The dinar, which is the currency used in Iraq, was introduced into circulation in 1932. Much like other currencies, the dinar is constantly monitored all around the world in order to determine its value. While many people follow the increasing and decreasing value of the dinar, they tend to utilize this information for different reasons. By keeping an eye on current events and trends occurring in Iraq, a person can learn when to choose to convert dinars to US dollars.
United States involvement in Iraq had a large impact on its currency value. Before the United States invaded Iraq in 2003, the value of American dollars in relation to Iraqi dinars was one dollar to 3000 dinars. In 2011, when the last American troops were withdrawn from Iraq, the value of the dinar changed dramatically. Today, and during much of 2012, one dollar has become equivalent to about 1,200 dinars. Even back in 1991, following the Gulf War, dinars starting to be printed on inferior paper with poor quality lithography, and this also affected their value.
Another way to determine the value of the dinar is to compare it to fils. The dinar is currently equivalent to 1,000 fils, which are used in many Arab countries as a subdivision of currency. While the Central Bank of Iraq can issue fils, they are generally seen as obsolete due to inflation. Coins were also produced in Iraq until 1990. These coins were valued by how many fils they were, and eventually a 1,000 fils, or one dinar, coin was produced. Since inflation took its toll on the value of fils in relation to dinars, the coins proved to be obsolete and were withdrawn from production.
It is important to follow current events before ultimately deciding to convert dinars to US dollars. By researching market trends and news in Iraq, you can determine what has an effect on Iraqi dinar value. Even just a brief glimpse at the news can give you information about the current state of Iraq, and people have been relying on this for years before they choose to convert dinars to US dollars.