Economist: Smuggling and hoarding behind the high demand for dollars in Iraq
Economist: Smuggling and hoarding behind the high demand for dollars in Iraq
1-27-2026
Information/Special..
Economic expert Duraid Al-Anzi confirmed on Tuesday that the rise in the dollar exchange rate in the local market is no longer linked to the Central Bank’s procedures or government policies, noting that the dollar is now mainly affected by the movement of gold and silver prices in global markets.
Al-Anzi told Al-Maalouma News Agency that “the significant rise in gold and silver prices makes it illogical for the dollar to remain in a state of decline,” noting that “the two metals are currently playing a leading role in influencing global currencies, which directly impacts the dollar exchange rate locally.”
He added that “the demand for dollars in the Iraqi market has also increased due to smuggling and hoarding operations,” explaining that “the difference between the official price adopted in the budget, the price at which the Central Bank sells to banks, and the market price, has created a large gap that has encouraged citizens and traders to acquire and hold onto dollars.”
Al-Anzi pointed out that “this acquisition has begun to shift from mere saving to trading and speculation, especially with the worsening political crises in the region, stressing that the continued political and economic instability in the region prevents any real decline in the price of the dollar.”
He pointed out that “a decrease in the price of the dollar will not be achieved without political stability in the region, in addition to global economic stability, especially with regard to gold and silver prices, considering that fluctuations in global currencies are directly reflected in the Iraqi market.”
Al-Anzi criticized the caretaker government’s handling of the exchange rate issue, arguing that the lack of a clear vision and reliance on fluctuating decisions contributed to deepening the crisis instead of resolving it.
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