Iraq Currency Exchange (2024)

Iraq Currency Exchange

Starting on October 15^th 2003 a new nationalcurrency known as the ‘new Iraqi dinar’ will begin to replace the existingcurrency, the ‘old dinar’, and the currency used in the North of Iraq, the ‘swissdinar’. The new Iraqi dinar will createa single unified currency that is used throughout all of Iraq and will alsomake money more convenient to use in people’s everyday lives.

The currency exchange will last from October 15^th2003 to January 15^th 2004.Currency can be exchanged at any time during this three monthperiod. Locations where money can beexchanged will include banks and other official locations, for example postoffices, throughout Iraq. No fees willbe charged for exchanging currency.

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The conversion rates for new Iraqi dinars will be asfollows:

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• one ‘old dinar’ will be exchanged for one new Iraqi dinar;
• one unit of the ‘swiss’ dinar will be exchanged for 150 new Iraqi dinars.

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Bank accounts and financial contracts in Swiss dinars willalso be converted at the rate of 150 new Iraqi dinars for every one Swissdinar. Bank accounts and contracts inold Iraqi dinar will not change.

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The new currency will have a larger number of denominationsthan the old currency, with 50, 250, 1000, 5000, 10000 and 25,000 dinar notes,making it more convenient to use. Thenew notes will be of higher quality and durability than those currently incirculation and include many anti-fraud features that will provide importantprotection against counterfeiting.

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How will the exchange occur?

<![if !supportLists]>(1)<![endif]>People will come to banks with their currency

<![if !supportLists]>(2)<![endif]>Currency will be counted and its equivalent value in newcurrency will be paid

<![if !supportLists]>(3)<![endif]>Old currency will be promptly marked and will then bedestroyed

<![if !supportLists]>(4)<![endif]>Those with bank accounts will see their balances automaticallyconverted. Salaries will begin to bepaid in the new dinar at the earliest available opportunity.

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Currently everyone in Iraq carries a reminder of Saddamin their pockets – on the banknotes they’re using. Shortly after October 15^th the first batch of Saddamnotes will go to the incinerator. Atclose of business January 15^th 2004 Saddam notes will no longer belegal tender.

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Below are some answers to frequently asked questions:

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What will the new currency look like?

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The new Iraqi dinar will look similar to Iraq’s old nationaldinar (the ‘Swiss’ dinar), with some minor modifications

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What will be the rate that is used to convert oldcurrency into new currency?

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People who hold one old Iraqi dinar will receive one newIraqi dinar. People who have one‘Swiss’ dinar will receive 150 new Iraqi dinars.

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Why were these rates selected?

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These rates will help to equalize prices throughout all ofIraq – helping to ensure that the prices of goods will be roughly the sameacross the whole country. Key Iraqis,including officials at the Iraqi Central Bank as well as leaders of theautonomous regions in northern Iraq, were consulted on this issue and fullysupported this decision.

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How will the new currency differ from the existingcurrency?

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The new currency will have a total of six denominations,will be much better protected against counterfeiting, and will last much longerbecause it will be of higher quality.

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Will people need to exchange their currencyimmediately?

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No. Currency can beexchanged at any time up until January 15^th.

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Will the old Iraqi dinar and the Swiss dinar continueto be valid until January 15^th?

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Yes. All existingcurrency will be completely valid until Janaury 15.

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Will salaries be paid in new dinars?

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Yes. After theexchange has begun, salaries will begin to be paid in new Iraqi dinars.

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How will people be able to identify counterfeitcurrency?

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As the exchange approaches additional details will beprovided about how to identify counterfeit notes.

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Staff at currency exchange sites will also be well trainedon how to detect counterfeit Iraqi dinars

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Counterfeit old Iraqi dinars will not be accepted at theexchange sites. Those presentingcounterfeit notes will not be arrested or charged with a crime, but their moneywill not be exchanged.

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Currency exchange sites will visibly mark old dinars upontheir exchange for new ones so that they cannot be stolen and re-exchangedlater. Once the old currency is markedit will no longer be valid currency.

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Will the new currency be convertible into othercurrencies?

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Yes. The newcurrency will be convertible into other currencies at the market exchange ratethat prevails at that time.

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Can dollars also be exchanged for new Iraqi dinars? What will be the conversion rate fordollars?

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Dollars will not be converted directly into new dinarsduring the official exchange. Followingthe exchange, dollars will be convertible directly into new dinars at themarket exchange rate. New dinars willalso be convertible into dollars as well as other currencies at the marketexchange rate.

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Will it be possible to exchange currency outside ofIraq?

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No. The onlyofficial currency exchange locations will be located within Iraq.

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