The Central Bank of Iraq (CBI) has announced that they have re-printed several new Iraq dinar currency denominations. The new printed Iraq currency denominations are the same as the previous ones in circulation, from October 2003. The difference between the October 2003 printing of the Iraq dinar and the recent re-print is the addition of more security features as well as Kurdish language and better readability for blind people.
Recent reports say that the new re-printed notes are now going to co-exist with the current bank notes. They will both have the same exchange rate. The Central Bank is doing this to counter the criminal gangs that are counterfeiting the Iraq dinar. The CBI has re-printed the denominations of 250, 500, 1000, 5,000, 10000, 25000. This new addition of more bank notes will add to what is already in circulation. Since the printing in October 2003, there has been no coordinated effort by the CBI to remove notes from circulation. The only notes that have been removed are the ones that are worn out and have been turned in for credit by the Iraqi banks. In the future, the CBI intends to start printing larger denominations such as 50,000 Iraqi dinar banknote. This is to control the current inflation in Iraq.
The CBI has also announced that they have made arrangements to purchase large amounts of gold. The reason they are doing this is because Iraqi’s are exchanging their Iraq dinar for U.S. dollars. This is evident when you observe the Central Banks daily currency auctions, which are in the hundreds of millions of dollars. The Central Bank has realized that they need to increase the value of the Iraq dinar quickly. The Iraq government is the number one employer in Iraq and most are being paid in Iraqi dinar. When they are paid they quickly exchange for U.S. dollars at a local bank or go to a currency exchange business.
Last year the CBI tried to halt the smuggling of U.S. dollars out of Iraq. The CBI seems to be failing despite their policies that have been in place as laundering continues.
In other news, the leader of the Supreme Council on Iraq,(ISCI), Mr. Ammar al-Hakim and his allies did not have the opportunity to replace the current Prime Minister Nuri Maliki. There is basically no difference between the two parties. One may just hold slightly more power over the other. Maliki however, may currently have an advantage as he controls most government functions and ministries and may possibly succeed in his bid for third term. Maliki currently receives four paychecks each month:
Ministry of Interior
Ministry of Defense
Leader of the Dawa Party
Leader of the State of Law coalition
Maliki has given the armed forces two electoral cards and made it a point to skip the people that are not in support of his third term. You can say what you want about Maliki but he is clever and he will win his third term on April 30. Granted, there is still an election. Maliki has made a daily attempt to get rid of his opponents via the courts system or finds an excuse to arrest and jail them. In regards to the Kurds in the north, it is just a repeat of what happened in 2010 election. The Kurds were against Maliki originally, then they came around and supported him in the end.
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