Governor of the Central Bank of Iraq: We plan to delete zeros from the local currency

By Rodao 17/9/2018


Different categories of Iraqi currency

Roudao – Erbil

The governor of the Central Bank, Ali Alaak, on Monday, the existence of a plan to delete zeros from the local currency, noting that "this plan needs to deliberate steps, so as not to be exploited in the fraud.

Al-Alak said in a statement to the official Sabah newspaper that "currencies with small categories, may lead the citizen to bid farewell to banks in the difficulty of storage."

He added that "the central bank has a future plan to restructure the Iraqi currency, including the deletion of zeros, but this plan needs to deliberate steps, and a stable situation in order not to be exploited in the work of fraud and others."

He explained that "the Central Bank has a reserve of foreign currency very comfortable, approaching close to $ 60 billion, compared to 43 trillion dinars, which means that it covers 170 percent of the size of the mass of cash."

On the launch of the currency of the category of 100 thousand dinars, the central bank governor pointed out that "these ideas are traded by the Central Bank, but at the present time regret it."

The central bank introduced in April a project to delete three zeros from the currency, in order to confront inflation and stimulate the economy, but was forced to stop because of the deterioration of the security and political situation in the country "to prevent manipulation and fraud of weak souls."

Small denominations of currency


Mustafa Mohamed Ibrahim
Economists define money as anything acceptable general acceptance of payment for economic goods or services, or for the repayment of

Money is the basic part of human life, especially after the end of the barter can not eat or drink or spend his work only with the availability of money has, after this simple illustration in this article explains the role of the Central Bank not to put it for small cash categories (250, 500) This is what I hear from most of the public when we rent a car or when we buy clothes or food.

Economic researchers are talking about why the central bank did not print small (new) monetary categories and which department is responsible for the currency.

The answer to this question is that I did not defend the Central Bank and did not make any effort in this matter, despite the fact that it is an important and sensitive subject.

There is a claim that the most important function of the Central Bank is issuing the currency.

I disagree with them on this point. The center is printing the Iraqi currency in the best printing presses in the world, namely (Germany) and therefore there is a department of issuance and the treasury is responsible for issuing and follow up this money, especially

The 250 currency currency has a life to reprint and the cash currency (500) has the same age to be reprinted.

The central is to replace the most used (damaged) cash categories (250, 500) from the public and banks without a commission. This is a step towards achieving The stability of the bank will be carried out by the Central Bank

In addition to the withdrawal of a large amount of categories (damaged) from the public daily, the Department of the issuance and cabinets in the Central Bank of Iraq to withdraw these categories damaged from the public and replace them with new categories and then press and puncture and tearing in the sites of the Department of the issuance and then print new categories with
their cost .

The centralist has a great responsibility and is capable of this task, where he works to follow the reality of the cash circulation, and takes into account the circulation of the small group and non-acceptance of the damaged ones in simple daily transactions, so the solution was to work to put the
required categories .

Economist: The government needs a supplementary budget to manage surplus oil revenues

The economic expert, on behalf of Jamil Antoine, on Friday, the need for the government to a supplementary budget voted on in Parliament to act surplus oil revenues, indicating that the government does not disclose the size of the amount in possession of surplus oil as it suffers a budget deficit of more than 13 trillion dinars.

Antoine said that "the amount of surplus oil revenues is not disclosed by the government because its budget suffers deficit of more than 13 trillion dinars."

He pointed out that "the government can not act with surplus oil revenues because the budget voted by the parliament and the disposal of the surplus is through a supplementary budget approved by the House of Representatives."

He explained that "the government’s debt to the Central Bank of up to 20 trillion dinars, and there is a separation between what the central bank and the state budget."

He stressed that "the budget provided for the year 2019 calculated the price of a barrel of oil at $ 55-60 dollars, is the budget of speculation may raise the price of a barrel or decline, which made the government to put this budget."

Antoine denied that "the existence of an explosive budget, the treasury of the government required more than $ 100 billion internally and externally, and thus will use their money to repay their debts in addition to supporting the private sectors, industrial and agricultural."…3%D9%85%D9%8A/

The Central Bank announces the receipt of all dollar-specific issues


The Central Bank of Iraq announced on Saturday that it will receive all the dollar-denominated issues, indicating that this comes to prevent judgment in accepting or rejecting some foreign currency notes.

The bank said in a statement received by Echo Agency that it will receive all foreign currency notes from all banks on the basis that the banknotes are good and according to the criteria set by the bank’s foreign bank receipt mechanism.

"The aim of this is for regulatory purposes in order not to get the jurisprudence of some banks or exchange offices to accept or reject some of the foreign currency (dollar) circulation."

It is noteworthy that some banking offices refuse to buy or deal with the category of $ 100 from previous editions before 2006, in addition to not dealing with the category of one dollar.

Governor of the Central Bank of Iraq participates in the meeting of the Board of Governors of central banks

His Excellency the Governor of the Central Bank of Iraq, Mr. Ali Mohsen Ismail participated in the meeting of the forty-second session of the Board of Governors of Arab Central Banks and Arab Monetary Institutions in the Jordanian capital Amman and under the patronage of the Prime Minister of the Hashemite Kingdom of Jordan Dr. Omar Al-Razaz.

The meeting was chaired by Mr. Mohammed Mansour Zemam, Governor of the Central Bank of Yemen and Chairman of the current session of the Board in the presence of the Governors of the Central Banks and the Arab Monetary Institutions, as well as observers from the League of Arab States, the General Secretariat of the Cooperation Council for the Arab States of the Gulf, the Union of Arab Banks, Middle East and North Africa, as well as the presence of Arab executives at the IMF and the World Bank and the Director General of the Bank for International Settlements.

The participants discussed the regional and international monetary, financial and economic developments and their repercussions on the Arab countries, as well as discussing the promotion of credit for small and medium enterprises, financial inclusion files and support for the Arab banking sector.

The central bank announces its sales rise to 191 million dollars

The central bank’s foreign currency sales rose Tuesday to $ 191.56 million from $ 106.19 million in Monday’s auction of $ 85.37 million.

The exchange rate was 1190 dinars per dollar in the auction held with the participation of 35 banks and one company only for financial transfer, "the bank said in a statement.

The statement added that ‘these sales are the results of the auction on Wednesday,’ explaining that ‘total sales totaled $ 225.96 million’.

He added that ‘the volume of funds sold to strengthen banks’ assets abroad amounted to 190.06 million dollars, while the total amount of cash sold at $ 1.5 million’.

He explained that ‘the sale of amounts transferred to the accounts of banks abroad at the price of 1190 dinars per dollar, while the cash sale will be at the same price’.

Central Bank: Most private banks did not reach the level of ambition

The governor of the Central Bank Agency on the relations, on Tuesday, the number of private banks in the country of 70 banks, stressing that most of these banks did not reach the level of ambition.

"The number of private banks, transfer and exchange companies exceeds the need of the market, as we did not grant any new license to open a commercial bank or a license for a banking company.

We also canceled the financial transfer companies, in the presence of an intention to restructure the banking companies," Alaq said in a statement. Leads to greater control over them and there is a plan to merge some banks. "

He added that "licenses have been granted for the opening of a number of Islamic banks based on the facilities provided by its law, as the House of Representatives put a paragraph to help establish it, reducing the capital required at the establishment."

"There are currently 70 banks operating in the country, 20 of which are branches of foreign banks, but most of them are newly formed, so it did not reach the level of ambition, and these banks worked under exceptional circumstances passed by the country.

"As you know, the main task of the banks is to provide credit through the granting of loans and other services, in return, take the funds of depositors and give them a percentage of interest, but Iraqi banks in general have a great difficulty in doing this Activity.

When a loan is granted, the borrower often does not meet its repayment despite the high collateral given by the banks and the high interest rate, as borrowers may be up to 20 percent. "

He pointed out that "the problem is that the bank when it starts its actions against the borrower, such as the seizure of the property, for example, faces a significant delay in legal proceedings by other parties, in addition to threats of tribal or partisan, and this makes banks afraid to grant loans.…-%D9%84%D9%85/

Central Bank: The conversion of the dollar from Iraq to Iran has been suspended since 2012

The governor of the Central Bank Ali Alalak, on Monday, that the conversion of the dollar from Iraq to Iran has been suspended since 2012, while pointed out that the past months witnessed the transformation of Iraq to the normal follow-up after it was in the gray area.

"The conversion of the dollar from Iraq to Iran has been suspended since 2012, and the Iranians are aware of this," al-Alak said in an interview with Al-Sabah newspaper.

"Any dollar transfer will go through the US Federal Reserve, which will stop the transfer," he said.

He explained that "Iraq was classified in the financial organization responsible for the classification of countries within the framework of money laundering, within the gray area, and his way to enter the black area, to become a financially isolated area and the report of the assessment of Iraq contains 700 observations,"

noting that "After hard work removed All reservations and turned us Iraq from the gray area to the area of ​​continuous follow-up, and in the past months we have become a normal follow-up area, we are the case of any country in the world. "