The USD to IQD exchange rate remained stable across major cities in Iraq on Sunday, June 1, 2025. Market activity in Baghdad, Erbil, and Basra showed uniform pricing for buying and selling U.S. dollars.
As of 10:29 AM local time, currency traders across Iraq reported the same rates:
- Selling $100 USD: 141,500 Iraqi dinars
- Buying $100 USD: 141,000 Iraqi dinars
These rates reflect continued market stability, with no notable fluctuations since the previous week. This consistency indicates strong demand and a balanced supply of the U.S. dollar in the local market.
Despite market rates hovering around 1,415 IQD per dollar, the official Central Bank of Iraq rate remains significantly lower. The central bank continues to fix the exchange at 1,320 IQD to $1 USD. This gap between the official rate and street rates reflects ongoing currency market pressures and dollar shortages in the parallel market.
Traders in Baghdad, Erbil, and Basra all quoted identical prices, showing a coordinated response to exchange demands. The USD to IQD exchange rate has now stabilized in this range for several consecutive days, reducing volatility for traders and importers.
However, the difference between the central bank rate and the market rate remains a key issue. Economists argue that the gap encourages black-market activity and complicates government efforts to control inflation. Many businesses continue to rely on the parallel market, citing delays or limitations in accessing dollars through official channels.
Although the USD to IQD exchange rate has stabilized, long-term concerns persist. Analysts suggest that narrowing the gap between official and market rates will require tighter monetary controls and improved dollar supply.
Until then, Iraqis continue to monitor daily exchange rates closely, especially as the dinar’s value remains an essential part of everyday life.