U.S. Dollar Exchange Rate Against Iraqi Dinar Surges in Baghdad and Erbil Markets, 1 NOV
The U.S. dollar (USD) exchange rate against the Iraqi dinar (IQD) has witnessed a significant surge in the markets of Baghdad and Erbil, according to Shafaq News Agency. This comes amidst a global trend of the USD strengthening and an array of domestic and international factors impacting the Iraqi economy.
Tracking the Surge
As per the exchange rates in the al-Kifah and al-Harithiya Central Exchanges, the USD recorded a closure rate of 162,150 IQD to 100, marking an increase of 150 IQD from the opening rate. The parallel markets in Baghdad saw the selling and buying rates of the USD settle at 163,000 and 161,000 IQD to 100, respectively. Meanwhile, in Erbil, the capital city of the Kurdistan region, the rates stood at 162,000 IQD to 100 for both buying and selling.
Global and Domestic Catalysts
The surge in the USD/IQD exchange rate can be attributed to several factors. On a global level, the U.S. dollar is strengthening. The DXY Index, which tracks the USD against major currencies, has advanced to 106.70, indicating the strengthening of the Greenback. The U.S. economy also demonstrated resilience in the face of tightening measures, contributing to the strengthening of the USD. Positive economic indicators such as the S&P/Case-Shiller Home Price and the US Conference Board Consumer Confidence Index have further bolstered the USD.
Domestically, the increase in foreign remittances at the Central Bank of Iraq auction has played a role in the surge. Foreign remittances rose by 88% compared to cash sales, totaling $177 million. The Central Bank sold $198,915,364 during its auction for buying and selling the USD. Most of the bank’s dollar sales were allocated to strengthening balances abroad through remittances and credits.
Geopolitical Impact
Geopolitical factors in Iraq may also be influencing the exchange rate. The Iraqi Cabinet, in its 44th session, stressed the importance of election preparedness. The focus on elections and political stability in Iraq may be contributing to the surge in the USD/IQD exchange rate.
In conclusion, the surge in the USD/IQD exchange rate is a result of a combination of global and domestic factors, including the general strengthening of the U.S. dollar, positive economic indicators, increased foreign remittances, and geopolitical factors in Iraq.
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