The Iraqi dinar gained slightly on Tuesday compared with the previous day. However, currency traders said the market still awaits a final decision from the Central Bank of Iraq to restore confidence and stabilize exchange rates.
As trading opened in Erbil, 100 US dollars traded at 156,900 Iraqi dinars. Later in the morning, at around 11:00 a.m., the rate climbed to 157,700 dinars for every 100 dollars.
Meanwhile, currency exchange dealer Rewaz Mirza from Sulaymaniyah said the exchange rate in the city stood at 157,000 dinars per 100 US dollars.
On Monday, the dollar climbed to 160,200 dinars per 100 dollars. However, the Iraqi dinar recovered slightly after the Central Bank of Iraq released a statement to address market concerns.
The Central Bank said it has no plans to change the official value of the Iraqi dinar. Moreover, it reaffirmed its commitment to maintaining exchange rate stability. It also pledged to meet market demand for US dollars under approved international standards.
Despite the statement, traders want stronger reassurances from the central bank. Rewaz Mirza said the market needs clearer guarantees before conditions can fully stabilize. He added that many people still fear further losses in the dinar’s value. As a result, many holders of Iraqi dinars continue to convert their money into US dollars.
Earlier, rumors spread across the market about a possible adjustment to the official exchange rate. Some reports claimed that the value of 100 US dollars could rise from 132,000 dinars to 145,000 dinars. Consequently, these rumors triggered panic and increased demand for dollars.
However, the Central Bank’s denial eased some concerns. Nevertheless, uncertainty remains high and public confidence has not fully returned.
For now, traders continue to monitor the Central Bank of Iraq closely. They hope additional measures will stabilize the foreign exchange market and reduce pressure on the Iraqi dinar.
