Assurances regarding the high dollar exchange rates in the Iraqi market
Assurances regarding the high dollar exchange rates in the Iraqi market
6-23-2026
The recent surge in the dollar’s price on the parallel market has brought back to the forefront concerns about the stability of the exchange rate in Iraq, after the selling price exceeded 157,000 dinars per 100 dollars. This development has raised widespread questions among citizens and traders about its real causes and whether it reflects anticipated changes in monetary policy or is merely a temporary response to the atmosphere of regional tension and market speculation.
Despite the rise recorded in recent days, economic and financial experts confirm that official indicators do not reflect any change in the approved exchange rate or in the state’s monetary policy, attributing what is happening to the interaction of a group of psychological and economic factors related to rumors, speculation, and geopolitical developments in the region.
In this context, financial and banking expert Mustafa Hantoush told the official newspaper that “the current increase in the dollar exchange rate in the parallel market is mainly related to speculation and rumors about the possibility of adjusting the official exchange rate in the coming period.”
Hantoush explained that “the circulation of such news, despite the absence of any official indicators or decisions supporting it, prompted some traders and speculators to expand their purchase of dollars in anticipation of any possible changes, which led to an increase in demand and a rise in prices in the parallel market.”
He added that “these behaviors negatively affect economic activity, because they raise import costs and are reflected in the prices of various goods, as well as contributing to creating a state of anxiety and instability within the markets.”
He stressed that “any adjustment to the exchange rate is subject to monetary policy considerations managed by the Central Bank of Iraq, and cannot be based on speculation or immediate pressures,” noting that “official authorities have not yet issued any announcement or indication regarding changing the official price of the dinar.”
He explained that “the new governor of the central bank may consider various options related to managing monetary policy in the future, but talk of an imminent adjustment to the exchange rate remains mere speculation not based on official information.”
Hantoush stressed “the need to curb speculation that disrupts the market,” noting that “the Central Bank has sent reassuring messages to dealers during the past period, and it is expected to continue taking the necessary measures to maintain the stability of the exchange rate and enhance confidence in the banking sector.”
For his part, economic researcher Ahmed Eid indicated in a statement to the official newspaper, which was followed by Alsumaria News, that “the rise in the exchange rate in the parallel market resulted from the overlap of several internal and external factors at the same time.”
He explained that “geopolitical tensions in the region and the accompanying concerns about the security of navigation in the Strait of Hormuz are causing concern in the markets, given the potential impact on Iraqi oil exports and government revenues, which represent the main source of foreign currency.”
He added that “these concerns have prompted a number of traders and importers to increase their dollar holdings in anticipation of any potential disruptions that may affect trade or financial transfers, which has raised demand levels in the parallel market.”
He pointed out that “the continuation of some restrictions and procedures related to foreign transfers pushes part of the demand towards the informal market, which contributes to widening the gap between the official price and the parallel market price, especially during periods of tension and uncertainty.”
Eid also pointed out that “recent developments related to the inclusion of Iraq on the Financial Action Task Force’s grey list have contributed to increasing concerns among some traders about the future of foreign financial transactions and transfers, which has indirectly affected the movement of the exchange market during the recent period.”
burathanews.com
