Iraqi dinar is an official currency of Iraq with code IQD, issued by Central Bank of Iraq. The currency is subdivided into 1000 fils. Before Iraqi dinar, the Indian rupee was an official currency of Iraq since British Occupation during the 1st World War. In 1932, dinar was introduced by replacing the Indian rupee. During its circulation, dinar was pegged with British pound and later switched to United State dollar. During the US currency devaluation from 1971 to 1973, Iraqi dinar rose to value of US$3.3778, which remained until the Gulf War.
United State and international community impose sanctions on Iraq after the end of Gulf War, due to these sanctions, Iraqi dinar devalue in black market. At the end of 1995, Iraqi dinar was valued at 3000 dinar = US$1.
In 2003, after Saddam Hussain was deposed, the Iraqi Governing Council, Invasion of Iraq and Office for Reconstruction and Humanitarian Assistance start printing more Saddam dinar notes and coins to maintain the supply of money in economy until new currency introduced. During October 2003 and January 2004, the Coalition Provisional Authority issued new Iraqi dinar coins and notes to general public printed by the British firm, De La Rue. The trillions of Iraqi dinar coins and banknotes were shipped to Iraq for distribution in general public in exchange for Saddam dinar.
Iraq has few exports other than oil which are sold in dinar, due to this there is little international demand of dinar, resulting in high exchange rate compared with other currencies. On March 2019, according to indicative of Central Bank, the exchange rate of dinar was 1355 dinar for 1 euro and 1190 dinar for one US dollar.
The frequently used banknotes of 1,000, 5,000, 10,000, 25,000, 50,000 dinars and rarely used 250, 500 dinars in Iraq economy.