and economy have come a long, long way since the days of brutal starvation under Saddam Hussein.
The American-led invasion in 2003 toppled the regime and reset the Iraqi economy. Nowadays the young nation is growing rapidly because of its booming oil industry, and its certainly oil-rich.
Still, the Iraqi Dinar’s value hasn’t risen to the level expected by many…. It seems that the residual effects of actions taken by both Saddam and U.S. government interests have combined to keep the Dinar’s value low.
Saddam’s legacy continues to affect the Dinar today, although recent development suggest that may change soon.
Following Part 1, let’s now take a look at the recent history of the Iraqi economy and the Dinar, beginning with the coalition invasion that ousted Saddam, and continuing up to more recent events that may offer hope for a higher Dinar value soon.
Following the 2003 invasion, the U.S. established a Coalition Provisional Authority in order to govern Iraq. In January of 2005 the country held its first free elections in many years.
Although political bickering and violence continued throughout the period, military responsibilities were gradually transferred from U.S. to Iraqi control, as long planned.
In 2006 Saddam Hussein finally had his day in court, and was condemned and hanged by his countrymen for his crimes against humanity.
The Iraqi Dinar Outlasts Saddam
After the removal of Saddam, the Iraqi Governing Council with American assistance continued printing more of the old Dinar notes in order to ensure an orderly financial transition during the chaotic first days of the new nation.
Beginning in 2004 the authorities issued new Dinar notes using modern anti-counterfeiting techniques. Old banknotes in circulation were exchanged for the new notes at a one-to-one rate.
The only exception was the so-called Swiss Dinar, which had previously been circulating in the northern Kurdish region of Iraq. Swiss Dinar banknotes were exchanged at a rate of 150 new Dinars for each Swiss Dinar.