The Iraqi dinar weakened further on Monday. The exchange rate moved sharply in Kurdistan Region markets. By midday, 100 US dollars passed 160,000 dinars.
Haji Sabir Bawaji, head of the Currency Exchange Union in Erbil, reported strong fluctuations in the market. He said the rate hit 160,200 dinars before it dropped again during trading.
“At around 1:30 p.m., 100 dollars reached 159,100 dinars,” Bawaji said. Sulaymaniyah’s market showed similar movement. Traders there sold 100 dollars at around 159,000 dinars.
On the previous day, the market opened at a lower level. At that time, 100 dollars equaled 155,450 dinars. The rate jumped quickly within 24 hours.
Bawaji linked the instability to speculation in the market. He pointed to rumors after changes in the Central Bank of Iraq leadership. Some traders expect new rules on dollar sales in the coming months.
He said rumors claim the central bank may sell 100 dollars for 132,000 to 145,000 dinars starting in September. He stressed that no official decision confirms this.
“These reports remain unofficial,” he said. “The Central Bank should issue a clear statement to stop confusion.” He added that clear communication from the central bank can stabilize the market. It can also rebuild trust in the dinar.
Currency dealers continue to react cautiously. Demand for US dollars keeps pressure on the local currency. Economists say strong policy control can improve stability. They also call for clear government communication to calm the market.
Until then, exchange rates may continue to move sharply in Erbil and other Kurdistan Region cities.
