The U.S. dollar continued its upward trend in the Kurdistan Region’s currency markets on Tuesday. Exchange rates recorded a sharp increase, with every $100 rising by more than 2,000 Iraqi dinars. As a result, the dollar climbed above 156,000 dinars, marking one of the highest levels in recent weeks.
Currency traders say the rise reflects growing uncertainty in Iraq’s political and security environment. Ongoing tensions, including U.S. military warnings against armed groups and uncertainty over the presidential election, have weakened confidence in the Iraqi dinar. Because of this, many investors and citizens are shifting their savings toward the U.S. dollar and gold.
This move has increased pressure on local markets. Higher demand for dollars has pushed exchange rates up. At the same time, the weaker dinar has led to higher prices for basic goods. Many families now face reduced purchasing power as living costs continue to rise.
According to Sheikh Kawa Yahya, a currency exchange office owner in Sulaymaniyah, the upward movement remains strong. He said the buying price of $100 reached 156,000 dinars since late Monday night. He added that heavy demand from traders and widespread market anxiety are the main drivers behind the increase.
In Erbil, exchange offices reported selling prices for $100 ranging between 155,000 and 156,000 dinars. Traders explained that the lack of a unified official market rate allows prices to vary depending on demand and daily market conditions.
Economic analysts also point to rising global gold and silver prices as a contributing factor. Traders need large amounts of cash dollars to buy precious metals, which increases demand further. In addition, new concerns about possible U.S. restrictions on dollar flows into Iraq and delays in government formation talks have kept the market tense.
Until political stability improves and currency supply becomes clearer, analysts expect the U.S. dollar to remain strong against the Iraqi dinar in local markets.
