The Iraq dollar exchange rate experienced a notable decline on Tuesday in both Baghdad and Erbil. This shift caught the attention of traders and citizens alike as markets adjusted to recent trends.
In Baghdad, the Iraq dollar exchange rate dropped at the Al-Kifah and Al-Harithiya stock exchanges. It reached 1,411.5 Iraqi dinars, down from 1,415 dinars recorded on Tuesday morning. Meanwhile, currency exchange shops in Baghdad reported rates fluctuating between 1,422.5 and 1,402.5 dinars, according to Shafaq News.
Similarly, Erbil witnessed a decrease in the the exchange rate. The currency exchange ranged between 1,412 and 1,410.5 Iraqi dinars, signaling a modest but consistent downward trend in the Kurdistan region’s capital.
This movement follows decisions by the Central Bank of Iraq (CBI), which in February 2023 adopted a new official rate of 1,300 dinars per US dollar. This new rate represents a significant change from the previous official rate.
Earlier, the official exchange rate stood at 1,450 dinars per dollar. However, the parallel market traded US dollars at 1,550 dinars. This discrepancy created a gap that affected the overall market.
In January 2023, the official rate remained at 1,450 dinars. At the same time, the parallel market rate climbed to 1,610 dinars. This extreme difference amounted to over 10 percent, causing challenges for currency stability.
Overall, the Iraq dollar exchange rate continues to fluctuate as authorities and markets work to narrow the gap. Worried traders and citizens remain watchful as these rates affect daily economic activities.
The Central Bank’s steps aim to stabilize the currency market and bring official and parallel rates closer together. However, market forces still influence the dollar’s value against the Iraqi dinar.
As the situation develops, Iraq’s financial sector will likely face ongoing adjustments. Monitoring these changes will prove crucial for investors and businesses across the country.
