Dinar slides against dollar amid regional tensions, says economic expert Nabil Al-Marsoumi

BAGHDAD — Economic expert Nabil Al-Marsoumi attributed the recent spike in the dollar to political and security-related factors, highlighting that it stems from market sentiment and the public’s attempts to safeguard their savings.

The dinar’s value has dropped, exceeding 153,000 dinars per 100 U.S. dollars in some regions. Al-Marsoumi linked the decline to the increased geopolitical tensions.

He emphasized that warnings from Iraqi armed groups about potential retaliation against U.S. interests if the conflict escalates have exacerbated the currency market’s volatility.

Al-Marsoumi’s comments to Iraqi newspaper Al-Sabah:

The rise in the dollar exchange rate is not related to bank transfers or letters of credit, as they are proceeding as planned to cover imports at the official rate. However, the market sentiment has turned negative, affected by regional tensions.

The current increase is purely due to political and security-related reasons, tied to sentiment and the desire to preserve savings. Many people are turning to gold and dollars as safe havens to protect themselves from fluctuations.

It’s natural for the gap between the official and parallel exchange rates of the dollar against the dinar to widen when fears of regional conflict intensify.  We are seeing some citizens stockpiling food supplies out of concern for what may come.

In times like these, wealthy individuals prefer to convert their savings from the Iraqi dinar to the dollar, fearing a disruption in dollar supplies, particularly oil revenues. Most imports are conducted at the official exchange rate of 132,000 dinars per 100 dollars.