Iraq To Circulate 2 Currencies At The Same Time
Never has anything like this that speculators and Iraqi traders have thought of. For years, no one was not even totally reluctant to the possibilities that Iraq would actually do something unexpected as letting two currencies circulate all at the same time, was it? What dinar news we have right now!
On May 20, 2012, the Center Brief for the Iraqi Media Network in Baghdad revealed something that might halt RV debates. The said media network revealed that the Parliamentary Finance Committee affirmed that Iraq and the rest of the IQD traders will see two currencies running at the same time by the year 2013. The Finance Committee said that this phenomenon will actually happen right after the deletion of zeros with the survival of the remaining current currency throughout the succeeding year. So, what will happen to our banknotes? Is this a threat or another opportunity to anticipate?
A lot of people know that the lopping of zeros will be a significant change because it will help local and foreign investors to trade on lesser cash but, two currencies running along the premises of the country seems to be another story.
To understand better, we can actually check on the released statement from one of the members of Finance Committee, Hassan Salman, “The central bank operates in more than six months from now on the position of the deletion of zeros from the Iraqi currency and the current that will be applied starting from next year.” Salman pointed out that the Finance Committee is constantly in contact with Sinan Al Shabibi, the Governor of Central Bank of Iraq.
He added that the Governor of CBI is, “constantly learning about the Finance Committee on the details of this issue and the process of replacing the current currency the new currency will continue over the next year and that the currency adjustment will benefit the Iraqi economy and will facilitate the handling of cash in the country by reducing the money supply in circulation now, which Tkdrbhawwala 30 trillion dinars.”
If this is the case then it would mean that IQD traders might actually see an increase by three zeros on the Iraq money. Well, we could actually say that this might really happen as Salman admitted that he did an extensive study and formulated a conclusion that lifting of the zeroes will strengthen the value of the dinar.
Will the Central Bank of Iraq still have time to analyze what the Finance Committee is trying to say? Iraq is becoming logical, isn’t it? Well, given the fact that the Central Bank of Iraq has four branches in Basra Sulaymaniyah, Erbil and Mosul, it is legible enough to mandate necessary monetary policy to maintain price stability on the currency’s exchange rate and to grant the vital role in letting two currencies to circulate right at the same time.
This is like Iraq taking a higher leap just to keep up with the rest of the Arab world. Recently, there have been lots of significant events happening in the country. Some of them were about the implemented policies to protect the country’s US dollar reserve and the financial institutions getting a big shot from International sectors.
It seems that year 2012 is becoming the year for strengthening the value of the currency and implementing necessary policies to keep it from fraud and laundering. Will this new move of the country actually help stabilize its currency? Will this bring good news to people who have been waiting real good news from IQD? What we can certainly say right now is that this is unexpected dinar news that Iraq has brought to the world.
The law of averages dictates that many investors will not exchange their dinars when the currencies change and thereby risk loosing on future exchange policies with Central Bank of Iraq. Those that can tolerate the risk and hold on till the time comes to exchange for the new style notes, may have little or no loss in the whole process of exchanging. Keep your eyes on the prize and only invest what you can afford to do without.
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I’m starting to get very confused and disillusion about all this. What of my shoe box dinar? Will it be worthless if the zero lopping goes ahead? Should I put my dinar in an alwarka bank account somehow? Please somebody tell me!
You have choices, keep it, exchange it for the new notes, or sell it. All depends on your risk tolerance. I personally would exchange mine for new notes.
thanks so much but i live in the UK how will i exchange safely?