Former CBI Official: "Al-Taif Bank" Crisis Triggers Parallel Market Dollar Surge in Iraq

Mahmoud Dagher, former Director General at the Central Bank of Iraq (CBI), attributed the recent jump in the US dollar exchange rate against the Iraqi dinar to market instability and reduced investor confidence stemming from the "Al-Taif Islamic Bank" crisis.

Dagher told Shafaq News Agency that heightened anxiety pushed parallel market demand for dollars upward, triggering price spikes over the past two days.

The CBI recently placed Al-Taif Islamic Bank for Investment and Finance under conservatorship pursuant to Board Decision No. 130 of 2026, citing severe regulatory violations that compromised the bank's financial stability. The measure follows days of liquidity constraints and service disruptions that sparked public protest among depositors and salary-domiciled employees.

The conservatorship committee formally assumed management on September 6, 2026. CBI officials reassured the public that the intervention is a regulatory safeguard rather than a bankruptcy declaration, emphasizing that client funds remain protected under applicable laws and will be disbursed once administrative audits conclude.

Meanwhile, parallel market rates reached 155,600 IQD per $100 USD at Baghdad's Al-Kifah Exchange.