Glossary: dinar
DEFINITION:
Basic currency unit consisting of 1,000 fils; created in 1950 as replacement for the Palestinian pound. Dinar’s value was established at parity with the British pound sterling, or a value of US$2.80 equal to JD1. Jordan, as a member of the sterling area, maintained parity with the British pound until 1967 when the British devalued their currency. Jordan did not follow the pound, retaining the dinar at US$2.80 equal to JD1 through 1972. When United States currency was devalued in 1973, the dinar was unlinked from the dollar, since which time the rate has fluctuated. Beginning in February 1975, the dinar was pegged to the special drawing right (SDR--q.v.). According to International Monetary Fund (IMF--q.v.) data, the average conversion rate of the dinar for trade and other purposes was US$3.04 in 1987, US$2.1 in 1988, and US$1.54 in 1989.