The Iraqi dinar continues to weaken against the U.S. dollar. In both Iraq and the Kurdistan Region, the exchange rate for 100 dollars has exceeded 155,000 dinars. Economists say several factors are driving the decline.
On Wednesday, June 17, 2026, Manar Al-Obaidi, head of the Iraq Future Center, said the Central Bank of Iraq had increased the amount of printed Iraqi dinars. According to him, the money supply rose from 100 trillion dinars to 120 trillion dinars in recent years.
Al-Obaidi said the increase in printed currency has pushed the dollar’s value higher. At the same time, the supply of dollars has remained limited. Consequently, the exchange rate has come under additional pressure.
He also said that improving security conditions and the reopening of the Strait of Hormuz have increased demand for imported goods. However, restrictions on money transfers have prevented official channels from meeting all demand for dollars. As a result, traders have turned to the parallel market.
Meanwhile, Ziad Tai, a representative of Iraq’s Association of Exchange Companies, said a return to the previous rate of 145,000 dinars per 100 dollars is unlikely. He argued that border crossings still lack full control. Additionally, many goods still enter Iraq outside the electronic customs system.
Therefore, traders often rely on the black market to secure dollars. Tai believes that only an agreement between the United States and Iran could lower the exchange rate to around 151,000 or 152,000 dinars per 100 dollars.
On the other hand, Mudhhir Mohammed Salih, financial adviser to Prime Minister Mohammed Shia Al-Sudani, said seasonal factors have affected the market. He explained that demand for dollars usually rises during the summer. More Iraqis travel abroad during this period and need foreign currency.
Salih also said that parts of Iraq’s informal trade sector still operate outside the banking system. Consequently, additional demand for dollars continues to grow. He further pointed to misinformation and higher U.S. interest rates as factors affecting the market.
According to Salih, the Central Bank of Iraq must preserve exchange-rate stability through effective monetary policy tools.
