Iraq Economic News and Points To Ponder Thursday Morning 1-8-26
Dollar Surge In Iraq: Why Did The Parallel Market Jump To 148,000 IQD?
IRAQ Jawad Al-Samarraie January 8, 2026 Baghdad — Over the last five days, the Iraqi street has witnessed a state of economic panic as the U.S. dollar surged from 138,000 to 148,500 IQD per $100 in the parallel market. This sharp 10-point jump occurs despite the official exchange rate remaining stable at 132,000 IQD, creating a widening gap that has sparked fears of inflation and a decline in purchasing power.
Financial and economic expert Dr. Abdul Rahman al-Sheikhly explains that the primary driver behind this volatility is the full implementation of the ASYCUDA (Automated System for Customs Data) system, which officially began on January 1, 2026.
The system mandates that traders pay all customs duties upfront before a bank transfer can be processed. In response, many traders have attempted to evade these official channels:
Market Mismatch: Traders are fleeing to the black market to obtain cash dollars to bypass the new digital scrutiny and advance payments.
Border Loopholes: Some border crossings, particularly in the Kurdistan Region, are perceived as less rigid in their application of the system, encouraging a shift in demand away from the central electronic platform.
The anxiety isn’t limited to traders. Citizens have increasingly turned to the dollar as a safe haven for their savings.
Salary Delays: A week-long delay in paying government employees and retirees created a shockwave of fear. This led many to convert their IQD savings into hard currency to hedge against a potential official devaluation.
Rumor Mill: Widespread rumors of a permanent change in the official rate exacerbated the rush, although the government maintains that the situation is under control and the salary delay was a temporary administrative issue.
The parallel market rates as of today show the following levels across major Iraqi hubs:
City Selling Price (per $100) Buying Price (per $100)
Baghdad 148,500 IQD 147,500 IQD
Erbil 147,000 IQD 146,500 IQD
Basra 148,000 IQD 147,500 IQD
Currency Exchange Rates Today (Thursday, Jan 8, 2026)
Dr. al-Sheikhly advises against randomly pumping dollars into the market, as it fails to address the structural issues. Instead, he proposes:
Strict Import Oversight: Imposing heavier customs penalties on traders who import goods via unofficial transfers rather than using the banking platform.
De-dollarization: Enforcing the use of the Iraqi Dinar for all internal domestic transactions.
Public Transparency: Providing clear communication regarding government policies to neutralize market-distorting rumors. https://www.iraqinews.com/iraq/iraq-dollar-price-surge-january-2026-asycuda-impact/
Iraq’s Customs Revenues Projected To Reach $7.6 Billion In 2026
IRAQ Amr Salem January 7, 2026 Baghdad (IraqiNews.com) – Head of the General Authority of Customs’ Valuation Department, Ahmed al-Akeedi, said on Tuesday that the deployment of the ASYCUDA system and the new customs tariff will improve the authority’s earnings.
In a statement to the state-run news agency (INA), al-Akeedi said that Iraqi customs revenues reached 2.5 trillion Iraqi dinars (approximately $1.9 billion) in 2025, an unprecedented milestone in Iraqi customs history and an exceptional achievement.
Revenues are predicted to grow by at least four to six times with the application of the ASYCUDA system and complete compliance with customs rates, perhaps exceeding 10 trillion Iraqi dinars (about $7.63 billion) by the end of 2026, according to al-Akeedi.
Iraq’s Border Ports Commission (BPC) reported in early December an unprecedented increase in customs income, reaching 2.2 trillion Iraqi dinars ($1.68 billion) in 2025.
The BPC said in a statement that the achievement followed a series of measures aiming to simplify operations and improve control.
Iraqi Finance Minister Taif Sami revealed in May that Iraq’s customs revenues grew significantly following the use of an automation initiative.
The step followed the adoption of the Automated System for Customs Data (ASYCUDA), a computerized system created by the United Nations Conference on Trade and Development (UNCTAD) to manage a country’s customs.
Iraq’s BPC started using ASYCUDA in 15 ports across the country as the first phase of a government initiative to efficiently manage the country’s customs and reduce corruption. https://www.iraqinews.com/iraq/iraqs-customs-revenues-projected-to-reach-7-6-billion-in-2026/
Iraq Stock Exchange’s Monthly Transactions Hit $59.5 Million
IRAQ Amr Salem January 7, 2026 Baghdad (IraqiNews.com) – The Iraq Stock Exchange (ISX) announced on Wednesday that trading volume during the past month surpassed 78 billion Iraqi dinars (approximately $59.53 million).
According to the ISX, 79 of the 104 companies registered on the market had their shares traded during the course of 20 trading sessions in December, Shafaq News reported.
The stock market recorded 18,173 transactions, where the number of traded shares surpassed 63.67 billion, worth 78.7 billion Iraqi dinars (approximately $60 million).
The ISX60 index finished at 983.31 points, rising 2.92 percent compared to the previous session.
The ISX operates five sessions per week, from Sunday to Thursday, and has 104 listed companies in banking, telecommunications, industry, agriculture, insurance, financial investment, tourism, hotel, and service sectors.
The ISX provides a platform for investors to purchase and sell assets such as equities and bonds.
To trade on the ISX, investors must first create a brokerage account with a licensed brokerage firm.
The ISX allows firms to raise cash by issuing shares, while investors may profit from the listed companies’ financial accomplishments through capital gains and dividends.
https://www.iraqinews.com/iraq/iraq-stock-exchanges-monthly-transactions-hit-59-5-million/
The Dollar Stabilizes As Concerns About Venezuela Subside.
Economy News — Follow-up The dollar held near a two-week high as Asian trading began on Tuesday, with market jitters over U.S. military action in Venezuela easing and dovish comments from Federal Reserve officials encouraging risk-taking on Wall Street.
The dollar index, which measures its performance against a basket of six currencies, stood at 98.36, up 0.04%, after ending a four-day winning streak on Monday.
“The market isn’t really worried about what’s happening geopolitically, at least in the near term,” said Rodrigo Catril, a currency strategist at National Australia Bank in Sydney. He added that this environment “reduces the appeal of safe-haven assets, and we’ve seen the dollar in a difficult position,” according to Reuters.https://economy-news.net/content.php?id=64219
A Sudanese Advisor Explains To "Al-Eqtisad News" The Repercussions Of Fixing The Exchange Rate At 1300 Dinars In The 2026 Budget.
Money and Business Economy News – Baghdad The Prime Minister’s Advisor for Economic and Financial Affairs, Mazhar Muhammad Salih, revealed on Thursday the impact of the Central Bank of Iraq’s decision to fix the official exchange rate at 1300 dinars in the 2026 budget.
Saleh told Al-Eqtisad News that "the government decided to fix the official exchange rate at 1,300 dinars per US dollar in the 2026 budget project, within the framework of what he described as 'calculated coordination between fiscal and monetary policies'."
He explained that this step represents a limited increase in the value of the Iraqi dinar, and is a positive sign that reflects the strength of the country’s foreign reserves and the ability of monetary policy to confidently maintain stability.
He pointed out that fiscal policy is now moving towards maximizing real revenues, moving away from resorting to what is known as "monetary adjustment," which relies on using the exchange rate as an indirect financing tool, stressing that this trend promotes the use of authentic financial instruments to mobilize resources and control spending.
The advisor stressed that this monetary signal sends a clear message that containing inflation and stabilizing the national economy is a permanent priority, while maintaining the independence of monetary policy, and pushing fiscal policy towards greater efficiency and responsibility, in order to achieve the sustainability of macroeconomic balance in the Iraqi economy.
Earlier today, the Central Bank of Iraq addressed the Ministry of Finance regarding fixing the official exchange rate at 1300 dinars in the 2026 budget. https://economy-news.net/content.php?id=64316