The Iraq dinar drops again, as the US dollar strengthened on Wednesday across major currency markets. Exchange rate activity showed a clear upward trend in both Baghdad and Erbil, raising new concerns about the local currency’s stability.
At the start of trading, the dollar climbed in Baghdad’s main currency markets. The Al-Kifah and Al-Harithiya stock exchanges opened with rates of 141,050 dinars per 100 US dollars. This marked a noticeable increase from Tuesday’s rate of 140,300 dinars.
In local currency exchange shops across Baghdad, prices also moved up. Sellers listed the dollar at 142,000 dinars, while buyers offered 140,000 dinars. These figures reflect the growing demand for US dollars in Iraq’s street-level financial markets.
Meanwhile, in the Kurdistan Region, Erbil’s exchange rates mirrored Baghdad’s upward trend. There, the dollar’s selling rate rose to 140,850 dinars per 100 dollars. At the same time, buyers paid around 140,650 dinars.
As the Iraq dinar drops, traders and analysts are keeping a close eye on market behavior. They say that these small but consistent increases in the dollar’s value show stress in Iraq’s currency market. In recent weeks, price fluctuations have become more frequent.
Furthermore, the current rise follows earlier changes that saw the dollar decline slightly. Those temporary improvements, however, did not last. Ongoing economic uncertainty, including falling oil revenues and tighter dollar supplies, may be contributing to the renewed rise in dollar rates.
For consumers and businesses, these rate changes affect daily transactions. Imported goods may become more expensive. This puts pressure on both ordinary families and commercial operations. As a result, some traders are holding back on exchanging dinars for dollars, expecting the local currency to drop further.
Additionally, banks and exchange shops are adjusting to the new rates. Many exchange offices now update their boards multiple times per day. As the Iraq dinar drops further, this behavior may become more common.
Unless Iraq’s monetary authorities take action, the dollar’s rise could continue. Market watchers say stability depends on better regulation, improved dollar supply, and public confidence in the financial system.