The Iraqi dinar has recorded notable gains against the U.S. dollar, while the Iranian toman continues to lose value due to escalating conflict conditions. Market analysts anticipate further volatility in both currencies.

Dinar’s Rise Against the Dollar

Last week, the dinar showed a sharp upward trend. At the start of the week, 100 dollars traded for 153,500 dinars, but by Tuesday, July 21, 2026, it had dropped to 149,500 dinars, and in some cities like Baghdad and Basra even to 149,000. Currently, the rate is stable between 150,000 and 151,000 dinars. Since the beginning of the month, the dinar has regained about 4,000 dinars per 100 dollars.

Political and Banking Factors

Ali Faleh al-Zaidi’s visit to Washington and the announcement of an energy-sector economic agreement, along with the lifting of sanctions on seven Iraqi banks, had a direct impact. Analysts believe that if the Central Bank injects more dollars into the market, the dinar will strengthen further. Market commentator Keyfi Khushnaw stated: “If stricter measures are applied, the price of 100 dollars could fall below 150,000 dinars.”

Trading Volume in Erbil

Khushnaw revealed that daily transactions in Erbil’s currency market reach 30–40 million dollars, much of it domestic, tied to oil and real estate deals. Around 70% of the dollars purchased are used by traders for imports. If the government supplies dollars at the official rate of 132,000 dinars, demand in the parallel market will decline.

Toman’s Decline Due to Conflict

 In contrast, the Iranian toman has suffered heavy losses amid ongoing U.S.–Iran tensions. Within just one week, the rate for 100 dollars fell from 17,500,000 tomans to 19,400,000. Previously, during negotiations, the toman had strengthened to 11,000,000 per 100 dollars, but renewed conflict has halved its value.

Demand for Million-Toman Notes

Currency dealer Dana Mawlud in Sulaymaniyah noted that “the value of the toman is directly tied to the war situation.” He explained that one million-toman notes are in high demand because they are easier to handle, with one billion tomans equating to only 5,000,000 Iraqi dinars.

Historical Comparison

Currently, one billion tomans equals just 51,280 dollars. Fifteen years ago, the same amount was worth one million dollars. This stark contrast highlights the deep depreciation of the Iranian currency over the past decade and a half.