Iraqi economic expert Haider al-Sheikh projected a continued decline in the U.S. dollar's value over the coming days, noting that Prime Minister Ali Faleh al-Zaidi’s recent visit to the United States has impacted the Iraqi market.

Speaking to Channel8, al-Sheikh said that the five-day visit of al-Zaidi to Washington was “productive and its impact has appeared on the Iraqi public, because the U.S. Federal Reserve and the U.S. Treasury Department lifted the ban on seven private banks.”

He noted that the easing of restrictions on these financial institutions, which were previously restricted by U.S. authorities over compliance flaws and illicit transfer concerns, restores their access to non-dollar international banking channels as a step toward future U.S. dollar eligibility, subsequently influencing both the public sector and the broader Iraqi market.

“Consequently, the price of the dollar fell against the dinar, and the value of the dinar rose,” he affirmed.

Dinar Rallies: Expert Predicts Dollar to Drop 

The economic expert indicated that the exchange rate for every 100 U.S. dollars has decreased by approximately 4,000 to 5,000 Iraqi dinars, adding that recently, the price per 100 dollars was around 155,000 dinars, but it has now declined to approximately 150,000 dinars.

“Therefore, I predict that in the coming days, the price per 100 dollars will witness a further decline to between 148,000 and 149,000 dinars,” he added.

PM al-Zaidi Secures $60B in U.S. Accords 

Al-Zaidi and a high-level government delegation concluded an official visit to the United States from July 13 to July 18, culminating in 48 strategic agreements valued at over $60 billion. 

Under the Prime Minister's sponsorship, the Central Bank of Iraq (CBI) finalized an agreement with the U.S. Treasury Department to restore seven Iraqi commercial banks to international foreign correspondent channels.

Prime Minister adviser Mudher Mohammad Saleh stated that restoring banks to international transactions will strengthen sector confidence, expand official U.S. dollar access, and stabilize the market by reducing reliance on parallel channels. 

CBI Enforces Compliance Upgrades, 

The Central Bank of Iraq is enforcing a financial modernization program focused on international compliance, which includes a U.S. Treasury agreement to reinstate restricted Iraqi banks for non-dollar transactions and strict penalties for non-compliant institutions. 

Furthermore, the CBI has mandated new cash withdrawal rules for U.S. dollar deposits and denied plans to alter the official exchange rate or print unbacked currency.

Dinar Surges in Parallel Market Post-Washington Visit 

The Iraqi dinar faces heightened uncertainty following al-Zaidi's Washington return. Analysts state its future stability depends on executing economic agreements, developments in the Strait of Hormuz, and domestic security. 

Ahead of the trip, the Erbil Currency Exchange Market spokesperson told Channel8 that the parallel market rate was expected to drop significantly to around 151,000 dinars per $100 following al-Zaidi’s mid-July U.S. visit 

The informal market exchange rate for the Iraqi dinar surged 3.8% to 1,499 IQD per $1 today, narrowing the spread and bringing the street rate closer to the Central Bank of Iraq's official peg of 1,310 IQD.