1 USD to IQD - Convert US Dollar to Iraqi Dinar

Looking at the 30-day window, the USD/IQD pair traded in a range of 1,263.9378 to 1,333.6087. The monthly average was 1,302.6017 with 1.43% volatility. This upward movement of 2.1% suggests significant momentum in the USD/IQD exchange rate.

The current mid-market exchange rate is 1 USD = 1,310.3124 IQD, updated as of July 3, 2026, 4:23 PM UTC. Mid-market rates represent the fairest available rate and are the midpoint between buy and sell prices on global currency markets. Actual transaction rates from banks or money transfer services may include a markup above this rate.

US Dollar to Iraqi Dinar Exchange Rate

USD/IQD is one of the most searched currency pairs on the internet, partly because of genuine trade and remittance needs, and partly because of persistent speculation about a potential dinar "revaluation." Iraq's economy runs almost entirely on oil exports, and the dinar's value is managed by the Central Bank of Iraq through a fixed peg system.

The Revaluation Myth

For over a decade, internet forums and social media groups have promoted the idea that the Iraqi dinar will dramatically revalue from its current rate to something close to its pre-Gulf War value. At that time, one dinar was worth over $3. Today it takes roughly 1,300 dinars to buy one dollar. The math behind the revaluation theory does not hold up. Iraq's money supply has expanded massively since the 1980s, making a return to the old rate economically impossible without hyperdeflation. Legitimate financial analysts and the IMF have repeatedly dismissed the revaluation theory, yet it continues to attract buyers of physical dinar banknotes at marked-up prices.

What Drives the USD/IQD Rate

The Central Bank of Iraq pegs the dinar to the dollar through a daily auction system where it sells dollars to banks at a set price. Oil export revenue, government spending, US Treasury compliance requirements for dollar transactions, and political stability are the main factors. When the CBI has adequate reserves and oil prices are high, the peg holds steady. Periods of low oil prices or political crisis can create pressure on the parallel market rate.

What a Conversion Really Costs

The official and market rates in Iraq can differ by 5-15% depending on conditions. Outside Iraq, exchanging dinars is difficult and expensive. Dealers of physical dinar banknotes online charge premiums of 10-20% above the official rate. For legitimate transfers to Iraq, bank fees and spreads are typically 3-6%.

How to Get the Best USD to IQD Rate

For legitimate business or personal transfers, use established banks with Iraqi correspondent relationships. The mid-market rate on this page reflects the official CBI rate. Be extremely cautious of dinar "investment" schemes that promise massive returns from a future revaluation.