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Iraqi dinar |
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Given instability in the region and the absence of credible institutions, the Iraqi dinar requires an anchor of substantial credibility. The Iraqi dinar, which I remember from past visits as the equivalent of about $3, is now trading at between 2,000 and 2,500 to the dollar. The collapse in the value of the Iraqi dinar, the resulting hyperinfiation, and the further collapse in what remained of personal income and purchasing power, not to mention the internal political crisis associated with the defection of the president's relatives to Jordan, forced the government in January 1996 to reverse its position and agree to enter into negotiations with the UNSC over the implementation of Resolution 986. |
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