The US dollar exchange rate in Iraq continued to fall, affecting currency markets in Baghdad and Erbil. In Baghdad’s Al-Kifah and Al-Harithya stock exchanges, the rate dropped to 1,475 dinars per dollar, lower than the 1,479.5 dinars recorded earlier.
Currency exchange shops in Baghdad reported different rates, ranging between 1,485 dinars and 1,465 dinars per dollar. Meanwhile, in Erbil, the US dollar exchange rate also declined, fluctuating between 1,473.5 and 1,472.5 dinars per dollar.
The Central Bank of Iraq (CBI) introduced a new exchange rate in February 2023. The bank set the official rate at 1,300 dinars per dollar, replacing the previous 1,450 dinars per dollar rate. This adjustment aimed to stabilize the market and reduce exchange rate differences.
Despite this effort, the market reacted slowly. In January 2023, the official rate remained at 1,450 dinars per dollar, but the parallel market traded the US dollar at 1,610 dinars per dollar. This difference created more than a 10% gap between the official rate and market rate.
The US dollar exchange rate in Iraq has recentlyshown signs of stability. The difference between the official rate and the market rate is getting smaller. Currency traders and financial experts are closely watching these changes.
Many factors influence these fluctuations. The Central Bank’s policies, global market trends, and local economic conditions all play a role. The government continues to monitor the exchange rate to ensure stability in Iraq’s financial system.
