The Iraqi dinar weakened sharply against the US dollar on Tuesday, with $100 reaching 154,000 Iraqi dinars in Erbil’s currency market.
Haji Sabir Bawaji, head of the Erbil Currency Exchange Market Council, said the dollar climbed to 154,000 dinars per $100 on August 11.
In Sulaymaniyah, traders exchanged $100 for about 153,950 dinars during the same day.
The latest move marks a clear rise from Monday’s closing rate. At the end of trading, $100 sold for around 152,850 dinars across markets in the Kurdistan Region.
Bawaji linked the dinar’s decline mainly to a shortage of cash liquidity in Iraq. He said the federal government has openly acknowledged that available cash remains limited.
He added that political and security concerns are also affecting market confidence.
Bawaji pointed to discussions over disarming armed groups in Iraq in September as another source of uncertainty. He said some people are buying more dollars because they fear possible developments in the coming months.
Higher demand for the US currency can place additional pressure on the dinar, especially when cash liquidity remains tight.
The dinar had strengthened significantly in late July. On July 26, $100 traded at around 149,750 dinars, its strongest level this year.
Since then, the exchange rate has moved in the opposite direction.
Compared with the July 26 level, the price of $100 has increased by more than 4,000 dinars.
Currency traders are now closely watching political developments, cash availability and market demand.
Any further increase in dollar buying could weaken the dinar further.
For now, the market remains volatile, with traders and consumers monitoring daily changes in the exchange rate across Erbil, Sulaymaniyah and other cities.
Market participants expect exchange rates to remain sensitive to liquidity conditions, government policy, security developments and public demand for foreign currency during the coming weeks ahead.
