Iraqi dinar

Infobox Currency
currency_name_in_local = دينار عراقي ar icon
image_1 = Dinar-25000.jpg
image_title_1 = 25,000 dinars banknotes
image_2 = Unknown origin coin3.jpg
image_title_2 = 1972 25 fils coin
iso_code = IQD
using_countries = Iraq
inflation_rate = 4.7%
inflation_source_date = " [https://www.cia.gov/library/publications/the-world-factbook/fields/2092.html The World Factbook] ", 2007 est.
subunit_ratio_1 = 1/1,000
subunit_name_1 = fils
symbol = ع.د
used_coins = 25, 100 dinar [ [http://www.cbiraq.org/cbs5_b.htm Central Bank of Iraq coins] ]
used_banknotes = 50, 250, 500, 1,000, 5,000, 10,000, 25,000 dinar
issuing_authority = Central Bank of Iraq
issuing_authority_website = www.cbi.iq

The dinar (pronounced: di-'när) (Arabic: دينار, Kurdish: دینار) (sign: ع.د; code: IQD) is the currency of Iraq. It is issued by the Central Bank of Iraq and is subdivided into 1,000 fils (فلس), although inflation has rendered the fils obsolete.

History

The dinar was introduced into circulation in 1931, replacing the Indian rupee, which had been the official currency since the British occupation of the country in World War I, at a rate of 1 dinar = 13⅓ rupees. The dinar was pegged at par with the British pound until 1959 when, without changing its value, the peg was switched to the United States dollar at the rate of 1 dinar = 2.8 dollars. By not following the devaluations of the U.S. currency in 1971 and 1973, the dinar rose to a value of US$3.3778, before a 5 percent devaluation reduced the value of the dinar to US$3.2169, a rate which remained until the Gulf War, although in late 1989, the black market rate was reported at five to six times higher (1.86 dinars for US$1) than the official rate. [Wheeler, Tony. West Asia on a Shoestring. 2nd. Hawthorn, Australia: Lonely Planet, 1990.]

After the Gulf War in 1991, and due to the economic blockade, the previously used Swiss printing technology was no longer available. A new, inferior quality notes issue was produced. The previous issue became known as the Swiss dinar and continued to circulate in the Kurdish region of Iraq. Due to excessive government printing of the new notes issue, the dinar devalued quickly, and in late 1995, US$1 was valued at 3,000 dinars.

Following the deposition of Saddam Hussein in the 2003 invasion of Iraq, the Iraqi Governing Council and the Office for Reconstruction and Humanitarian Assistance began printing more Saddam dinar notes as a stopgap measure to maintain the money supply until new currency could be introduced.

Between October 15, 2003 and January 15, 2004, the Coalition Provisional Authority issued new Iraqi dinar coins and notes, with the notes printed by De La Rue using modern anti-forgery techniques, to "create a single unified currency that is used throughout all of Iraq and will also make money more convenient to use in people’s everyday lives." [cite web | author= Coalition Provisional Authority | url= http://www.cpa-iraq.org/budget/IraqCurrencyExchange.html | title= Iraq Currency Exchange | accessdate=2007-05-28 ] Old banknotes were exchanged for new at a one-to-one rate, except for the Swiss dinars, which were exchanged at a rate of 150 new dinars for one Swiss dinar.

Although the value of the dinar appreciated following the introduction of the new banknotes from 4,000 dinars per U.S. dollar, at the time of their introduction, to a high of 980 dinars per dollar, it is now held at a "program" exchange rate, as specified by the International Monetary Fund,Fact|date=February 2007 of 1187 [http://www.cbiraq.org/cbs6.htm dinars per US dollar at the Central Bank of Iraq] . However, there is not yet a set international exchange rate and so international banks do not yet exchange Iraqi dinar. The exchange rate available on the streets of Iraq was around 1500 dinars per US dollar in April 2006.

Speculation

On May 3, 2007, the IMF released a statement in relation to the international compact with Iraq, which has turned the tide in regards to speculation on the Iraq dinar. The contents of the article discuss changes made in Iraq on the economic front of how the Iraq government had eliminated fuel subsidies. The article also stated that the Central Bank of Iraq had raised interest rates in an attempt to allow a gradual appreciation of the dinar in an attempt to fight dollarization of the Iraq economy. Although there are claims of wide-spread optimism of some language used later in the press release among some dinar speculators, there have been no publicly released statements or analysis by any news sources or governments. [cite web | author= Takatoshi Kato | date=2007-05-03 | url= http://www.imf.org/external/np/speeches/2007/050307.htm | title= International Compact with Iraq | accessdate=2007-05-28 ]

Coins

Coins were introduced in 1931 and 1932 in denominations of 1, 2, 4, 10, 20, 50 and 200 fils, with the 200 fils known as a "rial". The 20, 50 and 200 fils were minted in silver. In 1953, silver 100 fils coins were introduced.

Following the establishment of the Iraqi Republic, a new series of coins was introduced in denominations of 1, 5, 10, 25, 50 and 100 fils, with the 25, 50 and 100 fils in silver until 1969. In 1970, 250 fils pieces were introduced, followed by 500 fils and 1 dinar coins in 1982. Coin production ceased after 1990.

In 2004, new 25 and 100 dinars coins were introduced. However, these coins proved to be unpopular:

See also

* Economy of Iraq

References

External links

Standard numismatics external links
banknote_world_1_url = iraq
banknote_world_1_name = Iraq
dollarization_1_url = asia
dollarization_1_name = Asia
gfd_1_url = Iraq
gfd_1_name = Iraq
gfd_data_1_url =
gfd_data_1_name =
show_gfd_excel = Y

* [http://www.cpa-iraq.org/budget/IraqCurrencyExchange.html Coalition Provisional Authority and the Iraqi dinar]
* [http://www.cfr.org/publication.php?id=6203 Council on Foreign Relations: benefits of the new Iraqi dinar]
* [http://iraqidinarinvesting.com/ Live Iraq Dinar Trades]