What kind of money does iraq use

To fetch top dollar, Tomonis says bank notes should be both rare and in good condition. Tomonis says it's common to see increased speculation in a nation's currency during times of upheaval. In the period following the collapse of the former Soviet Union, Tomonis, a native of Lithuania, saw many collectors profit by selling currency from the Communist era.

For Iraq, the departure of Saddam will almost certainly result in the issuance of new currency that doesn't contain his mustachioed mug. Whether much of the old currency retains value among collectors will depend on how much is saved and how much is destroyed.

For serious collectors, Tomonis recommends buying rarer, high-denomination notes and looking for dinar bills produced in Switzerland, where he believes the printing is of highest quality. Many eBay merchants, meanwhile, market their dinars more as curiosities than as potentially valuable heirlooms. The Las Vegas-based company says it sells as much as hundreds of thousands of dollars worth of dinars daily, shipping dinar notes to thousands of customers in the United States and elsewhere.

Back in Baghdad, however, Iraqis themselves are not convinced. Many take what opportunities they have to change their dinars into hard currency, and conduct all but small day-to-day transactions in U. We trust the dollar more. The dinar has endured wild swings over the past three decades. After the invasion, the central bank intervened in the currency market to strengthen the dinar, using its supplies of dollars to manage the exchange rate.

The central bank now sells dollars in daily auctions at a fixed price of 1, dinars, a level barely changed since In fact, the dinar has recently faced downward pressure as a result of the international economic sanctions imposed on neighbouring Iran and Syria.

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Hopes that Iraq's economy can recover from civil and regional wars have led to some speculation that the Iraqi dinar can increase in value against the dollar. Scam artists have also been active in promoting IQD investments, which has led many states in the U. Iraq's currency faces many challenges and much uncertainty in both the short and long run. Article Sources. Investopedia requires writers to use primary sources to support their work.

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Investopedia does not include all offers available in the marketplace. Related Articles. Debt With Treasury Bonds. Macroeconomics How the U. Dollar Became the World's Reserve Currency. Partner Links. It will also stabilise the general level of prices", he added. Exchange rates bounced around like tennis balls after the former regime fell in April, but appear to have stabilised recently at about 2, dinars to the dollar. As bank employees count stacks of the new money, rubber-banded together in blocks, money changers on the street are discussing how they will be affected.

Some speculators who have kept the 10,dinar notes stand to make money on the deal. Many of them bought the 10, note from residents at a rate much lower than its worth, after people panicked when merchants refused to accept it.

Those speculators will be allowed to turn it in for the full value. One man who recently started working as a money changer said it was not as easy as he had thought it would be.

While the first old dinar notes are already being burned, residents could not start exchanging their old money for the new before 15 October, Muhammad said.