💸💥 Iraqi Markets Caught in Currency Tug-of-War: Official vs. Parallel Exchange Rates! 💰⚖️

1 month ago 4

Key Highlights:

🔍 Currency instability persists despite government and Central Bank efforts to control the exchange rate between the Iraqi dinar and US dollar.
📈 The US dollar rate climbed again in Baghdad and Erbil markets, hitting around 142,500 IQD per $100 in local shops after a recent dip.
⚠️ Unofficial demand, smuggling, and customs complications fuel ongoing fluctuations and pressure on the dinar.
🛑 Experts stress the real fix isn’t just monetary policy but breaking the dinar’s dollar peg and reforming customs to curb smuggling.
📉 Limited supply vs. rising demand, imports from banned neighboring countries, and parallel market price differences all drive the volatility.
Read also: Bank appointment for Currency EXCHANGE Instructions/Checklist,
🗣️ Financial expert Abdul Rahman Al-Shaikhly identifies three main causes:
1️⃣ Scarcity of supply vs. high demand
2️⃣ Traders importing goods from banned neighbors, delayed official dollar provision
3️⃣ Price gap between official and parallel markets encouraging speculation
📊 Public hopes for price stability are shaken as inflation fears rise amid fluctuating exchange rates.
💡 The takeaway: Stabilizing the dinar requires practical reforms beyond just financial decisions — including customs overhaul, border control, and less dollar dependence in trade.