ARTICLE AD BOX
With the start of the implementation of the European audit system “ASYCUDA” in Iraq, the exchange rate of the dollar rose within the parallel market, which economists considered a normal matter in the first stage of implementation. Since the beginning of December, Iraqi markets have witnessed a gradual rise in the exchange rate of the dollar in the parallel market, reaching 1430 dinars after a period of stability in which the dollar reached less than 1390 dinars.
This continuous increase coincides with the entry into full implementation of the European audit system “SKODA” at customs ports, a system that relies on digital tracking and linking customs data with banks, which reduces reduced invoices and non-conforming documents.
Skoda advanced connectivity system
Skoda represents a digital inspection system developed in Europe, a transition from a customs model based on the traditional document to a system that links customs data with banks and ports. Once the system is operational, it is no longer possible to pass goods based on low-value invoices or non-conforming documents. The system fixes the true price of goods according to international databases, matches certificates of origin with transfer movements, and prevents any transaction in which financing transparency is not available.
Economic experts believe that this transitional phase, although a step towards greater transparency and discipline, naturally generates temporary pressures on the market and raises the actual demand for the dollar, especially with the increasing talk about the possibility of tightening banking compliance rules related to foreign transfers.
Dollar exchange rate rise
Financial and banking expert Mahmoud Dagher said that the rise in the dollar exchange rate in the parallel market came after the announcement of the implementation of the ASYCUDA customs system starting from December 1st.
He explained that the current application includes only four goods, namely gold and jewelry, mobile phones, cars and refrigeration equipment, and that the mechanism will be extended to include all goods at the beginning of 2026.
Dagher added that the government may face challenges in implementing the system within the border crossings in northern Iraq, as they do not rely on Skoda, which will hinder the ability of traders there to conduct financial transfers officially, making the market watchful for any reactions that may come during the next stage.
He added that this system created a “temporary duplication” of fees between the old and new systems, which led to additional pressure on the market and short-term effects on the exchange rate.
On the other hand, economic researcher Ali Awad believes that the recent rise in the dollar exchange rate is a natural result of the transitional phase the country is going through with the full implementation of the European customs audit system “Skoda”.
He explained that the market is undergoing a comprehensive restructuring of import costs, which usually leads to a temporary increase in demand for the dollar before prices stabilize at new levels that demonstrate the ability of institutions to manage the transition and secure official channels that comply with the requirements of the new system.
Awad added that there are serious concerns being raised today about possible attempts to sabotage the program.
He pointed out that previous experiences have shown the ability of some influential parties to disrupt customs reform efforts and to thwart similar systems by circumventing procedures or hindering their implementation.
English (US) ·