Iraqi dinar

Iraqi dinar

Overview
The dinar (Arabic
Arabic language
Arabic is a name applied to the descendants of the Classical Arabic language of the 6th century AD, used most prominently in the Quran, the Islamic Holy Book...

: دينار, Kurdish
Kurdish language
Kurdish is a dialect continuum spoken by the Kurds in western Asia. It is part of the Iranian branch of the Indo-Iranian group of Indo-European languages....

: دینار) (sign
Currency sign
A currency sign is a graphic symbol used as a shorthand for a currency's name, especially in reference to amounts of money. They typically employ the first letter or character of the currency, sometimes with minor changes such as ligatures or overlaid vertical or horizontal bars...

: د.ع; code
ISO 4217
ISO 4217 is a standard published by the International Standards Organization, which delineates currency designators, country codes , and references to minor units in three tables:* Table A.1 – Current currency & funds code list...

: IQD) is the currency
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...

 of Iraq
Iraq
Iraq ; officially the Republic of Iraq is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert....

. It is issued by the Central Bank of Iraq
Central Bank of Iraq
-History:The Central Bank of Iraq was established as Iraq's central bank by Central Bank of Iraq Law 2004 with authorised capital of 100 billion dinars. The current Governor of the Central Bank of Iraq is Sinan Al Shabibi.-Architecture:...

 and is subdivided into 1,000 fils (فلس), although inflation has rendered the fils obsolete.

The dinar was introduced into circulation in 1932, by replacing the Indian rupee
Indian rupee
The Indian rupee is the official currency of the Republic of India. The issuance of the currency is controlled by the Reserve Bank of India....

, which had been the official currency since the British occupation of the country in World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...

, at a rate of 1 dinar = 13⅓ rupees.
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Encyclopedia
The dinar (Arabic
Arabic language
Arabic is a name applied to the descendants of the Classical Arabic language of the 6th century AD, used most prominently in the Quran, the Islamic Holy Book...

: دينار, Kurdish
Kurdish language
Kurdish is a dialect continuum spoken by the Kurds in western Asia. It is part of the Iranian branch of the Indo-Iranian group of Indo-European languages....

: دینار) (sign
Currency sign
A currency sign is a graphic symbol used as a shorthand for a currency's name, especially in reference to amounts of money. They typically employ the first letter or character of the currency, sometimes with minor changes such as ligatures or overlaid vertical or horizontal bars...

: د.ع; code
ISO 4217
ISO 4217 is a standard published by the International Standards Organization, which delineates currency designators, country codes , and references to minor units in three tables:* Table A.1 – Current currency & funds code list...

: IQD) is the currency
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...

 of Iraq
Iraq
Iraq ; officially the Republic of Iraq is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert....

. It is issued by the Central Bank of Iraq
Central Bank of Iraq
-History:The Central Bank of Iraq was established as Iraq's central bank by Central Bank of Iraq Law 2004 with authorised capital of 100 billion dinars. The current Governor of the Central Bank of Iraq is Sinan Al Shabibi.-Architecture:...

 and is subdivided into 1,000 fils (فلس), although inflation has rendered the fils obsolete.

History


The dinar was introduced into circulation in 1932, by replacing the Indian rupee
Indian rupee
The Indian rupee is the official currency of the Republic of India. The issuance of the currency is controlled by the Reserve Bank of India....

, which had been the official currency since the British occupation of the country in World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...

, at a rate of 1 dinar = 13⅓ rupees. The dinar was pegged at par with the British pound
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...

 until 1959 when, without changing its value, the peg was switched to the United States dollar
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....

 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
Gulf War
The Persian Gulf War , commonly referred to as simply the Gulf War, was a war waged by a U.N.-authorized coalition force from 34 nations led by the United States, against Iraq in response to Iraq's invasion and annexation of Kuwait.The war is also known under other names, such as the First Gulf...

, although in late 1989, the black market rate was reported at five to six times higher (3 dinars for US$1) than the official rate.

After the Gulf War in 1991, due to UN sanctions, the previously used Swiss printing was no longer available. A new, inferior quality notes issue was produced. The previous issue became known as the Swiss dinar
Swiss dinar
Swiss dinar is a term used to describe the Iraqi currency in circulation prior to the 1990 Gulf War with the Coalition Forces. The reason for the adjective "Swiss" is unknown, but there are two possible explanations. The first is that the printing plates for the currency came from Switzerland,...

 and continued to circulate in the Kurdish region of Iraq. Due to sanctions placed on Iraq by the United States and the international community and 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
Deposition (politics)
Deposition by political means concerns the removal of a politician or monarch. It may be done by coup, impeachment, invasion or forced abdication...

 of Saddam Hussein in the 2003 invasion of Iraq
2003 invasion of Iraq
The 2003 invasion of Iraq , was the start of the conflict known as the Iraq War, or Operation Iraqi Freedom, in which a combined force of troops from the United States, the United Kingdom, Australia and Poland invaded Iraq and toppled the regime of Saddam Hussein in 21 days of major combat operations...

, the Iraqi Governing Council
Iraqi Governing Council
The Iraqi Governing Council was the provisional government of Iraq from July 13, 2003 to June 1, 2004. It was established by and served under the United States-led Coalition Provisional Authority...

 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
Coalition Provisional Authority
The Coalition Provisional Authority was established as a transitional government following the invasion of Iraq by the United States and its allies, members of the Multi-National Force – Iraq which was formed to oust the government of Saddam Hussein in 2003...

 issued new Iraqi dinar coins and notes, with the notes printed by De La Rue
De La Rue
De La Rue plc is a British security printing, papermaking and cash handling systems company headquartered in Basingstoke, Hampshire. It also has a factory on the Team Valley Trading Estate, Gateshead, and other facilities at Loughton, Essex and Bathford, Somerset...

 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." 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.

These new banknotes led to a new industry of selling the new Iraqi dinar to oversea investors who hoped to profit from Iraq's new currency when the economy improved. The provisional government of Iraq has made this legal, but the banknotes are exchanged at different rates by companies wanting to make profit. Due to the success of this program, though, Iraqi dinar has been widely counterfeited. However, there are six different security features on the 25,000 Iraqi dinar note that one can check for authenticity.

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
Exchange rate
In finance, an exchange rate between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency...

, as specified by the International Monetary Fund, of 1170 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
Exchange rate
In finance, an exchange rate between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency...

 available on the streets of Iraq is around 1200 dinars per US dollar.

For a wider history surrounding currency in the region, see British currency in the Middle East
British currency in the Middle East
British involvement in the Middle East began with the Aden Settlement in 1839. The British East India Company established an anti-piracy station in Aden to protect British shipping that was sailing to and from India. The Trucial States were similarly brought into the British Empire as a base for...

.

Speculation


On May 3, 2007, the IMF
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...

 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
Dollarization
Dollarization occurs when the inhabitants of a country use foreign currency in parallel to or instead of the domestic currency. The term is not only applied to usage of the United States dollar, but generally to the use of any foreign currency as the national currency.The biggest economies to have...

 of the Iraq economy. Although there are claims of widespread 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.

Coins


Coins were introduced in 1931 and 1932 in denominations of 1, 2, 4, 10, 20, 50 and 200 fils, seats 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-, 50- and 100-dinar coins were introduced. However, these coins proved to be unpopular and were withdrawn from circulation.
Value Diameter Weight Composition Obverse Reverse
25 dinars 17.4 mm 2.5 g Copper
Copper
Copper is a chemical element with the symbol Cu and atomic number 29. It is a ductile metal with very high thermal and electrical conductivity. Pure copper is soft and malleable; an exposed surface has a reddish-orange tarnish...

 plated steel
Steel
Steel is an alloy that consists mostly of iron and has a carbon content between 0.2% and 2.1% by weight, depending on the grade. Carbon is the most common alloying material for iron, but various other alloying elements are used, such as manganese, chromium, vanadium, and tungsten...

Inscriptions: "Central Bank of Iraq" and "25 dinars" Outline map of Iraq
50 dinars 22 mm 4.34 g Brass
Brass
Brass is an alloy of copper and zinc; the proportions of zinc and copper can be varied to create a range of brasses with varying properties.In comparison, bronze is principally an alloy of copper and tin...

 plated steel
Steel
Steel is an alloy that consists mostly of iron and has a carbon content between 0.2% and 2.1% by weight, depending on the grade. Carbon is the most common alloying material for iron, but various other alloying elements are used, such as manganese, chromium, vanadium, and tungsten...

Inscriptions: "Central Bank of Iraq" and "50 dinars" Outline map of Iraq
100 dinars 22 mm 4.3 g Stainless steel
Stainless steel
In metallurgy, stainless steel, also known as inox steel or inox from French "inoxydable", is defined as a steel alloy with a minimum of 10.5 or 11% chromium content by mass....

Inscriptions: "Central Bank of Iraq" and "100 dinars" Outline map of Iraq

Banknotes


In 1931, banknotes were issued by the government in denominations of ¼, ½, 1, 5, 10 and 100 dinar. The notes were printed in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

. From 1931 to 1947, the banknotes were issued by the Iraqi currency board for the government of Iraq and banknotes were convertible into pound sterling. From 1947, the banknotes were issued by the National Bank of Iraq, then after 1954 by the Central Bank of Iraq
Central Bank of Iraq
-History:The Central Bank of Iraq was established as Iraq's central bank by Central Bank of Iraq Law 2004 with authorised capital of 100 billion dinars. The current Governor of the Central Bank of Iraq is Sinan Al Shabibi.-Architecture:...

.

100 dinars notes ceased production in the 1940s but otherwise, the same denominations were issued until 1978, when 25 dinars notes were introduced. In 1991, 50 and 100 dinars were introduced, followed by 250 dinars notes in 1995 and 10,000 dinars notes in 2002.

Banknotes that were issued between 1990 and October 2003, along with a 25-dinars note issued in 1986, bear an idealized engraving of former Iraqi President Saddam Hussein
Saddam Hussein
Saddam Hussein Abd al-Majid al-Tikriti was the fifth President of Iraq, serving in this capacity from 16 July 1979 until 9 April 2003...

. Following the 1991 Gulf War, Iraq's currency was printed both locally and in China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...

, using poor grade wood pulp
Wood pulp
Pulp is a lignocellulosic fibrous material prepared by chemically or mechanically separating cellulose fibres from wood, fibre crops or waste paper. Wood pulp is the most common raw material in papermaking.-History:...

 paper (rather than cotton
Cotton
Cotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule, around the seeds of cotton plants of the genus Gossypium. The fiber is almost pure cellulose. The botanical purpose of cotton fiber is to aid in seed dispersal....

 or linen
Linen
Linen is a textile made from the fibers of the flax plant, Linum usitatissimum. Linen is labor-intensive to manufacture, but when it is made into garments, it is valued for its exceptional coolness and freshness in hot weather....

) and inferior quality lithography
Lithography
Lithography is a method for printing using a stone or a metal plate with a completely smooth surface...

 (some notes were reputedly printed on presses designed for printing newspapers).

Counterfeit
Counterfeit
To counterfeit means to illegally imitate something. Counterfeit products are often produced with the intent to take advantage of the superior value of the imitated product...

ed banknotes often appeared to be of better quality than real notes. Despite the collapse in the value of the Iraqi dinar, the highest denomination printed until 2002 was 250 dinars. In 2002, the Central Bank of Iraq
Central Bank of Iraq
-History:The Central Bank of Iraq was established as Iraq's central bank by Central Bank of Iraq Law 2004 with authorised capital of 100 billion dinars. The current Governor of the Central Bank of Iraq is Sinan Al Shabibi.-Architecture:...

 issued a 10,000-dinars banknote to be used for "larger, and inter-bank transactions". This note was rarely accepted in practice due to fears of looting and counterfeiting. This forced people to carry around stacks of 250-dinars notes for everyday use. The other, smaller bills were so worthless that they largely fell into disuse. This situation meant that Iraq, for the most part, had only one denomination of banknote in wide circulation.
Currency printed before the Gulf War was often called the Swiss dinar. It got its name from the Swiss printing technology that produced banknotes of a considerably higher quality than those later produced under the economic sanctions that were imposed after the first Gulf War. After a change-over period, this currency was disendorsed by the Iraqi government. However, this old currency still circulated in the Kurdish regions of Iraq until it was replaced with the new dinar after the second Gulf War. During this time the Swiss dinar retained its value, whilst the new currency consistently lost value at sometimes 30 percent per annum.

In 2003, new banknotes were issued consisting of six denominations: 50, 250, 1,000, 5,000, 10,000, and 25,000 dinar. The notes were similar in design to notes issued by the Central Bank of Iraq
Central Bank of Iraq
-History:The Central Bank of Iraq was established as Iraq's central bank by Central Bank of Iraq Law 2004 with authorised capital of 100 billion dinars. The current Governor of the Central Bank of Iraq is Sinan Al Shabibi.-Architecture:...

 in the 1970s and 1980s. A 500 dinars note was issued a year later, in October 2004. In the Kurdish regions of Iraq, the 50 dinar note is not in circulation.

1990-2002 Series

1990-2002 Series
Image Value Main Color Description
Obverse Reverse Obverse Reverse
1/4 Dinar (1993) Green Palm trees Building
1/2 Dinar (1993) Violet Astrolabe
Astrolabe
An astrolabe is an elaborate inclinometer, historically used by astronomers, navigators, and astrologers. Its many uses include locating and predicting the positions of the Sun, Moon, planets, and stars, determining local time given local latitude and longitude, surveying, triangulation, and to...

Great Mosque of Samarra
Great Mosque of Samarra
The Great Mosque of Samarra is a 9th century mosque located in Samarra, Iraq. The mosque was commissioned in 848 and completed in 851 by the Abbasid caliph Al-Mutawakkil who reigned from 847 until 861....

1 Dinar (1992) Pink & Green A gold dinar coin Mustansiriya Madrasah
5 Dinar (1992) Red Saddam Hussein
Saddam Hussein
Saddam Hussein Abd al-Majid al-Tikriti was the fifth President of Iraq, serving in this capacity from 16 July 1979 until 9 April 2003...

The Monument to the Unknown Soldier
The Monument to the Unknown Soldier
The Monument to the Unknown Soldier is said to be inspired by the glorification of a martyr from the Iran–Iraq War. The Monument represents a traditional shield dropping from the dying grasp of an Iraqi warrior. The monument also houses an underground museum.The artificial hill is shaped like a...

10 Dinar (1992) blueish-green Saddam Hussein and Ishtar gate Lamassu
25 Dinar (1990) Green Horses Abbasid Palace
25 Dinar (1986) Brownish-Green Saddam Hussein & Horses Al-Shaheed Monument
Al-Shaheed Monument
The al-Shaheed Monument , also known as the Martyr's Memorial, is a monument in the Iraqi capital Baghdad dedicated to the Iraqi soldiers who died in the Iran-Iraq war. The Monument was opened in 1983, and was designed by Ismail Fattah al-Turki...

25 Dinar (2001) Green Saddam Hussein Ishtar gate
Ishtar Gate
The Ishtar Gate was the eighth gate to the inner city of Babylon. It was constructed in about 575 BC by order of King Nebuchadnezzar II on the north side of the city....

50 Dinar (1991) Pink and Green Saddam Hussein Great Mosque of Samarra
Great Mosque of Samarra
The Great Mosque of Samarra is a 9th century mosque located in Samarra, Iraq. The mosque was commissioned in 848 and completed in 851 by the Abbasid caliph Al-Mutawakkil who reigned from 847 until 861....

50 Dinar (1994) Brown and Blue Saddam Hussein and the Al-Shaheed Monument Saddam Bridge
100 Dinar (1991) Green & Purple Saddam Hussein Hands of Victory
Hands of Victory
The Arc of Triumph; , also called the Swords of Qādisīyah، and Hands of Victory in some Western sources, are a pair of triumphal arches in central Baghdad, Iraq. Each arch consists of a pair of hands holding crossed swords...

100 Dinar (1994) Blue Saddam Hussein Baghdad Clock
Baghdad Clock
The Baghdad Clock is a public building located in the Green Zone, in Baghdad, Iraq. Prior to 2003 the building was employed as a museum and featured a large clock tower. However, the building was heavily damaged during the 2003 invasion of Iraq. It was reconstructed later and is now the seat of the...

100 Dinar (2002) Blue Saddam Hussein Old Houses
250 Dinar (1995) Violet Saddam Hussein Liberty Monument friese
250 Dinar (2002) Violet Saddam Hussein Dome of the Rock
Dome of the Rock
The Dome of the Rock is a shrine located on the Temple Mount in the Old City of Jerusalem. The structure has been refurbished many times since its initial completion in 691 CE at the order of Umayyad Caliph Abd al-Malik...

10,000 Dinar (2002) Pink / Violet Saddam Hussein, The Monument to the Unknown Soldier Mustansiriya Madrasah, Arabic astrolabe

Current banknotes

2003 Series
Image Value Main Color Description
Obverse Reverse Obverse Reverse
50 dinars Purple Grain silos at Basra Date palms
250 dinars Blue An astrolabe Spiral minaret of the Great Mosque of Samarra
Great Mosque of Samarra
The Great Mosque of Samarra is a 9th century mosque located in Samarra, Iraq. The mosque was commissioned in 848 and completed in 851 by the Abbasid caliph Al-Mutawakkil who reigned from 847 until 861....

500 dinars Bluish-Green Dûkan Dam on the Al Zab river Assyrian carving of a winged bull
1,000 dinars Brown A gold dinar coin Mustansiriya School , Baghdad
5,000 dinars Dark blue Gelî Ali Beg and its waterfall Desert fortress at Al-Ukhether
10,000 dinars Green Abu Ali Hasan Ibn al-Haitham Al-manara al-hadba fi al-Mawsil (the hunchbacked tower of the Great Nurid mosque in Mosul)
25,000 dinars Red A Kurdish farmer holding a sheaf of wheat Carving of the Code of King Hammurabi
Code of Hammurabi
The Code of Hammurabi is a well-preserved Babylonian law code, dating to ca. 1780 BC . It is one of the oldest deciphered writings of significant length in the world. The sixth Babylonian king, Hammurabi, enacted the code, and partial copies exist on a human-sized stone stele and various clay...


External links