Ever walked into a currency exchange and felt like you were looking at a history book instead of a wallet? That’s basically the vibe of the Iraqi Dinar. If you are looking for the short answer: the money used in Iraq is the Iraqi Dinar, often abbreviated as IQD or written as ع.د in Arabic.
But honestly, just knowing the name doesn't tell the whole story. This isn't just "paper with numbers." It’s a currency that has survived wars, sanctions, and one of the most bizarre "zombie currency" eras in modern history.
The Iraqi Dinar: A Quick Snapshot of the Money Used in Iraq
Currently, the Iraqi Dinar is the only legal tender in the country. It’s issued by the Central Bank of Iraq (CBI). If you were to travel to Baghdad or Erbil today, you’d find a mix of colorful notes that range from the 250 dinar "small change" up to the massive 50,000 dinar bill.
The exchange rate is where things get... well, complicated. As of early 2026, the official rate is hovering around 1,310 to 1,320 IQD for every 1 US Dollar. But if you’re actually on the ground, you’ll notice the "parallel market" (basically the street rate) is often different. The government has been trying to "de-dollarize" the economy, making the Dinar the star of the show for local shopping, while the US Dollar is mostly reserved for international trade.
What’s in your pocket?
You won’t find many coins. While the 25, 50, and 100 dinar coins technically exist, they are basically collector's items now. People use the banknotes for everything. Here is what the common bills look like:
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- 250 Dinar: Features the Duzdar Mosque. Kinda the "quarter" of the paper money world.
- 1,000 Dinar: Shows a gold Islamic dinar coin. Super meta, right? Money on money.
- 5,000 Dinar: Features the Gali Ali Beg waterfall. It's beautiful, honestly.
- 10,000 Dinar: Highlights the Jawad al-Salim Freedom Monument.
- 25,000 Dinar: Shows a Kurdish farmer and King Hammurabi. This is a workhorse bill.
- 50,000 Dinar: The big one. It depicts the waterwheels on the Euphrates and the marshes.
Why the Swiss Dinar and Saddam Dinar Still Matter
You can't talk about the money used in Iraq without mentioning the 1990s drama. It’s legendary among currency nerds. Back in the day, Iraq had high-quality notes printed in the UK by a company called De La Rue. Because some people thought the plates were made in Switzerland, they called them "Swiss Dinars."
When the Gulf War hit and sanctions were slapped on Iraq, the government couldn't get those high-quality notes anymore. So, Saddam Hussein started printing his own money locally. These became known as "Saddam Dinars." Here’s the wild part: The north of Iraq (the Kurdistan region) refused to use the new "Saddam" money. They kept using the old "Swiss" notes. Even though no new Swiss Dinars were being printed, the money didn't lose value. In fact, because the supply was fixed and the Saddam Dinar was being printed like crazy, the Swiss Dinar became much more valuable. One country, two different versions of the same currency name, and two wildly different values.
Eventually, after 2003, the Coalition Provisional Authority had to fix this mess. They brought in De La Rue again to print a unified Iraqi Dinar—the one used today—and they swapped out both the Swiss and Saddam versions.
The "Dinar Investment" Myth: Real Talk
If you’ve spent any time on the internet, you’ve probably seen some "expert" claiming that the Iraqi Dinar is about to "revalue" (RV) and make everyone overnight millionaires.
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Let's be real for a second.
The idea that the IQD will suddenly jump from 1,310 per dollar to 3 dollars per dinar is, frankly, a fantasy. Currencies don't work like that. The Central Bank of Iraq manages the rate to keep the economy stable, not to enrich speculators in other countries. Iraq’s economy is heavily tied to oil. If oil prices are up, the Dinar is strong. If they drop, the Dinar feels the heat.
The US Treasury and various financial watchdogs have repeatedly warned about Dinar scams. If someone is telling you that the name of the money used in Iraq is your ticket to a private island, they’re probably trying to sell you something.
Security Features: How to Tell It's Real
Since the 2003 redesign, the Central Bank has gotten serious about security. These aren't the flimsy "Saddam notes" that would smudge if they got wet.
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- Watermarks: Look for the stallion head.
- Color-shifting ink: The 25,000 and 50,000 notes have ink that changes color when you tilt them.
- Metallic threads: They are embedded in the paper, not just printed on top.
- Raised printing: You can actually feel the texture on the "Central Bank of Iraq" text.
Expert Insights: The Future of Iraq's Economy
Dr. Ahmed Al-Naseri, a regional economist, often points out that Iraq’s move toward "digitization" is the real story. The government is pushing for more credit card use and less cash. This is a massive shift for a country where cash has been king for a century.
So, while the Iraqi Dinar remains the official name of the money used in Iraq, the way people use it is changing. Electronic payment systems are popping up in Baghdad malls, and the "dollarization" of the 2010s is slowly being pushed back.
Tips for Travelers or Business
If you're dealing with Iraqi currency, keep these few things in mind:
- Bring crisp USD: If you're exchanging money, they want "clean" $50 or $100 bills. No tears, no marks.
- Check the denominations: Don't get stuck with a 50,000 note in a tiny cafe; they might not have change.
- Official vs. Street: Always check the current CBI rate, but expect to pay a bit more at local exchanges.
The Iraqi Dinar is more than just a name. It's a symbol of a country trying to find its footing in a global market. Whether you're a traveler, a student of history, or just curious about the world, understanding the story behind those colorful notes gives you a much clearer picture of Iraq today.
Your Next Steps:
- Check the Live Rate: If you are planning a transaction, visit the Central Bank of Iraq's official site for the daily auction results and official rates.
- Verify Your Source: If you're holding older notes, check if they are from the 2003 series or later. Any notes with Saddam's face are no longer legal tender and only hold value for collectors.
- Stay Informed: Follow news regarding Iraq's "de-dollarization" policies, as these directly impact the Dinar's purchasing power and exchange availability for foreigners.