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An Overview on Iraqi Dinar Historical Exchange Rate |
Iraq’s official currency since
1932 to today is the dinar. Since its creation, the currency has remained
significantly stable until in the years towards 1990 and the gulf war, when it
began to register substantial losses. Today, the Iraqi dinar is being presented
as an attractive investment opportunity, with the country’s economy being in a
steady recovery mode.
The Iraqi dinar traces its roots
back to 1932 at the end of the British authority when it replaced the Indian
currency rupee. The dinar was coupled with the British pound during its first
17 years of use. The exchange rate during that time bordered on 4.86 US dollars
for every single dinar. However, the currency’s value was readjusted downwards
to 2.80 US dollars in 1949. The Iraqi dinar exchange rate steadied till 1971.
The Iraqi Dinar after Independence
The Iraqi dinar acquired a life
of its own when it finally broke free from the British pound in 1959, after the
country gained independence. But its value remained pretty much the same as the
British pound, until the latter was devalued in 1967. The currency steadied at
an exchange rate of $2.80 for every unit until 1971 when the US dollar lost
value.
The Iraqi dinar soared and in
1973 the official exchange rate for the currency stood at US$3.93. It
maintained some level of stability until 1978, when the official trade rate was
down to US$3.22 for every dinar. Yet, as per black market rates, the currency
was reported to have depreciated to trade at 1.86 units for every 1 US dollar.
War dynamics at play
Prior to the events that happened
in 1991 going forward, the official exchange rate for the currency was around
$3 for every Iraqi dinar. But things changed after the US army marched into
Iraq in reaction to the country’s aggression in Kuwait. The country’s economy
caved in under the weight of the brief war and economic sanctions that ensued.
As a result of the war, the Swiss note printing technology and the country
resorted to production of low quality notes.
There was also excessive printing
of the Iraqi dinar, which resulted in inflation, hurting the currency’s value
substantially. The currency’s exchange value was down to 3,000 units for one US
dollar following inflation, by 1995.
The second US invasion of Iraq in
2003 also left a mark in the country’s economy, with the ouster of the then
Iraqi president Saddam Hussein is bringing about the interruption of the
currency’s supply. The Iraqi governing council and other government authorities
authorized the printing of more Saddam dinar notes to temporarily check the
shortfall as the country awaited the introduction of a new currency.
This article An Overview on IraqiDinar Historical Exchange Rate was originally published at DinarInsider.com
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