US dollar hits fresh highs in Iraq parallel markets
The U.S. dollar surged past 160,000 Iraqi dinars on parallel exchange markets across Iraq on Monday, October 5, 2026. This sharp rise marks a significant escalation in exchange rate volatility, hitting fresh multi-month highs in Baghdad, Erbil, and Basra. The unofficial rate now stands over 22.5 percent above the Central Bank of Iraq’s official rate of 131,000 dinars per $100, reversing a brief period of stabilization.
In Baghdad, wholesale and retail exchange bureaus recorded cash selling rates at 160,500 dinars per $100, with buying bids at 159,500 dinars. This represents an increase of about 3,000 dinars compared to the previous Thursday’s close. Erbil, the commercial capital of the Kurdistan Region, saw selling rates at 160,150 dinars per $100, while buying bids held at 159,750 dinars. Basra, a key southern trade hub, saw slightly lower rates, with selling figures at 159,500 dinars and buying offers at 159,000 dinars.
The sudden rally in exchange rates is attributed to renewed cash-procurement pressure from private commercial merchants and wholesale importers. Currency traders in Baghdad noted that regional market friction and temporary disruptions in the physical distribution of U.S. dollars have fueled rapid retail speculation. This has pushed exchange rates past psychological resistance levels, despite official efforts to stabilize market liquidity.