Iraq Halts Plans to Drop 3 Zeros from Dinar

Iraq has decided to hold off on a plan to knock three zeros off the nominal value of bank notes of its currency because it does not believe the economic climate is suitable, reports Reuters.

The central bank said last August that it planned to redenominate the Iraqi dinar to simplify financial transactions in an economy that is still heavily centralised and dominated by oil, and where deals are often carried out in cash.

The proposal to restructure the dinar to bring more liquidity into the market has been awaiting parliamentary approval since last year.

On Thursday, a statement on the website of the cabinet secretary said the cabinet had decided to halt all procedures relating to the redenomination of the dinar “until further notice”.

“The economic committee discussed this issue and so did cabinet … There is a possibility that it could cause some problems in the economic situation. Besides that, this operation is so big that cabinet sees circumstances are not right to control this,” cabinet secretary Ali al-Alaq told Reuters.

“We have more than 30 trillion dinars in circulation. To withdraw this amount from the market and then to examine them and to dispose of them is a huge process. Even the technical and the monetary capabilities to control a process like this, we consider as insufficient and it is not seen as a priority currently,” Alaq said.

The central bank says Iraq’s large foreign reserves, which have risen to a record $60 billion on the back of high oil prices, will shield it from any damage to its financial system on the national level.

(Source: Reuters)

13 Responses to Iraq Halts Plans to Drop 3 Zeros from Dinar

  1. OZ April 13, 2012 at 3:28 pm #

    Looks like they realized they are in a bigger pickle then they thought. I bet they wait until they have a hundred billion in hard reserves till they precede.

  2. Mike, AKA Fistfull of Dollars April 14, 2012 at 2:03 am #

    100 Billion certainly would be a nice safety net, however Its hard to believe any info. that is released to public by GOI These guys have hidden agenda and are not inccline to do any favors to anyone inside and certainly not outside their country.Who are they trying to kid?

  3. Dr. RV April 14, 2012 at 5:38 am #

    This is just to scare the dinar holders arround the world.We are ready at anytime the IQD to be ReValue ! YES !!!

  4. Jaydee April 14, 2012 at 3:00 pm #

    I agree with you Mike. I believe the CBI and the Iraqi government are playing around(stalling). They are only interested in themselves. I hope the U.S. and other countries put some pressure on them to get this redinomination /revaluation over. The CBI and the Iraqi government are dragging their feet. If you really left it up to the Iraqi politicians they would keep their people poor and themselves rich.

    They don’t realize a strong people(educated & economy) makes a strong country. I feel they only want to line their pockets.

    Its a shame.

  5. len holliday April 14, 2012 at 4:46 pm #

    The Iraqi Dinar is going to be revalued soon. About all this news coming out; They are blowing smoke up our butts! you know how that goes. They scare everyone to death and they go around with their sermon telling the world that this Country will fall back into a dictatorship. Well, guess what! It is all lies. Do you really think they are going to tell the world that they are going to revalue their currency(The Iraqi Dinar)? No Way! But, they are going to revalue
    the Iraqi Dinar and it will happen real soon! Sell if you want too, but that would be a big mistake! Thanks For Letting Me Share!

  6. 2collect April 16, 2012 at 2:20 am #

    there are only 3 way`s too INVEST IN THE NEW IRAQ go there and OPEN A BUSINESS invest in the CURRENCY or get on the ISX EXCHANGE! I CHOOSE THE LAST 2!!!

  7. 2collect April 16, 2012 at 2:25 am #

    iraq has already stated that they want to RETURN TOO THEY`RE NATURAL PLACE IN THE WORLD $3.22 IS THEY`RE NATURAL PLACE!

  8. Basrat April 17, 2012 at 4:06 am #

    Usd100 now is about 120,000 iraqi dinar…if they drop 000 thats means dinar and usd ar almost
    Same price in the market…easy to count but before they just wanted to drop 00 they wanted
    to make dinar…usd 1 dinar 10…that is their plan is..can they? But its seem to be imposible..

  9. Lz April 30, 2012 at 4:30 am #

    Ha,ha….. Dinar Dreamers! You guys are so brainwashed. It will never happen!!

  10. Sven May 9, 2012 at 6:19 am #

    Iraq will revalue their currency but will also create stipulations that dinar holders (foreign and domestic) trade in their large currency for an exchange that will occur where larger denominations become null/void and will then only be equal to a relative market amount for a mass quantity that has potential for inflation. Blah blah blah, twist the words around and you have a lop or revaluation, hallelujah, Jesus was born tomorrow… who knows anything about the future? no one, when it happens – you’ll know, if it doesn’t happen, you’ll continue to hope… either way, eat some cake now before you go broke wishing this dream happens, its okay you can continue ignoring foreign policies or general economics but if the fat donkey doesn’t fart then who knows what Santa likes to smell… right?

  11. Geneo August 28, 2012 at 8:11 pm #

    If all of you good folks who want the rest of us to believe that you

    know what is going to happen to the Dinar and when would just quit with the crap we would all be much better off . I think there is nothing more logical than for the Dinar to be revalued.How can an emerging country with all that Iraq has to offer possibly operate on the world stage with a worthless currency? When we put two and two together I think we who are willing to see the forest and not just the trees will be in the wright place at the write time.

  12. Jackson Jenson December 12, 2012 at 6:54 pm #

    I wonder how this is now?

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