“Price bubble”: Speculation and central bank changes put pressure on the dollar exchange rate in the Iraqi market.
“Price bubble”: Speculation and central bank changes put pressure on the dollar exchange rate in the Iraqi market.
2026-06-21
Shafaq News – Baghdad
Financial expert Walid Eidi confirmed on Sunday that the rise in the dollar exchange rate in local markets during the current period is mainly due to speculation and the prevailing uncertainty in the market, along with the psychological factor of the change in the management of the Central Bank, despite the continued stability of the official exchange rate.
Eidi told Shafaq News Agency that the continuous official statements regarding the stability of the exchange rate did not prevent speculation in the market, noting that the recent changes in the management of the Central Bank, especially the replacement of the governor, had a psychological impact that contributed to increased pressure and higher prices.
He added that these factors combined have created a state of uncertainty among traders, while there are no fundamental or real economic reasons to justify the current rise in the dollar’s price, indicating that what is happening is closer to a “price bubble” resulting from speculation than a reflection of basic economic variables.
He pointed out that external factors are moving towards de-escalation, in light of indications of solutions to regional crises, including the agreement between Iran and the United States, which may reduce tensions and support market stability, expecting a decrease in pressure on the exchange market as uncertainty recedes.
The exchange rate of the dollar against the Iraqi dinar has been gradually rising over the past few days, reaching about 165,450 dinars per 100 dollars in Baghdad stock exchange as of Sunday evening, amid continued speculation in the market.
Earlier today, the Prime Minister oversaw the handover ceremony of the position of Governor of the Central Bank between the new Governor, Nizar Nasser Hussein, and the former Governor, Ali Mohsen Al-Alaq. He stressed the importance of proceeding with reforms in the banking sector, enhancing financial stability, and keeping pace with digital transformation. He praised Al-Alaq’s efforts during his tenure and directed that he be appointed as an economic advisor to the Prime Minister.
shafaq.com
