Tuesday, May 22, 2012

Parliament Financial Commission (PFC) is discussing to cancel zeros from iraqi dinar

May 08, 2012

  • The statement, also added that the foreign currency transfer will be also discussed, in addition other matters connected with the Iraqi currency dinar.
  • Earlier Iraqi Cabinet decided to postpone cancellation of from the dinar and to form a committee to investigate the fluctuations in the Iraqi dinar currency and its effects on national economy and dinar rate.
  • The cancellation of the zeros from dinar, announced earlier by the Iraqi Central Bank, was disapproved by many Iraqi economic experts, who believe that Iraq was not ready for such a move because it lacked political and security stability, in addition to the economic.


Friday, April 13, 2012

Iraq halts plans to cut zeros off dinar currency-cabinet

* Cabinet says stops plans to redenominate dinar "until further notice"
* Iraq has over 30 trillion Iraqi dinars in circulation
* Plan to trim zeros not seen as a priority
BAGHDAD, April 12 (Reuters) - Iraq has decided to hold off on a plan to knock three zeros off the nominal value of bank notes of its currency because it does not believe the economic climate is suitable, the cabinet secretary said on Thursday.
The central bank said last August it planned to redenominate the Iraqi dinar to simplify financial transactions in an economy that is still heavily centralised and dominated by oil, and where deals are often carried out in cash.
The proposal to restructure the dinar to bring more liquidity into the market has been awaiting parliamentary approval since last year.
On Thursday, a statement on the website of the cabinet secretary said the cabinet had decided to halt all procedures relating to the redenomination of the dinar "until further notice".
"The economic committee discussed this issue and so did cabinet ... There is a possibility that it could cause some problems in the economic situation. Besides that, this operation is so big that cabinet sees circumstances are not right to control this," cabinet secretary Ali al-Alaq told Reuters.
Iraq is slowly getting back on its feet after years of war and sanctions. Oil accounts for 95 percent of government revenues and the country's banking system is still highly underdeveloped.
The central bank has kept the dinar fixed at 1,170 dinars to the dollar in its daily auction but it recently moved to revalue the dinar slightly to 1,166 dinars after demand for the U.S. currency soared.
The central bank said it also had to tighten regulations over who can participate in the auctions as Iraqi traders sought to snap up dollars for resale in neighbouring Syria and Iran, both under Western economic sanctions.
Sales of dollars in currency auctions held by Iraq's central bank rose as high as $400 million on some days in December from a previous average of $150 million, according to central bank data.
"We have more than 30 trillion dinars in circulation. To withdraw this amount from the market and then to examine them and to dispose of them is a huge process. Even the technical and the monetary capabilities to control a process like this, we consider as insufficient and it is not seen as a priority currently," Alaq said.
The central bank says Iraq's large foreign reserves, which have risen to a record $60 billion on the back of high oil prices, will shield it from any damage to its financial system on the national level.

Monday, January 30, 2012

USD IQD - US Dollar Iraqi Dinar Rates

Jan 30, 2012

This could get interesting. An announcement that they will raise the value of the Iraqi dinar against the dollar.

Not sure where they are getting their information from, but I have noticed that there is movement again with the rates of the IQD.

Also, read some interesting articles about the oil production surpassing the output of Saudi oil within the next few months, and the military contract with the US in negotiations.

Anyways, who really knows what is going to happen with the IQD??? All I know is that the hope for revaluation has given me the *false hope* to hang tough through this economically horrendous times. 

Here is the link for the Forex site referenced above.

Good luck to all, and hope for a revaluation within this lifetime...

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