Note: This was found by an awesome researcher .. Patriotic Party Girl...!!!Check it out! The lower Denoms! Phoenix
This repealed the law under the Iraqi Central Bank Law No. 56 of 2004
Part IV
Currency
Article 32
1 - The unit of currency in the Republic of Iraq is the Iraqi dinar, and composed a thousand equal part, each resort called him (fils).
2 - equivalent to the value of the Iraqi dinar (2.48828) grams of pure gold.
3 - may be a presidential decree, on the proposal provided by the Bank to change the value of offsetting referred to in paragraph (2) of this Article, in cases of emergency conditions that the national economy's vulnerability to risks.
Article 33
1 - each sale is being or fulfillment or any other financial obligation in the Republic of Iraq in Iraqi dinars, and must be written by all the support, contract or document whatever, or if they contain called a financial commitment.
2 - may be used for the purposes of foreign currency mentioned in paragraph (1) of this Article, provided it is done in accordance with the provisions of this Law and the regulations and instructions issued thereunder.
Article 34
Bank is the only body authorized to issue currency in the Republic of Iraq, which is the only legal currency of the exculpatory edema, taking into account the provisions of Article 36 of this Law.
Therefore, in order to include the following: -
1 - take the measures necessary for the printing of banknotes and minting coins made available for circulation.
2 - to issue or reissue or replacement of banknotes and coins at its center and its branches and agents.
3 - take the necessary measures for the withdrawal of the banknotes or coins that are no longer fit for circulation.
4 - to cancel and annul and destroy banknotes withdrawn from circulation, or in his possession.
Article 35
1 - banknotes issued on behalf of the bank, and signed by the Governor.
2 - consisting of cash securities Manalviat the following: -
Quarter of a dinar, half a dinar, one dinar, five dinars, ten dinars, and twenty-five dinars.
3 - of the bank to issue banknotes to other categories, in addition to the categories provided for in paragraph (2) of this Article.
4 - identify shapes and drawings, designs and other specifications of the banknotes, a presidential decree.
Article 36
1 - coining the bank and issued coins for use in the Republic of Iraq, and has the same purpose minting commemorative coins to mark the occasions of national or a national or international, historical, or scientific, with the possibility of selling all the coins out of Iraq at more than face value, as determined by the Bank, either coins model , as determined by the Bank, either coins model may be sold inside and outside Iraq at more than face value, as determined by the Bank as well, and the Bank of the allocation of all or part of the proceeds from commemorative coins (the typical and ordinary), to international organizations, or regional, or institutions scientific, or charitable in Iraq and the Arab countries.
2 - had Akiem and descriptions, sizes and weights and forms of coins mentioned in paragraph (1) of this article, and installation of metal, and the percentage variation allowed in terms of weight and mineral composition, by presidential decree.
3 - coins that are legal tender issued by the Bank, and has a strong discharge unless he has obtained disposed illegally, according to paragraph (5) of this Article within the following limits: -
A - unlimited coins for a five dinars and above.
B - Reduction of fifty dinars coins from the category of one dinar.
C - Reduction twenty dinars for the coins of five hundred fils categories, or two hundred and fifty-penny, or cent fils, or fifty fils.
D - limit of five dinars for the coins from the category of less than fifty fils.
4 - the official departments and all the semi-official, to accept the coins issued by the Bank of any amount was, If it does not dispose of them illegally, according to paragraph (5) of this Article.
5 - is unlawful for the purposes of this law, if damaged coins or small, or cut down or reduced or distorted because of the use is not due to normal, and the Bank of such coins withdrawn from circulation and cut or broken or destroyed or re-minting.
6 - only the right bank of melting coins and the sale of minerals, or re-minting Almeskumat withdrawn from circulation, or in his possession.
Article 37
1 - Alpmk not required to pay compensation for paper money lost, stolen or destroyed or mutilated in whole or in part, has to pay, in accordance with conditions established by the compensation for such securities, and claim expenses that may ensue.
2 - do not need the bank to pay compensation for the lost coin, stolen or destroyed or disposed of illegally, he may pay, in accordance with conditions established by the compensation for such coins.
Article 38
Takes note of the bank's public statement published in the Official Gazette, declares with other media, types and specifications of the currency you decide to put in circulation.
Article 39
1 - The Bank Ashabr any class of issued currency from circulation, for the purpose of replacement, and to compensate the nominal value of legal process, in a statement published in the Official Gazette, declares with other media, taking into account the following: -
A - set the appropriate time limit to replace, not less than thirty days and not more than two years.
B - The category to decide the currency withdrawn illegally from the expiration of the replacement mentioned in paragraph (a) of this Article, the holder can be replaced with the bank and its branches only in the Republic of Iraq within five years from the date of publication of a statement withdrawing them in the Official Gazette.
2 - pay the bank after a period of five years mentioned in paragraph (1 - of this Article, to the Public Treasury, which decides the value of currency withdrawn, that were not brought him to replace, and reduce the amount paid from the account of the currency in circulation.
Article 40
1 - The Bank maintains assets as cover for a currency, not less than its value in no time for the full value of the banknotes and coins (other than commemorative coins) that are in circulation.
That those assets consist of all or some of the following items, as decided by the Council: -
A - gold bullion and / or gold coins.
B - foreign currencies convertible in cash or securities or assets, and defended or certificates of deposit.
C - money orders or treasury bonds issued by the Arab governments or foreign organizations or international financial or monetary editor in convertible currencies, that does not exceed a maturity of ten years from the date of acquisition by the Bank.
D - Assets of special drawing rights arising under the Convention on the International Monetary Fund.
E - Iraq creditor balances in foreign currencies for payment agreements or clearance or any other economic agreements.
And - transfers treasury Awsndhat the Iraqi government or bonds secured by it.
G - bonds, loans granted by the Bank under Article 2 of the twenty-guarantee from the Minister of Finance.
2 - should not be less than the sum of assets mentioned in paragraphs (a - e) (1) of this rule at any time of the (50%) fifty percent of the currency in circulation.
http://www.iraq-ild.org/LoadLawBook.aspx?SP=&SC=120120066646396&PageNum=2
addition ---
The current law can be found here:
http://www.cbi.iq/documents/CBILAW-EN_f.pdf
In the above example, the dead giveaway that this is the old 1959 law is the value of the dinar in terms of gold:
1950 - 1990
In 1956 the National Bank of Iraq became the Central Bank of Iraq. Its responsibilities included the issuing and the management of currency, control over foreign exchange transactions, and the regulation and supervision of the banking system. It kept accounts for the government, and it handled government loans. Over the years, legislation has considerably enlarged the Central Bank's authority. In 1959 the peg was switched from the British pound to the United States dollar at the rate of 1 dinar = 2.8 dollars.
On July 14, 1964, all banks and insurance companies were nationalized, and, during the next decade, banking was consolidated. Following the devaluations of the U.S. currency in 1971 and 1973, the dinar rose to a value of US$3.3778.
By 1987 the banking system consisted of the Central Bank, the Rafidain Bank, the Agricultural, Industrial, and Real Estate banks. A 5 percent devaluation reduced the value of the dinar to US$3.2169, the official rate which remained until the Gulf War, although in late 1989, the black market rate was reported to be 1.86 dinars for US$1.
http://www.cbi.iq/index.php?pid=History
n 1959 a new law of the national currency of Iraq, which became under which the dinar currency and monetary union background of the Republic of Iraq (2) , equal in value (2.48828) of a gram of pure gold, and this represents progress in breaking the cycle of dependency monetary shift “important and essential to build a monetary system independent Iraqi for international currencies and continued monetary system and banking development in Iraq, that started the Iraqi currency to decline with the wars waged by the political system in Iraq, not to mention the economic blockade as it reached the dollar equivalent of three thousands of dinars, and to higher levels when approaching strike coalition military dictatorship, which ended a 0 and it began a new phase of Iraqi currency, which went through several changes in its history, most recently in 2004 when the former Governing Council replaced the previous currency, which was a symbol of the former regime.
http://iraqdailytimes.com/raise-zero...raqi-currency/
Further proof of the value of the dinar in 1959 in terms of gold, from a UN document regarding a treaty between Iraq and the USSR:
Article 7
The repayment of the loan and the payment of accrued interest thereon shall
be made by the Government of the Republic of Iraq by the deposit of the sums
due in Iraqi dinars (1 dinar = 2.48828 grammes of fine gold) in a separate
account to be opened in the Central Bank of Iraq in the name of the State Bank of
the USSR...
http://treaties.un.org/doc/Publicati...20346/v346.pdf
In 1959, gold was 35.10 USD per troy ounce:
http://www.nma.org/pdf/gold/his_gold_prices.pdf
One troy ounce is 31.1 grams
So, in 1959, the USD/IQD exchange rate was determined as follows:
One dinar - 2.48 grams of gold
One troy ounce = 31.1 grams (http://www.metric-conversions.org/we...s-to-grams.htm)
One troy ounce of gold = $35.10 USD
2.48 grams /31.1 grams = .08
.08 x 35.10 USD = 2.80 USD
So 1 dinar = 2.8 USD
The dinar was pegged at par with the British pound until 1959 when, without changing its value, the peg was switched to the United States dollar at the rate of 1 dinar = 2.8 dollars
http://en.wikipedia.org/wiki/Iraqi_dinar
http://fraser.stlouisfed.org/docs/hi...1_19490918.pdf
