US dollar holds above 160,000 IQD in Baghdad, Erbil, and Basra

Packs of Iraqi dinars in a currency exchange shop in Baghdad, Iraq. Photo: Ahmad al-Rubaye/AFP Baghdad (IraqiNews.com) – The U.S. dollar held firm above the 160,000-dinar threshold across Iraq’s parallel currency markets on Tuesday, October 6, 2026, consolidating Monday’s steep gains across trading hubs in Baghdad, Erbil, and Basra. The persistent gap between free-market rates and the Central Bank of Iraq’s official peg of 131,000 dinars per $100 continues to hover near 22.5 percent as exchange bureaus navigate heavy cash demand. Market data showed that exchange bureaus and trading counters in the capital city of Baghdad maintained cash selling rates at 160,500 dinars per $100, while buying bids ticked slightly higher to 160,150 dinars, narrowing the intraday bid-ask spread. In Erbil, the regional hub of the Kurdistan Region, parallel counters offered greenbacks at 160,000 dinars per $100 against purchase bids of 159,750 dinars. In the southern trade center of Basra, rates rose to match the 160,000 mark, with cash sales quoted at 160,000 dinars per $100 and buying bids settling at 159,500 dinars. The elevated rates across major cities reflect ongoing liquidity pressures as retail merchants and unbanked importers seek physical foreign currency outside the formal electronic transfer platform. Despite regular market interventions and central bank oversight, speculative buying and regional fiscal uncertainties continue to anchor cash prices above key psychological thresholds.