For the first time, dollarization decreased by 20% in Iraqi markets

Chamber of Commerce approved a 20% decrease in dollarization in Iraqi markets during 2024.

The head of the Diyala Chamber of Commerce, Muhammad Al-Tamimi, said in an interview with “Al-Ma’louma”, that “the dollar has turned into the most important trading currency and has the most influence in setting price rules in Iraqi markets.” In recent years, due to mistakes and accumulations that have been continuing for many years.”

He added, “The variables of dealing with the parallel market and seeking to control the phenomenon of dollarization in Iraqi markets have begun to succeed in reversing the trend towards the dinar, which has led to a decline in dollarization in the markets by 20% during the year 2024. This matter is extremely important. Its most prominent repercussions are the relative stability of the exchange rate despite Increase in foreign trade.

He pointed out that “increasing electronic transactions in exchange for state services is very important. It will contribute to increasing the state’s cash balance and give flexibility in paying salaries and loans and financing investment projects.”

What is meant by dollarization is the use of the US dollar to pay internal trade dues instead of the dinar.

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