The Central Bank of Iraq (CBI) is not independent from the Iraq government. The CBI has to wait for approval from the government to start printing and issuing the 2013 new Iraq Currency.
Central Bank of Iraq
The Iraq government will start a education media blitz pertaining to the Iraqi currency. This will begin in late 2012. The Arab Summit, other national meetings and conferences, are taking precedent over the CBI intentions to change the Iraq currency.
The Development Fund for Iraq (DFI) will lose the protection of the U.S. government in 22 May 2012. However, the protection will be extended for another year. This will continue to protect the Iraq funds from outside lawsuits and claims against the Iraqi government.
Well…..they’ll start the media blitz when they actually do something with the currency. When that will happen is very subjective and open to a great deal of speculation. We hope it’s sooner than later, but really hope it doesn’t drag into 2014.
The educating of the Iraq citizens will start long before they distribute the new 2013 Iraq currency.
“And the foundations of the Iraqi Central Bank as an independent institution under the law issued on the sixth of March of 2004, as an independent body is responsible for maintaining price stability and the implementation of monetary policy, including exchange rate policies and management of foreign reserves and the issuance of currency management”
I remember an article where a CBI official said they DID NOT need government approval to redenominate.
I really don’t think it’s clear if Gov approval is needed or not. It is pretty clear that the CBI is trying to get Gov approval, but saying it is needed might not be the truth.
When you want to change out the currency you have to get the Iraq government approval.
The Iraqi people must be the stupidist people on earth. To think that they will need to be educated for up to 7 months possibly, about how to use the new currency.What kind of media BLITZ!! is that? Sand fleas could deliver messages faster!!I don’t believe this September schedule even for a minute!!
Funny… I’ve been trying to educate American dinar holders for 6 years now what a redenomination means, and they still don’t get it. So I’m not sure I’d be so hard on Iraqis.
DaveD the news is clear, to wait for approval from the government to start printing and issuing the 2013 new Iraq Currency. CBI is indepedent from the goverment.
The Central Bank of Iraq (Arabic: البنك المركزي العراقي) was established as Iraq’s independent central bank by the Central Bank of Iraq Law of March 6, 2004
Adrian… you state that it is clear. You then show they are awaiting approval from Gov. and you show that they are independent from the Gov. Which is it? That is anything but clear. I’m not digging up old articles. But I do remember one where the CBI rep said they DID NOT need Gov approval for this. It was more like they were seeking Gov approval just to make it a more unified decision. I could really care less either way because I think it will get Gov approval soon. The economic committee has already approved it. It could be source of contention. The CBI being independent may feel like they don’t need government approval. The Gov may disagree with that opinion. So the CBI is placating the Gov by getting their approval even though they really don’t think they have to.
The CBI sets the rates of exchange but if you read the Iraq constitution (I have)although CBI controls rates any issuing of currency has to be approved by parliament.
Article 110:
Third: Formulating fiscal and customs policy; issuing currency; regulating
commercial policy across regional and governorate boundaries in Iraq; drawing
up the national budget of the State; formulating monetary policy; and establishing
and administering a central bank. You can see the entire constitution at this link.
http://www.uniraq.org/documents/iraqi_constitution.pdf