However others, who are not so well paid, fear that the new bank note is going to have a detrimental impact.
Ali Abdul-Sattar earns a daily wage of around IQD10,000 (around US$9.30) and of this, he puts around IQD1,000 (around US$0.93) aside for transportation from his home to his workplace at the Baghdad municipal council. Now he believes the costs of his daily trip to work will rise.
“I will end up paying double,” he argues. “And at the same time the Baghdad council is paying all of its employees less.”
Other Iraqis earning less money have similar concerns, fearing that in this case “economic justice belongs to the strongest”.
In practical terms, Abdul-Sattar actually has no reason for concern. There's no economic reason why this should happen. But he has had this experience before, he says. When the 25,000 dinar bank note was printed, his fares rose from 250 dinars to 500 dinars.
“After the smaller bank notes disappeared from the market – like the 25 and 100 dinars – prices rose too,” he complains.
The disappearance of these bank notes from daily transactions has meant a rise in the prices of less expensive goods; as a result, the rises mainly impact lower and middle-income earners.
Can you tell me then as to what will happen with the older currency? Can an outsider exchange the currency he holds to the new currency and, if so, how?
Is the WARKA bank still functional?
Please advise.