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Iraqi Coins May Return in 2013
By Richard Giedroyc, World Coin News
September 10, 2012
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Some Iraqi economists are less than thrilled with the idea of a new currency being introduced during 2013, but if the financial committee in Iraq’s Parliament has its way not only will there be new bank notes, but coins will once more be seen in circulation.
The currency reform being planned for next year will include removing three zeros from all existing currency denominations.
According to Iraq Central Bank Deputy Governor Mazhar Salih, “We are determined to change the Iraqi currency because the biggest bank note in Iraq is 25,000 dinars, which is the equivalent of $21. This has forced Iraqi merchants to resort to U.S. dollars. Besides omitting the zeros from the currency, we will redefine the Iraqi currency and have bank notes larger than 25,000.”
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Najiba Najib is a financial committee member. According to Najib, the new currency would circulate simultaneously with the older bank notes for three years before the notes being replaced would be demonetized.
The committee has presented proposed designs for seven bank notes ranging from 5- to 200-dinar denominations as well as coins in 50-fils to 2-dinars denominations to the central bank. Details of the proposed coins were not immediately available, but it was learned through Najib that the waterfall of Geli Eli Beg is among proposed vignettes for the new notes. It appears the proposed vignettes will attempt to appease all major ethnic groups within Iraq since three of the proposed designs have Kurdish themes. It was also learned the notes and presumably the coins will include legends in Arabic, Kurdish and English.
Kurdistan Economic Forum Vice President Faysal Ali is among those opposed to a currency reform at this time. According to Ali, “The political situation in Iraq is very unstable and it is economically weak.”
Ali continued, “Therefore, it is not possible to change the currency now because in order to do so we would need more than a trillion bank notes and coins. Exchanging new bank notes with older ones being used by citizens will greatly harm the economy.”
Ayub Anwar Simaqayi is a lecturer in economics at Salahaddin University in Erbil. He added, “It [Iraq] depends entirely on oil which it exports for U.S. dollars. So, if they [Iraq government] change the currency of Iraq and the price of oil goes up it will have no impact on the value of Iraqi currency. But, if the oil prices go down the currency of Iraq will lose value as well.”
Following World War I, what is now Iraq was a British mandate that used the coins and bank notes of British India as its official currency. Iraqi coins in denominations of 1, 2, 4, 10, 20, 50 and 200 fils were introduced in 1931 and 1932, with a 100-fils coin being introduced in 1953.
Coins continued in use during the Iraqi Republic period, with the introduction of a new series in denominations of 1, 5, 10, 25, 50, and 100 fils. In 1970 a 250-fils coin was added to this mix. In 1982 the 500-fils and 1-dinar denominations were introduced; however, coin production ended after 1990 due to inflation.
A series of coins in denominations of 25, 50, and 100 dinars was introduced in 2004 by the Coalition Provisional Authority that replaced the dictatorial government of Saddam Hussein; however, these coins proved to be unpopular and were withdrawn.
Bank notes used during the Saddam regime are nicknamed “Swiss dinars” because they were printed in Switzerland for Iraq. When the Saddam government was cut off from its Swiss suppliers in 1991 due to an international embargo, Iraq began printing its own bank notes, known in Kurdistan as “fakes” or “prints” due to their lack of anti-counterfeiting security devices.
In 2003 the coalition governor of Iraq, Paul Bremer, following the collapse of the Saddam government, authorized new bank notes to be printed by the De La Rue security printing company. These notes are dubbed “Bremers” by Iraqi citizens. Counterfeits of the Bremer period notes have been a problem due to the interest in selling physical Iraqi dinars overseas to investors speculating on their appreciation should the Iraqi economy improve.
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By Richard Giedroyc, World Coin News
September 10, 2012
Other News & Articles
Coins to Be Frozen With?
Frisky Gold Sets Strong Market Tone
Fake 500-Yens Once More a Problem
This article was originally printed in World Coin News.
>> Subscribe today!
Some Iraqi economists are less than thrilled with the idea of a new currency being introduced during 2013, but if the financial committee in Iraq’s Parliament has its way not only will there be new bank notes, but coins will once more be seen in circulation.
The currency reform being planned for next year will include removing three zeros from all existing currency denominations.
According to Iraq Central Bank Deputy Governor Mazhar Salih, “We are determined to change the Iraqi currency because the biggest bank note in Iraq is 25,000 dinars, which is the equivalent of $21. This has forced Iraqi merchants to resort to U.S. dollars. Besides omitting the zeros from the currency, we will redefine the Iraqi currency and have bank notes larger than 25,000.”
Collecting World Coins
The most comprehensive catalog to 20th and 21st century circulating world coins is back, and fully updated! Get your copy today!
Najiba Najib is a financial committee member. According to Najib, the new currency would circulate simultaneously with the older bank notes for three years before the notes being replaced would be demonetized.
The committee has presented proposed designs for seven bank notes ranging from 5- to 200-dinar denominations as well as coins in 50-fils to 2-dinars denominations to the central bank. Details of the proposed coins were not immediately available, but it was learned through Najib that the waterfall of Geli Eli Beg is among proposed vignettes for the new notes. It appears the proposed vignettes will attempt to appease all major ethnic groups within Iraq since three of the proposed designs have Kurdish themes. It was also learned the notes and presumably the coins will include legends in Arabic, Kurdish and English.
Kurdistan Economic Forum Vice President Faysal Ali is among those opposed to a currency reform at this time. According to Ali, “The political situation in Iraq is very unstable and it is economically weak.”
Ali continued, “Therefore, it is not possible to change the currency now because in order to do so we would need more than a trillion bank notes and coins. Exchanging new bank notes with older ones being used by citizens will greatly harm the economy.”
Ayub Anwar Simaqayi is a lecturer in economics at Salahaddin University in Erbil. He added, “It [Iraq] depends entirely on oil which it exports for U.S. dollars. So, if they [Iraq government] change the currency of Iraq and the price of oil goes up it will have no impact on the value of Iraqi currency. But, if the oil prices go down the currency of Iraq will lose value as well.”
Following World War I, what is now Iraq was a British mandate that used the coins and bank notes of British India as its official currency. Iraqi coins in denominations of 1, 2, 4, 10, 20, 50 and 200 fils were introduced in 1931 and 1932, with a 100-fils coin being introduced in 1953.
Coins continued in use during the Iraqi Republic period, with the introduction of a new series in denominations of 1, 5, 10, 25, 50, and 100 fils. In 1970 a 250-fils coin was added to this mix. In 1982 the 500-fils and 1-dinar denominations were introduced; however, coin production ended after 1990 due to inflation.
A series of coins in denominations of 25, 50, and 100 dinars was introduced in 2004 by the Coalition Provisional Authority that replaced the dictatorial government of Saddam Hussein; however, these coins proved to be unpopular and were withdrawn.
Bank notes used during the Saddam regime are nicknamed “Swiss dinars” because they were printed in Switzerland for Iraq. When the Saddam government was cut off from its Swiss suppliers in 1991 due to an international embargo, Iraq began printing its own bank notes, known in Kurdistan as “fakes” or “prints” due to their lack of anti-counterfeiting security devices.
In 2003 the coalition governor of Iraq, Paul Bremer, following the collapse of the Saddam government, authorized new bank notes to be printed by the De La Rue security printing company. These notes are dubbed “Bremers” by Iraqi citizens. Counterfeits of the Bremer period notes have been a problem due to the interest in selling physical Iraqi dinars overseas to investors speculating on their appreciation should the Iraqi economy improve.
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