Coalition Provisional Authority Issues Order 43 Creating the New Iraqi Dinar Banknotes

Iraq Reconstruction Project Team

On October 14, 2003, the CPA issued Order Number 43 ("Order 43") which creates the new Iraqi Dinar Banknote and provides for the exchange mechanisms of the old banknotes with the new ones. The issuance of Order 43 is a result of the CPA’s realization that the rebuilding of Iraq’s economy demands the strengthening of the monetary and financial system. By issuing such new currency, the CPA intends to create monetary conditions within Iraq that would warrant long-term growth.

Pursuant to Section 1 of Order 43, the old currency began conversion into the new currency on January 15, 2004. Section 3 of Order 43 designates the Central Bank of Iraq as the sole authority in the Republic of Iraq vested with the power of issuing legal tender currency. Section 5 of Order 43 determines the official conversion rate of the old dinar with the new one, and the Swiss dinar¹ with the new dinar.