The value of dinar to US dollar varies widely. Sometime around World War I, the dinar replaced the Indian rupee as Iraq’s official currency and it has been in a sort of state of transition since that time. Up until 1959 the Iraqi dinar was pegged to the pound. This prevented it from ever really being an Iraq currency. It did not allow the sort of policy flexibility that the country needed.
In spite of the dinar not becoming a sort of independent currency until 1959, it has been issued by the National Bank of Iraq since the 1940s. And this would make sense. Iraq is a much older civilization than the civilization of Great Britain is. It is, in a sense, the cradle of civilization.
The American states with the highest populations of Iraqi immigrants are Michigan, California and Illinois. And these populations have grown increasingly influential in recent years as Iraq has become a national priority of the United States. The value of dinars to US dollars has been volatile, but one thing is certain. It is necessary that Iraq at some point be able to develop an independent currency if it is ever going to diversify its economy.
At the moment, the economy of Iraq is largely dependent on oil exports. This makes a lot of sense for them. The value of oil is always high. Nonetheless, it can give rise to a government where corruption is rampant and cronyism is a serious problem. It is for this reason imperative that Iraq be able to develop a strong dinar.
The value of dinar to US dollars will not be stabilizing any time soon. Nonetheless, it will be more likely to stabilize as people learn to build bridges between Iraq and America more thoroughly.