Even months after the end of the Saddam regime, Iraq was rarely out of the news: suicide bombings, political difficulties, a continuing struggle to restore power and water supplies. The general impression is of a lack of progress in building a new Iraq.
However there was spectacular progress in one crucial area: central banking. The rapid restoration of monetary stability, and introduction of a usable and trusted currency have created a dinar that has been stable since early 2004, and has ended previously all-pervasive concerns about exchange rate volatility and widespread counterfeiting.
A New Currency for Iraq tells the story of the successful introduction of the new currency and the simultaneous stabilisation of the exchange rate in the face of the insurgency. It is a tale of the Coalition and the Iraqi authorities working together to introduce the new Iraqi dinar. It is also a demonstration that good central banking is possible even in the most challenging circumstances, and in a way that makes a difference to millions of ordinary people.
This book describes:
- the economic background to the currency exchange;
- the policy discussions;
- the detailed logistical planning;
- the implementation of the exchange; and
- the policies introduced to stabilise the exchange rate.
It is not the end of the story by any means, but does represent a remarkably successful beginning.
- Publish date
- 25 Aug 2009
- 155mm x 235mm
Table of contents
Sinan Al Shabibi (then Governor, Central Bank of Iraq)
1 The Economic Inheritance
2 The Decision to Introduce a New Currency
3 Monetary Policy
4 The New Notes
5 The Plan for the Exchange
7 Information and Media Strategy
8 Logistics and Security
9 The Banks
10 Disposal of Old Notes
Postscript: The End of the Exchange
Annex 1: The 25 Swiss Dinar Note Exchange
Annex 2: Foreign Exchange Auction Procedures
Annex 3: Government Spending Post-war – From Dinars to Dollars and Bank
Annex 4: Cash Developments Since the ICE Exchange
Annex 5: Monetary Policy Since the End of the Currency Exchange
Annex 6: Central Bank Legislation