The E-Sylum:  Volume 8, Number 19, May 8, 2005, Article 5

IRAQI DINAR COINS NOT CIRCULATING

A Kurdish Media report from Baghdad May 7 noted that
"Millions of Iraqi dinar coins have been minted by the Central
Bank of Iraq, yet few of them are ever seen.

The bank minted coins worth more than 281,000 US dollars
after the fall of Saddam Hussein. But the two coins, worth 25
and 100 dinars, are rarely used in everyday transactions, and
the smallest denomination in common use is the 50-dinar
banknote.

There are rumours the coins have been melted down for the
metal or spirited away by smugglers, but a central bank
official says the explanation is a lot simpler. Talib al-Tamimi,
manager of the treasury and monetary emission at the bank,
said the coins are available, but people do not use them as
they are still unfamiliar with them.

“They are uncertain about them after 13 years in which
there have been no denominations of this kind - that#39;s why
they seem strange to people,” said Tamimi.

“But there are huge amounts of [coins] at the banks, which
can provide them to anyone who wants them.”

"According to economist Salam Sumaysim, “The circulation
of small denominations may reflect the needs of the economy,
but inflation rates are so high that these coins are useless.”

Even the 50-dinar bill, issued before the coins were minted,
is not popular. Notes to a value of more than 8.6 million
dollars were printed, but because demand for them was low,
only about 6.6 million dollars#39; worth have been released into
circulation.

Muhammed Abdul-Qadir, a merchant at Baghdad#39;s al-Shorja
market, says he doesn#39;t want to have to carry huge bags of
coins around "like in medieval times".

Full Story

  Wayne Homren, Editor

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