In October 2003, the Coalition Provisional Authority (CPA) and the Iraqi government at the time wanted to completely remove the face of Saddam Hussein from the Iraqi dinar currency. The window of exchange for everyone inside Iraq was from October 15, 2003 up to and including January 15, 2004. The time frame for the currency exchange was stated to be only three months. It has never been six months like many Dinar guru’s would like you to believe.
The Central Bank of Iraq (CBI) has mentioned in several articles dating back to 2010 that they will print new Iraqi dinar currency. The CBI stated that they would introduce more denominations when they began to distribute the new currency. Also announced was that a 50k and a 100k Iraqi currency banknote would be introduced within the next two years. Recent bank articles have also reported that the new currency will start in 2015 and other articles state 2016. Currently, there are 40 trillion dinars in circulation. I have been told that the parliamentary economic committee is concerned as to how long it would take to eventually switch out the currency. The CBI would like a shorter term and the Iraqi parliament would like to see the five-year term. I will know more about the details of this in early 2015.
The International Monetary Fund (IMF) still does not have an Article IV consultation because the Iraqi government failed to complete a 2014 budget.
There is a danger of the Iraqi government borrowing from the Central bank reserves increasing inflation and devaluing the Iraqi dinar. The Iraqi government continues to operate their government without knowing how much they are spending and what they are taking in. The budget must be passed as it is still at a standstill. The Iraqi government has made a decision to fund the security forces and bypass industry projects for the remainder of the year. The Iraqi government will dip into the Central Bank currency reserves gold assets to fund government projects. The Central bank currency reserves are estimated at 74 billion dollars and 40 trillion Iraqi dinars in circulation.
Iraq’s economic growth has been scaled back from the normal 9% growth to a 6.9% for the year 2014. Oil exports have also slowed especially in August with a 2.3 million barrels per day instead of 3 million barrels per day as everyone was expecting.
No New Resolution On Delete the Zeros Project
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