Iraq - 10 Iraqi Dinar Note - P-81 - 1992 dated Foreign Paper Money - Saddam Hussein

Foreign Paper Money. Saddam Hussein at right/Winged lion sculpture at left. The Iraqi dinar was introduced on April 1, 1932, replacing the Indian rupee, which had been the official currency since the British occupation during World War I. The exchange rate was set at 1 dinar = 11 rupees. Initially, the dinar was pegged to the British pound sterling. However, in 1959, the peg was shifted to the United States dollar at a rate of 1 dinar = $2.80, without altering its nominal value. As the US dollar was devalued in 1971 and 1973, the official dinar rate increased to $3.3778. A subsequent 5% devaluation reduced the rate to $3.2169, which remained in effect until the Gulf War in 1990. By late 1989, the black market rate for the dinar was reported to be five to six times higher than the official rate.