USD to IQD Soars: Iraqi Exchange Rate Update

The Iraqi Dinar (IQD) has been caught in a wave of volatility against the US Dollar (USD) recently. Today alone, the exchange rate jumped sharply, with an exchange of 150,250 dinars per $100 . This represents a significant increase compared to yesterday’s rate of 148,850 dinars per $100, reflecting a nearly 1.4% rise in a single day.

While the recent surge in the dollar exchange rate against the Iraqi Dinar has raised concerns, it’s important to consider the impact on different segments of the Iraqi population. This rise is primarily influenced by shifting market dynamics and the initial announcement, later retracted, of potential strikes by currency exchange providers, as confirmed by our source at the Central Bank of Iraq.

It is worth noting that following recent de-dollarisation efforts, a significant portion of everyday transactions within Iraq occur in dinars. This means that for many Iraqis, the immediate impact on purchasing power for essential goods and services might be less pronounced compared to those heavily involved in international trade or relying on dollar-denominated transactions. Nonetheless, the long-term stability of the Dinar remains crucial for a healthy Iraqi economy, highlighting the need for continued economic reforms and diversification efforts.