Tuesday, September 06, 2005

A new dinar rises from the ashes

Good day to you!

Today I found this nice article:
A new dinar rises from the ashes
Michael Phillips in Washington and Alexei Barrionuevo in Baghdad report on US plans for bringing order to the Iraqi currency

American authorities in Iraq announced in early July that they are preparing to create a new currency for the country - one that is free of Saddam Hussein’s image. Paul Bremer, who heads the occupying authority, told Iraqis in a televised address that the move shows the US-led coalition “is determined to improve the economy of this country, and the lives of all its citizens”. But the decision appears to have had a strong political component as well. Bremer has opted for a currency plan that favours the people of central Iraq, the epicentre of the increasingly violent resistance to occupation forces.

The new banknotes will look much like the pre-Gulf War national currency still circulating in the Kurdish north - bills nicknamed “Swiss dinar” because of their relative stability and strength. The Swiss dinar was trading at about 6.7 to the dollar in early July. But the new dinar will have different colours and will be worth only as much as the “Saddam dinar,” which is used in the rest of the country and is worth 1,480 to the dollar. Northerners will have to buy the new dinar at a price of 150 new dinars per Swiss dinar, about a third less than the going market rate for Saddam bills. Other Iraqis will swap their Saddam dinar one-for-one for the new notes.

Go here for the rest.

Regards Marcel.