What is the official currency of Iraq?

The correct answer is the Iraqi Dinar (IQD), the sole legal tender of the Republic of Iraq, issued and regulated by the Central Bank of Iraq. The dinar has been Iraq's national currency since the early twentieth century, replacing the Indian rupee that had earlier circulated in the region under British administration, and it remains the medium of exchange for all domestic transactions, government accounts and trade settlements within the country today. The Iranian Rial belongs to Iran, Iraq's eastern neighbour, and the two nations, despite sharing a long land border and considerable trade, maintain entirely separate currencies and central banks. The Kuwaiti Dinar is the currency of Kuwait, a small Gulf state to Iraq's southeast; although both countries use a currency called 'dinar', the Kuwaiti Dinar and Iraqi Dinar are distinct, non-interchangeable currencies with very different exchange values, and this shared naming is the classic exam trap here. The Saudi Riyal belongs to Saudi Arabia, another of Iraq's neighbours, and again shares no monetary union with Iraq. Candidates often assume that because several Gulf and Middle Eastern currencies bear similar names, they might be interchangeable or even a single regional currency, but this is factually incorrect; each Arab or Middle Eastern nation issues and controls its own sovereign currency. The safe revision takeaway is to remember the pairing 'Iraq — Iraqi Dinar (IQD)' independently of the superficially similar-sounding Kuwaiti Dinar, and to keep Iran's Rial and Saudi Arabia's Riyal firmly attached to their respective countries rather than to Iraq.