Press release from the CBI?

Press
Release about Matdolth some media statements about the intention of the
Iraqi Central Bank to restructure the Iraqi currency and deleting three
zeros from the





Join the Central Bank of Iraq

When Iraq was part of the Ottoman Empire, it was a number of European currencies in circulation alongside the Turkish pound. And after the occurrence of the British mandate after World War I. Iraq
merged with the Indian monetary system run by the British and became the
main currency in the rupee trading at KD = 13.33 rupees.

1930 - 1950

In 1931, Iraq Currency Board was established in London for the purposes of
issuing paper currency and to keep a reserve of a new dinar currency. Currency board pursued a conservative monetary policy to maintain extremely high reserves cover of the dinar. The
dinar strengthened the power of linking British Balbaon where it was
linked to the price the tie with the British pound until 1959.

In 1947 established the National Bank of Iraq, a government bank and
canceled the currency board in 1949 and which was established in London
if new bank recognizes the responsibility of issuing paper currency and
keep reserves. And
the National Bank of Iraq continued to follow the conservative monetary
policy and keep 100% of the reserves as cover for the existing local
currency.

During the recent years of Ottoman rule, commercial banking has become an
important factor in foreign trade during the British Mandate. Was
dominated by British banks, but the traditional Monetary agents
continued to grant some of the domestic credit and banking services are
limited.

You may find the expansion of banking services to the limited use of cash
and the small size of the economy Oda him amounts savings where banks
provided services for foreign trade almost exclusively. In
the mid-thirties, the Iraqi government decided to establish banks for
the purpose of providing credit to other sectors of the economy, in 1936
the government established agricultural and industrial bank. In
1940 the bank was divided into the Agricultural Bank and the Industrial
Bank and increased capital provided by the government for each of them
significantly.

Government established the Rafidain Bank in 1941 to be the main commercial bank
with the Central Bank, but the National Bank of Iraq is a bank became
the government in 1947.

Then founded the Land Bank in 1948 and was its main purpose finance the
purchase by individuals role, and mortgage bank was founded in 1951 and
Cooperative Bank in 1956.

In addition to these government banks have opened branches of foreign
banks and private Iraqi banks as a result of the expansion of the
economy.

1950 - 1990

In 1956 became the National Bank of Iraq is the central bank of Iraq. His
responsibilities included the issuance of currency management and
control on foreign exchange transactions, supervision and control over
the banking system. Keep the bank accounts of the government and the administration work on government loans. Over
the years, legislation has expanded the powers of the central bank in
1959, turning the peg of the British pound to the U.S. dollar and the
rate dinar = 2.8 dollars.

On July 14, 1964 nationalized all banks and insurance companies, banking and strengthened during the second decade. And
the impact of the devaluation of the dollar in 1971 and 1973, the value
of the Iraqi dinar rose to the equivalent of $ 3.3778 per dinar.

By 1987 the banking system consisted of the Central Bank of Iraq, Rafidain
Bank and the Agricultural Bank and the Industrial Bank and Real Estate
Bank.

Valley reduction of 5% of the value of the dinar to a decline in value to $
3.2169, the official price, which lasted until the Gulf War, although he
in late 1989, the black market price of 1.86 dinars per dollar.

1990 - 2003

After the Gulf War in 1991 and given to the imposition of economic blockade
is no longer the Swiss printing technology is used as before, the
featured by new Version of Banknotes of poor quality. And became known الاصدارية the previous edition of the Swiss and continued trading in the Kurdistan region of Iraq. In
view of the excessive government printing of the new securities, the
value of the dinar dropped so fast that hit in late 1995 3000 dinars per
dollar.

2003 - today

Following removing Saddam Hussein when the invasion of Iraq in 2003, began the
Governing Council and the Office of Reconstruction and Humanitarian
Assistance printing more currency Saddam Hussein paper as a stopgap
measure to keep the money supply until the introduction of the new
currency.

Banking Act was issued on September 19, 2003, making the legal framework for
Iraq in the field of banking in line with international standards and
law seeks to boost confidence in the banking system and the
establishment of an open and banking system safe, sound and competitive.

Issued Coalition Provisional Authority during the period between October 15,
2003 and January 15, 2004 currency new Iraqi Stamps where the printed
paper currency using the techniques of anti-counterfeiting in order to
create a single currency standard used in all parts of Iraq and to make
money more suitable for use in everyday life to the public Banknotes
replaced the old in the new paper currencies and the price of one dinar
Old JD equivalent of one new except for the Swiss dinars, which were
replaced at Old Swiss Dinar equivalent of 150 new dinars.

Iraqi Central Bank was established as a bank independent Iraqi under the law of the Central Bank of Iraq issued on March 6, 2004

The bank shall be responsible for:

Maintain price stability
Implementation of monetary policy (including exchange rate policies)
Management of foreign reserves
Issuance of currency management
Regulate the banking sector to promote a competitive financial system and stable

The main center is located in Baghdad Bank has four branches in Basra, Mosul, Sulaimaniya and Arbil

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