Dinar Redenomination To Cost Iraq Billions

The process of scrapping old dinars and deleting zeros from Iraq’s currency to replace it with more manageable numbers could cost the country billions, according to Ahmed Faizullah, the deputy chairman of the Parliamentary Finance Committee.

Redenominating is up to Iraq’s central bank, but it would cause chaos for government by redenominating after it has set an annual budget in the existing denomination. That’s why no redenomination will take place in 2013 and maybe 2014 as well.

Removing zeroes makes it easier print money, read it and add it up, and reduces the need to cart around too many notes to pay for goods and services in a country that relies almost wholly on cash. Iraq puts just 1% of all its transactions on credit card.

Although cutting zeros adds to costs and confusion, Faizullah says: “It is basically the process of currency switching and common people will take some time to get used to it. That is all.”

As Fabil Nabi, Iraq’s deputy finance minister, helpfully confirmed for some confused, amateur currency investors, “eliminating zeros from Iraq’s currency will not increase the value of Iraqi dinars.”

Read more on the dinar redenomination:

7 Questions For Dinar Speculators

Iraqi Dinar Investments: Opportunity Or Scam?

Dep finance minister: Dropping Zeroes Won’t Raise Dinar Value

 

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15 Responses to Dinar Redenomination To Cost Iraq Billions

  1. Stew September 11, 2012 at 2:09 am #

    “Redenominating is up to Iraq’s central bank”

    Is anyone in Iraq??? Are they stil running public service messages on Iraqi TV stating the redenomination will take place in 2013?

    As for his “could cost the country billions” statement. Horsecrap.
    As of the middle of July, the Central Bank of Iraq had estimated the project will cost 172 billion dinar, or about $148 MILLION.
    They even broke down the cost of printing, transport, media campaign and other cost. They even gave the cost of the 2003-2004 reprinting as a reference.
    This guy is blowing smoke. It wouldn’t surprise me one bit if they are putting out “can’t delete 3 zero” articles just to keep people holding dinar until the last minute. It accomplishes two things. If they make it 100% official, Iraqis may panic and try to exchange now for dollars, not trusting the exchange. It also keeps the speculators holding until the last minute, trapping more dinar outside of the country which will never get exchanged.

  2. Stew September 11, 2012 at 2:13 am #

    Of course… it could just simply be that some don’t want to redenominate. But they sure are giving some lame excuses for it.
    How hard would it be to simply delete 3 zeros from the budget.
    Has every other country that lopped only done it at the beginning of a fiscal year?

  3. mke Cieply September 11, 2012 at 3:06 am #

    Why not throw in the year 2015 while you are at it. Don’t believe Iraq can wait much longer. Heck, the paper currency s probably wearing out by now and will need to be replaced from wear and tear.What a bunch of BS.

    FistFull of Dollars

  4. adrian September 11, 2012 at 2:09 pm #

    Stew, I agree with you. But I think the message is for the victims of scammers. According to the CBI reliable inforrmacion fraud division is full of information on global scam by selling dinars. if you read the news well emphasizes that removing the zeros will not increase the value of the dinar, which has been one of the scammers strategy to convince their victims and to buy the currency. It was common knowledge when the coalition was ending leaving Iraq to U.S. troops eventually the CBI would a lop their currency. The project takes time and is known to be executed at some point the question is when. In other countries has been about five to six years I do not think Iraq is different. What happens is that a lot of convenience, obviously, have to see this as an event of global interest, but is not.

  5. 2collectg September 11, 2012 at 2:32 pm #

    smoke and mirrows ARTICAL WALLSTREET NEWS THE RISE OF THE DINAR AGAINST THE UAE DIRHAM THE IRAQ DINAR ROSE 0.26% OVER THE PAST WEEK MARKING 0.0032 AND THE JORDANIAN DINAR BY 0.15% MARKING 5.1805 DIRHAMS! IRAQ WANT`S YOU TO SELL YOUR DINARS THE MORE THE INVESTORS SELL`S NOW THE LESS THEY HAVE TO PAY OUT WHEN THRY`RE REINSTATED NO RV!! SHABIBI STATED 3YRS AGO HE WANTED THE DINAR BACK WHERE IT WAS DURING THEIR HIGHEST YEARS OF PRODUCING OIL! WHEN THE DMCC (THE BIG BOY`S IN DUBAI SAY`S THEY`RE WATCHING THIS CURRENCY I HOLDING MINE! ALSO IN THE ARTICAL SOME STOCK MARKET INVESTORS ARE LEAVING AND BUYING CURRENCIES GUESS WHICH ONE THEY`RE BUYING THE MOST OF? THE IRAQ DINAR!!

  6. adrian September 11, 2012 at 3:37 pm #

    . Look, I would not want to leave mention that the news says it would cost millions to carry out the lop, right? one of the fallacies that sellers tell their customers or to convince potential buyers are following ALL hooks;

     0 – Iraq is the largest country in the world millionaire (discovered by vendors)

    1 – Iraq have much more oil than others in the Middle East (discovered by vendors)

    2 – has much gas (another discovery vendors)

    3 – have found a lot of gold (wow amazing in Iraq?)

    4 – in the past the coin was x value (value only Saddam)

    5 – the same thing will happen that happened in kuwait (we are still looking for what has happened in Kuwait)

    6 – they have to have the most valuable currency in the Middle East (and why?)

    7 – is a premeditated plan of Bush (The Illuminati and the witch in Snow White)

    8 – U.S. buy millions and millions of dinars (yes, to sell to the unwary)

    9 – 13 033 says investing in dinars (only you can read the codes specialist, Robert Langdon Davinci Code)

    and never forget that I once read that Donald Trump had bought up millions and no doubt waiting for the revaluation of confusing investors, was that broke in his last business. lol

    and now this … WALLSTREET artical NEWS THE RISE OF THE DINAR AGAINST THE UAE dirham …. and that has to do with a reassessment or that you have it going to be millions at the dinars? This is where many are driven by emotions and confusing investors and not by knowledge in the field. Is the Yuan is not quoted and are selling like the dinar? Pleasessss!!!

    hooks and many more have been lies upon lies. Because if so and so are millionaires and have so many riches, suffer so much it will cost to do the lop? Therefore, the alleged arguments dinar marketers have been challenged again by this news. Some countries are more millionaires than Iraq and not necessarily for the black gold, and even having it, its currency has become not only a coin representing their country, even legal tender and you understand. What would be the difference with Iraq? … Paste the currency to oil? has nothing to do either with reassess and make millionaires anyone. And worst of all this scam is that many have used the name of God making allusion to the Great Babylon (before Iraq) will resolve the global economic crisis … and because the Australian dollar better? The moral of this whole scam is the ignorance of the public about international economies and currencies that are most gullible. If everyone had spent looking for information to people with knowledge of these topics or would have heeded the Government Agencies and scam alert, many had not fallen. Are known to sell dinars as other rare coins is not illegal, the illegality was selling the fraudulent scheme. The fallacy that will turn people into millionaires when they revalue, which does not say it works like this when it is sold. So I think again that the news is to let you know the victims of the scammers in the outside world do not get anything for buying dinars much less going to be millionaires. As much I still insist, the FBI must act now and put all prisoners. Starting with DT and DB called gurus who deceived so many people and their conference calls, contacts with key people in Iraq and alleged reports of “TOP SECRET”

  7. adrian September 11, 2012 at 4:08 pm #

    To conclude, I bet the broker and dealer will not put their customers news or articles like these, http://www.iraq-businessnews.com/2012/08/31/iraqi-oil-resource-curse-or- glorious-blessing / if they did, nobody would buy dinars. Such fallacy to its clients on oil, just to encourage sales of the dinar, the unwary have the brain of the same color.

  8. Marky September 11, 2012 at 4:44 pm #

    Hey, Adrian, in all that mumbo jumbo you just spit out and in quite broken English, are you for it or against it? I mean, are you a dinarian or not?

  9. Marky September 11, 2012 at 4:54 pm #

    Opps, I just figured it out, sorry Adrian… read your last few lines about those criminals DB & DT..

    I highly recommend you DON’T buy any just in case there’s something to this!

    after all, you wouldn’t want to benefit from all the corrupt people in Iraq that bilked the US out of billions. Not to mention the USA who screwed their tax payers out of billions buy allowing them to pay for Bush’s fumbled war and piss poor planning… The US government really knows how to stick their stinking nose into everyone elses business and screw their own citizens.

  10. omar September 11, 2012 at 10:08 pm #

    Question …. how Iraq government will handle zilliones international law litigation’s from IQD speculators if they default this currency?
    Now they still have bnkr. protection. What about a future?
    Does somebody know?

  11. Kickabuck September 11, 2012 at 11:24 pm #

    Iraq is really slow at everything, 2014 sounds about right. They will speed things up when they realize the value of the USD is going down dragging their currency along with it.

  12. adrian September 12, 2012 at 3:10 am #

    Marky,

    No, I’m not dinarian. but many people I know who were fooled by these scammers. Many lost all their life savings, their homes and even cars. Nor have dinars. And everything I say, I know because I have many years following these charlatans in different web, forum, blog and fb and research. Still my quite broken English?

  13. Marky September 12, 2012 at 4:28 pm #

    Hi Adrian, yes, your English is missing a few conjunctions and incomplete sentences, but that’s ok, I am used to it, I live in Hong Kong and teach English. Well, unfortunately, some have desperately clung to hyped time frames by the Guru’s and didn’t think wisely before spending their hard earned and precious bill money, too bad for that, and I am invested in this Forex deal. It is a long term thing and if you do the research on Iraq, i think you’ll be surprised on how rich in resources their country is. They will move back to their 1980’s exchange rate as they said they would. Click on my name and go to my website and read the many pages I have archived that says so. Not every one’s suppose to gain from this, only those who were notified in some way shape or form. I did a lot of research and you can’t follow the hype and the people who are trying to scam others because of their gullibleness. You have to stay grounded and i suggest you go check out the IQD Teams site or LJ’s Next Step or the Gatekeepers and you can get grounded and listen to logic instead of BS> Good Luck!

  14. Stew September 12, 2012 at 5:39 pm #

    The current dinar is slated to be redenominated, taken out of circulation. The only thing being discussed is when it will happen and how much it will cost. To call this a long term investment is simply crazy.
    They will move back to a near 80’s rate by taking 1000 current dinars and turning it into 1 new dinar. Iraqis will break even. Foreign holders of dinar will almost certainly lose money due to dealers charging outrageous exchange fees.

  15. adrian September 14, 2012 at 12:16 am #

    Stew, 100% agree. Marky for you is hard to understand what Stew is saying? Sorry for you.