Weekly Update #9

USAID helps Iraqi Central Bank get back to business

Accomplishments: Economic Governance

Objectives include: currency conversion and monetary data, state-owned enterprises, small businesses credits, commercial legislation, a national employment program, a bank-to-bank payment system, a financial management information system, tax policy and administration, budget planning, insurance, and electricity reform.

Samawah, Iraq - An Iraqi merchant sells fresh produce on the street of Samawah, Iraq. A new market for Samawah, when completed by USAID partner RTI, will provide vendors currently selling in the streets with an organized walled market. (Photo: Thomas Hartwell)

The Central Bank program to exchange new dinars for old began on October 15, 2003 and will be completed by January 2004. This will unify and strengthen Iraq's currency, a critical component for sustained economic growth.

Monetary authorities now influence the exchange by conducting a daily auction in which banks exchange Iraqi dinars for U.S. dollars.

Currently, 2.5 trillion new Iraqi dinars--57 percent of the goal of 4.36 trillion--are in circulation. Four trillion new dinars--92 percent of the total--have been received in country.

Assisted the Central Bank to procure and manage a bank-to-bank payment system that allows banks to conduct transactions and other business. Eighty bank branches were part of the system as of late October. Basic training has been provided to bank staff.

Assisting CPA in managing a micro-lending program that is expected to continue to expand through late 2003 and beyond.

Providing a consultant to CPA to assist them in their efforts to expand employment. More than 20,000 jobs have been created through the CPA-funded National Employment Program, a pilot public works program that intends eventually to generate at least 100,000 new jobs.

Reforming and updating commercial laws that would encourage private sector participation, including foreign investment.

Agriculture production and marketing is being coordinated with public distribution systems used by the Ministry of Trade to distribute food rations to 27 million Iraqis.

Iraq Update: Developing a Market Economy - 09/03 (PDF)

USAID Awards Contract For Economic Recovery, Reform and Sustained Growth in Iraq - 07/25/03

Last Updated on: November 21, 2003