New customs rules drive Iraqi dinar slide

Shafaq News- Baghdad

The Iraqi dinar weakened against the US dollar on Sunday, as new customs clearance procedures pushed traders toward the parallel market, a financial expert told Shafaq News.

Former director of the Central Bank of Iraq (CBI) Mahmoud Dagher noted that under the new system, many traders must first secure a customs clearance declaration through the ASYCUDA (Automated System for Customs Data) platform before receiving bank transfers. Confronted with delays or hurdles in the process, many are turning to local currency markets to obtain cash dollars, pushing exchange rates higher.

Warning that the new customs procedure “will generate brief instability” from rising prices, Dagher added that such turbulence is part of the adjustment process.

In recent days, the dollar surged sharply, reaching around 145,000 dinars per $100 at the central Al-Kifah and Al-Harithiya exchanges in Baghdad. The increase represents roughly a 2% rise over the past week, with rates hovering around 142,000–143,000 dinars per $100. Compared with two weeks ago, when the rate was near 140,000 dinars per $100, the jump is even more pronounced.

Read more: Dinar slides: Why Iraq’s oil billions aren’t buying currency stability