The Iraqi dinar weakened again against the U.S. dollar on Wednesday as currency markets reopened. The decline reflects rising political tension and renewed concerns over Iraq’s future government formation.
With the start of daily trading, exchange rates showed a noticeable drop in the dinar’s value. According to local market data, the price of the U.S. dollar increased sharply compared to the previous evening.
Dr. Jabar Goran, spokesperson for the Sulaymaniyah currency market, confirmed the decline. He said the Iraqi dinar lost 1,500 dinars against the U.S. dollar compared to Tuesday night. As a result, $100 is currently traded at 155,500 Iraqi dinars in local markets.
This drop has raised concerns among traders, importers, and ordinary citizens. Many fear further instability in the coming days.
The decline follows a controversial statement made by U.S. President Donald Trump late Tuesday night. Trump warned on the social media platform Truth Social that he could suspend U.S. financial assistance to Iraq if Iraq ignores U.S. interests or if Nouri al-Maliki forms the next government.
This statement sent a strong signal to currency markets. Traders reacted quickly. Demand for the U.S. dollar increased, while confidence in the dinar weakened. As a result, the exchange rate shifted within hours.
Market analysts say political messages from Washington often have an immediate effect on Iraq’s currency. This is due to Iraq’s dependence on foreign reserves, dollar inflows, and international financial cooperation.
Financial experts say a new Iraqi government must be formed before uncertainty eases. They say the exchange rate is unlikely to stabilize in the short term.
However, analysts expect the dinar to remain above 150,000 dinars per $100 for now. At the same time, they warn that ignoring U.S. concerns could intensify pressure on the dinar.
Some experts predict that the price of $100 could exceed 160,000 dinars if political tensions escalate further. Such a scenario would increase inflation risks and raise import costs across Iraq.
For now, markets remain cautious. Traders are closely watching political developments, both inside Iraq and abroad.
