Recent media reports have flagged up the growing gap between the official dinar exchange rate and its value in the informal market – see here and here.
In his latest monthly investment report for Iraq Business News, Ahmed Tabaqchali attributes the fall in the dinar to the behaviour of certain importers following the Central Bank of Iraq’s (CBI) introduction of new requirements for the provisioning of U.S. dollars (USD) for importers.
Greater demand for USD in the parallel market, “led to an increase in the delta of the parallel market exchange rate of the Iraqi dinar (IQD) versus the USD over the official exchange rate. The delta spiked in late January 2026 in response to the US threats but has since subsided somewhat (see chart below).”
Click here to read Ahmed Tabaqchali’s full report.
Dinar Parallel Market Exchange Rate vs. the Dollar and its Delta over the Official Exchange Rate
(Source: Iraqi Central Statistical Organization, Iraqi Foreign Exchange Houses, AFC Research,
daily data as of January 31st)
