Complete Iraqi Dinar Guide: IQD Currency Explained

The Iraqi dinar (IQD) is one of the most talked-about and misunderstood currencies in the world. From collectors and investors curious about its future to travelers preparing to visit Iraq, people often ask: What’s the real story behind the Iraqi currency? If you’ve wondered about its history, trends, current exchange rate, or how to buy Iraqi dinar safely, this guide is your one-stop resource.

At US First Exchange, we specialize in secure and reliable currency exchange. As a licensed dealer, we want to provide not only the currency itself but also the knowledge you need to make informed decisions, whether you’re a traveler, collector, or someone watching the currency market closely.

A Brief History of the Iraqi Currency

The history of the Iraqi dinar reflects the region’s turbulent political and economic journey. Like many Middle Eastern currencies, its value and circulation have been shaped by wars, sanctions, and shifting oil prices.

Early Beginnings: From Rupees to Dinars

Before Iraq introduced the dinar, the Indian Rupee was the official currency of Iraq during the British occupation after World War I. The rupee circulated widely until 1932, when Iraq gained independence and launched the dinar to establish its own monetary identity.

Gulf War and Economic Strain

The Iraqi dinar held relatively strong value until the Gulf War in the early 1990s. Following the war, UN sanctions and internal political instability caused severe inflation and currency depreciation. Printing quality also dropped as the previously used Swiss printing method became unavailable. Locally produced notes replaced imported ones, leading to widespread concerns about counterfeit currency.

This situation further fueled the black market for currency exchange, where illegal dealings became rampant as people sought to secure more stable and legitimate funds. The black market thrived, offering exchange rates that were significantly different from the official rates, which were often unsustainable and unrealistic given the prevailing economic conditions.

Iraqi Currency Today

Today, the dinar remains Iraq’s legal tender, printed and under the supervision of the Central Bank of Iraq. The bank has implemented reforms to improve stability, update banknote security, and modernize the nation’s currency exchange system. However, Iraq’s economy, still heavily tied to oil prices and political stability, makes the dinar subject to exchange rate volatility, much like most currencies.

The Iraqi Dinar exchange rate is a focal point for travelers and investors alike. Many financial experts stress monitoring market sentiment, economic conditions, and currency revaluation rumors before making any currency investment.

Iraqi Dinar Overview

Here’s a quick snapshot of the key information on Iraqi currency:

• ISO Code: IQD
• Currency Symbol:ع.د (Arabic: “ʿIrāqī Dīnār”)
• Central Bank: Issued and managed by the Central Bank of Iraq
• Iraqi Dinar Exchange Rate: The dinar’s official peg sits at approximately 1,310 IQD per US dollar. (Rates fluctuate, so rely on our live currency converter for the latest information to see how far your money goes.)
• Subunits: 1 dinar = 1,000 fils (though fils coins are no longer in circulation).

Iraqi Currency Denominations: Banknotes & Coins in Circulation

The Iraqi currency has undergone several redesigns over time to enhance durability and counter forgery. The Iraqi dinar banknote design tells the story of the country’s culture, history, and resilience. Symbols of historical landmarks, Islamic calligraphy, nature, leadership, and cultural motifs are woven into the notes, creating a unique connection between the currency in your pocket and Iraq’s national identity.

IQD banknote denominations in circulation include:

• 250 IQD: Shows the astrolabe, an ancient astronomical device, representing Iraq’s intellectual and scientific history.
• 500 IQD: This green-coloured banknote shows the Dukan Dam in the Kurdistan Region of Iraq, with Lamassu on he back.
• 1,000 IQD: Features King Hammurabi, known for his code of laws, one of the earliest recorded legal systems.
• 5,000 IQD: Displays a desert fortress, symbolizing Iraq’s defense and resilience.
• 10,000IQD: Showcases Abu Ali Hasan Ibn al-Haitham, the “father of optics,” celebrating Iraq’s contribution to science.
• 25,000 IQD: Features the Great Ziggurat of Ur, one of the world’s oldest surviving monuments from Mesopotamia.
• 50,000 IQD: Depicts the marshlands of southern Iraq, highlighting natural beauty and the culture of the Marsh Arabs.

Collectors may find particular interest in:

• Swiss Dinar notes: Issued before the Gulf War, known for higher print quality.
• Pre-2003 notes: Featuring Saddam Hussein’s portrait, now out of circulation but popular with collectors of historical memorabilia.

Security Features

To maintain trust in its money and protect the economy, Iraq has invested heavily in counterfeit currency prevention. Modern Iraqi dinar banknotes are equipped with multiple layers of advanced security features designed to make them easy to authenticate but extremely difficult to replicate. These measures not only safeguard daily transactions but also reassure travelers, businesses, and collectors that the notes they use are genuine.

• Watermarks
• Color-shifting ink
• Embedded metallic threads
• Raised print
• Microprinting

Authenticating NID notes is often done by De La Rue machines that rely on verification using ultraviolet light and other techniques. These are the machines US First Exchange also uses to validate all currencies we sell, and help prevent the circulation of counterfeit banknotes. Still, it’s always wise to stay informed on how to know if money is fake to be able to spot suspicious bills yourself.

Iraqi Dinar Coins

When the Iraqi dinar was first introduced in 1932, it was subdivided into 1,000 smaller units called fils (sometimes spelled “fills”). The word “fils” comes from Arabic, where it historically referred to copper or small-value coins used across the Middle East. This subdivision worked much like “cents” in the US dollar system, allowing for smaller everyday transactions when the dinar had much greater value.

Dinar coins were minted in a range of denominations, including 1, 5, 10, 25, 50, 100, and up to 500 fils. They were commonly used throughout mid-20th-century Iraq, when the purchasing power of the dinar was strong enough to make small coins practical. Designs often featured Iraq’s national emblems, date palms, and symbolic motifs.

However, inflation after the Gulf War and during periods of political instability caused the value of the dinar to drop significantly. As a result, fils coins became essentially worthless in daily use and were gradually withdrawn from circulation. Today, you won’t encounter fils in Iraqi markets, but they remain a point of fascination for collectors, offering a glimpse into the dinar’s earlier history when even the smallest unit of currency had meaningful value.

Handling Money in Iraq: Practical Tips for Travelers

If you’re traveling to Iraq, here are some essentials to keep in mind.

Where to Exchange Money

You can exchange your USD or another currency for Iraqi dinars when you arrive at local money exchanges or banks, but be cautious as they may charge high fees and offer poor rates. The smartest move? Buy Iraqi dinar before you travel through a trusted online platform like US First Exchange.

We offer competitive rates, fast and secure delivery, and the option to sign up for exchange rate alerts, so you can track Iraqi dinar to USD exchange rates and lock in the best deal when the market moves.

Payment Methods

If you’re heading abroad, the first thing to know is that cash is still king in most of Iraq. Digital payments are growing but not yet widespread. In Iraq, they’re still the exception, not the rule, so think of your credit card as a backup option rather than something you can rely on.

You might be able to swipe a card at a large hotel, large business, or at the airport, but once you step outside those spaces, cash is what moves the day. Markets, taxis, restaurants, and even many businesses in big cities expect payment in cash, so be prepared and plan to carry enough dinars for your daily expenses.

Tipping Culture

Tipping is customary in Iraq. It isn’t a rigid percentage like in the U.S., but rather a gesture of appreciation. For example, if you take a taxi, it’s common to round up the fare a bit. In restaurants, leaving around 10% is a polite way to thank the staff. Small gratuities are also welcome for hotel porters, guides, or anyone who helps you with a service. Having small bills in your wallet makes this much easier.

Safety Tips

Because Iraq has dealt with counterfeit currency issues in the past, locals are careful when handling banknotes, and you should be too. Always take a quick look at your change. Hold notes up to the light to spot the watermark, or tilt them to see the color-shifting ink. Many shops and money exchanges will even check bills under ultraviolet light, and it’s a smart idea to do the same if you’re carrying larger denominations.

Another simple tip: keep a stash of smaller notes for everyday purchases. Pulling out a big bill to pay for a coffee not only slows things down but also increases the chance you’ll get unwanted attention or receive change in worn-out or suspicious notes. Save the big ones for hotel bills or larger expenses.

Where and How to Buy Iraqi Dinar Safely

If you’re wondering where to buy Iraqi money, companies like US First Exchange (a registered, licensed foreign currency exchange platform in the United States) let you securely order IQD online. You’ll get authentic notes, competitive rates, insured delivery, and peace of mind. Always use a licensed dealer, as purchasing from unverified sources can expose you to high fees, poor rates, or even scams and counterfeit banknotes.

With US First Exchange, you can:

• Order any global currency securely online, including the Iraqi currency, in the amount you need
• Choose your preferred payment method and get fast and insured delivery within the United States
• Embedded metallic threads
• Use our live currency converter for accurate, up-to-date rates and subscribe to rate alerts to catch favorable market shifts

In addition to the Iraqi dinar, we deal in a range of other exotic currencies, including the Vietnamese dong, South African rand, South Korean won, and more. You can order any foreign currency online through our platform and have it shipped directly to your doorstep within 24-48 hours. All shipments are fully insured, and we take pride in having the industry’s lowest spreads.

⚠️ Avoid buying Iraqi dinar from unverified sellers, online forums, or individuals. These sources are where most cases of counterfeit currency occur.

US First Exchange: Your Gateway to Iraqi Currency

The Iraqi dinar is more than just paper money; it’s a window into Iraq’s history, resilience, and economic potential. From its British occupation roots to its post-Gulf War struggles, the dinar has weathered challenges and continues to play a vital role in the country’s path toward stability and economic growth.

Whether you’re a traveler planning your trip, a collector fascinated by rare series, or an investor watching the currency market, understanding the dinar is essential. And when you’re ready to exchange, US First Exchange is here to provide safe and reliable online currency exchange service, helping you navigate not only the IQD itself but also the best practices, opportunities and risks around it.

FAQs

Anything else on your mind?

Is It Worth Buying Iraqi Dinar?

It depends on your goals. For travelers or collectors, buying Iraqi dinar makes sense. As a speculative currency investment, it carries risk due to Iraq’s reliance on oil prices, ongoing political instability, and exchange rate volatility. Always consult financial experts before investing.

How Much Is $100 US in Iraqi Dinar?

As of now, $100 USD equals roughly 131,000 IQD, depending on the daily exchange rate. Use a live currency converter for the latest and most accurate conversion rates.

Is the Iraqi Dinar Expected to Go Up in Value?

Predictions vary. Some see its low purchase price as a chance to profit from a possible currency revaluation in the future, if Iraq achieves stronger political stability and economic growth. However, there are no guarantees, and the dinar remains sensitive to market sentiment and economic conditions. Factors that influence the dinar’s exchange rate include:

• Oil prices, Iraq’s main source of revenue
• Political instability
• Economic growth and reforms
• Global foreign exchange trends

Do US Banks Accept Iraqi Dinar?

Most major banks in the United States do not accept or handle Iraqi dinar directly or exchange USD to IQD or vice versa. Instead, you can use a specialized, licensed foreign currency exchange dealer or online services like US First Exchange, where you can securely buy or sell Iraqi currency in any amount.

Is the Iraqi Dinar Going to Revalue and When?

There is currently no official timeline for the revaluation of the Iraqi dinar. While speculation circulates, the Central Bank of Iraq has not confirmed or announced any definitive currency revaluation yet. What happens next will depend on Iraq’s progress with internal reforms, its ability to strengthen the economy, and broader trends in the global foreign exchange dynamics.

The dinar was revalued in February 2023 from 1,460 to 1,300 IQD per USD as a corrective move to ease depreciation pressures. Any stronger revaluation in the future would likely require not only robust foreign currency reserves but also deeper structural and economic reforms to support long-term stability.