Pay-day in Iraq for De La Rue

By JONATHAN PRYNN FOR MAILONLINE
Updated:

 

BANKNOTES maker De La Rue said its first-half profits would be 'significantly' boosted by deliveries of the new Iraqi dinar, which is due to go into circulation next month.

The company, which won the contract to produce the new notes, said deliveries of the currency were 'progressing well' and were ahead of schedule.

As a result 'the group expects to report interim results significantly ahead of expectations'.

The City was delighted by the surprise announcement, pushing the shares almost 6% ahead to 305 1/2p, a 16 1/2p rise.

De La Rue's role was revealed by the US civil administrator in Iraq Paul Bremer in July. The company normally refuses to make any comment on banknotes contracts.

The new cash will replace the Saddam era notes, which still bear the head of the toppled dictator. They will be phased in over three months from 15 October on a one-for-one exchange rate basis.

They will also replace the so-called 'Swiss' dinar, which is used in some northern territories of Iraq.

There is a growing shortage of currency in the country, particularly of the higher denomination notes.

The coalition authority has promised that the new notes will be more durable and better protected against counterfeiting. No images have yet been published of the new dinars.

The contract makes De La Rue one of the biggest British beneficiaries to date of the billions of reconstruction dollars that are earmarked for the crippled Iraqi economy-The new currency will be available in six denominations up to 25,000 dinars.

Fraud associated with the current higher denominations means that Iraqis are forced to carry around huge bundles of 250 dinar notes.

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