Iraqi dinar was introduced in 1931, the Iraqi dinar has replaced by British
pounds into being pegged to the US dollar. The Iraqi dinar was equaled to
US$4.86 between 1932 and 1949 and equaled to US$2.80 betwesen 1949 and 1971,
after being devalued in 1949.
As a gesture of independence in 1959, Iraq uncoupled the Iraqi Dinar officially
from the Pound. But Iraqi dinar remained at equality with the pound till the
currency unit of Britain was devalued in 1967 for second time. Until December
1971, 1 Iraqi Dinar equated to the value of US$ 2.80.
Soon after the inflation of the United States dollar in 1973, the Iraqi Dinar
valued to US$3.39. The value of Dinar remained same till the war of Iran - Iraq.
Iraq in 1982 devalued the Dinar by 5%, equating it to US $ 3.22. In the earlier
of 1988, the standard exchange rates Iraqi Dinar – Dollar continued to equate
the Iraqi dinar (ID )1 to US$3.22. But, with levels of the nation´s cost of
living rate varying from 25 % to 50 % a year in 1985 and 1986, the real exchange
rate Dinar value, was much lower-only relating to half the 1986 official rate.
After the Gulf War in 1991, because of UN sanctions, the formerly used Swiss
printing was no more offered. A fresh, lower quality notes issue was created.
Because of the issues such as sanctions against Iraq by the United States and
the extreme government publishing of the new notes matters, the dinar devalued
rapidly, and in late 1995, 3,000 dinars equated US$1=.
In October 2003, the official Dinar value was 1 ID = US$ 0.00027. In 2005
august, the official value of dinar - dollar exchange rates became 1 ID to US$
0.00068. On January 1st, the rates fluctuated to the value of 1 ID = US$
0.00068. The values further changed and become 1ID = US$ 0.00067 on January 1st
Under the rule of Saddam Hussein, Iraq experienced big political and economical
changes. The new government however encourages foreign investments and aims to
build its new monetary system. Thus, the value of exchange rate Dinar is
expected to get increased rapidly.
Prepared with many safety features making the currency incredibly hard to
counterfeit, each new note was created in the U.S. Empire by De La Rue, the
biggest professional protection and anti-forgery papermaker on the globe.
The new currency was released in volumes of 50, 250, 500, 1,000, 5,000, 10,000
and 25,000 dinars and is portrayed with pictures of Iraq's lifestyle and
pre-Saddam record. Many economists say that the Iraqi Dinar has the potential to
increase its value in the future.