Iraqi Dinar RUMOR BOARD

[Aerospace]

Update: the CBI plans to cut the dinar and the date remains unknown

Source: Dow Jones

(Includes additional comments and details of the new)

By Hassan Hafez

Of the agency, "Dow Jones Newswires"

AMMAN (Dow Jones) - The Iraqi Central reduced the Iraqi dinar, but has not decided yet when daring to move, as reported by the bank in a statement issued the day Monday.

The statement added that the Central Bank underlines its commitment to its projects strategy, notably the removal of 3 zeros from the Iraqi dinar.
In spite of the technical and logistical preparations for the ongoing implementation of the project, but we have not set after the appropriate timing for implementation of the project," adding that the choice of time will not be tied exclusively to the economic, but also the security situation.

On the other hand, the appearance of the denominator, senior adviser in the Central, during a meeting with the agency, "Dow Jones Newswires" that the removal of three zeros will contribute to the upgrading of the value of the Iraqi dinar traded at 1.170 see dinars against the dollar during the day Monday.

In the event a decision was cut, means that the currency is currently valued at $ 25 thousand dinars will be 25 dinars, while the dollar will equal only 1.17 dinars.

The bank said that the removal of three zeros from the dinar, "will contribute to improving the management of currency and facilitate cash transactions," adding that the decision came as a result talks were held with the Economic Committee in the Iraqi government.

This often cuts neutral monetary terms, and depend to facilitate trade accounts and reduce cost. Turkey has embarked on, for example, removal of 6 zeros from the lira in 2005; just like Russia, which has the same step with regard to its currency.

He attributed the reasons for reducing the denominator of the Iraqi dinar to the efforts made by the bank to reduce the high inflation rate in the country. The Hui inflation to 6.1% in December 2009, this apostate, down from record levels reached 60% in late 2006.

In July 2004, the U.S. civil administrator in Iraq, a body that no longer exist today, printed currency as an alternative to the current that was carrying a picture of former Iraqi President Saddam Hussein. It is noteworthy that the Iraqis gave out 3 months to replace the old dinars in possession of the new dinar.

He pointed in the same context that the bank will be forced to print new banknotes in the event the project entered into force.

By Hassan Hafez

(END) Dow Jones Newswires

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