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The Dollar Becomes the Main Currency in Iraqi Kurdistan

Feb 11, 2026 February 11, 2026 1 min read 📰 VOA Persian
📋 Key Takeaway

Kurdish officials in Iraqi Kurdistan have decided to adopt the US dollar as the primary currency due to the devaluation of the Iraqi dinar and the scarcity of the Swiss dinar. This shift reflects economic instability in the region and the need for a more stable currency. The decision is significant for local commerce and reflects broader economic trends in Iraq.

🔍 Quick Context Guide
💡 Bottom Line: The decision to adopt the US dollar in Iraqi Kurdistan highlights the region's economic instability and the search for a more reliable currency.

👥 Key Players

Patriotic Union of Kurdistan (PUK) MENTIONED
Political party governing parts of Iraqi Kurdistan
"The PUK plays a crucial role in the governance and economic stability of the Kurdish region, impacting relations with both the Iraqi central government and neighboring countries."
Iraqi Government MENTIONED
Central authority of Iraq
"The Iraqi government's policies directly affect the economic conditions in the Kurdish region, including currency stability and availability."

📰 What Happened

Kurdish officials in areas controlled by the Patriotic Union of Kurdistan have decided to adopt the US dollar as the main currency due to the devaluation of the Iraqi dinar and the scarcity of the Swiss dinar.

  • The Iraqi dinar has lost significant value, trading at 1,500 dinars to one US dollar.
  • The Swiss dinar is becoming scarce as the Iraqi government is buying it up.

💡 Why It Matters

🇮🇷 For Iran: This shift could influence Iran's economic interactions with Iraqi Kurdistan, especially in trade and currency exchanges.
🌍 Regional: The adoption of the US dollar may lead to increased economic independence for Kurdistan, potentially altering power dynamics with the Iraqi central government.
🌐 International: This move could signal a trend towards dollarization in unstable economies, affecting international trade and investment strategies.

📚 Background

The Iraqi dinar has faced severe devaluation since the fall of Saddam Hussein, leading to the emergence of alternative currencies like the Swiss dinar in Kurdish areas.

Currency devaluation Economic stability in Iraq
📡 Source: NEUTRAL
📊 Confidence: 70%
The report appears to be factual and focuses on economic developments without overt political bias.

A report from the Kurdish region of Iraq indicates that Kurdish officials in areas controlled by the Patriotic Union of Kurdistan have decided to circulate the US dollar as the main currency in their regions. Currently, the residents of these areas use two types of currency: the Iraqi dinar issued by Saddam Hussein's government and another currency referred to as the Swiss dinar, as its gold backing is deposited in Swiss banks. The Iraqi dinar has recently lost all its value, trading at 1,500 Iraqi dinars to one US dollar. However, the value of the Swiss dinar is increasing, with one US dollar officially equivalent to 17 Swiss dinars, but currently trading at 10 or 11 Swiss dinars. The report indicates that Kurdish officials have decided to circulate the US dollar in their controlled areas because the Swiss dinar is gradually becoming scarce. The apparent reason for its scarcity is the Iraqi government's action to buy up all Swiss dinars.

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Translated from the original and edited for English readers. View original source →

Translation confidence: 85%

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