The Central Bank of Iraq along with the U.S. and coalition forces had conducted an in-country currency exchange in Iraq from 15 October 2003 to 15 Jan 2004.
The person in charge for the new Iraq dinar Exchange at that time was Brigadier General(BG) Hugh Tant, U.S. Army Retired, who had extensive experience in financial currency and banking operations.
The Iraq dinar currency exchange was necessary for five reasons;
- Two currencies were in circulation, Old Swiss dinar and Saddam dinar
- There were inadequate numbers of denominations existed, the Swiss dinar had (3) denominations and Saddam’s dinar had (2)
- The currency was poorly made and easily counterfeited.
- The Saddam dinar had significantly devalued and the Iraqi’s had little trust in it.
- The picture of Saddam on the currency was unacceptable.
The exchange was a In-Country Exchange because no one outside of the country was able to exchange their old Iraq dinars or Swiss dinars. This is a fact. If you would like to learn more about this you can read the interview between Mark Gribbin, from the United States Institute of Peace and BG Hugh Tant.
When you read the news from Iraq media outlets when they mention deletion of the zero’s you need to be thinking new Iraq dinar currency. And, if and when this should ever happen in Iraq the Iraq government will follow what it had done previously in 2003. Security for the distribution of the New Iraq currency will be very complex. The logistics involved will be far greater than it was in 2003 because more banks and more Iraqi’s are using the Iraq dinar currency. Iraqi citizens are still distrustful of the Iraq banking system.
Any and all countries who have ever changed their countries currency have always done so in In-Country exchange. Russia, Turkey, and Sudan just to name a few. This is easily verifiable by a 3 minute google search.