Currency Class War: Damaged Dinar Notes

By Waheed Ghanim.

This article was originally published by Niqash. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Currency Class War: Damaged Dinar Notes result in Bribery, Injustice

Exchange shops, bank cashiers and savvy housewives are doing big business as they deal with Iraq’s dodgy, damaged, low-denomination notes - for a price. The losers? Pensioners and low-income earners who end up with cash they can barely use.

Every two months Makiya, a 65-year-old Iraqi woman, travels a long way to pick up her pension in cash. She lives 40 kilometres out of Basra and the journey is a difficult one for her. And then to her chagrin, whenever she gets her pension, it mostly comes in low-denomination notes that are damaged, torn or otherwise destroyed.

"The people who come to collect their pensions are not treated the same way as others,” Makiya complains. “To get clean, undamaged bank notes you have to pay the bankers a bribe.”

Additionally Makiya says that if anybody complains about the IQD3,000 that is usually deducted from the payments by the bankers –a service fee taken for no apparent reason, she says - they are punished by being given even more of the damaged or distressed banknotes.

“And then when you get the damaged bank notes you can’t do anything with them because nobody accepts this money,” Makiya says.

The descriptions “talef” and “naqes” are often used by people like Makiya when they talk about money. Respectively the words mean damaged and missing and are terms used to describe the smaller notes – the IQD1,000 notes and the half and quarter dinar notes – that those who can’t afford to pay for better, bigger banknotes end up with.

7 Responses to Currency Class War: Damaged Dinar Notes

  1. nemesis 10th July 2013 at 02:04 #

    Any comment "investors" and Guru's?

  2. Stew 10th July 2013 at 02:20 #

    I find it interesting they refer to the 250 and 500 dinar notes as 1/2 and 1/4 dinar.

  3. Adrian 10th July 2013 at 21:47 #

    This is a confirmation that Dinartrade, Dinar Banker they dealers, gurus and other sellers, lied about the R/V with the 25,000 dinars notes . SCAM SCAM SCAM.

    After the 2003 US-led invasion of Iraq that toppled Saddam Hussein’s government, new currency was introduced and the bank notes were printed by a British company, De La Rue. Despite repeated calls for the bank notes to be reissued and the currency to be re-denominated, this has yet to happen.

    Where is the FBI? Could it be possible that the Ex-president Bush and company are co-conspiratore of this scam? Thas is the question!

  4. Mike 11th July 2013 at 15:19 #

    Adrian, if you had some knowledge and did your research, all currencies have some type of "scam" associated with them.
    In this case, the revaluation is part of a very clear ten year plan. This is a very complex plan requiring many issues to be completed. This includes organizations called the IMF, The WTO and the UN, just to name three of them. Several other factors also had to be completed. One was Iraq to pay back Kuwait 30 billion. They did. The other was the completion of the Border Markers. That is the clear Border markers that separate Kuwait from Iraq. Another was the UN lifting the sanctions imposed on them for attacking Kuwait. Those sanctions were just lifted eight days ago.
    Oh, and here is a big one, their own Prime Minister just announced on live Iraqi TV yesterday, that their money will soon return to the value is was before the war. That amount was 3.21 dollars.
    If you are not good at math, I will do a simple math problem for you. If you hold 250,000 Dinar, and it revalues at 3.21 dollars.
    You will have 802,500.00 US dollars. It only costs about 300 US dollars to buy 250,000 Iraqi Dinar ! Please do your own research, but don't wait too long...Sincerely

  5. Stew 11th July 2013 at 17:47 #

    Mike... if Iraq can so simply just RV back to $3.21, then why didn't they just give Kuwait 10 billion of the current dinar (about 10 million dollars worth), that's like pocket change, then RV back to $3 and Kuwait would be paid. Why would they be so stupid to pay them $30 Billion when they could do it with $10 million?

  6. nemesis 11th July 2013 at 17:57 #

    Mike your projection is mildly say very very infantile!
    Yes any currency change is complex matter. But quoting some numbers what will be cost of IQD on today market is irresponsible and plain brass proclamation!
    Iraq (if sustain as one country) have to solve currency problem as Iraq needs no as US based dealers and their agents saying!
    If today's speculators in few years make double on their speculation they will be happy.

  7. Lowrence 13th July 2013 at 12:27 #

    Guisado...y quien te ha dicho a ti que no van hacer lo que tu
    especulas...Tu estas muy seguro de lo que hara Iraq y nadie
    sabe absolutamente nada. todo es especulacion.