Iraq’s Central Bank Considers New Currency

Iraq’s Central Bank says the country is in need of a new currency in which the current zeros are removed to facilitate commercial transactions, according to Azzaman.

The bank’s Governor, Sinan al-Shabibi, said he was in talks with the prime minister, Nouri al-Maliki, on how to go ahead with the bid to issue currency with a lower denomination and higher value.

Shabibi said Iraqis were now relying a lot on the U.S. dollar, particularly in settling cash transactions that required a lot of money.

The use of credit cards is still limited in Iraq and cash is still the main source in trade and commerce.

Allocations even for small projects and to carry out simple commercial deals are in millions or billions of dinars.

Three bundles of $10,000 require carrying or paying about 40 million dinars.

The new arrangement, once implemented, will make transactions simpler and easier, the Central Bank governor said.

Calculating and paying with the current currency makes trade deals rather “awkward and difficult” for a small country like Iraq, Shabibi said.

Other countries, like Turkey and Brazil, successfully dealt with the same problem by removing zeros from their currency.

In Turkey, people dealt with millions of liras for simple purchases and transactions. Today a dollar is worth about 1.6 new liras.

Shabibi said there was a lot for Iraq to learn from Turkey.

(Source: Azzaman)

7 Responses to Iraq’s Central Bank Considers New Currency

  1. Stew July 18, 2011 at 1:21 pm #

    Just one more article stating redenomination/lop.

    Yet dinarland chugs on as always.

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  3. Lew July 19, 2011 at 10:58 am #

    Redenomination = Replace large notes with lower denomination notes
    Removing zero’s = placing bounty on 1k, 10k, 25k notes AFTER REVALUE.
    Higher Value = Higher Value.

    It’s funny how all you nay-sayers follow along with the new like the rest of us.
    Don’t buy dinar, it will just be more for me.

  4. Stew July 19, 2011 at 2:02 pm #

    Lew… stop listening to that [deleted by Editor – please keep it non-personal!] Breitling. Him and a few of the other pumpers are pushing that lie.
    Please provide… or ask your favorite guru to provide any kind of documentation or example backing up that statement.
    Removing zeros is the exact same thing as redenomination. They are the same. There is a UNC study of all redenominations done in the last 30 or so years. Guess what the title is. “Dropping Zeros, Gaining Credibility”
    I can tell you in advance they wont come up with any documantation or examples because none exist. It’s a blatant lie told to keep people buying dinar… it’s a scam.

  5. Stew July 19, 2011 at 6:02 pm #

    Sorry ed… I would apologize to Breitling and the other dinar gurus directly… but they don’t allow anyone with a dissenting opinion to post on their sites. Anyone who questions the big RV or simply tries to explain the real facts about redenominations are immediately banned. Lies only are allowed on those sites.

  6. Stew July 19, 2011 at 6:10 pm #

    Speaking of the redenomination. There’s a new article out of Iraq that appears to be saying that Iraqis are trying to exchange their dinar for dollars now before the redenomination. Seems they don’t trust the government to get this right and they’d rather hold dollars and wait until the new currency is out and see how it goes before switching from dollars back to dinar.
    So while dinar gurus lie to convince people world wide to buy dinar in hopes of a 100,000% of more windfall… the Iraq people are bailing out of the dinar for fear of collapse.
    I’m sure the gurus will spin the article to mean “Big RV on the way!”

  7. Rfrancis July 26, 2011 at 6:03 am #

    Does Higher Value mean $5.00 US = $1 Dinar??

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