Iraq’s dollar exchange rate edges up in Baghdad and Erbil

Exchange rate changes in Baghdad and Erbil

Iraq’s currency exchange rates showed a modest rise on Thursday in both Baghdad and Erbil, according to IraqiNews.com.

In Baghdad, the al-Kifah and al-Harithiya exchanges recorded the United States dollar at 1,665.5 Iraqi dinars, up from 1,665 dinars earlier that morning.

Meanwhile, city exchange shops quoted rates between 1,660 and 1,670 dinars per dollar, as reported by Shafaq News.

In Erbil, the dollar traded between 1,663 and 1,664 dinars, also indicating an uptick.

Details of the official rate revision

The movement followed a decision by the Iraqi cabinet on October 7 to adjust the official exchange rate, which led to volatility in the parallel market.

As part of that adjustment, Iraq devalued the dinar, setting the baseline at roughly 1,500 dinars for one United States dollar, up from the previous level of about 1,300 dinars.

The cabinet described the change as a structural adjustment representing a 14.5 percent decline relative to the framework that had been in effect since early 2023.

Erbil serves as the capital of Iraq’s Kurdistan region.

Impact on the parallel market

After the announcement, parallel market rates in Baghdad and Erbil surged, with exchange shops noting gains exceeding 1,700 dinars per dollar.

A photograph from Basra shows a currency exchange agent handling United States dollars, credited to Hussein Faleh/AFP.