What is the Iraqi Dinar Exchange Rate?
This is a question that all investors and would-be investors in the Iraqi dinar must be aware of at all times. Currency prices can change quickly, and often on very short notice. A single significant news event affecting the issuing country can cause large swings in the exchange rate, in either direction.
Iraqi Dinar, September 2017
As of September, 2017, the currency is basically in a holding pattern as to what the Iraqi dinar is worth. The situation in the country itself is stable, relative to the potential range of issues that could affect its status. But as events can change quickly in that part of the world, it’s necessary to track the Iraqi dinar exchange rate on a regular basis.
The most effective way to do that is by using an Iraqi Dinar exchange rate calculator. Whether you plan on investing in the currency in the near future, or you are already holding it, it’s necessary to have a converter available at all times.
What is an Iraqi Dinar Worth in US Dollars?
The value of the Iraqi dinar in US dollars has been fairly stable since early 2016. The Iraqi dinar exchange rate was pegged to the US dollar as of January 2016 at a sell rate of 1182, and a buy rate of 1182 to 1 US dollar.
However, the dinar is subject to widespread swings, since it is considered to be an exotic currency. To know what’s going on with the currency valuation, it’s important to stay current on Iraqi dinar exchange rate news. That’s any information that could affect the value of the currency against other currencies.
This includes what’s going on in Iraq, as well as the surrounding countries, and of course, with the price of oil.
The Iraqi dinar exchange rate today is at 1,169.55IQD to 1 US dollar (September 26, 2017).
What is the Iraqi Dinar Exchange Rate Today in Different Currencies?
Like all international currencies, the Iraqi dinar exchange rate is subject to market fluctuations. Currencies trade daily, and the exchange rate for each currency is dependent upon both international events, and those taking place within the issuing country. This is similar to any currency exchange, such as euros to dollars.
One of the complications with a currency like the Iraqi dinar is that it is very thinly traded. As a medium of exchange, it trades only within the nation of Iraq, which makes it a “soft currency”. Unlike “hard currencies”, like the US dollar or the euro, the Iraqi dinar is not used to settle claims on international markets.
This can make the international Iraqi dinar exchange rate uncertain. However, it does have a recognized exchange rate internationally nonetheless.
Apart from the Iraqi dinar exchange rate with the US dollar, here are the exchange rates of the Iraqi dinar into various major currencies, as of September 26, 2017:
- 1 EUR =1,385.49IQD
- 1 JPY =10.4735IQD
- 1 GBP =1,584.69IQD
- 1 AUD =928.765IQD
- 1 CAD =953.287IQD
- 1 CHF =1,215.46IQD Swiss Fr
- 1 CNY =177.416IQD Ch Yuan Renminbi
Iraqi Dinar Exchange Rate History
Iraq’s first currency was the Indian Rupee. It was introduced by the British during the military occupation in World War I. It then served as Iraq’s first official currency. In 1932, the Rupee was replaced by the Iraqi dinar.
The initial Iraqi dinar exchange rate was one dinar to 11 Indian rupees. The Dinar was also pegged to the British pound until 1959. At that time, the peg was moved to the US dollar. The initial exchange rate was one Iraqi Dinar to US$2.8. During the 1970s, the dinar actually appreciated against the dollar, and the exchange rate increased to 1 to $3.2169 US dollar. It remained at that level until 1991.
The dinar went through a time of turbulence following the Gulf War in 1991. The currency declined in value due to excessive money printing by the Iraqi government. But also hurting the currency was that after the war, dinars were no longer created using Swiss printing technology. The newly printed currency was of lower quality, and declined in purchasing power rapidly. By late 1995, the Iraqi dinar exchange rate had fallen to 3,000 to the US dollar on the black market.
After the coalition invasion in 2003, the post-Gulf War currency was replaced by a new one, but still called the Iraqi dinar.
The Central Bank of Iraq announced a plan to re-denominate the dinar in 2010. It was thought that this would better facilitate cash transactions. The plan included dropping three zeros from the nominal value of the currency, while retaining the original purchasing power.
The planned revaluation didn’t happen in 2010, or any time since. It is nonetheless hoped that it will take place at some point in the future, though any specifics cannot be known at this time.
What will Iraqi Dinar Revalue At?
Not only is it completely unknown as to when a revaluation of the Iraqi Dinar will take place, it’s not possible to know what value the currency will adjust to. There are a host of variables that simply cannot be anticipated.
Some of those variables include:
Political stability/instability. Due to the number of factions within Iraq, as well as various levels of influence and intervention by surrounding countries, political stability in the country is questionable. An election or insurrection could change the situation quickly.
Warring factions. Iraq has multiple factions in conflict with one another. Most prominent are the Kurds in the north, but that’s not the only internal division. The outcome of these internal conflicts could determine if a revaluation happens, and what value will be assigned to the currency at that point if it does.
US involvement. The current situation in the country is tentative. While the US military has substantially withdrawn from Iraq, it nevertheless maintains a significant presence. That presence is a stabilizing factor. Should the US decided to withdraw completely, the entire situation in Iraq, at all levels, could change radically.
Military conflict. Iraq is located in what is probably the most militarily unstable region in the world. An invasion of Iraq by a neighboring country, or into one of Iraq’s smaller neighbors, could cause the value of the Iraqi Dinar to collapse.
Oil supply and price. Oil is Iraq’s main product, and its primary source of foreign revenue. That means that the economic fortunes of the country rise and fall with the price of oil. When oil increases, Iraq’s overall situation improves. This could lead to a higher valuation on the dinar. But when oil prices fall, the country’s fortunes decline. That once again, could lead to a collapse in the value of the dinar.
When and if a revaluation occurs – and it absolutely is not certain – the value of the currency will be determined by the above factors.
Iraqi Dinar Exchange Rate Chart
The best way to determine the price activity of the currency is with a specific Iraqi Dinar exchange rate chart. That will enable you to trace the currency valuation going back as far as 10 years. Though it’s really the most current information that’s most relevant with currency valuations and investments.
An Iraqi Dinar exchange rate chart covering the previous 12 months is generally sufficient for investing purposes. An example is the chart below:
(Source: <a href=http://www.exchangerates.org.uk/USD-IQD-exchange-rate-history.html>ExchangeRate.org.uk</a>)
The chart not only reveals the fluctuations in the Iraqi Dinar over the past 12 months, but also the highest, average and lowest valuations during that timeframe:
- Highest: 1182.8064 IQD to 1 US dollar, on 13 Sep 2017.
- Average: 1168.9036 IQD over this period.
- Lowest: 1152.1171 IQD on 20 Jul 2017.
Though the recent history of exchange rate activity with the currency in no way reflects its future direction, these numbers do provide at least some guidance. For example, the chart above shows that as the Iraqi Dinar approaches its high of 1182, it tends to pull back. And when it reaches its low of 1152, it tends to rise somewhat.
These numbers are certainly not absolute. But they do establish at least a fairly reliable trading range for the currency. However, once again, an exotic currency like the Iraqi Dinar is more likely to be affected by events in and around the country, and with the price of oil, than it is with any trading ranges or currency relationships.
What Banks Sell Iraqi Dinar?
The short answer, is very few! Even large banks are pulling out of currency exchange. This is even more true of thinly traded currencies, such as the Iraqi Dinar. You may find a couple of banks where you can buy foreign currencies, but it’s unlikely that you will find any who make a market in the Iraqi Dinar.
Not only selling, but what banks buy Iraqi dinar is even more open to question. Rest assured that if a bank won’t sell you a given currency, they won’t buy it back from you either.
The best source to either buy or sell exotic currencies like the Iraqi Dinar are currency traders. But make sure that any that you use operate in full legal compliance. Also make sure that they have reliable third-party references, such as through the Better Business Bureau.
And most of all, never deal with a currency trader that provides “advice”, such as a recommendation to buy or sell this or that currency. Only you can know if a given currency is investment worthy – not a trader who is looking to make a sale.
Here at Treasury Vault we wish to remind you that investing in the Iraqi Dinar, or in similar exotic currencies, is highly speculative. We suggest that you invest only with money that you can afford to lose, and make sure that the vast majority of your investment portfolio is held in more stable investments.