Jabar Goran, spokesperson for the Sulaymaniyah Currency Exchange Market, stated that the value of the Iraqi dinar is expected to rise if the Kurdistan Regional Government and the federal Iraqi government finalize an agreement regarding the ASYCUDA customs system.

The Iraqi dinar remains unstable against the U.S. dollar, with market rates hovering around 157,000 dinars per $100 and prompting anxious citizens to exchange their local currency. Despite this recent panic selling, currency market experts project the dinar will rebound and gain value in the coming week.

A currency market official earlier told Channel8 that market rumors are destabilizing the Iraqi dinar, fueled by unverified reports of newly printed dinars in circulation, speculation over an official government devaluation, and a leadership vacuum following the removal of the Central Bank Governor.

However, the Central Bank of Iraq (CBI) dismissed any intention to adjust the exchange rate, pointing to the ongoing resilience of the nation's economy.

Speaking to Channel8, a Sulaymaniyah Currency Exchange Market spokesperson noted that the dinar's recent instability against the U.S. dollar was driven by “certain false rumors” regarding potential changes to Iraq's official exchange rate.

Upcoming Customs Talks Set to Strengthen Dinar 

Goran emphasized that if Erbil and Baghdad reach a final agreement on the ASYCUDA system in the upcoming talks, the value of the dinar will record an increase.

“This is because 85% of the dollar demand in the market comes from traders, while the remaining 15% comes from everyday citizens,” he added.

The KRG delegation and Baghdad are expected to meet to discuss remaining issues regarding the system; while both sides signal potential progress on a joint minute, disputes persist over several outstanding matters previously reported by Channel8.

Public Urged Caution as Dinar Rebound Nears

Goran urged the public to exercise caution due to the current volatility of the exchange rate. However, experts anticipate the Iraqi dinar will gain value this week, with projections suggesting it could strengthen past the 150,000 mark per $100 once the ASYCUDA customs agreement is finalized.

Kurdish Traders Transitioning to Official Currency Channels 

Kurdish merchants account for 20% of all traders in Iraq, though only a small fraction currently access U.S. dollars at the official Central Bank rate, he explained. 

The majority must purchase currency on the parallel market at daily rates to finance imports into the Kurdistan Region. Nevertheless, once these traders integrate into the ASYCUDA customs system, they will transition to official banking channels, eliminating excess market demand and driving up the value of the Iraqi dinar.

Al-Zaidi’s Washington Trip Triggers Dinar Growth  

The market spokesperson added that Iraqi Prime Minister Ali Faleh al-Zaidi's upcoming visit to Washington in mid-July will directly bolster the dinar's value, driven by expected economic backing from the United States.

Oil Initiatives Stabilize Iraqi Dinar

Goran further underlined that Iraq's oil diversification efforts, OPEC+ coordination to raise production caps, and an open Strait of Hormuz signal that there is "no risk to the dinar under the current situation."