Dollars for Dinars

Research Summary

q       Inflow of tons of U.S. currency to Iraq has remade its economy. However, this has become a roundly criticized issue.

q       Stemming from the decision of the U.S. to ship U.S. currencies to Iraq, the study examines the facts behind this process.

q       Even as the decision of the U.S. government has received a stringent criticism among the media and international circles, the author argues that this is in fact one of the most successful and carefully planned operations of the war.

q       The author states that the principal aims of this process is to prevent a financial collapse in Iraq, stabilize the financial system, and pave the way for a new Iraqi currency.

q       The article notes that some the principal sources of money shipped to Iraq were Saddam’s frozen accounts and personal holdings besides the cash retrieved from the hideouts of Saddam.

q       Explaining the decisive stages in which the operation was carried out, the article analyses each of these stages in detail.

q       The article brings to surface how the inflow of US dollars helped Iraq accumulate its dinar and later deposit the same with the New York Federal Reserve Bank, where they could earn interest for the same.

q       By and large, the article observes that the new Iraqi currency proved to be very popular, giving a sound underpinning to the financial system besides remaining strong.

q       Effectively illustrating the sound positive outcome of the operation, the article reinstates that this decision is one of the successful and most carefully planned operations deserving praise instead of criticism.

q       With several complex dimensions to the counterinsurgency operations by the US government, the issue has become a much-debated one throughout the globe. In this regard, the article is significant in throwing proper light on one of the most important operations connected to the US efforts in Iraq.

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