Iraqi Dinar (IQD)

Basic Concepts of the Iraqi Dinar

The Iraqi Dinar is the legal tender of Iraq, issued and managed by the Central Bank of Iraq. Its currency code is IQD and its symbol is usually written as "ع. د". The currency is mainly used for domestic economic and trade activities and is less liquid in the international foreign exchange market.

Countries and regions of use

The Iraqi Dinar is only used as official currency within Iraq. It covers the entire territory of Iraq, including the capital city of Baghdad, the Kurdistan Region and other governorates, and is the central payment instrument for day-to-day transactions, commercial activities and government finances.

Units and Denominations

The Iraqi Dinar uses a decimal system where 1 Dinar equals 1,000 Fir, but the Fir is no longer in circulation. Banknote denominations include 50, 250, 500, 1000, 5000, 10000, 25000 and 50000 dinars, and coins are available in denominations of 25, 50 and 100 dinars, although coins are less commonly used.

Historical Background

The Iraqi dinar was first introduced in 1932, replacing the Indian rupee as the official currency. During Saddam Hussein's regime, the currency was significantly devalued by war and economic sanctions, and after the Iraq War in 2003, the new version of the dinar gradually replaced the old one in order to stabilize the economy and reduce inflation, and its value is now closely linked to oil exports.