Despite Government Measures, Iraqi Dinar Continues to Fall against USD

The Governor of the Central Bank speaks before the Parliamentary Finance Committee about the exchange rate. (Iraq News Agency)
The Governor of the Central Bank speaks before the Parliamentary Finance Committee about the exchange rate. (Iraq News Agency)
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Despite Government Measures, Iraqi Dinar Continues to Fall against USD

The Governor of the Central Bank speaks before the Parliamentary Finance Committee about the exchange rate. (Iraq News Agency)
The Governor of the Central Bank speaks before the Parliamentary Finance Committee about the exchange rate. (Iraq News Agency)

The Iraqi dinar continued to fall against the US dollar, despite the government’s vigorous measures. This decline negatively affected commercial transactions in most of the wholesale markets in Baghdad and the provinces.

On Monday, the exchange rate reached IQD 1,540 to the dollar in the parallel market, compared to IQD 1,320 to the dollar in the official currency auction approved by the Central Bank.

A wholesaler in the Shorja commercial souk in Baghdad told Asharq Al-Awsat that the market was witnessing a great stagnation, adding that the movement of buying and selling has declined recently due to the fluctuating exchange rates.

He noted that traders are worried that the Iraqi dinar would continue to fall against the dollar, touching the ceiling of IQD 1,700 for one dollar, as happened at the beginning of 2023, thus contributing to the rise of commodity prices and basic materials.

The trader did not rule out that the recent US sanctions on 14 Iraqi banks and the central bank’s ban on dealing with them in dollars was behind the new exchange crisis, although the central bank is pumping more money into the currency auction.

Last week, the US Treasury imposed sanctions on 14 Iraqi banks in a crackdown on Iran’s dealings in dollars.

The Wall Street Journal quoted US officials as saying they were taking action against the banks after uncovering information that they engaged in money laundering and fraudulent transactions, some of which may have involved sanctioned individuals and raised concerns that Iran could be benefitting from the dealings.

The continuous decline in the exchange rates of the dinar against the dollar prompted Prime Minister Mohammad al-Sudani to meet with the Governor of the Central Bank, Ali al-Alaq, on Sunday, in the presence of financial advisors and the director general of investment in the bank.

According to a statement, al-Sudani was briefed on “clarifications about the most important facilitations provided by the Central Bank, which include allowing small merchants and individuals to finance their imports without the need to establish a company, through government and private banks that have direct relations with correspondent banks.”

Participants in the meeting also emphasized the need to maintain the compensation for citizens and companies who buy dollars at the unofficial rate.

During the meeting, al-Alaq revealed “the bank’s intention to resume selling cash dollars through licensed banks in Nineveh governorate.”



Saudi Crown Prince Orders Measures to Balance Riyadh’s Real Estate Market

Saudi Crown Prince and Prime Minister Mohammed bin Salman. SPA
Saudi Crown Prince and Prime Minister Mohammed bin Salman. SPA
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Saudi Crown Prince Orders Measures to Balance Riyadh’s Real Estate Market

Saudi Crown Prince and Prime Minister Mohammed bin Salman. SPA
Saudi Crown Prince and Prime Minister Mohammed bin Salman. SPA

Saudi Crown Prince and Prime Minister Mohammed bin Salman has issued directives for a series of comprehensive measures aimed at stabilizing land and rental prices in Riyadh, following an in-depth study by the Royal Commission for Riyadh City.

The Crown Prince’s directives are in response to the significant surge in land and rental prices witnessed in recent years. The measures are designed to achieve balance in the real estate sector and increase access to affordable housing.

As part of the initiative, the Crown Prince ordered the lifting of restrictions on land transactions — including sales, purchases, subdivisions, and construction permits — in two key northern areas of Riyadh.

The first spans 17 square kilometers, bounded by King Khalid Road and Prince Mohammed bin Saad Road to the west, Prince Saud bin Abdullah bin Jalawi Road to the south, Asmaa bint Malik Street to the north, and Al-Arid District to the east.

The second covers 16.2 square kilometers north of King Salman Road, bordered by Abi Bakr Al-Siddiq Road and Al-Arid District to the east, Prince Khalid bin Bandar Road to the north, and Al-Qirawan District to the west.

These areas are in addition to previously released areas totaling 48.28 square kilometers, bringing the total area released for development to 81.48 square kilometers.

The Crown Prince also instructed the Royal Commission for Riyadh City to provide between 10,000 and 40,000 fully planned and developed residential plots annually over the next five years, based on market demand.

These plots will be offered at prices not exceeding SAR1,500 per square meter to eligible Saudi citizens — specifically, married individuals or those aged 25 and above with no previous property ownership.

Conditions include a ten-year restriction on selling, renting, or mortgaging the land — except for loans to build on it. If construction is not completed within the decade, the land will be reclaimed and its value refunded.

Additional measures include the rapid implementation of proposed amendments to the White Land Tax Law within 60 days to enhance real estate supply, and regulatory actions within 90 days to ensure fair and balanced relationships between landlords and tenants.

Finally, the General Real Estate Authority and the Royal Commission for Riyadh City have been tasked with monitoring real estate prices in the capital and submitting regular reports to ensure transparency and market stability.