Following the 2003 US-led invasion of Iraq and the ousting of Saddam Hussein from power, the United States established a Coalition Provisional Authority to run the Iraq Government.
The new government started a new currency called the ‘New Iraqi Dinar’ from 15th October,2003. The current currency took the place of the ‘old dinar’and also the ‘swiss dinar’ prevalent in northern Iraq. The New Iraqi Dinar was established as the single currency to be used in the whole of Iraq.
The new currency was launched to stabilize the Iraqi economy which was facing financial problems caused by the US attack and bombing. Oil sale was stopped and many UN (United Nation) sanctions imposed on Iraq totally wrecked the economy. It was feared unless a new currency was launched Iraq could face inflation.
The New Iraqi dinars are also called the “Post Saddam Dinars”.They are printed by the Hampshire-based Company ” De La Rue “of England in six denominations namely 50 Dinars, 250 Dinars, 1000 Dinars, 5000 Dinars, 10,000 Dinars,and 25,000 Dinars. A new 500 dinar was introduced in Iraq in November,2004. The bank notes were made of fine swiss quality to prevent any forgery.
According to investors, the New Iraqi Dinar has the potential to make them earn in millions in the coming years. The new Iraqi dinar had the same worth as one ‘print dinar’ and 150 new dinars became equal to one swiss dinar.When the new Iraqi dinars were introduced 4000 dinars could be exchanged for 1US$. Then it rose to 980 dinars per dollar. By the latest 2006 estimate 1500 dinars could be exchanged for one dollar.