Shafaq News – Baghdad

The dollar spiked in Iraq’s parallel market on Tuesday as traders reacted to the government’s upcoming 1 December pre-payment customs rule.

Most traders halted dollar sales on Monday, putting immediate pressure on the parallel rate and causing noticeable volatility across several provinces. This came despite the Central Bank of Iraq reaffirming that it has no intention of adjusting the official exchange rate at 1,310 IQD per dollar, and remains committed to monetary stability.

In a statement on Facebook, economic expert Manar Al-Obaidi linked the market’s reaction to the upcoming requirement that customs duties be paid before banks process foreign transfers. He said the “measure aims to curb smuggling, reduce fake import invoices, and limit irregular dollar demand” that has strained Iraq’s reserves, adding that it could raise customs revenues to between 6 and 8 trillion dinars annually.

The shift, he warned, “will generate brief instability,” from rising prices to pushback by groups that depended on unregulated transfers and long-standing customs loopholes, adding that such turbulence is part of the adjustment process as authorities move to strengthen control over the import system.

In Baghdad, yesterday’s trading opened at 142,250 IQD per $100, up from 141,200 IQD a day earlier. Exchange shops priced sales at 143,250 IQD and purchases at 141,250 IQD. In Erbil, the dollar stood at 141,350 IQD for selling and 141,100 IQD for buying.

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