The exchange rate of the Iraqi dinar against the dollar declined today, Thursday

Slight Decline in the Iraqi Dinar Exchange Rate Against the Dollar in the Parallel Market on Thursday

The exchange rate of the Iraqi dinar against the dollar saw a slight decline in today’s Thursday trading in the parallel market, while the rate remained stable in the official market. Meanwhile, currency trading activity in Baghdad and other provinces of Iraq has come to a halt. Official data showed that the exchange rates for selling dollars in Iraqi banks and financial institutions are as follows:

• Exchange rate for remittances and letters of credit: 1310 dinars per dollar.
• Direct selling rate: 1305 dinars per dollar.
• Selling rate in banks: 1310 dinars per dollar.

It is important to note that the Central Bank of Iraq does not purchase dollars but only sells them through its designated platform, which is the primary source of foreign currency in Iraq due to oil revenue generated from international sales.

Moreover, the Central Bank of Iraq confirmed that the decisions on dollar sales in banks are fixed and mandatory, with the exchange rate applied only to specific categories, such as travelers. These rates remain unchanged regardless of fluctuations in the parallel market.

Iraqi Dinar Exchange Rate in the Parallel Market on Thursday

In the parallel market, the price of the dollar saw a slight increase, with a variation of around 5 dinars compared to the previous day. At the time of writing this report, the exchange rates were as follows:

• Baghdad: 1490 dinars for selling and 1480 dinars for buying, compared to yesterday’s rate of 1485 dinars for selling and 1475 dinars for buying.
• Erbil: 1485 dinars for selling and 1481 dinars for buying, after recording yesterday’s rate of 1483 dinars for selling and 1481 dinars for buying.
• Basra: 1487 dinars for selling and 1480 dinars for buying, after yesterday’s rates were 1485 dinars for selling and 1477 dinars for buying.

Iraqi Dinar Exchange Rate Against Other Currencies

• Euro: 1398 dinars in banks and 1590.5 dinars in exchange markets.

Factors Affecting the Iraqi Dinar Exchange Rate

1. Currency Auction: The volume of daily sales in the currency auction significantly impacts the exchange rate.
2. Central Bank Measures: The actions taken by the Central Bank in managing external transfers play a crucial role in stabilizing the exchange rate.
3. Demand for Dollars: The increased demand for dollars, especially from traders who need to import goods from countries under economic sanctions, leads to a rise in the dollar price in the parallel market.
4. Transactions with Iran: Some traders use the parallel market to buy dollars to send funds to Iran, which requires dollars due to U.S. sanctions.
5. Dinar Smuggling: The smuggling of Iraqi dinars to other countries to benefit from the exchange rate difference between the official and parallel markets also impacts the rates.
6. Speculative Trading: Leaked information or rumors about potential changes in the dollar exchange mechanism may lead to speculative trading, affecting the prices.

Sources:

• Local sources from the currency market in Iraq.
• Reports on currency auction by the Central Bank of Iraq.