Observatory: Potential sanctions and speculation shake the dollar market in Iraq
Observatory: Potential sanctions and speculation shake the dollar market in Iraq
2026-09-19
Shafaq News – Baghdad
The “Eco Iraq” economic observatory observed on Saturday a rapid rise in the exchange rate of the dollar in the parallel market against the Iraqi dinar, noting that the current rise is due to several factors, including fears of possible American sanctions against Iraq.
The observatory stated in a statement received by Shafaq News Agency that “the current rise is not related to one factor, but rather comes as a result of the overlap of several economic, financial and psychological factors,” indicating that “among the most prominent of these are the speculations in the parallel market, which are active from time to time, taking advantage of the high demand for the dollar and the decline in its supply.”
He added that “concerns and speculations related to the post-September 30th deadlines, and what is being discussed regarding the issue of restricting weapons to the state, along with talk of American sanctions or possible measures,” explaining that “this increases the state of uncertainty in the market and pushes some traders to increase the demand for the dollar.”
The Economic Observatory explained that “another reason is the decline in confidence in the banking sector from time to time, which represents an additional factor in increasing the demand for the dollar,” pointing to the crisis of Al-Taif Bank and the imposition of guardianship over it by the Central Bank of Iraq on September 3.
In conclusion, the Eco Iraq Observatory called on the Central Bank of Iraq to “closely monitor developments in the exchange market and take appropriate measures to curb speculation and maintain market stability, thereby contributing to strengthening confidence in the Iraqi dinar and the banking sector.”
shafaq.com
