Iraqi Dinars Have Had an Interesting History

Iraqi dinar conversion

The dinar is the current currency of the country of Iraq. The dinar was first introduced in 1932 as a replacement for the Indian Rupee. For many years, the dinar was on par with the british pound, possibly because of the affects of British occupation following world war one. The iraqi dinars rose in value, at one time being equivalent to three US dollars. The dollars produced from the late 1970s until the Gulf War are known as swiss dinars because of their country of origin. Production stopped in 1991 owing to UN Sanctions against Iraq.

The money continued to circulate, and the swiss dinar has remained a higher value than its cheaper counterpart. The next Iraqi dinars had often been cheaply produced, using paper instead of cotton or other more stable materials, and at one point being rumored to have been printed using a newspaper print, hardly ensuring value security. Sanctions and overprinting led to a quick devaluation, and the dinar was valued in 1995 as being three thousand to one US dollar. At this point, coins have not been produced for many years since they hold basically no value as a unit. New notes were produced in 2003 using modern anti forgery techniques.

Since Iraq has few exports, there is little demand for Iraqi dinars. On the other hand, a multi million dollar industry in dinar speculation has occurred. Many people believe there will be an Iraqi dinar revalue, which will allow people to sell Iraqi dinars they have purchased for much more than they were worth. While a future revalue is possible, it is unlikely to occur anytime in the very near future. Revaluation rumors have, after all, existed for the past several years, while in the meantime, the dinar has experienced depreciation again in 2013, an issue the Central Bank of Iraq is trying to resolve.