Peregraf — The price disparity between older-print U.S. $100 banknotes, known locally as “white dollars,” and the newer “blue dollars” has widened to 5,000 Iraqi dinars in the Kurdistan Region. This growing gap has destabilized currency exchange markets, inflicting financial losses on citizens and small traders.
According to Peregraf’s latest market monitoring, a "blue" $100 bill currently trades at 144,000 dinars, while "white" bills are being valued as low as 139,000 dinars in some markets. Observers warn the situation is deteriorating despite previous regulatory attempts.
“The current measures are no longer effective,” a high-ranking source told Peregraf. “We are actively seeking a more sustainable solution.”
Market Council Revises Mandatory Ratios
In an attempt to manage the crisis, the Sulaymaniyah Dollar Market Council has amended its circulation requirements. Previously, the council mandated a "mix" for wholesale trades, requiring exchange offices to include $3,000 in white dollars for every $10,000 exchanged (a 30% ratio).
The council has now lowered this requirement to $2,000 per $10,000 (a 20% ratio) to ease the burden on traders who struggle to offload the older bills. However, market participants argue that simply adjusting ratios does not address the underlying refusal of banks to accept the older currency.
Private Banks Accused of Fueling the Crisis
Investigation by Peregraf suggests that private banks are a primary cause of the disparity. Many banks either refuse white dollars entirely or accept them only at a significant discount. This forces exchange offices and the public to absorb the loss in value.
Jabar Goran, spokesperson for the Sulaymaniyah Dollar Market, told Peregraf: “The solution lies with the Central Bank of Iraq (CBI) and the federal government. Many private banks reject white dollars, and markets in Baghdad often do the same or buy them at a steep discount.”
Goran emphasized that local interventions are "sticking-plaster" solutions. “The CBI must mandate that all private banks accept white dollars as equal to blue ones and enforce this across the country.”
The Origins of the Gap
The price distinction emerged roughly a year ago, but the gap was initially negligible—less than 500 dinars per $100. However, in December 2025, the disparity spiked.
Several factors are driving this trend, most notably an oversupply of white dollars in the Kurdistan Region. Sources indicate that traders in Baghdad, Iran, and Turkey—where similar but smaller price gaps exist—are "dumping" white dollars into the Kurdistan markets while hoarding newer blue bills.
Risk to the Public
The spokesperson warned that if Sulaymaniyah attempted to enforce a 1:1 price parity without broader Iraqi support, it would become a "magnet" for old currency.
“If there were no price difference here, all the white dollars from neighboring regions would flood our market, and all the blue dollars would be drained out. That would cause even greater losses for our citizens,” Goran explained.
The current 5,000-dinar gap has already hit laborers and ordinary savers hard. Many kept their savings in white dollars, unaware their value would be unilaterally "degraded" by local market sentiment.
In September 2025, the Kurdistan Region’s security agency (Asayish) issued a decree banning price discrimination between the two prints. The measure largely failed.
A source within the Asayish told Peregraf: “We cannot directly dictate market prices. This is a matter of supply and demand, and we must respect free-market principles. Real currency regulation is the responsibility of the Central Bank.”
The source added that security intervention would only be triggered if exchange offices began a total refusal to accept legal tender.
A Manufactured Crisis
Currency experts point out that this "white vs. blue" distinction is a local phenomenon that does not exist in the international financial system.
“The Central Bank of Iraq and the U.S. Federal Reserve make no distinction between these prints; both are legal tender,” said Ismail Mohammed, a Sulaymaniyah-based exchange owner. “The crisis is manufactured by private banks that refuse the old print to protect their own margins.”
Mohammed also noted a secondary issue: “Some banks even refuse 5,000-dinar notes, insisting only on 50,000-dinar bills. This creates unnecessary friction for everyday citizens.”
The Need for Central Bank Action
As the gap persists, there is a growing consensus that only a decisive mandate from the Central Bank of Iraq can restore market confidence. Without binding regulations, observers warn that the public's trust in the local financial system will continue to erode, leaving them to pay the price for a problem that does not exist on the global stage.