Submitted by Big Sekz
A source in the CBI revealed that the bank has decided to withdraw the currency of 50 dinars from circulation category because of fraud and conflict with other categories when deleting zeros from the currency,
and while experts confirmed that the abolition of the small category guide to take prices upward trend, said the 50 dinars born “dead” because they are too small and can not be accepted compared to other groups.
The Central Bank of Iraq, the day before yesterday, the currency was withdrawn from the category of 50 dinars from circulation due to “low value and stop the audience from the circulation,” according to a statement of the bank
A source in the CBI told the “term” that “the Bank does not want a conflict between the currency category of 50 dinars and 500 dinars in case of deletion of zeros from the last,
” noting that “the central decided to cancel the deal with 50 dinars category formally instructed banks government and private bring this group to the bank in order to burn them. “
The source, who declined to be named, said “the Bank issued a decision not to deal with a class of 50 because of a major fraud after reprinted in 2003”,
adding that “the citizen is no longer handles this category because of the small cluster of cash for this currency, and because the cheapest thing in the market to be sold for 250 dinars for it canceled the same. “
He pointed out that “the citizen who owns a coin 50 dinars category can replace it in the bank within a specific number, it is impossible to bring people billions of dinars in this category are demanding to replace them because they certainly false.”
For his part, said an expert on economic affairs Maytham Laibi “long” that “the decision to cancel the coin 50 dinars very painful, because it shows that the presence of an upward trend of prices, so that Tfariv currency has become not used in daily use
,” noting that “after ten years of the 50 dinars coin presence and lack of circulation dramatically means that the Iraqi market tended to handle large groups rather than to deal with small groups, indicating the money supply expanded significantly. “
Laibi and pointed out that “most of the countries of the world do not put such a condition when you drag the currency market, but they can be non-acceptance of the currency in circulation at the same time be accepted in the banking system, especially as the term is too short, which is up to two months only,”
but he also said “The decision can not be considered wrong in its entirety, because it has become a reality if the result of the use of this currency, and to identify specific timeframe for ending the deal in this category is the only weak point in the resolution.”
In turn, said economist Ahmed Sabih told the “term” that “this group of Iraqi currency issued in the light of expectations down price levels to be smaller class can be traded among the public,
” noting that “the category of 50 dinars stillborn because it is very small Currency and can not be accepted in circulation compared to other groups that make up some of the complications. “
He Sabih saying that “the 50 dinars as long as calculated on the Iraqi currency bloc, it is better to replace the category of other more acceptable as a class 250 dinars, which represents smaller currency accepted by the public in circulation”,
adding that “this decision administrative true and does not reflect any economic effects is carried at liquidity or a reflection of the state of inflation, but it is a good procedure followed by many banks to get rid of the categories is acceptable in circulation.
” The bank said in a statement received “long”, a copy of which, the day before yesterday, that “due to stop the public from trading cash paper category 50 dinars, he decided to withdraw this banknote from trading on the basis of the powers vested in Article 36 of the Bank Act No. 56 of 2004”.
The statement added that “banks and branches will begin to replace these banknotes presented to it without fees or commission,” he said, adding that “banks will be deposited at the bank and its branches for the purpose of being the equivalent value in the accounts we have.”
Bank pointed out that “the term that will replace these banknotes will begin on the first of March to 30 of April next,” noting, “Once the replacement period banknote will be null and void and will not be accepted in Iraq.”
The 50 dinars category smaller paper currency from within the paper categories, which also include 250 dinars and 500 dinars and a thousand dinars and 5 thousand dinars and 10 thousand dinars and 25 thousand dinars. Iraq issued a new currency in 2003 in the wake of dropping the former regime.