Dollar Rate Volatile in Iraqi Markets as Central Bank Tightens Controls

The dollar exchange rate in Iraqi markets has shown volatile movement between rises and periods of stability, according to economists monitoring the situation. Experts say the fluctuation reflects an imbalance between dollar supply and demand in local markets, driven by external transfers and import financing needs. Delays in processing transactions through official channels have pushed some business toward the parallel market, where speculation and rumors also shape market expectations, international economics professor Nivar es-Sadi said. The Central Bank has tightened oversight of its currency sales window and regulated external transfer operations, said academic economics expert Dr. Ahmed el-Macidi. He noted that government measures have increased dollar flow through official channels and reduced reliance on the parallel market. Regional stability and the reopening of the Strait of Hormuz could boost market activity, economist Heydar eş-Şeyh said. Meanwhile, economist Dırğam Muhammed Ali pointed to reduced dollar demand stemming from disrupted trade and tourism due to conflict conditions.