The head of the mass of the solution were part of the coalition, the Iraqi Ziad Tariq worldwide abolition in an interview with “Twilight News” that “the general situation between the Iraqi and Kuwaiti strained and tense, and there are many outstanding issues between the two sides, which will make the second more intransigent and determined to keep Iraq under Chapter VII “.

The worldwide abolition that “one of the outstanding issues between the two sides, is a question of building a port Mubarak of Kuwait, which until now did not know the House of Representatives impact on the Iraqi ports or not” asking “the Prime Minister to send a report of the Committee that went recently to Kuwait to the House of Representatives for their results. “

The technical committee composed of experts under the chairmanship of the advisers in the Office of the Prime Minister Thamer Ghadban ended her recent visit to Kuwait in August last, as discussed with Kuwaiti officials, the cause of building the port of Mubarak.

The Prime Minister and his deputies met, last August, with the Technical Committee to discuss the report returned by the last of his visit to Kuwait to see the impact of construction of a port or not Mubarak on Iraqi ports.

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The two-day seminar will be four sessions on various aspects of the subject, with the participation of the private sector, governments, international organizations and academics.

This seminar is a continuation of a report by the WTO Secretariat issued September 27, 2011, which reviews the literature on the relationship between exchange rates (including the effects of volatility and misalignment) and international trade . Members of the Working Group said invited to participate in the seminar must provide complete coverage of the issues, and representative of the different institutions and parts of the world.

Members would like to see companies of different sizes – with particular emphasis on small and medium-sized enterprises – and the various industries represented at the seminar. Representatives of companies in developed and developing countries will be invited to participate.

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The bank said that the current currency exchange accumulated an approximate of 30 trillion dinars.

CBI deputy governor Mohammed Saleh said that the bank plans to delete zeroes next year. While it also plans to create a new state budget for Iraq and the currency exchange on the fiscal year of 2013. Mr. Saleh pointed out that the zeroes added on the currency led to the decline of Iraq’s currency. Moreover, it led to the inefficiency of monetary exchange. Also, monetary institutions in Iraq have a high incidence of errors in the accounts and records in returns due to the currency that are difficult to read and understand.

Mr. Saleh explained that the new currency exchange will benefit the country as it formed a large cash amounted to 30 trillion dinars. In 1980, the value of stocks traded in the market amounted up to 25 billion dinars. The largest currency in Iraq at that time was equivalent to $21 dollars. Thus, it was not able to cover large payments.

Deleting of zeroes and altering the currency exchange involves administrative reform. It affects the monetary value and the per capita income of Iraq. The removing of zeroes has been applied to over 50 countries such as in Turkey and Romania.

The Iraqi Central Bank confirmed that after the deletion process the new Iraqi dinar would be printed in three languages: English, Kurdish and Arabic. According to the Constitution, the new currency will gradually absorb old dinars.
The Iraqi Central Bank adviser, Mohammed Saleh affirmed that the new currency would not involve any changes in the dinar exchange rate, only the form would differ.
He pointed out that the deletion process approved by the Central Bank was submitted to the Council of Ministers, and the final decision would be taken by the Iraqi government.
Furthermore, the head of private banks association, Abdul Aziz Hassoun called for monetary authorities to establish a plan to urge banks to develop funds. The aim of these funds is to support projects that could improve the Iraqi economy.
He pointed out that plan displayed financial benefits and would rely on conditions and procedural methods submitted by all parties that join the project. Conditions must be established by the monetary authority.
Hassoun added that there were more than 40 banks in the country which were working after a simple financial support. Thus, banks are unable to support large projects which should facilitate the entrance on global markets and develop the private banks capital. Therefore, it is necessary that the Ministry of Finance and the Iraqi Central Bank to implement funds to support banks.
In another train of thoughts, the oil expert, Hamza Jeweler called for the House of Representatives to abolish the oil and gas law. He explained that the law would dismiss the Supreme Council and the Ministry of Oil, in order to pass the power to political blocs.
Therefore, the oil and gas law could lead to a civil war.

The head of the Finance Committee, Met Haider Abadi and the Central Bank governor, Shabibi discussed the process of deleting zeros from the dinar. They discussed legal requirements, actions that the Central Bank would take in the printing process, transportation and distribution of the new bills. They also pointed out the significance of the Finance Committee in supporting the project.
The Central Bank governor affirmed that was difficult to counterfeit the new currency due to the strong protection that this project involves. He said that this process would raise the dinar exchange rate against other currencies.
Furthermore, the depreciation of the Iraqi dinar against the U.S. dollar will lead to the increase of demands. The Central Bank task is to attract those interested to take advantage of this devaluation and buy large amounts of cash. The dinar exchange rate recorded over the last six years gain the confidence of many countries due to its efficiency.
The director of foreign remittance, Jamal Al Ajili declared in an interview that the most of Iraqi citizens had their savings in dollars. Therefore, any fluctuation in the foreign currency exchange rate would represent a concern.
Jamal Al Ajili also expressed his opinion about the impact of the financial crisis on the Iraqi economy. He affirmed that the most of Iraqi market transactions were made through banks of Arab Emirates which captured any fluctuation in global economy. Thus, these changes are transmitted to the Iraqi economy or other countries that deals with these banks.
He pointed out that deleting zeros from the currency would increase investors or local citizen’s confidence.
The Central Bank adviser, Mohammed Saleh said that restructuring process of the Iraqi currency was submitted to the Council of Representatives and to the government to discuss it. He stressed that the process was a log-term project; thus, it would not happen in following days.
The restructuring process will not affect the value of the currency only the number of account will decrease.
Following these events, the Undersecretary of the Finance Ministry said that the budget for 2012 would reach 115 trillion dinars, but the final decision would be revealed next week.
Despite speculations, it is possible that the total amount of the next year budget to increase after the raise of oil price on global markets.
The Iraqi economy will establish its budget based on the evolution of crude oil price. The oil sector represents the basic resource due to the failure of sources diversity and the weak development of other sectors such as industry or commercial sector.
Therefore, the total amount of dinars for the 2012 budget will be revealed in September and will rely on an estimated oil price

Since complicated transactions are in a dire need of being simplified it is undoubtedly planned that in the near future to Iraqi dinars would develop, such is the statement of Mudhhir Muhammad Salih, a respected member of the advisory panel of the Iraqi Central Bank, made on the 23th of June to Radio Free Iraq.

Since Iraqis conduct their business by using Iraqi dinars cash, it has come to the point where they are forced to carry bags full of money in order to pay for more expensive items, such as cars. The only practical manner they have found to deal with this issue is to use dollars instead of the national currency, a phenomenon that the Iraqi government would like to eradicate by introducing the denomination.

The two-step program is meant to help achieve this will, on the one hand, have in view the larger transactions where large denominations will be issued, in the ballpark of a 100$, and, on the other hand, the smaller transactions for which new coins and lower denominations will be issued.

According to Salih the result would be a redenomination consisting in dropping three zeros from Iraqi dinars reevaluation, so that, for example, the currently largest dinar banknote, the 25.000 banknote would become a 25 dinar banknote.

Such an outcome is inevitable due to the planned oil production increase, the resulting profit being used for reconstruction projects, which in turn will lead to economy growth within the near future.
As it is at the present time, there are 29 trillion dinars in circulation, in Iraq which leads to serious complications for the central bank and its accounting departments, since this amount, is represented by nearly 6 trillion banknotes.

In order for the denomination process to run smooth, the International Monetary Fund (IMF), as well as financial institutions, and many foreign experts have been consulted in creating the restructuring plan. Iraq has been a member of the IMF since 1945, stated Salih.

The course of action will start with the restructuring plan being presented to the cabinet, which will send a bill to parliament.

The denomination process is extremely welcome since the Iraqi dinar exchange rate has fallen from 1 dinar/$3.3 in 1980 to $1/1,168 at the present time, all under the reign of former leader Saddam Hussein, said Salih.

Dinar exchange is not an investment company. Any information found on this site should not be taken as investment advice.
Visit www.DinarExchange.com.au for dinars purchase in Australia

Dinar exchange is not an investment company. Any information found on this site should not be taken as investment advice.
Visit www.DinarExchange.com.au for dinars purchase in Australia

In an interesting twist, the CBI announced that it would not only remove the zeros from Iraqi dinars, but also include a Kurdish version of the Arabic text to the new bills.
The decision to remove the aforementioned zeroes from the currency is a result of the fact, that the inflation of the last few years has lead to the existence of a large wad of money on the market of nearly 500 billion Iraqi dinars, said Mohammed Saleh, a consultant of the Central Bank of Iraq.
He also pointed out that there is a completed and carefully constructed system based on which the zeros are to be cut from the banknotes. This system will be reviewed by the Central Bank and then submitted to congress.
Saleh also made it clear that the cutting of zeroes from Iraqi dinars will not be the only change made to the new bills, additionally; writings on the bills will be in Arabic as well as Kurdish. The new bills will also include cultural symbols of Iraq, namely Iraq scientist and intellectuals of fair value.

Dinar exchange is not an investment company. Any information found on this site should not be taken as investment advice.
Visit www.DinarExchange.com.au for dinars purchase in Australia