeros were added to the Iraqi Dinar after the fall of Saddam's regime, and in 2013 and after less than 10 years, they will be removed.
- In 2003, new Iraqi Dinar banknotes were printed with three zeros added
- This banknote has been used since then
- In early 2013 new banknotes without the three zeros will be introduced
- For the first time Kurdish language will also be used on the notes
- The picture of a historical site of Kurdistan will also be printed on one of the denominations
- There will also be coins
- The coins will have 4 nominations: IQD 0.25, IQD 0.50, IQD 1 and IQD 2
- The banknotes will have 5 nominations: IQD 5, IQD 10, IQD 25, IQD 50 and IQD 100.
- The maximum nomination of the current notes is IQD 25,000.
Shabibi expected delay put the new currency for the specified time
BAGHDAD / JD / .. expect the Iraqi Central Bank delays put new currency early next year and in the presence of the developments and discussions with the government.
It is noteworthy that Prime Minister Nuri al-Maliki demanded earlier with the bank to wait currency currency exchange and put it in the first of January 2013.
said Central Bank Governor Sinan Shabibi's / JD /: The "Ask a currency early next year is uncertain because of the talks and the recent discussions with the government."
He Shabibi "will be in the process significant cooperation with the government."
He's central bank governor that the process of switching the currency continues, and time to put the previous developments but may remain behind.
The bank had said earlier in the L / JD /: "The new currency will be put 1/1/2013 in spite of the demands put forward by the government to slow down the process."
The face of the bank official letter to the Council of Ministers explaining the advantages of currency exchange on the market and the money supply and increase the exchange rate and other issues.
Iraq to cut off dinar zeros by January 2013 17-05-2012 - 05:00
Iraqi Parliament Finance Committee revealed, on Tuesday, that cutting zeros off Iraqi dinar and its redenomination will be taking place in January 2013 adding that printing the new currency will start as of September 2012.
“Zeros will be cut off Iraqi dinar and the currency will bedenominated in January 2013,” Finance Committee member Haitham Al Jabouri told Alsumarianews noting that printing the new currency bills will start in September 2012.
“The redenomination of old Currency requires a whole year and the old currency will be fully withdrawn from Iraqi market in the first half of 2014,” Jabouri said stressing that cutting the three zeros off the currency and its redenomination intend to stabilize Iraqi Dinar and decrease demand on the hard currency.
“Central Bank of Iraq dissipated all fears from money laundering during the redenomination process,” Jabouri stated explaining that it has a special apparatus to fight money laundering.
“Reform of Iraqi currency management system is a major duty of Central Bank of Iraq and cutting zeros off is one of its strategic tasks,” Jabouri uttered assuring that the Parliament Finance Committee support Central Bank’s strategy.
Iraqi Cabinet Secretariat issued a resolution, on April 2012, to halt all procedures relating to cutting zeros off the dinar until further notice.
Iraq is not ready yet for this step, some economic experts believe pointing out that such action requires security and political stability in addition to economic stability.
Central Bank of Iraq announced, on January 2012, it is determined to release 3 Iraqi dinar bills of high value i.e. 200, 100 and 50 dinars after the cutting off of zeros from the currency. Dinar redenomination requires 2 years, Central Bank of Iraq informed.
.Central Bank: we have from the reserve currency, so as to cover the process of deleting the zeros
Baghdad / justice - 23/07/2012 - 2:05 |
Said Central Bank Governor Sinan Shabibi for the selection of a British company and the other a German for the printing of the new process to delete the zeros after it.
The Shabibi during a meeting with members of the Finance Committee, the parliamentary according to a statement of the Commission that the central bank chose a British company and the other a German among the many international companies to complete the process of printing the new currency being the Ttavan about 75% of the currencies in the world.
He noted that the central bank has reserves of the coin so that they can in the process of deletion of zeros and coverage significantly. He Shabibi the main reason in the process of deleting the zeros due to the economic stability experienced by the country and the ability of the large cash with the Central Bank.
and on the currency auction between Shabibi the operation as a window to enter the foreign currency and raise the value of the dinar Iraq. The parliamentary delegation included Deputy Hussain Yasiri, and MP Ibrahim al-Mutlaq, MP Magda al-Tamimi. During the meeting, they discussed the latest developments reached by the Central Bank in the subject to delete the zeros and replacing the national currency and the policy of the completion of this process. The meeting discussed the issue of controls adopted in the auction currency and the volume of the money supply http://www.aladalanews.net
Thank you so much for the time you took to gather and give us this great info. I myself won't even state that I have a guess as to when the RV will occur however, something inside me says that it is not too far off in the future... and lets pray that it is so.
Just wanted to mention that the CBI has a couple of different coins that have been listed on thier site for some time now. One looks gold and the other silver. Not sure what metals they are made of and don't remember what nomination they are but, I remember that they were listed but not circulated so, maybe they are a part of the new money that will eventually be released. This is just my rational opinion of course. I just find it a little odd that they would list a currency on thier site for so long that hasn't been released or circulated as of yet.
I also, found the following article of interest. It talks about the government giving money to the citizens and possibly in the form of cash or deposited on thier ration cards.
Budget surplus to be distributed on citizens
Saturday, 09 March 2013 21:57 | | |
Baghdad (AIN) –Member of the Economic Parliamentary Committee, Abdul Hussein Reysan, confirmed that ''About 25% of the 2013 budget surplus will be distributed for citizens in cash.''
He reported in statement to AIN ''The Federal Government and the Parliament have different points of view over the mechanism of distributing the cash on citizens during last year.''
''The Government intended to expand the deficit on budget to avoid distributing cash on citizens,'' he added, stressing that ''A new item was applied to 2013 budget stipulates to deliver the surplus in budget for citizens after reimbursing the deficit in budget.''
''The Ministry of Planning mentioned that it has the possibility to identify the budget surplus after reimbursing the deficit in budget from the Oil revenues within three months,'' he continued saying.
''The government is responsible of determining the mechanism of distributing the surplus in budget by adding it to the ration card or paying it through banks,'' he concluded. \ End\