New law is needed to get CBI to act.
About the re-minting of the coins of smaller categories within Iraq, remember these articles are from the parliamentary Finance Committee and not the Central Bank of Iraq (CBI).
Why do they feel they need to now re-mint these coins and launch them?
Let us first go back to last year 2018 when parliament passed the “Financial Management Law”.
Within this law it gives parliament more power to monitor and dictate to the CBI monetary policy.
Oh – but isn’t the CBI supposed to be working independently on monetary policy?
Yes, that is supposed to be the policy however, in the midst of all the corruption within the CBI, this is not going to going to be an exclusive duty of the CBI at this time.
We always knew that in the past the CBI willingly decided to work with the Finance Committee and wanted approval of all major actions concerning the currency.
But now under the Sadr run government, parliament is taking a much deeper involvement in this process.
Like I said, this is due to all the corruption and the stagnation of the CBI to complete the “project to delete the zeros” as was already supposed to have taken place.
So what has to change to get the currency reform?
Based on Sadr’s reform movement this takeover of the CBI by Maliki own proxy, non-parliamentary ratified candidates. finally had to end.
It was destroying the full potential of the country’s economy to move forward to the next needed level of financial reforms.
All these recent actions since the last elections and the takeover by the Sadr Movement of the government we have seen a slow progressive moves towards less autonomy of the CBI and more decision making by the Finance Committee part of parliament.
This is all good for us since we might have been waiting forever if left to the CBI alone to complete this project to delete the zeros.
So, this very recent news this week is finally telling us another major move towards the long-awaited currency reform is coming.
Remember though that they also told us that parliament will have to legislate this to the CBI meaning another new law since the CBI does not favour the coins and will try to block it.
So, this too is a signal to us (call it proof) that the CBI does not want to really move ahead with the currency reform.
So, part of this new effort to revive the coins by the Finance Committee under Sadr is to also add value to the dinar as part of the project to delete the zeros.
They came right out and told us that this step must also coincide with the coinage launching.
Also we must go back to the earlier article in March of this year when they told us they wanted increase the value of the dinar over the US dollar and do this within the currency legislative term.
Technically this term has ended but the new term has not yet begun either due to begin on Sept 3rd.
So this news does not surprise me now that we had just about 2 weeks remaining until Sept 3rd.
From Dinar Iraq IQD & Dong Vietnam VND