Currency Class War: Damaged Dinar Notes

And there’s big business being done around the damaged bank notes in Iraq. Yousef Nafea has an exchange shop in Basra’s central Ashar market and he’s well known for his proficiency at fixing the damaged notes; he says he mostly uses transparent sellotape and that he heats it slightly to make the repairs invisible. Visiting him, one immediately notices the piles of notes on his desk.

"I fix the damaged one, half and quarter dinar banknotes and sometimes I fix the hundred and the IQD1,000 banknotes too,” he explains. “If I am asked to fix the US$100 note then I have to take great care. Fixing these notes requires that the tape is cut in a special way so it doesn’t look like the bank note was damaged at all.”

This kind of repair business is also done by local housewives. Rabab Hussein is one of them and she says she uses sellotape and clear nail polish. “The bank notes are often not only damaged, they are also dirty,” Hussein says. “And they’re ugly. And they’re not good quality, which is why they get damaged so easily,” she concludes.

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.

Hamid Ghani, the manager of the Iraqi Investment Bank’s branch in Basra believes that a vicious circle of profiteering has developed because of the damaged bank notes in smaller denominations. “The exchange shops make agreements with the bankers – and in some cases, with the bank managers – to replace the smaller notes with bigger ones, in return for a service fee,” Ghani explains. “The service fee is deposited at the bank, in the exchange shop owner’s account. He then withdraws that money in larger, undamaged denominations. In some cases, this equals millions of Iraqi dinars.”

Indeed, exchanging one’s smaller bank notes for larger ones at local exchange shops – at a rate of IQD8,000 per million dinars – is common practice today.

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.