The Parliamentary Commission of Economic committee has been working with the Central Bank of Iraq (CBI) to restructure the Iraqi dinar currency. On February 25, 2015, the CBI made a decision to eliminate the 50 Iraqi dinar (IQD) banknote from circulation. The CBI issued a press release a 65 days notice of the monetary policy change. The CBI in the future would select other banknotes to discontinue just like 50 dinar note. The 50 IQD banknote was not a highly used banknote for transactions because the value of $.04 USD was not feasible in the market. Most Iraqis did not conduct transactions in the 50 IQD, and it made sense for the CBI to recall the note. The CBI is continuing with the restructuring of the currency. The CBI will be printing a new addition, and that is the 50,000 Iraqi dinar banknote. The CBI has talked of printing a 100,000 banknote also along with the 50k IQD, however, has delayed it for now. In the future, the CBI will be printing a new 50k IQD banknote just as soon as the Economic Parliament committee approves the law and put to a parliament vote.
In Iraq, the US Dollar is still widely used for small and large transactions. The CBI would like to change this by having Iraqis use the local currency for all transactions. The intent of the CBI is to have a 100k IQD banknote that is equivalent to a $100 U.S. Dollar. A 100K IQD equaled to a $100 USD would encourage the Iraqis to use the local currency. The CBI is going to restructure their currency as stated by Mudher Salih to RFERL news media on June 24, 2011.
On June 19, 2011 then the head of the CBI Dr. Sinan al-Shabibi met with the former Prime Minister Nuri al-Maliki. In the meeting, Dr. Shabibi stated that the CBI was preparing the requirements to replace all the currency. The discussions in the meeting was about the restructuring the Iraq currency and that the CBI and the Iraqi government were in fact working to accomplish this. The Iraq government does not like to move quickly, and it takes it time at everything it does. It is mostly due to the different groups the government has to consult with before making any movement on anything. Changing the currency will take time, and it could take 2 to 5 years.
The money laundering in Iraq has become a major problem. Currently under Iraqi law, money laundering is a misdemeanor and hardly prosecuted in Iraq. The government of Iraq is close to being blacklisted due to lack of AML laws or Anti-Money Laundering in the Middle East. The Iraq government is working to get very serious on AML laws.
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