Sources: The dollar’s value has begun to gradually decline against the dinar following government measures.
Sources: The dollar’s value has begun to gradually decline against the dinar following government measures.
2026-01-06
The Iraqi government, in partnership with the Central Bank and relevant economic authorities, has begun implementing a series of measures and policies that have contributed to a gradual decrease in the exchange rate of the dollar against the Iraqi dinar in local markets, in a step aimed at stabilizing the national economy, protecting the purchasing power of citizens, and reducing speculation in the currency market.
As part of a comprehensive battle to control exchange rate fluctuations, the government issued a package of targeted fiscal and monetary policies, which began to show their effect on gradually reducing the value of the dollar in the parallel market after previous waves of increase.
The most prominent measures taken include focusing on monetary policies, as the Central Bank maintained the official exchange rate of the dinar against the dollar (1,320 dinars) as a fixed basis for official transactions, which provided an important stability indicator in light of market fluctuations. In addition to promoting the use of the dinar, restrictions were imposed on dealing in local transactions in dollars, especially in real estate and luxury goods, which helped to reduce the demand for the US currency directly in the local economy.
Regulating the exchange market and combating speculation
Regulatory measures were implemented to restrict foreign currency transactions to official channels and reduce the role of the black market, which had been experiencing unreasonable price increases. Support was also provided for foreign trade through alternative currencies.
By expanding the use of currencies such as the euro, the yuan, and the Indian rupee, pressure on the dollar in import operations has been reduced, contributing to a decline in demand for it.
Impact of the measures on the markets
Economic experts and official sources confirm that “these policies have begun to bear fruit, as a gradual decrease in the price of the dollar against the dinar has been observed in the local market.”
Government economic advisors stressed that “these measures are not temporary, but rather part of a long-term plan to enhance monetary stability and improve the business environment, while emphasizing that the balance between fiscal and monetary policies will continue to support this trend.”
Coordinated government measures between the Central Bank, the Ministry of Finance, and legislative bodies have resulted in a gradual decrease in the dollar exchange rate in the local market. This has been achieved through supporting the dinar, restricting dollar transactions, and regulating the exchange market. Official sources confirm that this gradual decline is part of a well-considered economic plan to enhance stability, reduce speculation, and improve the overall economic climate.
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