Iraq operates a dual exchange rate system comprising an official fixed rate and a parallel market rate…The Central Bank of Iraq (CBI) pegs the Iraqi dinar (IQD) to the U.S. dollar at a set rate. As of 2-7-2023 this official rate was established at 1310 dinars per US dollar. This fixed rate aims to provide stability for government transactions and official financial activities…A parallel market rate…often diverging from the official rate…This disparity has let to challenges such as economic distortions and opportunities for arbitrage. Efforts have been made to unity these rates…We think Iraq wants to merge these two separate exchange rate systems into one…When this happens you will know the IQD is on its way to being in a position to increase in value…
Sandy Ingram
