Instructions
Check the denomination. The Iraqi dinar only comes in denominations of 50, 250, 1,000, 5,000, 10,000 and 25,000.
Look at the picture on the front of the dinar. If it is a portrait of Saddam Hussein, former Iraqi dictator, it's not necessarily a counterfeit, but it's not circulating currency. The 50 dinar note features images of the grain silo at Basrah on the front and date palm trees on the back. The 250 dinar note has a picture of an astrolabe on the front and a picture of Samarra's Spiral Minaret on the back. The 1,000 dinar note shows an old, gold dinar coin on the front and the main building of Al-Mustansirya University on the back. The 5,000 dinar note displays the Ali Beg gully waterfall on the front and an ancient desert fortress on the back. The 10,000 dinar note portrays Alhazen, a medieval scholar, on the front and the Hadba Minaret on the back. The 25,000 dinar note has a wheat farmer and tractor on the front and King Hammurabi on the back.
Hold the bill up to the light to verify that there is a security strip that runs through the width of the bill, like in an American $100 bill.
Place the money under ultraviolet light. If parts of it glow, it's real. If not, it's counterfeit.
Rub the letters and numbers on the bill with your fingers. A genuine Iraqi dinar should have raised lettering that you can feel.