Under Saddam Hussein’s rule, Iraq was marked by many divisions which included religious, political, ethnic, and economic. Iraq’s currency also reflected a division with two currencies – one in the north and another in the south. Saddam’s mismanagement of the Iraqi currency – running the printing presses whenever he needed cash – disabled the Iraqi economy, causing high inflation and plummeting living standards. The Iraqi people were forced to use only two denominations of currency: the 250 dinar note and the 10,000 dinar note. This is the rough equivalent of using only dimes and $5 bills for all monetary transactions.

The old currency which featured Saddam Hussein has been replaced with a new design which pays tribute to the Iraqi nation and its history. Iraq’s new currency has six denominations which is making daily economic life far more convenient in Iraq and is ensuring that transactions are smooth and accurate. Along with a reform of the banking system, USAID is working to develop an independent central bank, new trade laws, and a modern commercial code.