The history behind the Iraqi dinar is an interesting story that is almost as interesting as the history of the country. When you buy Iraqi dinar today, it likely that you will be buying the new dinar that was released in 2003. The original dinar was introduced in Iraq in 1931 and replaced the Indian rupee that was still being used in the country since the British occupied the country after World War I. The dinar was pegged against the British pound at first until the late 1950's when it was pegged against the U.S. dollar. Even though the dinar managed to stay relatively strong, the Gulf War and the invasion of Iraq has forced the dinar into a downward spiral. If you buy Iraqi dinar today the exchange rate is somewhat distressing with $1 being worth about 1200 dinar.

The old Iraqi dinar coins were minted in silver and copper and came in denominations of 1, 5, 10, 25, 50, 100, 250 and 500 fils. There was also a silver 1 dinar coin. The old coins are no longer minted and if you buy Iraqi dinar today the only coins you might receive are 25 and 100 dinar coins. The 25 dinar is copper plated and the 100 dinar is nickel plated. You will no longer be able to buy Iraqi dinar from before 2003 for two reasons. Firstly the low value notes of the old dinar are next to worthless these days and secondly the currency has been completely replaced by the new one. The dinar notes now come in denominations of 50, 250, 500, 1,000, 5,000, 10,000 and 25,000 dinars. The colors, from lowest to highest denomination, are purple, blue, bluish-green, brown, dark blue, green and red.

The new Iraqi dinars are very well made and rather pretty. Many people frame notes from the countries they have visited as souvenirs and the dinars will perform the job nicely. Aside from their aesthetic value, it would be wise to buy Iraqi dinar if planning to visit the area. If only to be sure that you have enough money to pay for whatever you need should the need arise. As mentioned before it is sometimes hard to cash in Traveler's Checks and not every place will or can accept credit cards.