Iraq dollar rate rises in local market as expert calls it a 'price bubble'

BAGHDAD, Iraq — Finance specialist Walid Aidi said recent gains in the U.S. dollar exchange rate on Iraq's local markets reflect psychological pressure and uncertainty rather than economic fundamentals, even as the official rate has remained stable. Aidi noted that the change in leadership at the Central Bank of Iraq has added to market speculation despite continued public statements that the official rate is unchanged. Speaking in remarks carried by local media, Aidi said there is no economic justification for the current rise and described the situation as a "price bubble" that could ease if pressure on the foreign exchange market subsides. He also pointed to calming external factors, including signs of progress in regional crises and ongoing talks between Iran and the United States. On the Baghdad Stock Exchange, the dollar was trading at about 165,450 dinars in the evening session. The Prime Minister's Office oversaw the Central Bank leadership handover on Thursday, with new Governor Nizar Nasir Hussein taking over from his predecessor, Ali Muhsin Al-Allaq. The Prime Minister instructed the bank to continue banking-sector reforms, strengthen financial stability and adapt to digital transformation, and appointed Al-Allaq as an economic adviser. No further details on the handover or the currency movement were immediately available.