The Iraqi dinar reached its strongest level of 2026 on Sunday, with $100 trading for less than 150,000 dinars in currency markets across the Kurdistan Region.
Haji Sabir Bawaji, head of the Erbil Currency Exchange Market Council, said on July 26 that dealers were exchanging $100 for 149,750 dinars.
Currency traders in Sulaymaniyah reported a similar rate, showing that the dinar had strengthened across the Region’s main exchange markets.
Bawaji said this was the first time in 2026 that the dinar had reached such a strong level against the US dollar. He linked the rise to several factors, particularly improved banking relations between Iraq and the United States.
He added that the suspension of attacks between the United States and Iran had also supported the market. A calmer security environment reduced uncertainty and encouraged greater confidence among traders and consumers.
An increased supply of US dollars in the markets of the Kurdistan Region and the rest of Iraq also helped lower the exchange rate. When more dollars become available, demand pressure usually falls, allowing the dinar to gain value.
The latest rate represents a clear improvement compared with earlier months. From the beginning of March until early July, $100 generally traded between 153,000 and 156,000 dinars.
The stronger dinar could reduce the local cost of imported goods, especially products priced in US dollars. It may also ease pressure on households and businesses that rely on foreign currency for purchases, travel or commercial transactions.
However, exchange rates can change quickly in response to political developments, banking regulations and dollar availability. Traders will therefore continue to monitor relations between Baghdad and Washington, regional security conditions and the supply of foreign currency in local markets.
The market will watch whether the dinar can maintain its gains during the coming weeks and months.
