The US dollar exchange rate increased on Thursday in both Baghdad and Erbil, reflecting continued volatility in Iraq’s currency markets.

In Baghdad, the dollar rose in the al-Kifah and al-Harithiya stock exchanges, reaching 1,555 Iraqi dinars, compared to 1,549.5 dinars earlier in the day. Currency exchange shops in the capital reported rates ranging between 1,540 and 1,560 dinars per US dollar, according to Shafaq News.

In Erbil, the dollar also strengthened, fluctuating between 1,549.5 and 1,550.5 Iraqi dinars.

The recent rise comes amid reports that US authorities have halted the transfer of an estimated $500 million in Iraqi oil revenues to Baghdad, a move linked to tensions over efforts to curb the influence of pro-Iranian armed groups.

Since February 2023, the Central Bank of Iraq has maintained an official exchange rate of 1,300 dinars per US dollar. This followed a previous official rate of 1,450 dinars, while the parallel market has continued to show higher fluctuations, at times reaching 1,610 dinars per dollar in early 2023, highlighting persistent gaps between official and market rates.