64-684: The Iraqi dinar ( code : IQD ) is the currency of Iraq . The Iraqi dinar is issued by the Central Bank of Iraq (CBI). On 7 February 2023, the exchange rate with the US Dollar was US$ 1 = 1300 dinars. The Iraqi dinar entered circulation on 1 April 1932, replacing the Indian rupee , which had been the official currency since the British occupation of the country in World War ;I , at
128-526: A "hard space" ( non-breaking space ) and the amount: and for texts in Bulgarian , Croatian , Czech , Danish , Dutch , Estonian , Finnish , French , German , Greek , Hungarian , Italian , Lithuanian , Polish , Portuguese , Romanian , Slovak , Slovene , Spanish , and Swedish the order is reversed; the amount is followed by a non-breaking space and the ISO ;4217 code: As illustrated,
192-608: A diverse array of global markets, and the recycling process was less dependent on intermediary channels such as international banks and the IMF. Thanks to the historic oil price increases of 2003–2008 , OPEC revenues approximated an unprecedented US$ 1 trillion per year in 2008 and 2011–2014. Beyond the OPEC countries, substantial surpluses also accrued to Russia and Norway, and sovereign wealth funds worldwide amassed US$ 7 trillion by 2014–2015. Some oil exporters were unable to reap
256-483: A form of neocolonialism from which debt relief was the only escape. In the 2005–2014 petrodollar surge, financial decision-makers were able to benefit somewhat from the lessons and experiences of the previous cycle. Developing economies generally stayed better balanced than they did in the 1970s; the world economy was less oil-intensive; and global inflation and interest rates were much better contained. Oil exporters opted to make most of their investments directly into
320-449: A kind of economic imperialism enforced by violent military interventions against countries like Iraq, Iran, and Venezuela, and a key hidden driver of world politics. The term was coined by William R. Clark, who has written a book with the same title. The phrase oil currency war is sometimes used with the same meaning. According to critics, the use of dollars in international oil transactions increases overall U.S. dollar demand by only
384-618: A list of all currently pegged currencies. Despite having no presence or status in the standard, three letter acronyms that resemble ISO 4217 coding are sometimes used locally or commercially to represent de facto currencies or currency instruments. The following non-ISO codes were used in the past. Minor units of currency (also known as currency subdivisions or currency subunits) are often used for pricing and trading stocks and other assets, such as energy, but are not assigned codes by ISO 4217. Two conventions for representing minor units are in widespread use: A third convention
448-459: 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 this series an allegorical sun replaced the image of the king, shapes and sizes remained the same with the exception of the 1 fil which was decagon shaped. This image was then replaced by three palms in 1968. In 1970, 250 fils pieces were introduced, followed by 500 fils and IQD 1 coins in 1982. A number of
512-418: A new series of coins were issued in denominations of IQD 25, IQD 50 and IQD 100 and were struck in bronze, brass, and nickel-plated steel respectively. They are sparse in design and depict an abstract map of Iraq and the main rivers. On 16 March 1932, banknotes were issued by the government in denominations of 1 ⁄ 4 , 1 ⁄ 2 , 1, 5, 10 and 100 dinars. The notes were printed in
576-478: A number of reasons for this: In addition to codes for most active national currencies ISO 4217 provides codes for "supranational" currencies, procedural purposes, and several things which are "similar to" currencies: The use of an initial letter "X" for these purposes is facilitated by the ISO ;3166 rule that no official country code beginning with X will ever be assigned. The inclusion of EU (denoting
640-542: A prominent example of so-called " checkbook diplomacy " or " petro-Islam ". The Kuwait Fund was an early leader since 1961, and certain Arab states became some of the largest donors in the years since 1974, including through the IMF and the OPEC Fund for International Development . Oil exporters have also aided poorer countries indirectly through the personal remittances sent home by tens of millions of foreign workers in
704-600: A rate of 1 dinar = 11 rupees. The dinar was pegged at par with sterling until 1959 when, without changing its value, the peg was switched to the United States dollar at the rate of IQD 1 = US$ 2.80. By not following the US devaluations in 1971 and 1973, the official rate rose to US$ 3.3778, before a 5% devaluation reduced its rate to US$ 3.2169, a rate which remained until the Gulf War in 1990, although in late 1989
SECTION 10
#1732802589206768-639: A result, refused to accept the inflated Saddam dinar notes (which were issued in huge amounts). Since the supply of Saddam dinar notes increased while the supply of Swiss dinar notes remained stable (even decreased because of notes taken out of circulation), the Swiss dinar notes appreciated against the Saddam dinar note. By having its own stable supply of the Swiss Iraqi dinars, the politically isolated region effectively evaded inflation, which ran rampant throughout
832-417: A variety of currencies, some pegged to the U.S. dollar and some not. These flows are heavily influenced by government-level decisions regarding international investment and aid, with important consequences for both global finance and petroleum politics . The phenomenon is most pronounced during periods when the price of oil is historically high. The term petrodollar was coined in the early 1970s during
896-531: Is also known as a rial . Bronze substituted nickel in the 5 and 10 fils from 1938 to 1943 during the World War II period and reverted to nickel in 1953. Silver 100 fils coins were also introduced in 1953. These coins first depicted King Faisal I from 1931 to 1933, King Ghazi from 1938, and King Faisal II from 1943 until the end of the kingdom. Following the establishment of the Iraqi Republic,
960-513: Is also the ISO 3166-1 code for "US" (United States). The following is a list of active codes of official ISO 4217 currency names as of 1 January 2024 . In the standard the values are called "alphabetic code", "numeric code", "minor unit", and "entity". According to UN/CEFACT recommendation 9, paragraphs 8–9 ECE/TRADE/203, 1996: A number of currencies had official ISO 4217 currency codes and currency names until their replacement by another currency. The table below shows
1024-569: Is little evidence to substantiate the claims of significant appreciation of their investment due to revaluation of the currency. In February 2014, the Better Business Bureau included investing in the dinar as one of the ten most notable scams in 2013. There has also been a book written on the subject. Coins were introduced in 1931 and 1932 in denominations of round 1 and 2 fils in bronze, and scalloped 4 and 10 fils in nickel. 20, 50, and 200 fils were 50% silver. The 200 fils coin
1088-546: Is similar to the second one but uses an upper-case letter, e.g. ZAC for the South African Cent. Cryptocurrencies have not been assigned an ISO 4217 code. However, some cryptocurrencies and cryptocurrency exchanges use a three-letter acronym that resemble an ISO 4217 code. Petrodollar Petrodollar recycling is the international spending or investment of a country's revenues from petroleum exports (" petrodollars "). It generally refers to
1152-539: Is used for calculations in the IMF monitoring program and is not a rate imposed on Iraq by the IMF. For a wider history surrounding currency in the region, see British currency in the Middle East . There is little international demand for dinars, since Iraq has few exports other than oil, which is sold in US dollars . Thus there is often an extremely high exchange rate for dinars compared with other currencies. However,
1216-447: Is used in banking and business globally. In many countries, the ISO 4217 alpha codes for the more common currencies are so well known publicly that exchange rates published in newspapers or posted in banks use only these to delineate the currencies, instead of translated currency names or ambiguous currency symbols . ISO 4217 alpha codes are used on airline tickets and international train tickets to remove any ambiguity about
1280-679: The Central Bank of Iraq (CBI) in the 1970s and 1980s. An IQD 500 note was issued a year later, in October 2004. In the Kurdistan Region , the IQD ;50 note is not in circulation. In March 2014, the CBI began replacing banknotes with anti-counterfeiting enhanced versions that include SPARK optical security features, scanner readable guarantee threads in addition to braille embossing to assist vision-impaired persons. In February 2015,
1344-526: The European Union ) in the ISO 3166-1 reserved codes list allows the euro to be coded as EUR rather than assigned a code beginning with X, even though it is a supranational currency. ISO 4217 also assigns a three-digit numeric code to each currency. This numeric code is usually the same as the numeric code assigned to the corresponding country by ISO 3166-1 . For example, USD ( United States dollar ) has numeric code 840 which
SECTION 20
#17328025892061408-459: The Great Mosque of Samarra and the head of a purebred Arabian horse as a watermark. In 2018, the Central Bank of Iraq (CBI) released new designs for the 25,000, 10,000, 1,000, 500, and 250 dinar notes. However, the most notable change was with the 1,000-dinar note, which was redesigned after social media users noticed that Surah Al-Ikhlas was written in the center of its front side. In
1472-566: The oil crisis , and the first major petrodollar surge (1974–1981) resulted in more financial complications than the second (2005–2014). Especially during the years 1974–1981 and 2005–2014 , oil exporters amassed large surpluses of "petrodollars" from the sale of oil at historically high prices. (The word has been credited alternately to Egyptian-American economist Ibrahim Oweiss and to former U.S. Secretary of Commerce Peter G. Peterson , both in 1973.) These petrodollar surpluses could be described as net U.S. dollar-equivalents earned from
1536-644: The 1991 Gulf War, Iraq's currency was printed both locally and in China, using poor grade wood pulp paper (rather than cotton or linen ) and inferior quality lithography (some notes were reputedly printed on presses designed for printing newspapers). The primitive printing techniques resulted in a limitless variety in coloration and detail, one layer of the printing would be too faint while another would be too dark. Counterfeit banknotes often appeared to be of better quality than real notes. Some notes were very poorly cut, and some notes even lacked serial numbers. Despite
1600-415: The CBI announced the removal from circulation on 30 April 2015 of the IQD 50 notes. Persons holding these banknotes were advised to immediately redeem them at their nearest bank for the IQD 250 and higher denomination dinar notes at a one-to-one rate at no charge. In November 2015, the CBI announced the introduction of a new IQD 50,000 banknote. This is the first new denomination banknote since
1664-491: The ISO currency codes of former currencies and their common names (which do not always match the ISO 4217 names). That table has been introduced end 1988 by ISO. The 2008 (7th) edition of ISO 4217 says the following about minor units of currency: Requirements sometimes arise for values to be expressed in terms of minor units of currency. When this occurs, it is necessary to know the decimal relationship that exists between
1728-542: The Middle East , although their working conditions are generally harsh. Even more controversially, several oil exporters have been major financial supporters of armed groups challenging the governments of other countries. High-priced oil allowed the USSR to support the struggling economies of the Soviet-led bloc during the 1974–1981 petrodollar surge, and the loss of income during the 1980s oil glut contributed to
1792-973: The United Kingdom by Bradbury, Wilkinson & Co. From 1932 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 . 100 dinars notes ceased production in the 1940s, however, the same denominations were used until 1978, when IQD 25 notes were introduced. In 1991, IQD 50 were introduced and IQD 100 reintroduced, followed in 1995 by IQD 250 notes and IQD 10,000 notes in 2002. Banknotes that were issued between 1990 and October 2003, along with an IQD 25 note issued in 1986, bear an idealized engraving of former Iraqi President Saddam Hussein . Following
1856-732: The United States dollar and the Bahraini dinar , for which the column headed "Minor unit" shows "2" and "3", respectively. As of 2021 , two currencies have non-decimal ratios, the Mauritanian ouguiya and the Malagasy ariary ; in both cases the ratio is 5:1. For these, the "Minor unit" column shows the number "2". Some currencies, such as the Burundian franc , do not in practice have any minor currency unit at all. These show
1920-469: The black market rate was reported at five to six times higher than the official rate. After the Gulf War in 1990, due to UN sanctions , Iraq was no longer able to place orders with De La Rue for further issues of the previously high quality notes, so new notes were produced. The pre-1990 notes became known as Swiss dinars while the new dinar notes were called Saddam dinars . Due to United States and
1984-415: The bloc's collapse in 1989. During the 2005–2014 petrodollar surge, OPEC member Venezuela played a similar role supporting Cuba and other regional allies , before the 2014–2017 oil downturn brought Venezuela to its own economic crisis. The term petrodollar warfare refers to a theory that depicts the international use of the United States dollar as the standard means of settling oil transactions as
Iraqi dinar - Misplaced Pages Continue
2048-428: The coins for 1982 were a commemorative series celebrating Babylonian achievements. During this period, many of the coins were identified by their shape due to being made of similar composition metals, as from 1980 onward 250 fils were octagonal, 500 fils square, and IQD 1 decagon shaped. Coin production ceased after 1990 due to the emergency conditions generated by the Gulf War and international sanctions. In 2004,
2112-514: The collapse in the value of the Iraqi dinar, the highest denomination printed until 2002 was IQD 250. In 2002, the Central Bank of Iraq issued an IQD 10,000 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 IQD 250 note for everyday use. The other, smaller notes were so worthless that they largely fell into disuse. This situation meant that Iraq, for
2176-482: The currency concerned and its minor unit. This information has therefore been included in this International Standard and is shown in the column headed "Minor unit" in Tables A.1 and A.2; "0" means that there is no minor unit for that currency, whereas "1", "2" and "3" signify a ratio of 10:1, 100:1 and 1000 :1 respectively. The names of the minor units are not given. Examples for the ratios of 100 :1 and 1000 :1 include
2240-509: The currency's full English name, this is not always the case, as currencies such as the Algerian dinar , Aruban florin , Cayman dollar , renminbi , sterling , and the Swiss franc have been assigned codes which do not closely resemble abbreviations of the official currency names. In some cases, the third letter of the alpha code is not the initial letter of a currency unit name. There may be
2304-524: The downfall of Saddam Hussein resulted in the development of a multi-million-dollar industry involving the sale of dinars to speculators. Such exchange services and companies sell dinars at an inflated price, pushing the idea that the dinar would sharply increase in value to a profitable exchange rate some time in the future, instead of being redenominated . This activity can be either a legitimate service to currency speculators , or foreign exchange fraud : at least one major such currency exchange provider
2368-474: The export of petroleum, in excess of the internal development needs of the exporting countries. The surpluses could not be efficiently invested in their own economies, due to small populations or being at early stages of industrialization ; but the surpluses could be usefully invested in other locations, or spent on imports such as consumer products, construction supplies, and military equipment. Alternatively, global economic growth would have suffered if that money
2432-597: The foreign debts of 100 oil-importing developing countries increased by 150% between 1973 and 1977, complicated further by a worldwide shift to floating exchange rates . Johan Witteveen , the Managing Director of the IMF, said in 1974: "The international monetary system is facing its most difficult period since the 1930s." The IMF administered a new lending program during 1974–1976 called the Oil Facility. Funded by oil-exporting states and other lenders, it
2496-409: The formation of new countries, treaties between countries on shared currencies or monetary unions, or redenomination from an existing currency due to excessive inflation. As a result, the list of codes must be updated from time to time. The ISO 4217 maintenance agency is responsible for maintaining the list of codes. In the case of national currencies, the first two letters of the alpha code are
2560-502: The full benefits, as the national economies of Iran, Iraq, Libya, Nigeria and Venezuela all suffered from multi-year political obstacles associated with what economists call the " resource curse ". Most of the other large exporters accumulated enough financial reserves to cushion the shock when oil prices and petrodollar surpluses fell sharply again from an oil supply glut in 2014–2017 . Oil-exporting countries have used part of their petrodollar surpluses to fund foreign aid programs, as
2624-499: The governments of developing countries, especially in Latin America such as Brazil and Argentina as well as other major developing countries like Turkey. The 1973 oil crisis had created a vast dollar shortage in these countries; however, they still needed to finance their imports of oil and machinery. In early 1977, when Turkey stopped heating its prime minister's office, opposition leader Suleyman Demirel famously described
Iraqi dinar - Misplaced Pages Continue
2688-448: The growing concerns about fraud and scams related to investment in the Iraqi dinar, State agencies such as Washington State, Utah, Oklahoma, Alabama and others issued statements and releases warning potential investors. Further alerts were issued by news agencies. These alerts usually warn potential investors that there is no place outside Iraq to exchange the dinar, that they are typically sold by dealers at inflated prices, and that there
2752-458: The international sanctions on Iraq along with excessive government printing, the Saddam dinar currency devalued quickly. By late 1995, US$ 1 was valued at 3,000 Saddam dinars on the black market. During the Iraqi no-fly zones conflict , Swiss dinars notes continued to circulate in the then politically isolated Kurdish-populated northern Iraq. The northern Iraqi Kurdistan government that was created as
2816-460: The major commercial banks of the United States, European Union, Switzerland, and the United Kingdom. In fact, the process contributed to the growth of the Eurodollar market as a less-regulated rival to U.S. monetary markets. As the recessionary condition of the world economy made investment in corporations less attractive, bankers and well-financed governments lent much of the money directly to
2880-534: The most part, had only one denomination of currency in wide circulation. Currency printed before the Gulf War was often called the Swiss dinar , a term of obscure and uncertain origins. These notes were manufactured in England by De La Rue and were of significantly 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
2944-613: The new design, the Surah was replaced by the Assyrian flag . Surah Al-Ikhlas is also written on the right side of the front of the 25,000-dinar note, and it remains in the new design. (1932) (1932) (1932) (1939) (1932) (1932) (1932) (1939) ISO 4217 ISO 4217 is a standard published by the International Organization for Standardization (ISO) that defines alpha codes and numeric codes for
3008-521: The new dinars at par, while Swiss dinar notes were exchanged at a rate of one Swiss dinar = 150 new dinars. Inflation and depreciation of the currency has continued since. On 19 December 2020, Iraq's Central Bank devalued the dinar by 24% to improve the government's revenue, which was affected by the COVID-19 pandemic and low oil prices. On 2 March 2019, the Central Bank's indicative exchange rate
3072-535: The new series was first issued in 2003, and also the largest ever printed by the CBI. The current notes no longer depict Saddam Hussein and now feature inscriptions in Arabic, English and Kurdish. The banknotes are printed using new security features from Giesecke & Devrient & De La Rue and measure 156 × 65 mm. They feature an outline map of Iraq showing the Euphrates & Tigris rivers as well as
3136-465: The notes printed by the British security printing firm De La Rue 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". Multiple trillions of dinars were shipped to Iraq and secured in the Central Bank to exchange for Saddam dinar notes. Saddam dinar notes were exchanged for
3200-532: The number "0", as with currencies whose minor units are unused due to negligible value. The ISO standard does not regulate either the spacing, prefixing or suffixing in usage of currency codes. The style guide of the European Union 's Publication Office declares that, for texts issued by or through the Commission in English , Irish , Latvian , and Maltese , the ISO 4217 code is to be followed by
3264-512: The order is determined not by the currency but by the native language of the document context. The US dollar has two codes assigned: USD and USN ("US dollar next day"). The USS (same day) code is not in use any longer, and was removed from the list of active ISO 4217 codes in March 2014. A number of active currencies do not have an ISO 4217 code, because they may be: These currencies include: See Category:Fixed exchange rate for
SECTION 50
#17328025892063328-476: The phenomenon of major petroleum-exporting states , mainly the OPEC members plus Russia and Norway, earning more money from the export of crude oil than they could efficiently invest in their own economies. The resulting global interdependencies and financial flows, from oil producers back to oil consumers, can reach a scale of hundreds of billions of U.S. dollars per year – including a wide range of transactions in
3392-642: The price. In 1973, the ISO Technical Committee 68 decided to develop codes for the representation of currencies and funds for use in any application of trade, commerce or banking. At the 17th session (February 1978), the related UN / ECE Group of Experts agreed that the three-letter alphabetic codes for International Standard ISO 4217, "Codes for the representation of currencies and funds", would be suitable for use in international trade. Over time, new currencies are created and old currencies are discontinued. Such changes usually originate from
3456-474: The representation of currencies and provides information about the relationships between individual currencies and their minor units. This data is published in three tables: The first edition of ISO 4217 was published in 1978. The tables, history and ongoing discussion are maintained by SIX Group on behalf of ISO and the Swiss Association for Standardization . The ISO 4217 code list
3520-654: The rest of the country. After Saddam Hussein was deposed in the 2003 invasion of Iraq , the Iraqi Governing Council and the Office for Reconstruction and Humanitarian Assistance printed more Saddam dinar notes as a stopgap measure to maintain the money supply until a new currency could be introduced. Between 15 October 2003 and 15 January 2004, the Coalition Provisional Authority issued new Iraqi dinar notes and coins, with
3584-399: The shortage as: "Turkey is in need of 70 cents." As political journalist William Greider summarized the situation: "Banks collected the deposits of revenue-rich OPEC governments and lent the money to developing countries so they could avoid bankruptcy." In subsequent decades, many of these developing states found their accumulated debts to be unpayably large , concluding that it was
3648-575: The speculation over the Iraqi dinar originated from a misunderstanding of why the value of the Kuwaiti dinar recovered after the First Gulf War , leading to an assumption that the Iraqi dinar would follow suit after the fall of Saddam: Woodwell and Rothschild noted substantial differences in economic and political stability between Iraq and Kuwait, with Iraq facing pervasive sectarian violence amid near-total reliance on oil exports. In response to
3712-445: The two letters of the ISO 3166-1 alpha-2 country code and the third is usually the initial of the currency's main unit. So Japan 's currency code is JPY : "JP" for Japan and "Y" for yen . This eliminates the problem caused by the names dollar , franc , peso , and pound being used in dozens of countries, each having significantly differing values. While in most cases the ISO code resembles an abbreviation of
3776-534: Was IQD 1,190 = US$ 1. and on 18 June 2021 it was IQD 1,460.5000 = US$ 1. There is considerable confusion (perhaps intentional on the part of dinar sellers) around the role of the International Monetary Fund in Iraq. The IMF as part of the rebuilding of Iraq is monitoring Iraq's finances and for this purpose uses a single rate (not a sell/buy) of IQD 1170 per US$ . This "program rate"
3840-628: Was accumulated by the Arab countries of the Persian Gulf and Libya , with Iran also accumulating significant oil surpluses through 1978 before suffering the hardships of revolution , war and sanctions . Large volumes of Arab petrodollars were invested directly in U.S. Treasury securities and in other financial markets of the major industrial economies, often directed discreetly by government entities now known as sovereign wealth funds . Many billions of petrodollars were also invested through
3904-420: Was available to governments suffering from acute problems with their balance of trade due to the rise in oil prices, notably including Italy and the United Kingdom as well as dozens of developing countries. From 1974 through 1981, the total current account surplus for all members of OPEC amounted to US$ 450 billion, without scaling-up for the subsequent decades of inflation. Ninety percent of this surplus
SECTION 60
#17328025892063968-582: Was convicted of fraud involving the dinar. This trade revived after the election of Donald Trump in November 2016, with many buyers believing that Trump would cause a sharp revaluation in the dinar (often referred to by the abbreviation "RV" by supporters of the dinar trade,) to an exchange rate comparable to the US dollar. In 2014, Keith Woodwell (director of the Utah Division of Securities) and Mike Rothschild (writer for Skeptoid blog) stated that
4032-611: Was unendorsed by the Iraqi government. However, this old currency still circulated in Kurdish-populated parts of northern 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% per annum. In 2003, new banknotes were issued consisting of six denominations: IQD 50, IQD 250, IQD 1,000, IQD 5,000, IQD 10,000, and IQD 25,000. The notes were similar in design to notes issued by
4096-444: Was withdrawn from the world economy, while the oil-exporting states needed to be able to invest profitably to raise their long-term standards of living. While petrodollar recycling reduced the short-term recessionary impact of the 1973 oil crisis , it caused problems especially for oil-importing countries that were paying much higher prices for oil, and incurring long-term debts. The International Monetary Fund (IMF) estimated that
#205794