The US dollar exchange rate has risen in Iraq after a prolonged decline. the exchange rate for the US dollar compared to the Iraqi dinar increased in both Baghdad and Erbil, marking a notable shift in the currency market.
In Baghdad, the US dollar exchange rate reached 1,481 dinars at the Al-Kifah and Al-Harithiya stock exchanges. This was an increase from 1,479 dinars earlier that morning. Currency exchange shops in the capital saw rates fluctuate between 1,490 and 1,470 dinars per dollar.
Similarly, in Erbil, the exchange rate for the US dollar rose, with the value fluctuating between 1,477 and 1,476 dinars.
The Central Bank of Iraq (CBI) had previously set the official exchange rate at 1,300 dinars to one US dollar in February 2023. Prior to this, the exchange rate was 1,450 dinars per dollar, which was still significantly higher than the rate offered by the parallel market. In fact, in January 2023, the US dollar was being exchanged for 1,610 dinars in the parallel market, showing a difference of more than 10 percent compared to the official rate.
The recent rise in the US dollar exchange rate signals shifts in Iraq’s currency dynamics and could influence the country’s economic policies moving forward.
