PM Economic Advisor: Travelers’ e-payments fuel Iraqi dinar rise

Shafaq News/ Iraq’s dinar continues to strengthen against the US dollar, fueled by a shift toward electronic payments and tighter foreign trade financing, Prime Minister’s economic advisor Mudhhir Mohammed Saleh disclosed on Saturday.

Speaking to Shafaq News Agency, Saleh attributed the currency’s recent strength to a drop in physical dollar demand, driven by expanded use of electronic payment cards, particularly among travelers. “No genuine economic foundation is without the law of supply and demand, including currency markets.”

Travelers now access dollar allocations legally through airport facilities, reducing reliance on the parallel market,” he noted, adding that private-sector trade transactions conducted through correspondent banks at the official rate of 1,320 dinars per dollar have reinforced market stability.

Saleh further credited the Central Bank of Iraq’s recent reforms—including the dismantling of the old payment platform and the launch of compliance-based mechanisms—with reducing cash dollar demand in secondary markets. “These steps have made official payment channels more flexible and cost-effective, marking a major achievement for monetary stability and regulatory oversight.”

The dinar has posted steady gains in recent days, reaching 144,350 dinars per $100 in Baghdad on Saturday, compared to around 150,000 dinars a month ago.