As of the morning of October 7, Iraqi markets are reporting a sharp jump in the dollar exchange rate, reaching around 185,000–187,000 dinars per $100 in some transactions. Some shops have reportedly closed or temporarily suspended sales because of difficulty pricing goods and fears that the dollar could rise further.
It is important to note that the 185,000–187,000 figure is still circulating locally and has not been broadly confirmed across all markets. However, the disruption is evident, particularly after the official exchange rate was adjusted to around 152,000 dinars per $100.
Is Iraq under a U.S. financial blockade?
So far, there is no comprehensive U.S. financial blockade on Iraq. However, Baghdad is being heavily affected by U.S. pressure on Iran, tighter controls on dollar transfers, the regional war, disruptions to oil exports, and growing demand for hard currency.
The real danger is the widening gap between the official rate and the parallel-market rate. If traders can no longer predict how much it will cost to restock their goods tomorrow, some may stop selling. And as demand for dollars rises, prices could climb even further.
Iraq today is facing more than just an exchange-rate crisis — it is a serious test of whether the Central Bank and the government can prevent it from turning into a broader crisis of prices and liquidity.