A country which does not have his own government, either democratic or military dictatorship, would be governed by major foreign forces, same was the case with Iraq, after the invasion of Iraq and specially the downfall of Saddam Hussein in 2003, the government of Iraq went missing and it was governed and controlled by foreign forces, UN and other also but majorly controlled by the US, which also sent troops over there and declared war with the militants operating in Iraq. In the year 2007 the US commission on international religious freedom accused the government of Iraq of engaging into human right violations, their explanation was that the governing forces in Iraq have lit up some riots among different sects of people living in Iraq.
When a country is hit with sectarian riots, it is on the path of civil war, and when even the government is accused of being involved in all of that, favouring one sect of the people, it would be hard to get out the mess that would be created by this situation, and that is what Iraq has realized in all these years, and to date Iraq is in a state of war, combats are been fought every single day. War brings instability uncertainty and further damages the economy, and with the absence of an Iraqi government Iraq faced instability the most in those days, most of the money earned by Iraq through its trade of oil etc was not going in the pockets of Iraqi citizens. That left them more and more frustrated.
In September 2009, general elections were conducted in Iraq. And finally they had a government of their own. Jalal Talabani was then president at the time of election, his successor who is the current president of Iraq is Muhammad Fuad Masum, the government of Iraq has been working day night to fight against the constant threat of terrorism, and trying to get the wheel of economy rolling once again, and in the middle of a war that is easy said than done.
Having been informed about the situation of Iraq, it comes as no surprise that their economy is busted, the currency exchange rates are hard to believe given if you know its power in the past. The Iraqi dinar almost vanished from trade as well as other monetary markets, with exchange rates of 1164 Iraqi dinar to $1, there are not many willing buyers and traders of Iraqi dinar, but having kind of criticized Iraq and its currency, it would be unfair not to give them a bit of credit, with all these hardships and suffering they did not let their industry pack up, it was still in operation, and with own government of Federal Parliamentary Republic there is still hope for the country, and some improvements have been seen with a bit of investment coming through, majority in their oil industry and that has helped stable the ever diminishing rates of the Iraqi dinar.