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Economist: 10 Reasons Behind The Decline In The Dollar Exchange Rate Against The Iraqi Dinar
Monday, July 28, 2025 14:38 | Economic Number of reads: 217 Baghdad / NINA / Economic expert, Manar Al-Obaidi, confirmed on Monday that the continuous decline in the dollar exchange rate against the Iraqi dinar is due to ten main reasons, noting that these factors are intertwined, and their varying impact has collectively contributed to strengthening the dinar in the parallel market.
Al-Obaidi explained in a post on his official Facebook page that the most prominent of these reasons are the state of "economic contraction anddeclining consumer confidence," the suspension of government investment expenditures, and the tightening of control over border crossings, in addition
to traders' shift to official banking platforms, the decline in re-export operations, and the settlement of some foreign companies' dues in petroleum products instead of cash.
He pointed out that "preparations for the electoral process played a role in increasing the supply of the dollar after
political blocs resorted to converting their cash reserves into dinars to finance their campaigns, while the increase in the number of foreign arrivals and the cessation of illegal trade with Syria contributed to increasing the availability of the dollar in the markets."
Al-Obaidi pointed out that: “The Central Bank’s withdrawal of a portion of the monetary supply in dinars created additional demand for the local currency, which led to a gradual decline in the dollar,” stressing that: “The arrangement of these reasons reflects the extent of each of their impact on the parallel market, without denying the existence of other undisclosed factors that may contribute to this decline.” /End https://ninanews.com/Website/News/Details?key=1243368
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