USD/IQD exchange rate hits a new low, experts warn of recession

Shafaq News/ The US dollar (USD) exchange rate against the Iraqi dinar (IQD) continues to nosedive in an accelerating manner in Baghdad and Erbil, Shafaq News Agency correspondent reported on Sunday.

Our correspondent said that al-Harithiyah and al-Kifah Central Exchanges are trading the USD at a rate of 142,200 IQD to 100.

Over the past two days, the USD shrugged nearly 5,000 IQD of its value in the Iraqi market, 2300 IQD on Sunday alone.

The buying and selling rates in the parallel markets of Baghdad stood at 142,000 and 144,000 IQD to 100 USD, respectively. While in the capital Kurdistan Region, the selling and buying transactions are being made at a rate of 144,250 and 143,250 IQD to 100 USD, respectively. 

The parallel markets traders deliberately widened the gap between the selling and buying rates to maintain a safe margin for concerns of a further drop in the rate, urging the Central Bank of Iraq (CBI) to adopt a new official rate. 

Financial experts warned of the economic stagnation that might accompany the volatile exchange market by halting trade.