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.
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Written by DrDinar
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Interesting,
Having been in this deal from start, I am still amazed at how much BS is thrown about every day on the subject of revaluation vs. lop. 99.9% of what you are fed by all these nobody guru’s is total BS, as can be witnessed every day. How many times do you have to hear “it is done” before you realize these people are full of it?
Given the thousands of times we have all heard it is done, it is not done, so wake up folks, no one knows when it will happen, only that it will. Just too many issues as we have all seen which can and have gotten in the way. No one back in 2004 thought it would take this long, but it has, and that is proof enough there is no such thing as a dinar guru, total BS.
We have also seen all the news articles from supposed leaders in Iraq regarding removing zeros, etc., and the confusion given how translation programs work has compounded the confusion factor for most. Removing and lop may sound like the same description, but it is not, yet how many times have we heard the lop will end our dreams. Removing zeros is simpy a matter of getting back to original currency useage, where smaller notes and coins were being used, so perhaps the word revert would be more accurate, not lop. After all, the currency was already devalued when U.S. invaded to oust Saddam, so why would it be devalued even further by a lop, just never made any logical sense. Of course, very little is logical in Iraq, so this amplifies the problems and issues as we have all seen for years.
Will the journey be over anytime soon, yes, but not one person can say exactly when, just the usual speculators which most people will not believe many in the end, if not already. How many times can the little boy cry wolf before nobody listens. Sure, it may be a case that people want to be positive or keep the dream alive day to day, but think about the people who bought into this dream on their social security payments, or failed to pay rent or morgage payment hoping and praying it was going to happen months or years ago, and it didn’t. I know dozens myself, but there are probably thousands who have put themselves in financial stress over these guru claims of ‘It is done”. All we can do is sit back and wait, it is as simple as that, no one is going to make it happen sooner by saying it will, not going to happen, and probably is contributing to the delays, not helping get it done.
Success to all,
99.9% you say, well, I will take that as an endorsement for the the .1% of the rest, thanks! ; )
If this does happen to where they decide to change the currency and the exchange period is given, How will people currently possessing the current dinar exchange theirs?
I would venture to say that the bigger dinar dealers will take care of you.
But what does this all mean for those of us who hold the “old” currency? Will we have to, somehow, exchange it for the new? If so, how?
Don’t hold your breath, these ‘changes’ have not gone down ‘yet’.