Iraqi dinar to have 3 zeros canceled by the Central Bank of...

Iraqi dinar to have 3 zeros canceled by the Central Bank of Iraq according to Finance Commissioner

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Iraq Finance Committee MP Abdul-Hussein al-Yasiri
Iraq Finance Committee MP Abdul-Hussein al-Yasiri – File photo

The Iraqi dinar will have 3 zeros canceled by the Central Bank of Iraq according to Finance Commissioner, MP Abdul Hussein al-Yassiri.

MP al-Yassiri told Iraqi News that “it is supposed that this year will witness necessary preparations to cancel three zeros from the currency”.

He added that his commission supports such move for its importance to the Iraqi economy.

The Central Bank of Iraq, earlier, announced that cancelling the zeros is within a plan to develop monetary policies in the country.

One of the difficulties facing is Iraq is withdrawing 30 trillion Iraqi dinars from Iraq’s market at the present time and to replacing it with new currency.

Earlier, the ministry of finance ruled out the idea of cancelling the zeros in 2013 because the federal budget was based on the current currency.

13 COMMENTS

  1. So what happens to the currency in circulation and the currency that was printed but never circulaled when this takes place? Does the value go down? e.g. 25K notes become 25?

  2. The literal translation of ‘delete the zeros’ means remove the leading zeros, so if they did, 1 dinar would be worth 85 cents

  3. If they remove three zeros the IQD will be replaced by a new currency worth about $.86 and the IQD that investors hold will be demonetized. This is how re-denominations work and they’ve been done 60 times in the past. This is the risk you take when you invest in a currency with zeros added because of inflation.

  4. A committee member, Abdul Hussein al-Yasiri has released a statement, in which he stated that the process of deletion of zeros from the national currency will begin in 2014, through an agreement with the central bank. Further he mentioned in that same statement, “This project will lead to reducing the proportion of the national currency traded from 4 billion to one billion.

    WHAT DOES THIS MEAN?

    They need to trade trillions!

  5. If I purchase iqd and when currency note changed by Iraqi concerned autharties so will they change currency that I purchased with new value

  6. PAT, yes deleting the ZEROS will make the currency stranger but not our investment, cz your 1000 Dinars becomes only 1 Dinar. DELETING THE ZEROS WILL INTERNATIONAL NOT ONLY WITHING THE IRAQ.

  7. For the 1st year the zeros will remain as is. That being said the new and the old will be in play for the banks to use. Only time currencies are loped is do to out of control inflation. They can’t kill a 5000 dollar note just reissue a new one . They have not killed the zeros

  8. Some people are so stupid. Deleting the zeros is exactly like a negative stock split. In a 1:1000 negative stock split, the value of the note would increase by 1000. However, if you previously had 1,000,000 shares you would only have 1,000 after the split. The same goes with currency. The value increases by 1,000 but the trade-in rate is 1000:1 to get the new currency. You end up with exactly the same amount. Even then, as most banks won’t accept dinar to be exchanged for US dollars, you’ll need to pay a premium to get US dollars. In other words, your dinar is virtually worthless and I can guarantee that anyone who invests will lose some or close to all of their “investment”. A sucker really is born every day.

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