Expert: Iraq's dollar exchange rate drop temporary

Shafaq News/ The recent decline in the exchange rate of the US dollar against the Iraqi dinar is only "temporary," according to economic expert Mohammed Al-Hassani, who expects prices to return to previous levels soon.

Al-Hassani attributed the market fluctuations to traders "taking advantage of false speculation and unverified reports to artificially influence demand for the dollar," noting that the gap between the official exchange rate set by the Central Bank of Iraq and the parallel market remains wide—exceeding 17,000 to 18,000 dinars.

Analysts highlight currency controls, delays in foreign transactions, and Iraq’s ongoing reliance on dollar-based imports as "key factors maintaining this disparity," limiting the central bank’s ability to stabilize the market, forcing businesses to turn to the parallel market at inflated rates.

Over the past week, the exchange rate in Iraqi local markets fell from 150,700 dinars per 100 US dollars to 149,300 dinars.