Iraqi Dinar Slides Below 159,000 per 100 Dollars
The unofficial exchange rate for the US dollar in Iraq has dropped to over 159,000 dinars. The Central Bank of Iraq asserts that its foreign reserves remain sufficient to meet all official demands at the fixed rate.
The value of the Iraqi dinar in the parallel market has fallen sharply. One hundred US dollars now exchanges for over 159,000 dinars. This represents a significant decline from the rate of approximately 150,000 dinars recorded two months ago. The currency has experienced severe volatility in recent years. These fluctuations often align with major political and economic events.
The Central Bank of Iraq issued a statement on Saturday to address the market turmoil. The bank confirmed that it holds sufficient foreign reserves. These reserves cover demands for foreign trade, credit card transactions, and travelers. The CBI maintains the official exchange rate at 1,320 dinars per dollar. This rate applies to government transactions and official channels.
Bank Blames Speculation For Currency Drop
The Central Bank attributed the sharp decline to market speculation. It cited expectations and geopolitical conditions as contributing factors. The statement accused certain parties of exploiting these conditions. The goal of these actors is to destabilize the financial situation. The CBI emphasized that its reserves have remained intact despite the pressure.
The official rate of 1,320 dinars per dollar has been in place since 2023. This rate is not used in local currency exchange markets. The gap between the official and parallel rates remains wide. Economic experts link the recent crash to regional conflicts. The replacement of the CBI governor also played a role in the June decline.
Official Rate Remains Fixed At 1,320
The CBI reaffirms its commitment to the approved exchange rate. It provides cash dollars to travelers at this fixed value. The bank covers bank card settlement transactions at the same rate. Financing for foreign trade is also secured at the official price. The central bank asserts that liquidity is available for all these sectors.
The parallel market rate continues to trade at a premium. The current level of 159,000 dinars reflects high demand for hard currency. This divergence highlights the tension between official policy and market forces. The CBI insists that its position is strong. It denies any shortage of foreign currency reserves.
Regional Geopolitics Impact Local Currency Value
Geopolitical tensions in the region affect the dinar. The US-Israeli war on Iran contributed to the June crash. The dinar briefly traded at 160,000 per 100 dollars during that period. Economic expert Mustafa Hasan identified these factors as primary drivers. The change in CBI leadership also influenced market sentiment.
The current drop to 159,000 dinars follows a similar pattern. Market participants react quickly to external political developments. The official stance remains that the economy is stable. The CBI points to its reserve levels as evidence of stability. The parallel market continues to trade independently of these assurances.
