Iraq ‘plans to trim zeros from currency’

http://www.tradearabia.com/news/BANK_203086.html


Iraq ‘plans to trim zeros from currency’


Baghdad: 1 hour and 8 minutes ago

Iraq plans to redenominate its dinar currency by knocking three zeros off the nominal value of bank notes to simplify financial transactions, a senior central bank official said on Saturday.

Central Bank Deputy Governor Mudher Kasim said he expected the new currency to be used in the market in three years and it would have no impact on inflation.

"This will facilitate the payments system ... instead of carrying a lot of money, we will carry less. This is an important reform," Kasim told Reuters.

Iraq is recovering after years of war and sanctions and oil still dominates the economy, accounting for 95 per cent of government revenues. Investors complain Iraq's still heavily centralized economy is mired in red tape and bureaucracy, and transactions are still often carried out in cash.

Kasim said planning and the preparation for reform was complete and the proposal would be handed to the government in the next month. It would also need parliamentary approval.

Iraq's central bank began discussing the redenomination of the dinar last year aiming to help ease financial transactions.

In Iraq many payments are still carried out in cash because of the underdeveloped banking system.

The Iraqi dinar is traded in auction at a fixed rate of 1.170 per dollar.

Iraq has 30 trillion dinars in circulation, Kasim said, and the project would bring liquidity to 30 billion.

He said the restructuring would include issuing higher categories of currency and the use of coins for the first time.

Iraq's higher denomination currently is a 25,000 Iraqi dinar bill worth around $21. – Reuters

http://translate.google.com/translate?hl=en&sl=ar&u=http://ara.reuters.com/article/businessNews/idARACAE7750AA20110806&ei=PFA9TrOKNYOrsAKml-kh&sa=X&oi=translate&ct=result&resnum=1&ved=0CDYQ7gEwAA&prev=/search%3Fq%3D%2522%25D8%25A8%25D9%2586%25D9%2583%2B%25D9%2585%25D8%25B1%25D9%2583%25D8%25B2%25D9%258A%25D9%2591%2B%25D8%25A7%25D9%2584%25D8%25B9%25D8%25B1%25D8%25A7%25D9%2582%2522%26hl%3Den%26sa%3DX%26tbo%3D1%26rlz%3D1R2TSHB_enUS373%26biw%3D1680%26bih%3D720%26tbs%3Dqdr:h%26prmd%3Divns


Central Bank: Iraq plans to delete the three zeroes from the currency

Translated Link

Sat Aug 6, 2011 2:19pm GMT

BAGHDAD (Reuters) - A senior official of Iraq's central bank said on
Saturday that Iraq intends to amend the categories of its currency the dinar
by deleting three zeros in order to facilitate financial transactions.

Qasim said the appearance of the deputy central bank governor, said he
expected the use of categories of the new currency in the market within
three years and shall not affect inflation.

He told Reuters that the aim is to facilitate the payment system.

Iraq is recovering after years of war, sanctions and the oil still
dominates the economy, accounting for 95 percent of government revenue.

Investors have complained that Iraq's economy, which is still subject to a
high degree of central planning suffers from administrative and procedural
complexities that most transactions are in cash.

Qasim said the planning and preparation stage of reform has been completed
and that the proposal will be submitted to the government next
month. It will require the approval of Parliament as well.

The Central Bank of Iraq began to discuss amending the dinar categories last
year. And is still a large part of the payments are in cash because of the
evolution of the banking system.

Qasim said the restructuring includes the issuance of the highest categories
of use of currency and coins for the first time. The highest category of the
Iraqi currency is now 25 thousand dinars, worth about $ 21.

Of Aseel Kami

lol.....more smoke....gotta love it!

Panhead wrote:lol.....more smoke....gotta love it!

Let's just hope they don't talk it to death, as is their normal compulsion to do so...ACTION ASAP!!

Another one from REUTERS


http://ara.reuters.com/article/businessNews/idARACAE7750AA20110806


Sat Aug 6, 2011

BAGHDAD (Reuters) – A senior official of Iraq’s central bank said on Saturday that Iraq intends to amend the categories of its currency the dinar by deleting three zeros in order to facilitate financial transactions.

Qasim said the appearance of the deputy central bank governor, said he expected the use of categories of the new currency in the market within three years and shall not affect inflation.

He told Reuters that the aim is to facilitate the payment system.

Iraq is recovering after years of war, sanctions and the oil still dominates the economy, accounting for 95 percent of government revenue.

Investors have complained that Iraq’s economy, which is still subject to a high degree of central planning suffers from administrative and procedural complexities that most transactions are in cash.

Qasim said the planning and preparation stage of reform has been completed and that the proposal will be submitted to the government next month. It will require the approval of Parliament as well.

The Central Bank of Iraq began to discuss amending the dinar categories last year. And is still a large part of the payments are in cash because of the evolution of the banking system.

Qasim said the restructuring includes the issuance of the highest categories of use of currency and coins for the first time.

The highest category of the Iraqi currency is now 25 thousand dinars (or) worth about $ 21.

funny they really want folks to believe that the 25k note will become a 25?....why have a note with security features that are only rivaled by a USD 100 bill on a noe thats only worth 20 bucks?...they cost almost that much to produce...lol

Panhead wrote:funny they really want folks to believe that the 25k note will become a 25?....why have a note with security features that are only rivaled by a USD 100 bill on a noe thats only worth 20 bucks?...they cost almost that much to produce...lol

With that thought why say it will happen in 3 years and risk Big investors to take over country at minimal cost from now until it happens. Or our they pumping the big boys to get in now or be left behind?

thinking it's a rehashed article from 07 anyway.....been alot of those recently.

but remember this in the meantime.....


From 2005:
http://www.time.com/time/magazine/article/0,9171,1061554,00.html

"Currency markets went into a brief spin last week when the website for the Chinese Communist Party mouthpiece People's Daily carried an erroneous story stating that China would soon revalue its currency, the yuan. China's central bank quickly dashed the expectation, saying it has no immediate plans to change the yuan's peg to the U.S. dollar. But the scare was enough to prompt all sorts of questions on the Chinese currency"

Pinhead I have been think that this was an old article too!