The currency unit of Iraq is a dinar, the Iraqi dinar has been used as a currency unit since its introduction in 1932, since then it has been abandoned time to time during wars but now it is the official currency of Iraq. It has happened more than once that Iraqi dinar was discarded as the official currency of Iraq.
The Iraqi dinar started its circulation in 1932, before the Iraqi dinar the Indian rupee was the official currency of Iraq since the British occupied Iraq in the World War 1, and at that time rate of exchange was at 1 dinar for 11 Indian rupee, the Iraqi dinar was one of the leading currencies in the world, but the absence of it as an official currency harmed it, it stayed out of the world market for a long period of time, and Iraq’s trade and exchange was dealt in the Indian rupee at that time.
The Iraqi dinar has had some golden days as well, this was before the gulf wars, when Iraq was a business hub in the middle east, and its trade and exchange was at its peak, people from neighboring countries would come to Iraq for studies and business, even until the 80s the days weren’t so bad for the dinar, but during the gulf war the country faced instability, times were so good for the dinar that the exchange rate was 1USD TO 3IQD, and it was even better in the early 1950s.
The gulf region, and specially Iraq was involved in two wars, the late 80s and early 90s, which had no good impact on the nation whatsoever, a lot foreign forces go involved in Iraq after that, and the Iraqi dinar was faced by a lot of sanction by the IMF, and by the year 1995 the exchange rate of iraqi dinar had felt down to 1USD to 3000IQD, this did not happen in a day, but decades of war had bring the dinar to this stage where it was also not accepted by the banks, banks stopped carrying the dinar and it was not even traded in the international market for some time.
Wars and invasions have always effected Iraq’s development as a country, and so the Iraqi dinar has faced a lot of time battling these situations, but whenever the Iraqi has stayed in the international market for a while, it start to grow and gain appreciation and value, mainly because of the oil powers of Iraq, Iraq is one the top oil exporters in the world, and has been for a century now, Iraq has one the biggest oil industry if not the biggest, their oil industry is capable enough to change the whole situation of the country and make everything better on its own, but when a country is at war, priorities of the government changes and it cannot focus much on its development side.
The dinar has always faced ups and downs, whether it was because of the gulf war or the invasion of Iraq, but it is still seen as a currency to invest by many and people are still interested to buy Iraqi Dinar.