In most of the world's economies reflects the local currency exchange rate of the strength of the national economy and the extent of its involvement in the orbit of world trade imports and exports, as well as the nature and size of the inflows and overseas financial flows from the country. In the oil countries there is a second story, it is often linked to local currency exchange rate supplier of oil flows.
In Iraq, the path of exchange rates disclosed during the past five decades, from that fact Bodh, the Iraqi dinar has witnessed the beginning of the seventies of the last century, when the oil revenues flowing profusely, up striking to touch (3) per dollar against the dinar. While the dinar exchange rate collapsed after the freezing of Iraq's oil exports early nineties to reach nearly 3000 dinars per dollar. But after 2003, and the expansion of oil exports and recovery levels of oil prices returned exchange rates to rise again around 1200 dinars per dollar.
The dominance of oil on the dinar
Iraqi economy horribly exposed on the outside to provide the needs of the country's goods and services due to the weakness of national production to meet the minimum demand of the public on the various types of consumer and investment goods. This is actually committed the government with its institutions (especially the central bank) to stabilize exchange rates at appropriate levels to secure citizen access to goods and services commensurate with the current income levels.