The Iraq dinar exchange rate weakened on Saturday as the US dollar gained value in both Baghdad and Erbil. The increase came at the opening of major currency markets in the capital, pushing rates higher than earlier in the week.
In Baghdad, the Al-Kifah and Al-Harithiya stock exchanges opened with a rate of 144,000 dinars per 100 US dollars. Just two days earlier, the rate was slightly lower at 143,850 dinars. This marks a steady upward shift in dollar value.
Local exchange shops in Baghdad also raised their rates. They sold US dollars for 145,000 dinars and bought them at 143,000 dinars. The sharp difference between buying and selling rates reflects growing market uncertainty.
Meanwhile, in Erbil, the dollar traded at 144,200 dinars for selling and 143,900 dinars for buying. Although slightly lower than Baghdad’s market, the northern city followed the same rising trend.
Currency traders say demand for the dollar has increased due to economic tension and regional instability. In particular, concerns about the ongoing conflict in nearby countries may have caused people to shift their savings to the US dollar.
The rising Iraq dinar exchange rate also affects everyday transactions. Importers now pay more for foreign goods. Shoppers and travelers feel the pressure as the dinar buys less than it did earlier in the week.
Financial experts warn that continued increases in the exchange rate may reduce public trust in the dinar. They suggest that the central bank monitor currency movements closely to avoid inflation.
Exchange offices in both Baghdad and Erbil reported higher trading volumes on Saturday. Many customers rushed to buy dollars before further increases. As the Iraq dinar exchange rate continues to shift, traders expect more fluctuations in the coming days.
The Central Bank of Iraq has yet to release a statement on the current trend. However, observers believe that further changes in the political and security environment could drive rates even higher.