The dollar is declining in Iraq. The reasons start with the citizen’s pocket.
The dollar is declining in Iraq. The reasons start with the citizen’s pocket.
5-22-2025
Information / Baghdad..
The Iraqi foreign exchange market has recently witnessed a significant decline in the dollar exchange rate, due to a combination of economic and social factors that have directly impacted demand in the parallel market.
Iraqi traders have begun to delay imports, driven by expectations that global prices may decline as a result of the decline in oil prices. This has made many of them refrain from entering into large-scale commercial commitments until the economic picture becomes clearer.
In the same context, Iraqi families have begun adopting a more cautious economic approach, rationalizing spending and reducing consumption in anticipation of any unexpected financial developments that could impact their livelihood stability. This new social behavior has also contributed to reducing demand for goods, thereby reducing the need for hard currency.
In addition, government measures have played a significant role in narrowing the gap between the official and parallel dollar rates, by expanding the network of banks that provide dollars at the official rate and facilitating import procedures in accordance with regulatory frameworks.
This has contributed to reducing reliance on the informal market, especially after large shopping centers (hypermarkets) began to spread, relying on imports according to official prices, which provided consumers with reliable and stable alternatives.
In this context, economic expert Safwan Qusay confirmed to Al-Maalouma News Agency that the decline in demand from Iraqis, particularly traders, is due to expectations of a decline in global prices due to the decline in oil prices, which has prompted them to postpone import operations.
He explained that there is a near-state of hesitation regarding the import of various goods, and that Iraqi families have begun adopting a more rational spending policy in anticipation of any future economic developments. He noted that this behavior has directly contributed to reducing demand for the dollar in the informal market.
Qusay added that government efforts to expand access to the official dollar exchange rate through a network of banks, traders’ familiarity with the mechanism for importing at the official rate, and the proliferation of major shopping malls that import goods at the official rate have all contributed to the decline in the dollar exchange rate on the parallel market.
He explained that these measures represent important steps towards achieving relative stability in the exchange market and reducing the gap between the official and parallel rates, which enhances confidence in monetary policy and the local economy.
This decline in the dollar exchange rate is a positive indicator of the effectiveness of current economic and monetary policies and reflects a growing degree of economic awareness among citizens and traders alike.
If these factors continue to combine, the market is expected to witness greater stability in exchange rates in the coming period, which will enhance confidence in the national economy and support financial reform efforts in Iraq.
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