Iraq Economic News and Points To Ponder Late Tuesday Evening 6-23-26
Iraq And The Dollar: Parallel Market Surges Amid Speculation And Regional Tensions
June 23, 2026Last updated: June 23, 2026 The Independent - The parallel market witnessed a remarkable rise in the dollar exchange rate in recent days, exceeding the 157,000 dinar mark per 100 dollars, amid anticipation and concern in economic and commercial circles regarding the repercussions of regional developments and their impact on local markets.
Financial experts believe that this rise is not related to any change in the official monetary policy or the exchange rate adopted by the state, but rather is due to a set of overlapping factors, most notably speculation, rumors and regional tensions that have led to an increase in demand for foreign currency in the parallel market.
Experts confirm that Iraqi markets are directly affected by political and security developments in the region, especially those related to international trade and energy markets, which is reflected in the behavior of traders, importers, and speculators in the exchange market.
Financial and banking expert Dr. Mustafa Hantoush said that the current rise in the price of the dollar is mainly due to speculation and rumors circulating about the possibility of amending the official exchange rate in the coming period, despite the absence of any official indicators or decisions in this regard.
He explained that the circulation of this news prompted some traders and speculators to increase their demand for the dollar in anticipation of any future changes, which caused a rise in demand in the parallel market and was directly reflected in prices.
He added that these practices negatively affect the national economy by raising import costs and creating pressure on the prices of basic commodities, as well as increasing anxiety and instability in the markets.
Hantoush pointed out that any decision regarding the exchange rate is subject exclusively to the policies of the Central Bank of Iraq, stressing that no official announcement has been issued regarding amending the adopted rate so far, despite talk of future possibilities without a clear basis.
For his part, economist Haider Al-Sheikh said that part of the increased demand for the dollar is related to the rapid regional developments, especially concerns about shipping traffic in the Strait of Hormuz and its potential impact on global trade and supply chains.
He explained that these developments prompted some traders to increase their demand for the dollar as a precautionary measure, in addition to the impact of rumors about the exchange rate, which contributed to a temporary rise in prices in the parallel market.
The Sheikh confirmed that monetary policy in Iraq has not witnessed any change, and that the official price of the dinar remains fixed, predicting a gradual return to stability as psychological pressures in the market subside.
For his part, economic researcher Ahmed Eid explained that the rise of the dollar is due to internal and external factors at the same time, most notably geopolitical tensions and concerns related to the security of navigation and Iraqi oil flows.
He pointed out that these concerns have prompted traders to increase their demand for foreign currency, coinciding with the continuation of some restrictions on external transfers, which widens the gap between the official and parallel exchange rates.
He also pointed out that Iraq’s inclusion on the Financial Action Task Force (FATF) grey list has increased caution among some traders, which has indirectly affected market activity.
Economic estimates indicate that continued speculation and rumors may keep the market in a state of temporary fluctuation, while the central bank’s ability to control the market remains a crucial factor in stabilizing the exchange rate in the coming period. https://mustaqila.com/العراق-والدولار-ارتفاعات-السوق-الموا/
Shenkali Warns Against Raising The Value Of The Dollar And Harming The Poor And Middle Classes.
Information/Baghdad... Former MP Majid Shenkali warned against raising the value of the dollar against the dinar and harming the poor and middle classes.
Shankali said via social media, as reported by Al-Maalomah, that “the difference today between the official and parallel price of the dollar is 250 dinars, meaning that every 100 S bill has a difference of 25,000 dinars, and no one is talking about it under the pretext that the newly formed government.”
He added that "this excuse is completely unacceptable, especially since the government's supporters are praising the Prime Minister's economic and financial expertise and skill," noting that "if the government is serious about reducing the price of the dinar to reduce the budget deficit and bear the expenses, it must first work to ensure that the difference between the official and parallel prices is no more than 10-20 dinars only."
He explained that "raising the dollar's price and maintaining a large gap means destroying the poor and middle classes, both in terms of their livelihoods and the economy." (End of 25)
Actions, Not Words... The US State Department Presents Baghdad With A Clear Equation: Genuine Reforms, Strong Institutions, And Full Sovereignty
Baghdad - One News - 6/23/2026 The US State Department stressed the importance of completing the formation of the Iraqi government and cabinet as soon as possible, in order to enhance the ability of state institutions to implement political, security and economic reforms.
The US State Department, in a statement to One News, said that the selection of security leaders should be based on criteria of competence, professionalism and integrity, stressing the need for these leaders to work under the authority of the state and the constitution, away from any other loyalties or affiliations outside official frameworks.
She added that building professional national security institutions is a fundamental pillar for consolidating Iraq’s sovereignty and enhancing stability, stressing that the state’s success in this path requires independent security institutions capable of performing their duties away from the influence of armed groups.
The US State Department reiterated its support for Prime Minister Ali al-Zaidi's government in its efforts to complete the building of state institutions and enhance their efficiency, which contributes to consolidating the strategic partnership between Baghdad and Washington and supporting the path of reform and stability in the country. https://1news-iq.net/مرحلة-الأفعال-لا-الأقوال-الخارجية-الأ/
The Central Bank Announces The Completion Of The Requirements For Reintegrating Banks Restricted From Dealing In US Dollars
Baghdad - WAA The Central Bank of Iraq announced on Monday the completion of procedures and requirements for the reintegration of a number of banks restricted from dealing in US dollars in foreign currency transfer operations.
The bank stated in a statement received by the Iraqi News Agency (INA): “Within the framework of the Central Bank of Iraq’s efforts to enhance monetary and financial stability, develop the banking sector, and raise its level of integration into the global financial system, the bank continues to implement its reform program in coordination with relevant international institutions, focusing on several key areas.”
The statement added that "the Central Bank of Iraq has completed the procedures and requirements for the reintegration of a number of banks restricted from dealing in US dollars in foreign currency transfer operations, after they met the requirements of the reform plan and the relevant supervisory and technical standards, and strengthened their frameworks for combating money laundering and terrorist financing," explaining that "this file has reached its final stages in preparation for the gradual and organized reintegration, which will enhance the ability of these banks to serve their customers and support the expansion of their foreign correspondent relationships in accordance with best practices and international standards."
He added that “the Central Bank has completed the necessary technical and procedural requirements to raise the limits of electronic payment cards for the category of registered companies and businesses, which contributes to expanding the scope of digital financial services, enhancing financial inclusion, and meeting the needs of various segments of customers with payment tools.
The bank is proceeding with the implementation of the subsequent phases of this project in a gradual and deliberate manner, in a way that ensures the consolidation of regulatory controls that will enhance the integrity and effectiveness of the system, and keep pace with the rapid developments in the financial sector.”
The Central Bank of Iraq, according to the statement, affirmed its commitment to “meeting the demand for the US dollar in accordance with the approved controls and standards, ensuring the smooth flow of transfers and covering the legitimate needs of the public and private sectors, based on strong foreign reserves and effective monetary tools.
This is done with full commitment to compliance requirements and standards for combating money laundering and terrorist financing, and a monetary policy based on the stability of the exchange rate and the integrity of financial channels.”
The bank stressed, according to the statement, that "these measures are part of a comprehensive reform program aimed at addressing existing challenges and resolving priority issues, thereby strengthening confidence in the Iraqi banking sector, supporting the foundations of financial and monetary stability, and backing the country's economic development."
He concluded that he “will continue to take the necessary measures and policies to develop the banking environment, raise the efficiency of the financial system, and provide the necessary elements to support sustainable economic growth, thereby achieving long-term financial stability and preserving the stability of the exchange rate and the integrity of financial channels.”
A Source Reveals to *Al-Mustaqila*: The Government Is Moving Toward Removing Three Zeros From The Iraqi Dinar And Issuing A New Currency
June 21, 2026 — Last Updated: June 21, 2026 *Al-Mustaqila* / An exclusive source told *Al-Mustaqila* that the Iraqi government, headed by Ali Al-Zaidi, is moving toward studying and implementing a major economic project involving the removal of three zeros from the Iraqi currency as part of a package of monetary reforms aimed at restructuring the financial system and facilitating everyday transactions.
According to the source, the project also includes a gradual move toward issuing a new Iraqi currency while maintaining the dinar's real value and purchasing power, should the plan be officially implemented by the Iraqi Central Bank.
Reasons behind the move include:
- Continued heavy reliance on oil revenues
- Exchange rate fluctuations against the U.S. dollar
- Inflation in liquidity and expansion of the money supply in circulation
- Weak confidence in the banking system
Experts believe that the "removal of the zeros" project is generally classified as a currency redenomination. This means it does not change the real value of salaries or prices but instead aims to simplify figures and make daily financial transactions easier.
**International Experiences and Local Concerns**
Experiences from other countries indicate that such measures can technically succeed in simplifying the monetary system. However, they require economic stability and strong confidence in the banking sector to ensure that market disruption does not occur.
On the other hand, specialists warn that any poorly planned implementation could lead to:
- Confusion over prices during the transition period
- Public concerns about losing value
- Temporary difficulties in controlling the cash market
**Iraq's Economy Between Reform and Pressure**
This discussion comes at a time when Iraq is trying to balance financial reforms with mounting economic challenges, making the currency issue one of the most sensitive topics in the coming period, especially if the country actually transitions to a new currency.
While supporters view the move as "a necessary modernization," opponents see it as "more cosmetic than a fundamental reform." The final decision remains tied to the readiness of financial institutions and their ability to manage the transition without causing economic shocks.
Will this mark the beginning of a real transformation in the Iraqi dinar, or is it simply another discussion within monetary policy circles? https://mustaqila.com/مصدر-يكشف-لـالمستقلة-الحكومة-تتجه/
A Source Denies Any Change In The Exchange Rate And Confirms A Plan To Control The Parallel Market In Iraq.
June 23, 2026Last updated: June 23, 2026 Al-Mustaqilla - An informed source confirmed to Al-Mustaqilla on Tuesday that what has been circulating in recent days regarding the Iraqi Central Bank's intention to raise or change the exchange rate of the dinar against the dollar is "completely untrue," categorically denying any official intention to amend the rate currently adopted in monetary policy.
The source explained that the official exchange rate will remain fixed without any change in the coming period, stressing that there are no decisions or discussions regarding raising or lowering it, as is being circulated in some media outlets and social media sites.
In contrast, the source indicated that the Central Bank, in coordination with the Iraqi government, is working on a new plan aimed at reducing the gap between the official price and the parallel market price, through regulatory and supervisory measures aimed at enhancing market stability and preventing speculation.
He added that the next phase will witness stricter steps towards unregulated transactions in the exchange market, with the aim of reducing the price difference and gradually restoring balance to the financial market in Iraq.
The source emphasized that “all news circulating about an intention to raise the exchange rate is baseless,” urging reliance on official sources regarding monetary policies and cautioning against being swayed by rumors that undermine market stability and public confidence. https://mustaqila.com/مصدر-ينفي-تغيير-سعر-الصرف-ويؤكد-خطة-للس/