Iraqi Dinar Currency
How the American Contractor reviews the current status of the Iraqi dinar currency and the dinar revaluation
It appears that the new Iraqi dinar currency with the security enhanced banknotes have now been introduced into the Iraqi economy. American Contractor has not seen these banknotes personally, but my sources tell me that there has indeed been some distributed and in circulation. I will do some further investigating. I am being told that the local merchants in the city of Baiji have refused to accept the Iraq dinar banknotes in the denominations of 250 and 500. The Iraqi dinar bank notes that are not being accepted are the new Iraqi dinar bank notes that the Central Bank of Iraq (CBI) released a few weeks ago. The CBI information campaign in regards to the new Iraqi dinar banknotes being distributed appears to not have reached everyone inside of Iraq. In the article it stated that the old Iraq dinar currency would not be affected while the CBI is busy distributing the new Iraq dinar currency.
The Central Bank of Iraq has intended to change the Iraqi dinar currency days ago
The Iraq money supply will increase this month (May 2014) so let’s see if the CBI reports the increase. The CBI has been reporting their intent to delete the zeros from the Iraqi dinar currency since 2003. There are Iraq financial economists who support the new Iraqi currency and introduction of the lower denominations. Their hope is that the new currency will make transactions easier as well as increase transactions in the Iraqi dinar currency instead of U.S. dollars. Others in the financial community have voiced concern of economic problems that could arise when the new currency is fully introduced.
The draft to delete the zeros was submitted to the Iraq government
There have been several start dates of when the CBI would be introducing the new Iraqi dinar currency. In September 2011, the CBI reached the final draft for the denomination of the Iraq currency and a draft resolution was sent to the Iraq Governments Cabinet. The Cabinet is comprised of Prime Minister Maliki and his closest advisors. The CBI reported to Arab Media, Alsumari, that not only would the CBI delete the zeros but would also change the monetary structure and create larger currencies. These are the 50k and 100k Iraq banknotes that are often mentioned in local Baghdad media. The CBI previously mentioned that the deletion of the zeros would reduce the trillions in Iraqi currency inside the country and would not affect the purchasing power of the Iraqi dinar currency.
In November of 2013, the CBI announced that they would delete the zeros at the end of the year and introduce a 50k banknote. However, in December 2013, the former Iraq parliament at the time, delayed the implementation of the delete the zeros campaign because of being unable to control the currency. The Iraq government feared that the counterfeit gangs operating inside Iraq would take advantage of the situation. The parliament member, Economic Committee chairman MP Haider al-Abadi stated that the Iraq government did not have the confidence to conduct the Iraqi dinar currency exchange. The deletion of the zeros was then delayed until additional security measures could be implemented. In April 2014, the CBI announced that they would be introducing new Iraqi currency banknotes with several enhanced features.
Iraq merchants refusing to accept the Iraqi dinar currency
One of the goals was to remove the name of the former CBI governor Dr. Sinan al-Shabibi from the Iraq currency and replace it with the current governor, Dr. Abdul Basit Turki. The CBI also wanted the Iraq currency to be printed in three languages, English, Kurdish, and Arabic. The quality of the banknote paper was also going to be greatly improved. The new banknote would last in circulation for several years longer than the current banknotes in circulation. According to the news reports, the denominations would start off with the 250, 500, 1000, followed by the rest of the Iraq currency denominations. Up until the present time, there has been no solid word or proof that the new Iraq currency with the enhanced security features has been issued to the public. The news article that I just mentioned (first paragraph) about the Iraq merchants refusing to accept the banknotes with the new security features, might be an indication that they could possibly be in circulation. However, with that said, an article is not concrete proof in my book when it comes to dealing with Iraq. I’ve lived and worked in Iraq for many, many years and it’s unfortunately not uncommon to read exaggerated or unfounded news. However, I have many sources and contacts within Iraq who are currently investigating this for me. So far, no one has any knowledge of the new bills or has actually laid eyes on them. I would like to also remind everyone that I’ve previously mentioned that the CBI has to draft a law to be put forth to the Iraq parliament, Iraq Cabinet and Finance Committee before they issue the new Iraq currency banknotes. I’ve been told that there is no way of getting around this. Was the law drafted? I’ve yet to read about or get word about this occurring but I am investigating as I mentioned.
The role of the Iraq Council of Representatives in delete the zeros
The Iraq government Finance Committee is one of the permanent committees in the Iraq Council of Representatives that was formed according to the provisions of Articles 69 and 70 of the Iraqi Council of Representatives Rules of Procedure. The Finance committee is very much involved in the delete the zeros along with the CBI.
There is quite a lot of work involved when a country is deciding whether to delete the zeros and replace their currency. I have included information from Iraq media reporting and it will be available in this article. There will be links through out this article for you to analyze.
In closing, I would just like to mention that there are these so-called “guru’s” in the Iraqi dinar internet blog/forums that have said that Prime Minister Nuri Maliki does NOT want to change the Iraq dinar currency. This is bogus, unsubstantiated reporting. In fact, this couldn’t be further from the truth. If it is indeed true that the new currency IS in circulation that would indicate proof that PM Maliki is actually RESPONSIBLE for its release. I know some of you will find this hard to believe but he is actually all for economic development in Iraq.
American Contractor will be informing you of additional information on the topic of Iraqi dinar currency and the Central Bank.