Iraq’s US dollar exchange rate experienced a modest increase on Sunday in both Baghdad and Erbil, signaling minor currency market fluctuations. Local traders reported slight upward movement in the exchange rate across multiple currency exchange points in the capital city. The trend reflects ongoing adjustments in Iraq’s foreign exchange market over recent weeks.
In Baghdad, the US dollar exchange rate climbed at key stock exchanges, including al-Kifah and al-Harithiya. The rate reached 1,510 Iraqi dinars per US dollar, slightly higher than Sunday morning’s 1,507 dinars per dollar. Currency exchange shops across the city reported rates fluctuating between 1,505 and 1,515 Iraqi dinars per dollar.
Similarly, in the Kurdistan region, Erbil’s exchange market also saw an increase. The US dollar traded between 1,508 and 1,508.5 Iraqi dinars. Market observers attributed the slight rise to ongoing demand for the US dollar in both commercial and private transactions. Local currency traders noted these small variations have minimal impact on daily economic activities for now.
The Central Bank of Iraq previously adjusted the official dollar exchange rate in February 2023. The bank introduced a new benchmark rate of 1,300 Iraqi dinars per US dollar, replacing the previous rate of 1,450 dinars per dollar. This official adjustment aimed to stabilize the foreign exchange market and narrow the gap with parallel market rates.
Despite the official rate, the parallel market often records higher rates. For example, in January 2023, the US dollar traded at approximately 1,610 Iraqi dinars in the parallel market. This discrepancy reflected a significant divergence between official and market-driven exchange rates exceeding ten percent.
Overall, analysts say small fluctuations like Sunday’s increase are common in Iraq’s currency market. They continue monitoring both official and parallel exchange rates to understand broader economic trends. These minor changes in Iraq dollar rate reflect market dynamics without signaling major shifts in monetary policy.
