Shafaq News- Baghdad

The state-owned Trade Bank of Iraq (TBI) began on Wednesday supplying foreign currency to the market through official banking channels to support the Iraqi dinar and ease dollar shortages.

The bank said it is injecting cash in foreign currency to meet the needs of trade and other economic activities, while monitoring the market to assess demand. The aim is to limit exchange-rate swings and strengthen the banking sector's role in stabilizing the local market, it said.

Read more: Why Iraq's dinar keeps sliding despite fresh US cash

Iraq's new official exchange rate took effect today, with the Central Bank now buying dollars from the Finance Ministry at 1,500 dinars, selling them to banks at 1,510 and selling cash dollars to the public at 1,520, up from 1,320 previously. On the parallel market, the dollar rose to about 1,680 dinars after the devaluation was announced.

Read more: Iraq’s dollar rate increase draws lawmaker backlash