Baghdad – The exchange rate of the Iraqi dinar against the dollar increased today, Monday, in the parallel market, with stability in the price in the official market, during the activity of the currency exchange market in the capital, Baghdad and the rest of the provinces.
The exchange rate of the Iraqi dinar in the parallel market
The exchange rate of the Iraqi dinar against the dollar in the parallel market has increased with a disparity not exceeding 5 dinars per dollar and expectations at more rises, with stagnation in market transactions attributed by experts to being part of the speculation of merchants to reduce the price of the green currency and withdraw it from the market in preparation for covering the import expenses, and these prices recorded at the time of preparing this report:
- The price of the dollar in Baghdad was 1459 dinars when selling and 1461 dinars when purchasing, and this price was 1465 dinars for sale and 1470 for purchase.
- In Erbil, the sale price reached 1459 dinars, and the purchase price was 1461 dinars, after he recorded this morning at the opening 1468.5 dinars for sale, while the purchase price was 1470 dinars.
- The exchange rate in Basra reached 1460.5 dinars for sale and 1462.5 dinars for purchase in transactions this evening after he registered in the morning for sale 1465 dinars. As for the purchase, it was 1472.5 dinars.
The exchange rate of the Iraqi dinar in official transactions
- The sale price for transfers, documentary credits, and international electronic cards: 1310 dinars for the dollar.
- selling price: 1305 dinars per dollar.
- Selling price in banks: 1310 dinars per dollar.
It is noteworthy that the central bank does not buy the dollar but only sells it through the dollar sale platform, because it is the main source of the dollar in Iraq, and it gets it in exchange for selling oil globally.
The decision to sell in banks is fixed and binding on it from the central bank in its capacity as remarkable decisions, not an advisory, and the price is not related to the fluctuation of prices in the parallel market, and the sale of this price is for the categories specified by the central bank, which is the category of travelers exclusively.
Factors affecting the dinar exchange rate
- Currency sale auction: The volume of daily sales in the currency sale auction significantly affects the exchange rate.
- Central Bank proceduresThe measures taken by the central bank in addressing external transfers play an important role in stabilizing the exchange rate.
- The need for the dollar: Traders need the dollar to import goods from countries that suffer from economic sanctions from America and prohibits the transfer of the dollar through the official platform directly on the exchange rate of the dollar against the dinar, especially with regard to Iran for the need of traders to withdraw the dollar significantly from the parallel market to pay the bills of those imported goods, which leads to a high demand against supply and high prices.
- Withdrawing the dollar from entities dealing with the Iranian sideSometimes some merchants and brokers buy those with the Iranian side the dollar from the Iraqi market in large quantities to send to Iran, which needs the dollar for its international trade dealings because of the US sanctions on it that prohibits it from obtaining the dollar.
- The smuggling of the dinar to other countries: Some merchants smuggle the dinar to other countries to benefit from the exchange rate teams between the official and the parallel, which effectively affects the exchange rate of the dollar.
- Merchants of merchants through leaked information or rumors: Some merchants obtain leaked information from banks or from the central bank about a possible procedure related to changes in the mechanism of dealing with dollars, so these stock exchanges take precautionary measures to raise or reduce the price, purchase or sale only to anticipate the repercussions of the potential decision, and sometimes these leaks are just rumors, the purpose of either the currency pumping the market to withdraw the dinar and buy the future or vice versa by buying the dollar and withdrawing it from the market To sell it in the future.
