Iraqi dinar weakens against the dollar in unofficial market
ERBIL, Kurdistan Region - The Iraqi dinar on Monday continued to lose value against the dollar in the unofficial market amid growing regional and global tensions.
A dollar was worth around 1,490 dinars in the Kurdistan Region’s unofficial market Monday noon but slightly regained value later in the day. The devaluation of the Iraqi dinar was lower in other parts of the country.
Haji Sabir Bawaji, head of the currency exchange market council in Erbil, told Rudaw that the devaluation of the Iraqi currency is being driven by factors beyond the Region’s control.
"Global and regional tensions are the cause of the dinar's decline in value," he said, adding that "the rate is determined in Baghdad rather than the Kurdistan Region."
The unofficial market rate remains significantly higher than the official exchange rate set by the Central Bank of Iraq at 1,320 dinars to the US dollar, marking a widening gap between official pricing and street markets.
Economic analysts link the decline in value to a mix of international developments, including heightened tensions between Iran and the United States, instability in Venezuela that could affect oil prices, and uncertainty involving Saudi Arabia and the United Arab Emirates.
Similar devaluation of the Iraqi dinar was seen in June during the 12-day war between Israel and Iran, when geopolitical escalations briefly pushed the dollar sharply higher against the dinar before partial stabilization.
[Source: Rûdaw English]
