Parliamentary committee weighs bringing back metal coins in Iraq

Several coins are seen that were used in the last century

2003 View

+ -

SULAIMANI – Member of Finance Committee in the Council of Representatives Hanin Qado said on Monday (August 19) that the members of the committee had debated a proposal to bring back metal coins following a meeting with the federal central bank.

Qado said that using coins would help to ensure that value would be maintained by Iraq's currency.

However, the Iraqi dinar already is a remarkably stable currency, having hardly fluctuated beyond a range between 1,100 and 1,200 dinars to the US dollar since 2007.

There is little demand for the dinar as a currency on world foreign exchange markets, relative to the major global currencies like the dollar, British pound, and euro.

Currently, Iraqis use paper money with denominations of 250, 1,000, 5,000, and 25,000 dinars being most common. The dinar is technically divided into 1,000 fils.

Historically, Iraqi mints produced coins in a variety of denominations of fils, but metal coinage was abandoned in the early 1990s in response to shortages brought on by sanctions and a poor economy.

Once a country does away with coins, it is rare that they are reintroduced, given the cost and inconvenience of using coins compared with paper money or electronic payments.

It was not immediately clear whether the idea had any chance of progressing beyond the committee.

(NRT Digital Media)

Graph provided by XE.com