Iraq central bank sets new dollar exchange rate at 1,520 dinars
Iraq's central bank has set the dinar's exchange rate at 1,520 per US dollar for end users, with new rates for banks and the finance ministry.
Key Takeaways
AIIraq's central bank has set the dinar's exchange rate at 1,520 per US dollar for end users.
A cabinet decision clarified that the dollar exchange rate against the dinar was adjusted to 1,500 dinars for purchases from the Ministry of Finance, and 1,510 dinars for sales to banks.
According to a statement from the Iraqi News Agency, the adjustment comes as the central bank affirms it holds sufficient foreign reserves to meet external trade financing, settle card transactions, and supply travelers with cash dollars at the official rate.
The bank previously stated in September that the rise in the local market exchange rate was linked to speculation, expectations, and the exploitation of regional geopolitical conditions, while confirming its continued support for foreign trade through approved channels.
In its latest review, the International Monetary Fund projected that oil revenues will account for about 31% of Iraq's GDP in 2026, with total reserves expected to reach $79.2 billion that year.
The exchange rate decision coincides with Iraq's preparations for the 2027 budget, in which the government has proposed an assumed oil price of $58 per barrel and total spending of around 217 trillion dinars, with a deficit exceeding 40 trillion dinars.
The government is also considering adjusting the dinar's exchange rate in the draft budget from the current level of about 1,300 dinars per dollar to a range between 1,400 and 1,500 dinars, as oil sales remain the state's main source of revenue.