An economist explains the reasons for the decline in the dollar exchange rate.
An economist explains the reasons for the decline in the dollar exchange rate.
9-25-2025
Al-Maalouma/Exclusive…
Economic expert Ali Karim confirmed on Thursday that the recent decline in the dollar exchange rate against the Iraqi dinar is due to several economic and behavioral factors. He pointed out that the increased demand for the dinar, coupled with the decline in confidence in foreign currency among traders and investors, has prompted many of them to exchange dollars and buy gold as a safe haven.
Karim told Al-Maalouma Agency, “There are additional factors that have contributed to this decline, most notably the increase in taxes on imported cars and the decline in the smuggling of foreign currency abroad.”
He explained that “these factors combined have contributed to the decline in the exchange rate of $100 to less than 140,000 Iraqi dinars.”
He pointed out that “this decline is temporary and not permanent, and that the exchange rate is likely to stabilize at 140,000 dinars per $100, but any political or economic crisis in Iraq could directly impact the parallel market, which could push the dollar up again.”
The Iraqi market is witnessing continuous fluctuations in the dollar exchange rate against the dinar due to the local economy’s reliance on imports, in addition to fluctuating foreign exchange reserves. These factors make the local market sensitive to any change in demand for the dollar or changes in fiscal and monetary policies.
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