PM:12:04:11/05/2025
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The Central Bank of Iraq (CBI) has attributed the recent appreciation of the Iraqi dinar against the US dollar to the increased supply of foreign currency to traders at the official exchange rate, significantly reducing reliance on the black market.
Deputy Governor Ammar Hamad stated on Sunday that this development reflects the success of the CBI’s monetary policy aimed at ensuring access to safe and transparent foreign exchange sources. "Traders now obtain dollars through official banking channels that meet international standards, eliminating the need to turn to the parallel market," he said.
He noted that the central bank continues efforts to strengthen the local banking system and raise its performance to international banking standards, reinforcing its role as a key driver of Iraq’s economic development.
According to data, the US dollar has depreciated by around 15 percent against the Iraqi dinar since the beginning of this year—marking the most significant gain for the dinar in over a year.
Prime Minister’s Financial Advisor, Mazhar Mohammed Salih, confirmed that the central bank’s successful facilitation of foreign trade financing for the private sector, including major importers, was a primary factor. He also pointed to the growing use of other currencies—such as the euro, UAE dirham, and Chinese yuan—as additional contributors to the dollar’s decline.