Iraqi Dinar Plummets to Record Low as Dollar Hits 160,000 Dinars

The Iraqi dinar has plummeted to new lows against the US dollar as liquidity pressures mount in Iraq. On Saturday, September 19, 2026, the dollar breached the 160,000-dinar threshold across the country's parallel currency markets.

Selling prices for $100 reached 160,000 dinars in Baghdad, while buying rates stood at 159,500 dinars. In Erbil, the capital of the Kurdistan Region, trading reflected a similar surge, settling at 159,650 dinars for sale and 159,100 dinars for purchase.

The widening gap between the parallel market rate and the Central Bank of Iraq's official peg of 131,000 dinars is attributed to reports of heightened US Treasury pressure on Baghdad. Washington has reportedly conditioned continued dollar liquidity flows on progress in disarming Iran-aligned armed factions and meeting a September 30 deadline.

The resulting cash shortage has fueled market speculation, with local traders warning that selling rates could climb toward the 170,000-dinar mark if physical inflows remain constrained.