Iraqi Dinar Sees Volatile Dollar Exchange Rates Again

Dollar price experiences sharp fluctuations, impacting markets

The Iraqi dinar has once again relinquished recent gains against the U.S. dollar, experiencing a notable downturn in currency markets. Following a brief period of appreciation, the dollar’s value has resumed its downward trend, creating instability for traders.

Dollar’s Rocky Path in Iraq

As the weekly trading session commenced on Sunday, July 2025, the dollar’s value, which had seen a slight increase at the start of the day, ended up declining. This pattern follows a recent history of volatility, with the currency experiencing rises and prolonged declines.

Baghdad Market Sees Dollar Drop

In the capital, Baghdad, the exchange rate for 100 U.S. dollars recorded a dip during morning transactions. Banking offices in the local market saw the selling price settle at 14,250 Iraqi dinars for $100. The buying price for the same amount stood at 139,250 Iraqi dinars.

Erbil Faces Similar Dollar Decline

The city of Erbil mirrored Baghdad’s trend, with dollar exchange rates experiencing a decrease in both buying and selling. The price for selling $100 in Erbil’s banking sector fell to 140,050,50 Iraqi dinars. The buying rate for $100 in Erbil’s banking offices was recorded at 139,950 Iraqi dinars.

Overall, the parallel market witnessed a decline of approximately 300 to 400 Iraqi dinars. In contrast, the official market maintained stability, with the dollar pegged at 1,300 Iraqi dinars to one U.S. dollar.

Currency fluctuations can significantly impact the cost of imported goods and the purchasing power of citizens. For instance, a study by the World Bank in 2023 highlighted that a 10% depreciation of a country’s currency can lead to a 2-5% increase in inflation for import-dependent economies (World Bank, 2023). This underscores the importance of monitoring and understanding the dynamics of the Iraqi dinar’s exchange rate.