17-05-2012 – 05:00
Iraqi Parliament Finance Committee revealed, on Tuesday, that cutting zeros off Iraqi dinar and its redenomination will be taking place in January 2013 adding that printing the new currency will start as of September 2012.
“Zeros will be cut off Iraqi dinar and the currency will be denominated in January 2013,” Finance Committee member Haitham Al Jabouri told Alsumarianews noting that printing the new currency bills will start in September 2012.
“The redenomination of old Currency requires a whole year and the old currency will be fully withdrawn from Iraqi market in the first half of 2014,” Jabouri said stressing that cutting the three zeros off the currency and its redenomination intend to stabilize Iraqi Dinar and decrease demand on the hard currency.
“Central Bank of Iraq dissipated all fears from money laundering during the redenomination process,” Jabouri stated explaining that it has a special apparatus to fight money laundering.
“Reform of Iraqi currency management system is a major duty of Central Bank of Iraq and cutting zeros off is one of its strategic tasks,” Jabouri uttered assuring that the Parliament Finance Committee support Central Bank’s strategy.
Iraqi Cabinet Secretariat issued a resolution, on April 2012, to halt all procedures relating to cutting zeros off the dinar until further notice.
Iraq is not ready yet for this step, some economic experts believe pointing out that such action requires security and political stability in addition to economic stability.
Central Bank of Iraq announced, on January 2012, it is determined to release 3 Iraqi dinar bills of high value i.e. 200, 100 and 50 dinars after the cutting off of zeros from the currency. Dinar redenomination requires 2 years, Central Bank of Iraq informed.