Un sanctions iraqi dinar forex, Part 2 The Iraqi economy and Dinar 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. It seems that the residual effects of actions taken by both Saddam and U. 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. 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. In 2006 Saddam Hussein finally had his day in court, and was condemned and hanged by his countrymen for his crimes against humanity. 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. As soon as Saddam was ousted, leading Iraqi business people and government officials began calling for Iraq’s old foreign debts to be forgiven since they were largely the dictator’s fault.
Some of this debt resulted from failed export contracts, and some of it resulted from military and financial expenses during Iraq’s exhaustive war with Iran in the late 1980s. In spite of this foreign debt, the Iraqi economy grew rapidly beginning in 2004 and continuing up to the present time. In view of the oil-rich young democracy’s rapid economic growth and excellent prospects, in 2004 the so-called Paris Club of governmental and institutional creditors agreed to forgive nearly all Iraq’s old debts and accepted pennies-on-the-dollar for settling old loans. Freed of debt, Iraq’s economy grew even faster. Rising petroleum prices during the mid and late 2000s led to a quick doubling of Iraqi oil production. Reduced inflation and the easing of violence after Saddam’s departure have spurred the Iraqi economy to skyrocket upward since 2007. The number of registered corporations tripled, and sales of items such as vehicles, televisions and cell phones have risen consistently each year since then.