02/15/2010
Iraq Plans Currency Redenomination
Iraq plans to redenominate its dinar currency by deleting three zeros from the nominal value of the banknotes to facilitate currency transactions.
According to Mudher Qasim, adviser to the governor of the central bank, "the goal is to improve the payment and receiving system in the country, and consequently to reform cash management." The value of the dinar will remain unchanged.
The local unit is managed through foreign exchange auctions, and trades around 1,170 to the dollar.
[The Iraqi dinar has appreciated by almost 80% since the invasion; more importantly, all restrictions and severe penalties on foreign currency transactions have been removed. Iraqis can buy and sell dollars freely and the parallel market in foreign exchange has disappeared.]
http://www.memrieconomicblog.org/bin/content.cgi?news=3362
