The US dollar weakened against the Iraqi dinar in Baghdad and Erbil on Wednesday, with the exchange rate settling around 153,500 IQD per $100.
The shift marks a notable improvement for the local currency in Iraq’s primary financial hubs, reflecting improved liquidity conditions in the domestic foreign-exchange market.
This development comes shortly after the United States resumed the transfer of US dollars to Iraq, ending a suspension that had severely restricted the country's access to hard currency.
The restart of these transfers represents a significant policy shift from Washington, aimed at stabilizing Iraq's balance of payments and supporting the central bank's ability to manage the official exchange rate.
The strengthening of the dinar contrasts with recent volatility in other local asset classes.
Just days earlier, gold prices in Baghdad and Erbil retreated, tracking a broader sell-off in global precious metals.