This has nothing to do with a revaluation, and the current version of the Iraqi bank notes apparently will be of the same value.
According to UAE’s Al Ittihad newspaper dated March 26, 2012 replacement processes for the Iraqi Dinar banknotes will cost the country’s state budget of about $150 million or 172 billion dinars. Quite a bit of money just to change the look of the notes.
Officials want Iraqi dinar to be printed in Arabic, English and Kurdish language. The archaeological features of the country were even regarded to be part of the new notes idea. The Kurdish language is highly regarded as constitutional in terms of government transactions.
However, the cost that it would take on the process printing is said to be around $150 million – this includes print, transport, insurance and the work outside of the regular office hours. Is Iraq capable to spend this huge cash?
The said matter was alleged by Iraq’s Deputy Governor of CBI, Mohammed Saleh, when he released a statement saying, “The studies printed a new series of Iraqi currency started since 2005, and began correspondence with the Committee on Economic Affairs in the Iraqi government in 2007.”
This seems that it has taken up more than half a decade of planning. Saleh stressed that the project for the printing of the new currency will be characterized under the best security in the world.
Furthermore, Iraq just signed a contract with 4 big companies to print the notes and the coin variants of the currency. So, why take all the fuss? The idea is really simple – restructuring the currency will reduce the number of papers being circulated across the market thus, it will simplify and fasten Iraq’s payment systems.
So, when will this new Iraqi banknote look take its full occurrence? AKnews announced that the process will soon take effect this year in the month of September. In line with this, CBI plans to re-print approximately $26 billion worth of dinar.
One member of the Iraq’s economic committee of the Council of Representatives, Abdul-Hussein Abtan remarked, “The agreement includes granting the process of switching currency for a full year where both the old and new currencies will be dealt in the market during this stage.”
Abtan added, “…the process will contribute to dealing with inflation and facilitating economic cooperation with international banks and reducing social differences in the community.” This seems to detail the feared money laundering by some government officials who are also discouraging the CBI to stop the re-printing process.
Central Bank of Iraq said that it might consider requirements from the Council of Ministers as to determine whether the said project will need a law or not.
This idea from CBI was even supported by the financial committee of the Council of Representatives stating that if there would be a law to be implemented, the problem with inflation would significantly be addressed.
Well, not everyone believed that this could be a great move but, at least CBI reckons this movement as something positive to build up the economy.
Written by DrDinar
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