Iraq Prepares to Redenominate its Currency

According to a report from Al Sumaria News, Iraq’s Central Bank announced on Thursday that it is planning to delete the zeros from its currency, the Iraqi dinar.

This step is one of the bank’s strategic missions, the Central Bank said adding that the new currency will include the Kurdish language in addition to the Arabic language.

“The zeros that were added to the Iraqi currency previously constituted a large money supply up to 28.500 trillion Iraqi Dinar and 5 trillion banknotes”, the adviser of Iraqi Central Bank governor Mothahhar Mohammed Saleh [Mudher Mohammed Saleh] told the agency.

“The Central Bank has prepared all requirements needed to delete the zeros from the Iraqi Currency”, Saleh said.

“This step is one of the Iraqi central bank’s strategic missions. The monetary policy of the bank aims to structure and reduce the currency in a country moving towards an economic phase”, he added.

“The project of deleting zeroes is complete. It will be submitted to the central bank’s administration in the next session. Then, it will be passed to the ministerial council before presenting it to the Parliament for vote. The mechanisms of changing the currency will be gradual. It will be preceded by awareness campaigns for citizens”, the adviser of Iraqi Central Bank governor said.

“The new currency will be printed after deleting the zeros and will include the Kurdish language in addition to the Arabic language. It will also bear photos of Iraq’s civilization in addition to symbols of Iraqi intellectuals and figures”, Saleh noted.

Sanan Al Shebeibi [Sinan Al-Shabibi], Governor of Iraq’s Central Bank, affirmed during the meeting of independent commissions on June 19 with Prime Minister Nuri Al Maliki that the bank is preparing all requirements needed to replace the Iraqi Currency.

Iraq’s Central Bank has four branches including Basra, Sulaimaniah, Erbil and Mosul. It was founded as an Iraqi independent bank by virtue of Iraq’s Central Bank Law issued on March 6, 2004.

The bank is responsible for the prices stability and the implementation of monetary policy including exchange rates, the management of foreign reserves, the issuance of currencies and the organization of the banking sector.

It’s six years since neighbouring Turkey redenominated its currency, making one ‘new Turkish lira’ equal one million ‘old Turkish lira’.

(Source: Al Sumaria)

37 Responses to Iraq Prepares to Redenominate its Currency

  1. jdog June 28, 2011 at 12:02 am #

    Ahmen!

  2. Ridha June 28, 2011 at 2:21 am #

    Dear all,

    Would it be possible to have the names right in your articles

    Mothahhar Mohammed Saleh: must be Mudher Mohammed Saleh

    Sanan Al Shebeibi: must be Sinan Al-Shabibi

    regards

  3. Editor June 28, 2011 at 3:42 am #

    Dear Ridha,

    thank you for your comment. We do endeavour to use all variants of people’s names where possible, and have updated the article with your amendments.

    Best Regards

  4. dmac June 28, 2011 at 8:52 am #

    What will happen to old dinar notes?? Will I be able to exchange them for the new currency or will they be worth nothing now???

  5. Jeff June 28, 2011 at 9:16 am #

    So Mr. Editor does this mean that one dinar currency will be worth 85-86 cent US? I would appreciate your assistance. Thanks.

  6. Andy June 28, 2011 at 10:18 am #

    Is this just a LOP?

  7. Stew June 28, 2011 at 10:25 am #

    One of the interesting things to come out of these latest articles is the statement that they will issue a note worth about $100 to facilitate large purchases.
    At first I thought this simply meant they will issue a 100 dinar note with the new redenominated currency. Then one of the articles made it pretty clear they will issue that note before the redenomination. That means Iraq is about to issue a 100,000 dinar note.
    That sure will shoot a big hole in the guru lie that Iraq is soaking up all the big notes.
    I’m sure they will come up with another lie to cover the first lie though… can’t wait to hear it.

  8. Stew June 28, 2011 at 10:35 am #

    Yes Andy… that’s what a redenomination is… a lop.
    Lop is just a slang term. Wish it never would have been used. The technical term is redenomination. The gurus have used the two terms and tried to convince people that they somehow mean something different. That is just another case of guru lies, or ignorance. Pick one… neither is good.
    Redenomination is the same thing as lop.
    Just as delete, drop, lop, raise, remove, cancle zeros all mean the same exact thing.
    There will be a new currency and 1000 of the dinar you have now will have to be given in exchange for 1 of the new dinar.
    The new dinar will almost certainly be valued at 85 cents per dinar.

  9. Leon June 28, 2011 at 11:18 am #

    Everybody can relax now. I agree with Stew. The big money we all had hoped for is not going to happen. The holdings we all bought will be rolled back 1000 to 1. 85 cents with the hope it goes to 3.22.
    Your million dinar is now 1000. worth $850 bucks. Doesn’t even cover the purchas amount.

    Leon.

  10. Stew June 28, 2011 at 1:40 pm #

    You’re right Leon… and the problem is it’s going to cost another big fee to exchange to the new currency… and that’s if it will even be possible to convert. Iraqis will have no problem… but people holding dinar half way around the world might run into a snag or two. Banks will probably not mess with a redenominated currency. That leaves dinar holders at the mercy of the same scammers who pushed this to start with. If Iraq adopts measures to not allow currency back into the country easily… the dealers may not take the risk and just shut down shop and leave everyone hanging with worthless paper.
    I’ll tell you this… If I had the means to get the currency back into the country and exchange for sure… I’d be setting up shop right now… cuz there’s a fortune to be made buying this crap back from people. Hmmmm… think… do I know any Iraqis?????

  11. LZ June 28, 2011 at 3:23 pm #

    I bet that will be Ali’s next move….with a new name and company of course. Yep….we all got suckered and that scumbag Ali made all the money. My guess is they will pay you half for the dinar.

  12. thrn2000 June 28, 2011 at 3:35 pm #

    I thought I read that Iraq was going to honor the large denomination notes for large business purposes/transactions and the new lower denomination notes would be as the USA’s notes ones, fives, tens, etc. up to hundred for the smaller/daily transactions of the Iraqi people. Was this just a rumor?

  13. LZ June 28, 2011 at 4:07 pm #

    Hey Stew…..Please check this out!

    http://www.blogtalkradio.com/phoenix3333/2011/06/28/the-train-kept-a-rollin

  14. Stew June 28, 2011 at 4:46 pm #

    This is from the US State department web site… I’d post a link but it will take days to get approved.
    travel.state.gov/travel/cis_pa_t/cis/cis_1144.html#criminal_penalties
    Put a http in front of that.
    SPECIAL CIRCUMSTANCES: Iraqi law prohibits adult Iraqis and foreigners from holding and transporting more than 10,000 USD in cash out of Iraq. However, adult Iraqi and resident foreigners may hold and transport no more than 200,000 Iraqi dinars to cover travel expenses.
    All U.S. citizens are reminded that it is their duty to respect Iraqi laws, including legal restrictions on the transfer of currency outside Iraq.
    Transporting large amounts of currency is not advisable.
    Please be aware that large wire transfers may require Central Bank of Iraq approval due to measures in place to combat money laundering. Such approvals can be obtained by the sending bank if a customer provides information on the origin of the funds and the reason for their transfer.

    Don’t be surprised if these laws are strictly enforced during the currency exchange period.

  15. Stew June 28, 2011 at 5:05 pm #

    LZ… funny stuff.
    Phoenix is a long time Dinar Pumper. He’s been in this from the beginning. He used the names SekretKey, Ranger77, and Ema266 to pump dinar on many different sites. Probably a few other names also.
    Before he got into the dinar he was a penny stock pumper. He used the Ema266 name (and probably a few others) to pump penny stocks and then jumped on the dinar when it came out.
    In other words… he’s slime.
    His audios are a joke. Did you listen to that crap? “Think about it and it will happen”. What a load of crap. Doesn’t every man think of wealth and beautiful woman all the time?? Claiming Iraq is the richest country in the world. He’s delusional. Iraq is and has been under a Stand-by-Arrangement with the IMF for years. Rich countries are not under stand by arrangements. Poor developing countries are.

  16. Mike S. July 1, 2011 at 3:08 pm #

    Spot on Stew. Iraq will Re-Denominate (lop). They’ve repeated this so plainly and clearly over the past couple of months that there is no doubt anymore:-

    April 13th 2011 – “Iraq’s Central Bank announced on Tuesday that the project of Iraqi Dinar re-denomination consisting of removing three zeroes is close to completion. The re-denomination project is believed to be a strategic plan that will be passed to the ministerial council and Parliament once complete. Iraqi economists believe the re-denomination of Iraqi Dinar will not have a major influence on the purchasing power of the Iraqi Dinar which the government has hopes high on it.”

    April 16, 2011 – “An advisor of the Iraqi Central Bank, Dr. Mohammed Saleh appearance that the bank adheres to its policy regarding the removal of three zeros from Iraqi dinar traded at present… To that, the adviser to the Central Bank of the appearance of Mohammed Saleh, said that such fears are unwarranted, and that the economic situation in Iraq is good and able to withstand the application of this project, and that this experience had previously been applied in countries such as Turkey, which has by deleting six zeros from the currency before the period is not too distant future.”

    June 24th 2011 – “Iraq’s Central Bank announced on Thursday that it is planning to delete the zeros from the Iraqi currency. The new currency will be printed after deleting the zeros and will include the Kurdish language in addition to the Arabic language. It will bear as well photos of Iraq’s civilizations and patrimony in addition to symbols of Iraqi intellectuals and figures”, Saleh noted. On June 19, Iraq’s Central Bank Governor Sanan Al Shebeibi affirmed during the meeting of independent commissions with Prime Minister Nuri Al Maliki that the bank is preparing all requirements needed to replace the Iraqi Currency.”

    The “Dinar debate” is no longer economic or even due to lack of information or “ambiguous ICB statements. The real issue is one of psychology : people attach themselves like a limpet to disinfo pumpers who promise $1m from changing $1k dollars into $1k worth of Dinars and back again to the extent of ignoring – even openly attacking – what the Iraq Central Bank says when it doesn’t fit in with the fake intel pumpers are pulling out of their behinds on a daily basis. I witnessed the whole thing before with the CMKX “pump and dump” penny stock fraud.

    “redenomination”, “redenomination”, “redenomination like Turkey’s”, etc).

    The good news from what I’ve seen is that over the past two weeks there’s been an increasing “reality check mood change” in some forums where many are deciding that some pumpers have finally pumped all credibility out of themselves when they still claim “no redenomination” after the Iraq Central Bank openly stated “redenomination”, “redenomination”, “redenomination like Turkey’s” as plainly and clearly as is possible.

    To those wondering about the Dinar’s post-lop value, it’ll be the same in real terms. If you bought $1k’s worth (approx 1m Dinars), you should still have approx $1k’s worth (minus trading fees / spread) – it’ll just consist of, eg, 1,000 Dinars at say 1.17:1 instead of 1,000,000 Dinars at 1170:1. The only issue is whether or not you’ll be able to change outside of Iraq. One thing pumpers will never remind anyone of is that during the last banknote change, there was both a 3-month time limit (Oct 15th 2003 to Jan 15th 2004) before they became demonetized, and also a rule about changing inside Iraq only:-

    “Q: Can dollars also be exchanged for new Iraqi dinars? What will be the conversion rate for dollars?

    A: Dollars will not be converted directly into new dinars during the official exchange. Following the exchange, dollars will be convertible directly into new dinars at the market exchange rate. New dinars will also be convertible into dollars as well as other currencies at the market exchange rate.

    Q: Will it be possible to exchange currency outside of Iraq?

    A: No. The only official currency exchange locations will be located within Iraq.”

  17. Stew July 1, 2011 at 8:03 pm #

    Yep Mike. Every single economic indicator SCREAMS lop. Yet the gurus claim differently. The amazing thing is these guys like Scooter and Breitling who are supposed to be so smart and research so much… well it’s obvious that they have never studied currency redenominations because they constantly spew misinformation about the subject. More likely is that they do understand redenominations, and they are just lying through there teeth to keep people hooked into this scam. So they are either idiots or scum… neither good for investment advice.
    There have been about 100 redenominations in the last 30 or 40 years. EVERY single one of them was done basically the same… differences being number of zeros and length of exchange period. There have been ZERO exceptions to the rule. Yet these great thinkers, research experts… they can’t figure it out?

  18. broke62 July 2, 2011 at 2:03 am #

    If you have the dinar you hold in a bank account, will there be a lop on the amount there aswell….You do not hold any notes there ??

  19. Stew July 3, 2011 at 10:15 am #

    Yes… bank accounts will lop 3 zeros also. Iraq has 28.5 Trillion dinars floating around, they will be exchanged 1000 old for 1 new, so they should end up with 28.5 billion.
    Iraq’s total M2, that’s notes in circulation AND electronic money is about 60 trillion. That number will be 60 billion.
    They are also going to benefit from the dinar dealers and pumpers who convince people this is a big RV and hold onto their dinar until it’s too late to exchange. Every dinar that doesn’t get returned to Iraq for exchange is free money to Iraq. They will silently thank dinar holders tremendously for their gullibility.

  20. broke62 July 3, 2011 at 2:16 pm #

    great…. screwed again …..

  21. New Dinars for Old | Iraq Business News July 5, 2011 at 12:02 pm #

    […] redenominate the Iraqi dinar will be presented to the Council of Ministers in the near future. (See here and here.) The Council is then expected to submit the relevant legislation to Parliament for a […]

  22. Lee July 10, 2011 at 12:57 pm #

    NO LOP, this article must have been recycled a million times, I wish at least they would change the picture 🙂

  23. Lee July 10, 2011 at 1:00 pm #

    I would also like to add that Iraq need to Revalue their currency, not Devalue it further, there will be no lop, Iraqi economists have said this themselves many times. removal of the zeros is completely different from a lop, anyone who tells you a lop should go learn a bit more about this investment. it simply refers to removing the 000 notes from circulation and releasing the new lower denoms ready for the price increase.

  24. Awake 2011 July 12, 2011 at 8:51 am #

    [Offensive comments removed by Editor.] They are not going to LOP, they have stated that the RD will be completed by the end of 2012 and BOTH currencies will co-exist period. The first RV will come out before the new denominations are brought out, and it will RV at a low rate and they will put a time limit on turning in the large denoms.
    Those raise the 3 zeros articles have been rehashed for 4 years now, using the same article over and over. Do you really think they are going to post articles that say WE WILL RV OUR CURRENCY NEXT WEEK?
    Use your brain people, or sell and get out.

  25. Stew July 12, 2011 at 9:24 am #

    LOL… this is what happens when you rely on dinar dealers and their paid dinartard gurus for all your information.
    You fall for a scam, lose your money, and go on public forums and make a fool of yourself.

  26. Awake 2011 July 12, 2011 at 10:22 am #

    [Offensive comments removed by Editor.]

  27. Editor July 12, 2011 at 11:03 am #

    May I remind readers to keep their comments to the issues being discussed, and to refrain from personal attacks on other posters.

    – Editor

  28. Brian July 17, 2011 at 5:24 am #

    Absolutely right Stew. The fact the editor has had to censor above posts for abuse speaks volumes as to how much “RV intel” is based on raw emotion rather than fact. The truth of what the Iraq Central Bank have said they’ll do can be found in Mike’s earlier July 1st post, straight from the people in charge of the whole process:-
    http://www.iraq-businessnews.com/2011/06/27/iraq-prepares-to-redenominate-its-currency/comment-page-1/#comment-53574

    “Redenomination, redenomination, redenomination”, “delete zeroes as previously applied in Turkey”, etc. There are a *LOT* of people in deep denial over this and lashing out in rage after realizing they’ve been hoodwinked by a few pumper salesmen.

    It’s a lop. Please deal with that truth rather than keep getting angry “shooting the messenger” and hurling abuse at people out of fear / pride.

  29. Bill July 18, 2011 at 1:19 pm #

    Primary concern and confusion is what exactly will a denominated dinar do to help the Iraqi economy. Granted reducung a few zeros will reduce the in circulation and increase demand. An increase in demand (reduction in supply) typically indicates an icresase in value which is a win for the Iraqi’s and shouold be also for those holding the current notes. Thoughts?

  30. Stew July 18, 2011 at 9:38 pm #

    It’s not rocket science Bill. A new currency is introduced. 1 new dinar is worth 1000 old dinar. Go to the market… a loaf of bread will cost you 3000 old dinar, or 3 new dinar. Can of coke is 1000 old dinar or 1 new dinar. After a certain amount of time all old dinar has to be turned in for new dinar. After that date everything will only be purchased with new dinar, so only one price.
    It’s amazing that dinar scammers continue to tell people Iraq wont and can’t lop because it’s to complicated and other silly reasons. Yet redenominations have been done about 100 times in the last 30 or so years.
    All the while they continue to claim a 100,000% or more overnight RV is about to happen any day… and that’s an event that has never, and will never happen. It would lead to mass chaos.
    The new dinar may appreciate some, but it wont be nearly enough to make up for the fees that were paid to buy and then exchnage for the new currency… if they get a chance to exchnage at all.
    It could depreciate also. A lot of currency redenominations are followed by the currency depreciating.

  31. Brian July 19, 2011 at 12:44 am #

    Bill – You’re right in saying the Dinar may appreciate vs other currencies over time after it lops and gets traded more, and after Iraq’s economy grows. But that’s a gradual long-term thing that’s a whole lot different to the “millionaire overnight” pumper scam.

    Stew – Absolutely right. If half these Dinar holders were told Obama was going to “RV” the Dollar and give everyone $1m for each $1k held, how many would fall for it? Yet it’s exactly the same thing…

    If there are $10-12tn of Dollars in circulation, and everyone bought Dinar tomorrow, where do people think the $10-12 quadrillion needed to pay them their “1000:1 winnings” will come from? If even 0.1% of $ were gambled on an “RV” the proclaimed “1000x higher winnings” would still require every single $ in circulation to be given to them. This is why a get-rich-quick “RV” like that is both nonsense and mathematically impossible.

    Iran’s Rial is 9x weaker than Iraq’s (10553:1) despite having much higher oil reserves and production. Do people expect to turn $95 into $1m if and when they redenominate too? Are people expecting to “chain” their winnings together, ie, turn $1k into $1m for an Iraqi “RV”, then turn $1m into $10.553bn from an Iranian “RV”? Maybe the Vietnamese Dong will “RV” from 20608:1 to 1:1, and people could then turn their $10.5bn into $217.5tn so everyone could have 3.5x more money than the entire global economy! Indonesia has oil, so maybe they’ll “RV” their 8,542:1 Rupiahs to 1:1 so everyone could have $1.86 quadrillion of winnings each! Maybe all +180 countries could “RV” by 1000:1 in a huge accumulative chain so everyone could be worth 1 Quinquagintacentillion Dollars! I apologize if this sounds sarcastic, but in my experience, some people need to see the logical conclusion of “1,000x more money from nothing” on a global level in order to “get it” that “RV’s” simply don’t work that way.

  32. Stew July 19, 2011 at 8:15 am #

    Good try Bill. Hopefully one or two people will read it and the lightbulb of reality will come on. I realized a long time ago that the vast majority of dinar holders will never “get it”. Just watch… even when this thing redenominates and they lose a big hunk of money… I bet they will still support the scammers and say the RV was supposed to happen. They will claim Obama, or the IMF, or some other Boogie Man did them in. Very few will accept that they were scammed.

  33. QuietBear September 2, 2011 at 12:46 am #

    I did not fall for the dinar scam…

    That being said, I did happen to get conned at the beginning of this year by a bonafide con-artist… He and his son took me for about 11,000 bucks before I realized I’d been had…

    After a little investigating I found out he had done the same to a long list of others… I talked to a few of them and asked why they didn’t report him and every single one of them said they were to embarrassed to admit to the cops or the world in general that they’d been stupid enough to listen to this guy’s sob story and tried to help him and his worthless son… They were using the gulf oil spill to con folk…

    I found it very freeing, psychologically speaking, to call the cops and report the fraud… Now they’re sitting on their butts, in jail, for at least 7 years, maybe more… I blew him and his son a kiss, when they were being led away from court, in cuffs… They actually looked good in their snazzy jump suits! lol!

    I write all of this to let the folk out there who got conned with the dinar, to go ahead and admit it to the world that you thought you had a sure thing, but you were taken…

    It is a very freeing feeling, I assure you…

    I mean, would I con you? ;-P

    Peace,
    QuietBear

  34. Sam I Am November 2, 2011 at 10:34 am #

    If Iraq RV’s upward at 1000 to 1 it would be unprecedented. The only way you can believe that this will happen is you know anything about economics and currency (which many investors obviously don’t) is if you believe in “The Plan”. Supposedly Dick Cheney and others got together when we overthrew Saddam and put a plan in place to issue new, devalued Iraqi currency and obtrain trillions of dinar with the intent being to revalue it up to its former value, making trillions for the US govt in the process. We’re led to believe that somehow this plan was leaked to a few of the dinar dealers and the lucky investors who happen to hear about it, all of whom will cash in bigtime along with our govt and theoretically a few others like China and GB. If there is a plan in place as we’re being told then you have to assume that the CBI is lying to us about the money supply in Iraq and probably a lot of other things, because there’s no way of RV’ing at more than a nickel if what we’ve been told is true.

  35. JESSICA March 31, 2012 at 12:28 pm #

    Dear Sir ,

    we all waiting US announment Dinar exchanger rate to be US Dollar,
    please informs us…

    Best regards,

    Jessica

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