US Dollar Exchange Rates Drop in Iraq

The US dollar exchange rates experienced a decline in Baghdad and Erbil, Iraq on Wednesday morning. According to reports, the dollar rates fell with the opening of the Al-Kifah and Al-Harithiya central stock exchanges in Baghdad, reaching 147,200 Iraqi dinars (IQD) per $100. Exchange shops in the city recorded selling prices at 148,250 IQD, with a buying price of 146,250 IQD for $100.

In Erbil, the capital of Iraq's Kurdistan Region, the selling price stood at 147,150 IQD, while the buying price was 147,000 IQD per $100. The decrease in exchange rate was observed in both cities, with Baghdad witnessing the dollar prices falling to 146,700 IQD per $100 at the central exchanges. Exchange shops in Baghdad quoted selling prices at 147,750 IQD and buying prices at 145,750 IQD per $100.

The decline in the US dollar exchange rate against the Iraqi dinar was notable compared to the previous day's rates. On Tuesday, the exchange rate in Baghdad was 1472 dinars per US dollar, whereas on Wednesday morning, it fell to 1469 dinars. Currency exchange shops in the city saw rates ranging between 1480 and 1460 dinars.

The Central Bank of Iraq had previously announced changes to the official exchange rate in February 2023. The new rate was set at 1,300 dinars per US dollar, a decrease from the previous official rate of 1450 dinars. In January 2023, the exchange rate had reached a high of 1610 dinars per US dollar, with a significant gap of more than 10% between the official and parallel market rates.

Why this matters: The fluctuations in the US dollar exchange rate against the Iraqi dinar have significant implications for Iraq's economy and its citizens. The changes in exchange rates can impact the prices of imported goods, affect businesses that rely on foreign currency transactions, and influence the overall financial stability of the country.

The recent decline in the US dollar exchange rates in Baghdad and Erbil on Wednesday morning reflects the ongoing efforts by the Central Bank of Iraq to stabilize the currency market. The central bank's decision to adjust the official exchange rate in February 2023 aimed to narrow the gap between the official and parallel market rates, which had widened significantly in January 2023. As Iraq continues to navigate its economic challenges, the stability of the exchange rate remains a crucial factor in maintaining financial stability and supporting the country's economic recovery.

Key Takeaways

• USD-IQD exchange rates fell in Baghdad and Erbil, Iraq on Wednesday.
• The dollar rate reached 147,200 IQD per $100 in Baghdad central exchanges.
• In Erbil, the selling price stood at 147,150 IQD per $100.
• The Central Bank of Iraq set the official exchange rate at 1,300 IQD per USD.
• Fluctuations in USD-IQD rates impact Iraq's economy and financial stability.