The Ministry of Commerce has warned traders against exploiting recent changes in the currency market. Officials say the government is closely monitoring markets to prevent hoarding and unjustified price increases as the dollar exchange rate rises.
Today, Wednesday, with the reopening of local markets, the Iraqi dinar recorded another slight decline against the U.S. dollar. The exchange rate fell by 1,500 Iraqi dinars. As a result, $100 now trades at 155,500 Iraqi dinars in local markets. This decline has raised concerns among consumers and traders alike.
The fall in the dinar comes amid political uncertainty. Former U.S. President Donald Trump warned that the United States may suspend financial support for Iraq if Iraqi authorities ignore U.S. interests and enforce new government regulations. These statements have added pressure to the currency market and increased volatility.
Sarwar Kemal Hawari, spokesperson for the Ministry of Commerce and Industry in the Kurdistan Region, said fluctuations in the dollar exchange rate directly affect citizens’ daily lives. He explained that nearly 90% of goods in the Kurdistan Region are imported. Many essential commodities enter the market through dollar-based transactions. Therefore, any rise in the dollar exchange rate leads to higher commodity prices.
However, Hawari noted that the immediate impact on prices remains limited. He said the effect of a higher dollar rate usually stays minor during the first one to three months. The impact becomes clearer after four to ten months, especially if the exchange rate remains high. In that case, consumers may need to change their purchasing habits. At the same time, the government should consider supporting traders to reduce pressure on the public.
Hawari also stressed that goods currently available in markets and warehouses were purchased at older exchange rates. For this reason, monitoring committees continue to inspect markets and storage facilities. Authorities aim to prevent hoarding and artificial price hikes. Any trader caught exploiting the situation will face legal action.
Finally, the ministry urged citizens to report any cases of hoarding or unfair pricing. Officials say public cooperation will help maintain market stability during this sensitive period.
