Economic experts have linked the recent decline of the Iraqi dinar against the US dollar to two main factors. They point to regional instability and uncertainty over the appointment of a new governor for the Central Bank of Iraq.
Kaifi Khoshnaw, spokesperson for the Erbil currency market, said exchange markets opened at 10:00 a.m. on Sunday. He noted that $100 traded at 155,500 Iraqi dinars. This means the dinar lost another 150 dinars against the US currency.
The latest decline has increased concerns among traders and investors. Many fear that continued uncertainty could put more pressure on the local currency. They also worry about the impact on prices and market activity.
Meanwhile, economic experts say that the dinar will likely remain unstable. They believe that the situation will continue until Iraq officially appoints a new governor for the Central Bank.
Discussions have focused on appointing Nizar Nasser Al-Amiri to replace Ali Al-Allaq. However, authorities have not approved the appointment yet. The new governor has also not taken office. Hassan said this uncertainty has weakened confidence in the currency market.
The expert also identified regional tensions as another major reason for the dinar’s decline. He warned that the Iraqi dinar could lose more value if the security situation in the Middle East does not improve.
According to experts, the exchange rate could exceed 160,000 Iraqi dinars for every $100 if instability continues. Such a rise would increase pressure on consumers and businesses. It would also raise the cost of imports and foreign currency transactions.
Currency fluctuations have already affected local markets. They have also contributed to higher prices for imported goods and precious metals, especially gold.
Experts announced special coverage of the reopening of financial markets on Monday morning, and will examine the effects of the recent US-Iran agreement on the prices of gold, silver, Bitcoin, and the US dollar.
Experts say the future of the Iraqi dinar depends on political stability, regional developments, and decisions taken by Iraq’s monetary authorities in the coming weeks.
