New banknotes were issued by the Central Bank of Iraq in 2003 in denominations of 50, 250, 1,000, 5,000, 10,000, and 25,000 dinars. Online currency exchanges such as USA Currency Exchange sell 10,000, and 25,000 dinar notes to foreign buyers. Currency is mailed to the buyer, and there is an upper limit---typically around 5 million dinar---to how much an individual can purchase in a single transaction.
The dramatic changes in the exchange rate between the Iraqi dinar and U.S. dollar have led to foreign speculation on the dinar. Before the 1991 Gulf War, 1 million Iraqi dinars were worth approximately $3.2 million U.S. As of September 2010, 1 million Iraqi dinars can be purchased for $1,050 U.S.
In February 2010, the Central Bank of Iraq announced a plan to reissue the Iraqi dinar in different denominations. Issuing banknotes with greater individual value would allow people to carry a smaller volume of paper money. The current banknotes could be phased out later in 2010 when the redenominated currency is circulated. Old Iraqi dinars not traded for the redenominated currency will no longer be legal tender and will have no value.
