A Central Bank of Iraq (CBI) press release discusses the recently printed new 50,000 denomination banknotes for the Iraqi Dinar currency. Earlier this year, the 50 denomination Iraqi Dinar banknotes were removed from circulation due to their low value.
The Central Bank of Iraq (CBI) has recently printed new Iraqi Dinar banknotes in the 50,000 denomination, the largest in the history of the country. Since the removal of Saddam Hussein’s portrait from the currency in 2003, new banknotes were produced in the denominations of 50, 250, 500, 1000, 5000, 10000, 25000 and now 50000. This move by Iraq’s Central Bank helps to move the country away from the U.S. Dollar and begin to use their own currency for day-to-day transactions.
A complete translation of the press release, which contains the original Arabic language as well as English, is available at the following website:
An easier to read five page PDF upload is available here:
Here are some details concerning these new notes:
The notes were printed mainly for the purposes of having a larger value banknote in circulation. As of the writing of this press release, this new 50,000 Dinar banknote has an exchange rate of $44.84. Iraq’s ultimate goal will be to use their own currency for daily transactions instead of the United States Dollar, which is the primary currency used in the country for larger transactions. The Central Bank of Iraq will release a 100,000 Dinar banknote by the end of 2016, but the actual release date is subject to change, and could be delayed until mid to late 2017.
The banknotes contain an image of the waterwheels of the Euphrates and palm trees in the middle of the note, along with an image of one of the waterfalls in Kurdistan on the right side of the face of the note. The banknotes are written in Arabic, Kurdish, and English. The new notes are 65 mm in width, 156 mm in height and predominantly colored light brown other than the border decorations which have a darker color.
Clipped security thread having 4 mm width in its middle containing animated effects changing color from green to blue when tilting the banknote, having the phrase “The Central Bank of Iraq” written on it.
Advanced security mark known as “transparent window” on the right side of the face of the banknote (the upper left side on the back as well) showing the graphic of the Twisted Minaret in Samarra when putting it on a white background, and showing the number (50000) when putting it on a dark background.
The note was painted with a protective paint to increase the note’s lifespan and protect it from dirt and dust.
Low oil prices have affected the budget of Iraq as over 90% of their budget is based on the sales of oil. Fitch, the top bond rating agency, finally gave Iraq their 1st rating, a B minus along with a stable outlook. Fitch predicted a double digit fiscal deficit for 2015, due to the lower oil prices as well as much higher military spending and war costs. “Iraq scores the worst of all Fitch-rated sovereigns on the composite World Bank governance indicator, reflecting not only insecurity and political instability but also corruption, government ineffectiveness and weak institutions,” Fitch said.
During the reign of Saddam Hussein, one Iraqi dinar was worth over $3, however, the economy began to suffer when economic sanctions were started in August 1990. Due to excessive government printing of the new notes issue, the dinar devalued quickly, and in late 1995, U.S. $1 was valued at 3,000 dinars. Today, it’s about 1,166 dinars to $1. Annual inflation in Iraq is currently about 2 percent.
Iraq also revived a long-delayed plan to redenominate the Iraqi dinar by knocking three zeroes off the nominal value of its banknotes, said Ihsan Shamran al-Yassiri, the head of Iraq Central Bank Issuing and Vaults Department. The plan is set to be implemented by 2017 after restructuring dinar by issuing two large banknotes — a 50,000 dinar note before the end of this year and 100,000 banknote next year and canceling small ones.
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Release ID: 96871