By Simon Gray and Jacob Nell
The Iraqi Currency Exchange
October 2003- January 2004
Some 30 months after the end of the old regime, Iraq is rarely out of the news; and the general impression is of a lack of progress in building a new Iraq.
However there has been 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.