##### Iraq to keep banknotes unchanged for 2013

Admin Tue Apr 30, 2013 10:56 am

30 Apr 2013

Three zeros from its currencies will not be eliminated by the Iraqi Central Bank. Previously, in a statement, it was released that three zeros will be removed by the Central bank.

The bank has a plan to replace the current notes with the new ones. It also had takes some measures to reduce the three zeros and reducing the volume of dinars in circulation with each four billion dinars substituted by one billion dinars.

Abdulhusain al-Yaseri, a deputy who sits on the parliament’s Finance Commission, stated that the Central Bank has announced that it has no plan for restructuring currencies by removing three zeros from them.

It has to be noted that currently one U.S. dollar is worth more than 1250 dinars and Yaseri said Iraqis needed to carry large sums of currency even for household shopping as payment by credit card is rare in Iraq.

Issuing new denominations with deleted zeros will simplify payment and accelerate trade exchanges. Mr. Abdulhusain al-Yaseri have not commented anything on this further and left the matter, without revealing the fact that when Central bank will start issuing new currency.

He stated that the concerns are arising as due to the presence of massive sum of banknotes, rising of the fake banknotes is on a peak. This has been identified as one reason for latest slump in the dinar’s value from around 1120 to more than 1250 vis-à-vis the U.S. dollar.

He stated that bank has a plan to remove three zeros from the currencies in order to make 100 dinar equivalent to 100 dollar. He remarked this as an interest from the side of the Iraqis, which will make the currencies easier to detect.

Exchanging currency via value increment or printing new notes are costly for the economy of the country. However, central bank has not revealed that how much it will cost to carry out this operation.

As banks are starting to exchange their Iraqi dinar reserves, fear of corruption is also very high

http://www.iraqdirectory.com/en/2013/04/30/23804/iraq-to-keep-banknotes-unchanged-for-2013.aspx