Which is the currency of Iraq?

The correct answer is the Dinar.
The Iraqi Dinar (ISO code: IQD) has served as the official legal tender of Iraq since 1932, representing a journey that mirrors the nation's transition from a British mandate to a modern republic. Before the introduction of the Dinar, the region utilized the Indian Rupee, which had been the official currency since the British occupation during World War I. On April 1, 1932, the Iraqi Dinar officially replaced the Rupee at a rate of one Dinar to 11 Rupees, initially pegged at par with the British Pound Sterling.

The Early Years and Economic Shifts

In its infancy, the Dinar was an exceptionally strong currency, maintaining its value due to its peg to the British Pound until 1959. Following the 1958 revolution and the end of the monarchy, the peg was switched to the United States Dollar at a rate of 1 IQD to 2.80 USD. During this era, the currency reflected the grandeur of the Kingdom, with early banknotes featuring portraits of King Faisal I, King Ghazi, and King Faisal II. As Iraq transitioned into a republic, these royal images were replaced with national symbols, such as the allegorical sun and later, depictions of the country's developing oil infrastructure and historical landmarks.

The "Swiss Dinar" vs. the "Saddam Dinar"

The late 20th century brought significant turmoil to the Iraqi economy, which was reflected in its physical money. After the Gulf War in 1991, international sanctions prevented Iraq from using its traditional Swiss-printed banknotes. This led to a split in the nation's currency. The older, high-quality notes remained in circulation in the northern Kurdish regions and became known as the "Swiss Dinar."

Following the regime change in 2003, a massive logistical operation was undertaken to unify the country’s money. The Coalition Provisional Authority commissioned the British printing firm De La Rue to create a new, secure Dinar. Between October 2003 and January 2004, trillions of these new notes were flown into Iraq and distributed to banks. This "New Iraqi Dinar" replaced both the Saddam and Swiss versions at specific exchange rates, creating a single, unified medium of exchange for the first time in over a decade.

Today’s Iraqi Dinar notes are a tribute to the "Cradle of Civilization." The 25,000 Dinar note, for instance, features a Kurdish farmer on the front and a depiction of the ancient King Hammurabi on the back—famous for creating one of history's first legal codes. The 10,000 Dinar note honors the 10th-century scientist Abu Ali Hasan Ibn al-Haitham, known for his work in optics.