AKnews reports that businesses and currency traders are rejecting 10,000 dinar notes because of rumours about the increasing spread of counterfeit currency.
Government sources said last year that an estimated 7 billion dinars worth of forged 10,000 notes came into Iraq from Iran.
The fake currency is said to is said to be of high quality and very difficult to detect.
Abdul Hussein Abtan, a member of the Economic Committee in the House of Representatives told AKnews: "These rumors coincided with central bank measures to increase the exchange rate of the dinar against the dollar. This relentless campaign is intended to weaken the Iraqi currency."
Fouad al-Bayati, a specialist in security affairs, believes that al-Qaeda are involved in counterfeiting the currency.
"The security forces are hunting insurgents and forgetting about the fraud gangs associated with them, which are key financiers for insurgency ... Some armed groups still have hidden administrative wings to carry out duties in the economic sector, most notably money laundering as well as falsifying identities and official documents."
It is hoped that the introduction of the new currency, with three zeroes removed, will help the fight against fraudsters as it will replace the old currency and is said to be more difficult to counterfeit.
All those suckers who bought dinar thinking they
will get rich better check to see if they are in
fact supporting al quada.
A fool is born every day.
What do you think about this, Stew?
Karen… doesn’t surprise me. This is an old trick used by our own CIA. Not that you could find any proof of it… but it’s been talked about that in the past our CIA would flood countries with counterfeit currency to destabilize an economy.
The question becomes how this will effect the redenomination. It could force them into doing it sooner than planned and shorten the exchange period.
It would also seem to hurt the argument of those in the Gov who are against the lop saying it would cause corruption and counterfeiting. That seems to already be happening, and a new currency would put an end to it for the time being. Certain elements would probably try to counterfeit the new currency, but it would take a while to do that. Iraq seems like a country that would probably want to issue new currency every 4 years or so just to combat counterfeiting.
The only fool is the one who reads one article and thinks he or she has all the facts. Are you so stupid as to assume that ALL DINARS ARE COuNTERFEITS???
In addition what makes you think that just because they are printing new smaller denom currency that the existing currency will be of no value? The are taking as many of the large demons out of circulation now as they can and will continue to do so AFTER the currency revalues until the only common currency used will be the NEW lower denominations. Bottom line when this currency revalues we will know who the real fools are. The ones who knew about but didn't act.
thinkingman - "In addition what makes you think that just because they are printing new smaller denom currency that the existing currency will be of no value?"
Because all existing currency will be replaced and demonetized (as repeatedly declared) that's why:-
"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 Shabibi 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." - Central Bank of Iraq.
The notes you hold now will not be the same ones used post-redenomination. You will have to change them up for the ones with new designs (which will completely replace the current NID's).
thinkingman - "The are taking as many of the large demons out of circulation now as they can and will continue to do so AFTER the currency revalues until the only common currency used will be the NEW lower denominations."
Wrong. *After* the redenomination, the current notes will no longer be legal tender, just like Saddam notes aren't today (but there will be a 3-12 months grace period for exchanging them for new ones at the probable 1000:1 ratio set). Iraq simply isn't going to be using 10,000, 5,000, 1,000 notes, etc, post-RD. That's precisely the whole point of doing it...
As for removal of 25,000 notes from circulation, the Iraq govt isn't going around stealing them from people and giving nothing in return, they're simply printing more lower denom notes, ie, replacing 1x 25,000 note with 5x 5,000 notes. This doesn't reduce the money supply in the way some pumpers claim it does. Europe has done the same thing by withdrawing the 500 Euro note that was targeted by counterfeiters - but it hasn't made the Euro value go up even 1% let alone a ridiculous 99,999%.
The vast majority of denomination banknotes printed in any currency are the lower commonly used notes. The highest denominations usually make up just a fraction. As an example of the Euro, there are only 56 million 500 Euro banknotes printed out of 6 billion total banknotes (approx 0.1%). Same is true of Iraq with the 25,000 notes. It simply doesn't make any difference as different denomination banknotes don't get RD'd at different rates. It's one rate for everything in the currency when the changeover happens. People who think Western amateur speculators will be given $25,000 for a 25,000 current Dinar note, but Iraqi's will get 1 New Dinar for a 1,000 current note are wildly misunderstanding how it works and just getting sucked into mis-selling mis-information by salesmen with vested interests.
As for the counterfeiting - some Western Dinar dealers get their Dinar's via unofficial sources in Jordan - and yes - it's entirely possible that many brought to the West via that route are convincing counterfeits. Likewise, another thing to be aware of is that some Dinar's & Dollars passing through Jordan are also used for smuggling arms into Iraq to be used against troops there:-
Don't you love it when someone waiting for a 100,000% RV calls you a fool.
Dinar pumpers have been claiming for years now that Iraq has been removing the large notes. It was a lie they made up when they had no answer to explain the 20some trillion dinar in circulation. Since they started that lie, the currency in circuation has grown to 30 trillion.
Think about this. Pumpers, gurus, and their mminions have been claiming for years now Iraq is removing the big notes... yet at anytime during that period and still to this day, you can go onto any number of websites and order 25k notes by the pallet loads.
I am new here. Just used my last bit of spare cash to invest in a few Billion Dinar. I have seen amazing growth in Iraq. Looks like the economy MUST improve which translates to stronger Dinar. Logical. The only thing that might screw this up is good old USA. Obama and the Illuminati have their own agenda.
The sky is falling, the sky is falling. What a bunch of whiners. Get a life and quit trying to convince people you're right. Thinkingman I agree with you. These fools think that Iraq is the only country with counterfeit money ? I hate people who have nothing better to do than try to show you they are always right. These self proclaimed Know-it-alls need to shut up or put out what makes them better than all of us. Our Country the U.S. has a "Fiat" currency so should we panic now ? Just keep up with your investment and if any of these fools have a better idea then post it and help us "see the error of our ways". I'm retired Military, Law Enforcement and Republican. So what's everyone else's excuse?