The USD/IQD Exchange Rates continued its gradual decline against the Iraqi dinar in both Baghdad and Erbil this week, signaling a modest shift in Iraq’s local currency market. According to a survey, central exchanges in Baghdad, including Al-Kifah and Al-Harithiya, recorded a rate of 141,000 IQD per $100, down from 141,550 IQD.
Additionally, local USD/IQD exchange shops in Baghdad also reflected the weakening dollar trend. The selling price of the US dollar dropped to 142,000 IQD per $100, while the buying price stood at 140,000 IQD. Traders explained that the minor decline is linked to increased liquidity in the market and calmer conditions following recent fluctuations. Some businesses also reported slightly lower demand for foreign currency, which contributed to the rate adjustment.
Moreover, in Erbil, the dollar mirrored Baghdad’s downward trend. Traders recorded exchange rates at 140,650 IQD for selling and 140,550 IQD for buying per $100.Analysts highlighted that the small drop in Erbil is consistent with broader market dynamics, including cross-border trade, import needs, and cash flow in the private sector.
Therefore, Central Bank of Iraq also influences the modest weakening of the US dollar against the dinar by monitoring monetary flows and maintaining market stability.While the changes may seem minor, they directly affect businesses, importers, and ordinary citizens who rely on US dollars for international transactions.
Moreover, market observers predict that USD/IQD exchange rates could continue to fluctuate slightly in the coming days. Factors likely to influence the trend include government interventions, shifts in demand for the dollar, and ongoing economic developments both domestically and internationally.
In conclusion, the gradual easing of the US dollar provides some relief for consumers and businesses heavily dependent on foreign currency. However, experts advise monitoring the market closely, as external pressures, political developments, and global economic changes could quickly reverse the trend.