New dinars for old

[Fishindinar]

http://www.iraq-businessnews.com/201...inars-for-old/

[Hue Mi]

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Thank you for finding and posting this article Fishindinar. Here's the text and the text of the two article referenced in the article.
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New Dinars for Old

Posted on 05 July 2011. Tags: iraqi dinar, ISX, Redenomination

New Dinars for Old

At the end of last month, a spokesman for the Central Bank of Iraq (CBI) told reporters that a plan to redenominate the Iraqi dinar will be presented to the Council of Ministers in the near future. (See here and here.) The Council is then expected to submit the relevant legislation to Parliament for a vote. If the lawmakers approve the project, all existing banknotes will be replaced with new currency at the rate of 1,000 old dinar for one new over some unspecified period of time.

Given Parliament’s current backlog, this change can hardly be imminent. Still, you might think they could get around to voting on the CBI’s proposal some time before the end of this year. In that case, the redenomination could presumably be completed by the end of 2012.

The process will necessarily involve both the exchange of new banknotes for old and the restatement of contractual obligations in terms of the new currency. Among other things, three zeros will have to be eliminated from the share capital of the ISX listed companies as well as from the number of shares each has outstanding. (This will keep the par value at one dinar.)

I’m told this should be a relatively straightforward change for the depository center to make. Trading should not have to be suspended for more than a few days and it may be possible to proceed in phases of a few names at a time so that the entire market does not have to shut down during the transition period.

Similarly, it seems reasonable to expect the CBI to exchange new dinars for US dollars at one thousandth the rate for old dinars. In other words, if the original rate were IQD 1170 = US$ 1, post-redenomination this would become IQD 1.170 = US$ 1.

All of this seems reasonably straightforward for anyone holding assets such as currency or shares inside the country. For those holding dinar cash outside Iraq, however, things may not be so simple. How and on what terms their old dinars will be convertible into the new currency remains an open question.

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Iraq Prepares to Redenominate its Currency

Posted on 27 June 2011. Tags: Central Bank, IQD, Redenomination, revaluation

Iraq Prepares to Redenominate its Currency

According to a report from Al Sumaria News, Iraq’s Central Bank announced on Thursday that it is planning to delete the zeros from its currency, the Iraqi dinar.

This step is one of the bank’s strategic missions, the Central Bank said adding that the new currency will include the Kurdish language in addition to the Arabic language.

“The zeros that were added to the Iraqi currency previously constituted a large money supply up to 28.500 trillion Iraqi Dinar and 5 trillion banknotes”, the adviser of Iraqi Central Bank governor Mothahhar Mohammed Saleh [Mudher Mohammed Saleh] told the agency.

“The Central Bank has prepared all requirements needed to delete the zeros from the Iraqi Currency”, Saleh said.

“This step is one of the Iraqi central bank’s strategic missions. The monetary policy of the bank aims to structure and reduce the currency in a country moving towards an economic phase”, he added.

“The project of deleting zeroes is complete. It will be submitted to the central bank’s administration in the next session. Then, it will be passed to the ministerial council before presenting it to the Parliament for vote. The mechanisms of changing the currency will be gradual. It will be preceded by awareness campaigns for citizens”, the adviser of Iraqi Central Bank governor said.

“The new currency will be printed after deleting the zeros and will include the Kurdish language in addition to the Arabic language. It will also bear photos of Iraq’s civilization in addition to symbols of Iraqi intellectuals and figures”, Saleh noted.

Sanan Al Shebeibi [Sinan Al-Shabibi], Governor of Iraq’s Central Bank, affirmed during the meeting of independent commissions on June 19 with Prime Minister Nuri Al Maliki that the bank is preparing all requirements needed to replace the Iraqi Currency.

Iraq’s Central Bank has four branches including Basra, Sulaimaniah, Erbil and Mosul. It was founded as an Iraqi independent bank by virtue of Iraq’s Central Bank Law issued on March 6, 2004.

The bank is responsible for the prices stability and the implementation of monetary policy including exchange rates, the management of foreign reserves, the issuance of currencies and the organization of the banking sector.

It’s six years since neighbouring Turkey redenominated its currency, making one ‘new Turkish lira’ equal one million ‘old Turkish lira’.

(Source: Al Sumaria)

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Iraq Said To Be Planning Currency Overhaul, Redenomination

Iraq's 25,000-dinar banknotes apparently won't get you as far as they used to.


June 24, 2011

BAGHDAD -- A senior Iraqi Central Bank adviser says the government has adopted a two-pronged plan to restructure the national currency in order to facilitate large transactions and make government accounts more efficient, RFE/RL's Radio Free Iraq reports.

Mudhhir Muhammad Salih, a member of the bank's advisory panel, told RFE/RL on June 23 that in the short term, larger banknote denominations of the dinar would be issued to simplify major transactions.

He said that because so many Iraqis still dealt mainly in cash, it was cumbersome to carry bags full of money to pay for expensive items like cars. The inconvenience leads people making such purchases -- as well as many entrepreneurs -- to use dollars for those kinds of transactions instead of dinars, something the government wants to end.

He added that large denominations equivalent to around $100 would be issued to simplify major purchases, and new coins and lower denominations would be introduced for smaller transactions.

In the longer term, Saleh said a redenomination was needed wherein three zeros will be dropped so that the 25,000-dinar banknote -- currently the largest denomination -- becomes a 25-dinar note.

He said the change was inevitable, considering the economy is expecting high growth in the coming years with a planned increase in oil production to finance reconstruction projects.

Saleh said there were currently some 29 trillion dinars in circulation in Iraq, represented by some 6 trillion banknotes of various denominations, most of them quite small. He said this also caused complications for the Central Bank and government, as well as commercial accounting departments.

Saleh said the monetary-restructuring plan was drawn up with the help of foreign experts and financial institutions, including the International Monetary Fund, of which Iraq has been a member since 1945.

The plan will soon be presented to the cabinet, which is expected to subsequently send a bill to parliament.

Saleh noted that until 1980 the Iraqi dinar exchange rate was 1 dinar/$3.3 compared to $1/1,168 dinars now due to hyperinflation that occurred during the latter part of the late ousted leader Saddam Hussein's reign.

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[williambedloe]

Similarly, it seems reasonable to expect the CBI to exchange new dinars for US dollars at one thousandth the rate for old dinars. In other words, if the original rate were IQD 1170 = US$ 1, post-redenomination this would become IQD 1.170 = US$ 1.

All of this seems reasonably straightforward for anyone holding assets such as currency or shares inside the country. For those holding dinar cash outside Iraq, however, things may not be so simple. How and on what terms their old dinars will be convertible into the new currency remains an open question.

Yes...it does!

[100milliondreams]

So, regarding the ISX portion of post, if I have 1,000 shares purchased at 3NID per share (1000X 3= 3,000NID) then I'll have 1 share worth 3 NID?

And...if I have 1,000 shares purchased for 1NID per share (1,000 x 1= 1,000NID) I'll then have 1 share worth 1 NID? I don't think so. IF it is a currency zero lop, I will end up with 1,000 shares worth 3 dinar and 1,000 shares worth 1 dinar.

Central Bank does not control stocks.

[Erbil]

http://www.iraq-businessnews.com/2011/07/05/new-dinars-for-old/


looks Like Our Goose Is Cooked

[JUSTAGIRL]

MY DADDY SAYS - The first article is hogwash - an opinion by a nobody. The second article starts out"According to a report in Al Sumaria news" - that alone is suspicious. The third report seems the most credible by far, but it leaves the door wide open - for an event other than a straight lop. A Lop? Like they say in the sport of FENCING - WHAT'S THE POINT" - LOL! We non-newbies know the history of Government officials and their stooges in the media when a currency is about to change value. So my recommendation - GO BIG - OR GO HOME! - JMDO - JAG

[trusty]

Good find...Good article...good comments.

You know, it was rumored for months...and denied...and now it' a sure thing.


The RV will happen the same way.

Trusty

[harveyc]

Great find - looks like if a person holds 10 million dinar in 25,000 denominations, they will be able to cas out with a 500.00 profit, instead of the millions that the GURUs were pumping

[coffeedave]

Great find - looks like if a person holds 10 million dinar in 25,000 denominations, they will be able to cas out with a 500.00 profit, instead of the millions that the GURUs were pumping

and they are making $300 bucks per million one dealer I know is selling 50 mill a day times $300 bucks $15k a day not bad. no wonder they have pumpers working the forums....

[J007m]

Great find - looks like if a person holds 10 million dinar in 25,000 denominations, they will be able to cas out with a 500.00 profit, instead of the millions that the GURUs were pumping

And your statement isn't a sure thing. Didn't you read this ,

"All of this seems reasonably straightforward for anyone holding assets such as currency or shares inside the country. For those holding dinar cash outside Iraq, however, things may not be so simple. How and on what terms their old dinars will be convertible into the new currency remains an open question."

They are still trying to figure out how to screw us, outside Iraq cash holders.

[Screaming Eagle]

And your statement isn't a sure thing. Didn't you read this ,

"All of this seems reasonably straightforward for anyone holding assets such as currency or shares inside the country. For those holding dinar cash outside Iraq, however, things may not be so simple. How and on what terms their old dinars will be convertible into the new currency remains an open question."

They are still trying to figure out how to screw us, outside Iraq cash holders.

And just how are they trying to figure out how to screw cash holders outside Iraq? Actually it would seem that cash holders have done everything in their power to screw themselves.

[diamondback]

So why do they keep delay a lop if they are serious about a lop? Year after year they say by next this one it will this we are in this stage.

Too much protesting?

[IRAQISTEVE1]

I say "git r done" LOP the darn thing then already!!! Quit talking about it and lets go!!!

[Ringworm]

Steve, I see that girl at the airport gave you a black eye. Sorry, forgot her name! Just jokin! LOL

[IRAQISTEVE1]

Steve, I see that girl at the airport gave you a black eye. Sorry, forgot her name! Just jokin! LOL

Jeeeeez RW...... I was hoping changing my avatar would alleviate the beating I took over that whole deal!! Actually, somebody PM'd me and said my old avatar was offensive so to be nice, I changed it....

[Ringworm]

I liked the old one better. LOL

[calstar]

Dayum all my 50 dinar notes will be become 1/2 dinar notes... but its all good. lol

[RotaryRevn]

Has anyone successfully sent dinars to warka via fedex lately? A simple solution to convert our "old dinar notes" to "new dinar notes" would be to send the dinars to our Warka accounts and have them deposited. Convert them to USD and wire it back to the states, then buy the newly issued dinars from a local dealer. (and wait 6 more years for the value to raise...lol)