Saturday, September 18, 2021

Money & Shopping in Iraq

AsiaIraqMoney & Shopping in Iraq

The Iraqi dinar (IQD) is the official currency, although you may also use euros (€) and US dollars (USD) nearly everywhere. Keep in mind that most individuals dislike making change for big bills. Any flaws in the banknotes (creases, bank ink stamps, rips, and so on) may arouse suspicions that you are a counterfeiter. Also, don’t bring any old bills with you. For everyday spending money, carry mainly tiny notes in the shape of Iraqi dinars. The broad acceptance and trust in the new Iraqi dinar has decreased the importance of the US dollar, and many shops are now refusing to take it. Due to the huge number of notes needed to pay with dinars, most individuals will continue to pay big hotel bills or rent payments in US dollars or euro. The exchange rate varies from day to day and from town to town, but it is often about IQD1175 to USD1. Inflation used to be quite high (65 percent per year since 2003), but it has recently been considerably lower (11 percent in 2008), making the Iraqi dinar a more appealing investment target than the Vietnamese dong.

Learn about the security aspects of the new dinar and US dollar banknotes; the previous Iraqi government was suspected of producing counterfeit USD20, USD10, and USD5 bills, and these counterfeiters are still active.