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New banknotes to be introduced in September
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The Kurdish Globe
Views differ on financial and socioeconomic impacts
Despite fears of a negative economic impact, the Central Bank of
Iraq will remove three zeros from Iraqi dinar notes and print new
banknotes in 2013.
The Central Bank of Iraq has agreed with the Economic
Committee of the Iraqi Parliament to introduce the new
banknotes in September 2012, which will be used in parallel with
the current banknotes for a year. The CBI will completely
withdraw the old banknotes by September 2013.
Abdul-Hussein Abtan, Economic Committee Member of Parliament
in Baghdad stated in a press conference that there is an initial
agreement between Parliament and the central bank to start the
process of removing three zeros in September, and it will take a
year to complete. The new banknotes will be printed in Arabic,
English and Kurdish.
The CBI will introduce three new banknotes: 50 dinars, 100
dinars and 200 dinars. For smaller transactions, the CBI will also
issue 1-dinar and 2-dinar coins which Iraq currently does not use.
MP Abtan says "The grant agreement is to ensure that during the
one year process, the old banknotes are traded in the market and
replaced by the new one."
The CBI expects this move to positively impact the country's
economy; however, some parties say the negative consequences
will be more serious.
The Security Commission says deleting the zeros will have a
negative impact on financial trade in the stock market. Other
opponents of the move argue it would pave the way for money
laundering and want the government to reconsider its decision.
Supporters of the idea believe the introduction of the new
banknotes will help reduce inflation, strengthen the Iraqi dinar in
the international market, facilitate trade with international banks
and other financial institutions, as well as reduce the social gap
between classes.
"The process of removing zeros from the currency will contribute
to dealing better with inflation, facilitate economic cooperation
with international banks and reduce the differences in [standards
of] living in society," Abtan explained. Mahma Khalil, another
Member of the Iraqi Parliament and official spokesperson of the
Economic Committee says an agreement has been reached about
the mechanisms of introducing the new banknotes after a series
of meetings and discussions with the CBI Governor Dr. Sinan Al
Shibibi.
"According to the agreements, the new bill will be printed by a
European company and introduced to the market gradually and in
a well-planned schedule to ensure it will not result in shocks and
would not have a negative impact on the market," explained MP
Khalil. He added the exchange rate between the new banknotes
and the old ones would be 1:1,000.
The objective behind this move is to appreciate the value of the
Iraqi dinar against the U.S. dollar, which would in turn increase
the balance of the Iraqi dinar and there would be sufficient
reserves of that currency," explained MP Khalil. "Additionally, the
economy of Iraq would grow and oil sales would also increase."
Khalil added that Iraq has a reserve of $60 billion in the CBI.
The CBI previously stated it would consult with Parliament and
representatives to see whether there would be a need for a law to
be passed for this shift. The Economic Committee announced on
19 February it was introducing new legislation for the purpose
and would also address the inflation issue in the country.
The introduction of new banknotes and withdrawing the current
ones from the market is generally expected to reduce and control
the number of dinars in circulation and would also help facilitate
payment systems and control the banking transactions in the
country.
[You must be registered and logged in to see this link.]
Thank you Cranny for this.. good article
[You must be registered and logged in to see this image.]
The Kurdish Globe
Views differ on financial and socioeconomic impacts
Despite fears of a negative economic impact, the Central Bank of
Iraq will remove three zeros from Iraqi dinar notes and print new
banknotes in 2013.
The Central Bank of Iraq has agreed with the Economic
Committee of the Iraqi Parliament to introduce the new
banknotes in September 2012, which will be used in parallel with
the current banknotes for a year. The CBI will completely
withdraw the old banknotes by September 2013.
Abdul-Hussein Abtan, Economic Committee Member of Parliament
in Baghdad stated in a press conference that there is an initial
agreement between Parliament and the central bank to start the
process of removing three zeros in September, and it will take a
year to complete. The new banknotes will be printed in Arabic,
English and Kurdish.
The CBI will introduce three new banknotes: 50 dinars, 100
dinars and 200 dinars. For smaller transactions, the CBI will also
issue 1-dinar and 2-dinar coins which Iraq currently does not use.
MP Abtan says "The grant agreement is to ensure that during the
one year process, the old banknotes are traded in the market and
replaced by the new one."
The CBI expects this move to positively impact the country's
economy; however, some parties say the negative consequences
will be more serious.
The Security Commission says deleting the zeros will have a
negative impact on financial trade in the stock market. Other
opponents of the move argue it would pave the way for money
laundering and want the government to reconsider its decision.
Supporters of the idea believe the introduction of the new
banknotes will help reduce inflation, strengthen the Iraqi dinar in
the international market, facilitate trade with international banks
and other financial institutions, as well as reduce the social gap
between classes.
"The process of removing zeros from the currency will contribute
to dealing better with inflation, facilitate economic cooperation
with international banks and reduce the differences in [standards
of] living in society," Abtan explained. Mahma Khalil, another
Member of the Iraqi Parliament and official spokesperson of the
Economic Committee says an agreement has been reached about
the mechanisms of introducing the new banknotes after a series
of meetings and discussions with the CBI Governor Dr. Sinan Al
Shibibi.
"According to the agreements, the new bill will be printed by a
European company and introduced to the market gradually and in
a well-planned schedule to ensure it will not result in shocks and
would not have a negative impact on the market," explained MP
Khalil. He added the exchange rate between the new banknotes
and the old ones would be 1:1,000.
The objective behind this move is to appreciate the value of the
Iraqi dinar against the U.S. dollar, which would in turn increase
the balance of the Iraqi dinar and there would be sufficient
reserves of that currency," explained MP Khalil. "Additionally, the
economy of Iraq would grow and oil sales would also increase."
Khalil added that Iraq has a reserve of $60 billion in the CBI.
The CBI previously stated it would consult with Parliament and
representatives to see whether there would be a need for a law to
be passed for this shift. The Economic Committee announced on
19 February it was introducing new legislation for the purpose
and would also address the inflation issue in the country.
The introduction of new banknotes and withdrawing the current
ones from the market is generally expected to reduce and control
the number of dinars in circulation and would also help facilitate
payment systems and control the banking transactions in the
country.
[You must be registered and logged in to see this link.]
Thank you Cranny for this.. good article
