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Central Bank announces replacement of damaged currency early next month

Saturday, October 27 1 / Okrudolf 2012 20:18 | : Ambassador News | | |

{Baghdad Ambassador: News}

Central Bank of Iraq, Saturday, has signed a contract with a British company to replace damaged currency with new ones, stressing that the replacement process will be the beginning of the month of November, as pointed out that these currencies are only 1% of the currency in circulation in the market.

The deputy governor of the central bank, "the bank contracted with a British company specialized printing currency to print in small denominations which the 250 dinars and the JD 1000, for the purpose of replacing damaged with new ones," noting that "this company is one of the large companies, which are printed approximately 60% of the coins countries of the world. "

Saleh added that "the month of November will begin to replace damaged currency with new ones from the small groups," adding that "all these currencies damaged constitute only 1% of the currency in circulation, and many that are only worth a few."

And citizens suffer from the difficulty of buying small groups of markets due to damage and rupture most especially the two categories of the 250 and 1000 dinars.

He held the Iraqi Central Bank, on the tenth of April 2011, bank management responsibility currency traded damaged in the markets, warning of fines on banks uncooperative to the point of suspension, as he emphasized that what is being replaced from the currency damaged in the bank does not exceed 30% of the damaged actual.



Admin_Bob:
The market maker is still in the mix. Therefore, I would not be surprised if we see new dinar and a float.


ZenMaverick (admin @ DinarAlert):
It doesn't make any sense at all w/o a rate inrease/ free float. I don't think that it is unreasonable to assume that the CBI and surrounding banks have enough IQD to just replace/ switch-out the damaged notes that they claim are only 1% of the currency, destroy them and reduce the M2 further. Why bother replacing them unless the 1% is a misrepresentation and not to mention the pain in the arse it'd be for everyday citizens to go to the banks, which are now trusted even less, to exchange there damaged notes AND WANT IQD in return vs. dollars. The game is afoot.