CPA Instructionsfor 2003 Exchange

[screwball]

Iraq Currency Exchange

 

Starting on October 15^th 2003 a new national currency known as the �new Iraqi dinar� will begin to replace the existing currency, the �old dinar�, and the currency used in the North of Iraq, the �swiss dinar�.� The new Iraqi dinar will create a single unified currency that is used throughout all of Iraq and will also make money more convenient to use in people�s everyday lives.

The currency exchange will last from October 15^th 2003 to January 15^th 2004.� Currency can be exchanged at any time during this three month period.� Locations where money can be exchanged will include banks and other official locations, for example post offices, throughout Iraq.�� No fees will be charged for exchanging currency.

 

The conversion rates for new Iraqi dinars will be as follows:

 

• one �old dinar� will be exchanged for one new Iraqi dinar;
• one unit of the �swiss� dinar will be exchanged for 150 new Iraqi dinars.

 

Bank accounts and financial contracts in Swiss dinars will also be converted at the rate of 150 new Iraqi dinars for every one Swiss dinar.� Bank accounts and contracts in old Iraqi dinar will not change.

 

The new currency will have a larger number of denominations than the old currency, with 50, 250, 1000, 5000, 10000 and 25,000 dinar notes, making it more convenient to use.� The new notes will be of higher quality and durability than those currently in circulation and include many anti-fraud features that will provide important protection against counterfeiting.

 

How will the exchange occur?

(1)   People will come to banks with their currency

(2)   Currency will be counted and its equivalent value in new currency will be paid

(3)   Old currency will be promptly marked and will then be destroyed

(4)   Those with bank accounts will see their balances automatically converted.� Salaries will begin to be paid in the new dinar at the earliest available opportunity.

 

Currently everyone in Iraq carries a reminder of Saddam in their pockets � on the banknotes they�re using.� Shortly after October 15^th the first batch of Saddam notes will go to the incinerator.� At close of business January 15^th 2004 Saddam notes will no longer be legal tender.

 

Below are some answers to frequently asked questions:

 

What will the new currency look like?

 

The new Iraqi dinar will look similar to Iraq�s old national dinar (the �Swiss� dinar), with some minor modifications

 

What will be the rate that is used to convert old currency into new currency?

 

People who hold one old Iraqi dinar will receive one new Iraqi dinar.� People who have one �Swiss� dinar will receive 150 new Iraqi dinars.

 

Why were these rates selected?

 

These rates will help to equalize prices throughout all of Iraq � helping to ensure that the prices of goods will be roughly the same across the whole country.� Key Iraqis, including officials at the Iraqi Central Bank as well as leaders of the autonomous regions in northern Iraq, were consulted on this issue and fully supported this decision.

 

How will the new currency differ from the existing currency?

 

The new currency will have a total of six denominations, will be much better protected against counterfeiting, and will last much longer because it will be of higher quality.

 

Will people need to exchange their currency immediately?

 

No.� Currency can be exchanged at any time up until January 15^th.�

 

Will the old Iraqi dinar and the Swiss dinar continue to be valid until January 15^th?

 

Yes.� All existing currency will be completely valid until Janaury 15.

 

Will salaries be paid in new dinars?

 

Yes.� After the exchange has begun, salaries will begin to be paid in new Iraqi dinars.

 

How will people be able to identify counterfeit currency?

 

As the exchange approaches additional details will be provided about how to identify counterfeit notes.�

 

Staff at currency exchange sites will also be well trained on how to detect counterfeit Iraqi dinars

 

Counterfeit old Iraqi dinars will not be accepted at the exchange sites.� Those presenting counterfeit notes will not be arrested or charged with a crime, but their money will not be exchanged.

 

Currency exchange sites will visibly mark old dinars upon their exchange for new ones so that they cannot be stolen and re-exchanged later.� Once the old currency is marked it will no longer be valid currency.

 

 

 

Will the new currency be convertible into other currencies?

 

Yes.� The new currency will be convertible into other currencies at the market exchange rate that prevails at that time.

 

Can dollars also be exchanged for new Iraqi dinars?� What will be the conversion rate for dollars?

 

Dollars will not be converted directly into new dinars during the official exchange.� Following the exchange, dollars will be convertible directly into new dinars at the market exchange rate.� New dinars will also be convertible into dollars as well as other currencies at the market exchange rate.

 

Will it be possible to exchange currency outside of Iraq?

 

No.� The only official currency exchange locations will be located within Iraq.

[screwball]

Just now, screwball said:

Will it be possible to exchange currency outside of Iraq?

 

No.� The only official currency exchange locations will be located within Iraq.

 

1 minute ago, screwball said:

What will be the rate that is used to convert old currency into new currency?

 

People who hold one old Iraqi dinar will receive one new Iraqi dinar.� People who have one �Swiss� dinar will receive 150 new Iraqi dinars.

things from the past that stand out, I believe rates of exchange will happen again, but dont believe that they will restrict exchange to inside iraq....this is due to the fact they have said large notes will be used for interbank transactions and also the fractional reserve banking system and future oil sales....

[screwball]

This is important for today’s RV-versus-LOP analysis: the 2003 precedent shows that Iraq can apply different conversion ratios to different existing currencies while launching one coordinated nationwide exchange. It does not prove that current IQD notes would receive different treatment in a future reform.

[screwball]

It opened nationwide on 15 October 2003, through more than 230–240 participating banks across Iraq, including Mosul, Baghdad, the Kurdish north and southern Iraq. The exchange remained open until 15 January 2004. CPA exchange instructions, first-day account

Kurdistan was nevertheless central to the reform because Iraq then had two currencies:

• Kurdistan/northern Iraq: the older “Swiss dinar”
• Central and southern Iraq: the Saddam or “print dinar”

The conversion rules were:

Existing currency	2003 conversion
1 Saddam/print dinar	1 new Iraqi dinar
1 Swiss dinar used in Kurdistan	150 new Iraqi dinars

Bank accounts and contracts were converted using the same applicable ratios. Both old currencies remained valid throughout the three-month transition. CPA fact sheet

What may cause the confusion is that:

• The new currency’s design was based substantially on the older Swiss-dinar design already familiar in Kurdistan.
• Kurdistan required a distinct 150:1 conversion, whereas Saddam dinars exchanged 1:1.
• Banks received their new currency before the public opening, between approximately 4 and 14 October, as part of a nationwide security and distribution operation.
• The public exchange then began on the same official date throughout Iraq.

[screwball]

The director of the Iraqi currency exchange for the Coalition Provisional Authority called the first day of the currency exchange in Iraq "a great success" that begins the country's move toward "sustainable economic growth."

Speaking from Baghdad, retired Army Brig. Gen. Hugh Tant reported no major incidents at more than 230 banks throughout Iraq that began replacing old dinars with the new Iraqi dinar introduced today.

Dan Senor, senior adviser to U.S. civilian administrator L. Paul Bremer III and the Coalition Provisional Authority, told Pentagon reporters the new dinar's introduction represents "another sign that the reconstruction (of Iraq) is on track. It's another step toward major progress."

He called it "symbolic of a unified economy" because it represents the country's first national currency in more than 15 years.

The new dinar replaces two currencies in Iraq: the print dinar, used mainly in the central and southern parts of the country, and the Swiss dinar, used predominantly by the Kurds in the north.

Tant said the new dinar provides a "single, stable and secure currency" that is more convenient because it comes in more denominations and instills confidence because it incorporates anti-counterfeiting features.

But one new-dinar major feature, Tant said, is that it no longer bears Saddam Hussein's likeness. "The bad guy's face will be removed from the country's currency and replaced with scenes that remind the world of Iraq's important scientific, cultural and historic contributions," he said.

"It's a symbolic recognition that Saddam is gone, as are all the horrors that he reaped upon his country," Senor agreed.

Introducing a new currency just six months after the fall of the old regime involved a Herculean, international effort.

The new bills were printed in six countries: Sri Lanka, Kenya, Spain, United Kingdom, Malta and Germany. More than 2,200 tons of new currency equal to about $3 billion -- was flown into Baghdad, then transferred to three distribution hubs throughout the country. A battalion of Fijian soldiers moved the new currency to banks throughout the country and picked up the old currency.

To date, Tant said more than 100 convoys have delivered some 700 tons of currency around the country, with more than 10,000 bank staff and thousands of Iraqi police and bank guards providing security.

Introducing the new currency also involved a major training and support program throughout Iraq's banking system, Tant said. More than 900 Iraqi bankers received training, and about 250 exchange sites throughout the country required counting machines, generators, ultraviolet lights and information packets to support the effort.

Tant said the Central Bank of Iraq and the Coalition Provisional Authority have helped educate the Iraqi people about the exchange program through a massive information campaign involving the media as well as "thousands of posters, millions of handbills and a road show that has been to every region of the country."

Officials said they expect the first several weeks to be the busiest in the three-month exchange period that extends until Jan. 15, 2004. After then, all old dinars will hold no value.

Story by Donna Miles, National Guard Bureau

[Spartakus]

Screwball, in addition to your point, they've legally sold the dinar to people who are outside of Iraq. Even banks outside of Iraq were selling it; possibly are still doing so.

[screwball]

3 hours ago, Spartakus said:

Screwball, in addition to your point, they've legally sold the dinar to people who are outside of Iraq. Even banks outside of Iraq were selling it; possibly are still doing so.

yes correct under a exec order thats been constantly extended

[rvmydinar]

13 hours ago, screwball said:

 

• one �old dinar� will be exchanged for one new Iraqi dinar;
• one unit of the �swiss� dinar will be exchanged for 150 new Iraqi dinars.

I just want to make sure when old dinar 1=new iraq dinar 1, in this case,this is about exchange between iraqi own banknotes only ( this isn't about exchange rate at all ). And, this exchange only happens inside Iraqi country and is on behalf of Iraqi citizens only ( this exchange is not for dinar holders / non-Iraqi citizens outside Iraqi country ). So, for example, When delete 3 zeros process happens one day dan Iraqi citizens have to exchange one old dinar notes for one new lower denoms/ one new Iraq dinar. therefore exchange 1 ( old dinar notes 😞 1 ( new lower denoms ) is just about exchanging between iraqi own banknotes only. On the other hand, they didn't mention about exchange rate if dinar holder outside iraqi country wanted to exchange 3 zeros notes for US dollar at all.  And, they also didn't explain that dinar holders outside Iraqi country had to exchange old dinar for a new lower denoms/ new iraqi dinar first, and then exchange new lower denoms for US Dollars. I think there will be certain rules and regulations for dinar holders outside Iraqi country who want to exchange 3 zeros for US Dollars inside Iraqi country.

[BETTYBOOP]

50 minutes ago, rvmydinar said:

I just want to make sure when old dinar 1=new iraq dinar 1, in this case,this is about exchange between iraqi own banknotes only ( this isn't about exchange rate at all ). And, this exchange only happens inside Iraqi country and is on behalf of Iraqi citizens only ( this exchange is not for dinar holders / non-Iraqi citizens outside Iraqi country ). So, for example, When delete 3 zeros process happens one day dan Iraqi citizens have to exchange one old dinar notes for one new lower denoms/ one new Iraq dinar. therefore exchange 1 ( old dinar notes 😞 1 ( new lower denoms ) is just about exchanging between iraqi own banknotes only. On the other hand, they didn't mention about exchange rate if dinar holder outside iraqi country wanted to exchange 3 zeros notes for US dollar at all.  And, they also didn't explain that dinar holders outside Iraqi country had to exchange old dinar for a new lower denoms/ new iraqi dinar first, and then exchange new lower denoms for US Dollars. I think there will be certain rules and regulations for dinar holders outside Iraqi country who want to exchange 3 zeros for US Dollars inside Iraqi country.

 They don't mention holders out with iraq because this isn't about now. It is telling us how it worked in the past. People out with iraq didn't hold dinars at thar time so it was irrelevant. The dinars they swapped are the new Iraqi dinars that we now hold. We were not relevant at that time.

[rvmydinar]

On 8/27/2026 at 6:30 AM, screwball said:

 

Existing currency	2003 conversion
1 Saddam/print dinar	1 new Iraqi dinar
1 Swiss dinar used in Kurdistan	150 new Iraqi dinars

The point is There won't be " an exchange rate " if they just exchange among their own Iraqi currency. However, if they exchange Iraq dinar VS US dollar or other foreign currency, then the exchange rate will show up.

[screwball]

On 8/28/2026 at 12:26 AM, BETTYBOOP said:

They don't mention holders out with iraq because this isn't about now. It is telling us how it worked in the past.

exactly...information purposes only....we wait for instructions...from the cbi....these might come on the morning off the rate change who knows!