The US dollar exchange rate slightly rose across Iraq, affecting both Baghdad and Erbil’s currency markets. On Sunday, trading activity reflected the upward movement in several exchange locations.
In Baghdad, the rise appeared most clearly in Al-Kifah and Al-Harithiya stock exchanges. Here, the US dollar exchange rate reached 1,401 Iraqi dinars compared to 1,398 earlier in the morning. Moreover, currency exchange shops reported rates fluctuating between 1,412 and 1,392 dinars, showing variations depending on the area and demand.
Meanwhile, in Erbil, market fluctuations kept the exchange rate between 1,401.5 and 1,400 Iraqi dinars. This movement, while slight, indicated the continued influence of market forces and regional trading activity on the currency’s value.
The Central Bank of Iraq has played a significant role in stabilizing the currency in recent years. In February 2023, it introduced a new official US dollar exchange rate of 1,300 dinars per dollar. This adjustment aimed to control volatility and reduce the gap between official and market rates.
Previously, the official rate stood at 1,450 dinars per dollar, while the parallel market sometimes traded as high as 1,550 dinars. In January 2023, the parallel market even saw the dollar reach 1,610 dinars. This difference represented more than a 10 percent gap between official and unofficial rates, creating challenges for importers, businesses, and everyday consumers.
Additionally, analysts note that even small changes in currency value can impact prices of goods and services across Iraq. Therefore, monitoring the dollar’s movement remains crucial for both the public and policymakers. Furthermore, exchange rate trends often influence inflation rates and the overall economic stability of the country.
Looking ahead, experts expect the Central Bank to continue balancing currency supply with market demand. Although the recent increase is minor, it still draws attention from traders, businesses, and households who are directly affected by such changes.
By keeping a close watch on international market trends and internal trading activity, Iraq can aim for greater currency stability. Ultimately, maintaining balanced rates will support economic growth and financial confidence across the country.
