Iraq to remove three zeros from the dinar
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The Iraqi Central Bank announced the completion of a plan to remove three zeros from the dinar, replacing current banknotes with new ones. The Bank will re-print 30 trillion dinars (26 billion dollars).
According to Mazhar Mohammad Saleh, an expert in the Iraqi Central Bank, in a speech with the ALHAYAT of London, “our problem lies in the timing of the currency exchange, as we need to select a suitable time for implementing the project without obstacles.”
The Central Bank planned to remove three zeros from the Iraqi dinar, after suffering from inflation and the decline of the currency during the nineties, due to economic sanctions. The value of the dinar decreased internationally to its current value of approximately 1120 dinars per dollar.
In 2003, the Central Bank adopted a new mechanism to maintain the dinar’s exchange rate. It created a foreign exchange auction to sell dollars that Iraq obtained from the sale of oil in the global markets and then transferred to the bank to sell in local currency, which helped raise the value of the dinar over the last few years to more than 2000 points.
Saleh estimated the government will exchange more than 30 trillion Iraqi dinars, or more than $26 billion dollars. The most important change after deleting the zeros, is to reduce the number of banknotes in circulation, simplifying the payment system in Iraq.
Some economists have warned that the process of exchanging the Iraqi currency will be rife with corruption due to the inaccurate structuring of Iraqi banks. Previous attempts to exchange the currency resulted in major corruption, costly to the Iraqi economy. However, Saleh responds that the process of changing the currency in 2004, occurred under the exceptional circumstance of an occupation, was managed by a civil American governor, and was still successful.
The Central Bank sells, through a daily auction, between $150 million dollars and $190 million dollars daily to clients of private banks and the financial companies. (Source: www.yallafinance.com)
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This is just another of those rubbish articles about Iraq trimming three zero's from its currency.
Firstly these rumours have been going around for years, and it has yet to happen.
And secondly, website owners who publish these articles know that mentioning a lop causes a great stir and panic, and people read these articles, thus pushing up the click rate and therefore the value of the site because of ad revenue.
Websites publishing these articles are merely acting out the old maxim, 'In a goldrush, you don't sell gold, you sell shovels'.
In this case, websites are selling gossip, and making money from it.
You can turn in your old dinars. Just go to the Central Bank of Iraq. What? There's no branch in your town? Well, then just go to your local Dinar Dealer. He'll be glad to help you.
Now really, folks, those who buy these silly things are being hoo-doo-ed coming and going. First they sell them to you at about a 40% mark-up, so your "investment" (not) needs to gain 40% just for you to break even. Then, here's the question: IF (and that's a big IF) these things ever gain value, WHY SHOULD ANYONE give you money (as in U.S. Dollars) for them? Say, you have whatever number of dinars which after the RV is now worth one million U.S. dollars. And then, say, I happen to HAVE one million U.S. dollars. here is the question:
WHY SHOULD I BUY YOUR DINARS? I already have a million US dollars. The only reason I would do this is so I could make more money than I have. Which means I'm going to discount your million, and give you, maybe $750,000 for them. Then I can turn around and make a cool quarter million by turning them in for what they're worth.
Get it? These "suckers" are being taken coming and going. And that's only IF the stupid things ever appreciate, which they won't.
As has been said, "You can fool some of the people some of the time..."
Tsk tsk tsk.
Replacing current banknotes with new ones - what happens if you can not trade your 25000 notes in?
Does this mean the dinar I currently own will not be accepted as legal currency? Will I be able to convert it or trade it for the new currency
No because its still 1000 IQD. When you cash it in at the bank you will get the exchange rate of equal to 1000 IQD not 1. 1000 IQD is still 1000 IQD, they are simply removing it from circulation.
Yes, It will be worth $1000.00 USD!
Some people say no, but it is stated in the PLAN! Just hold on to it and you will be very glad you did!!
