New clarification from the Central Bank regarding the adjustment of the dollar exchange rate.
New clarification from the Central Bank regarding the adjustment of the dollar exchange rate.
10-7-2026
The Central Bank of Iraq clarified on Wednesday that the adjustment of the dollar exchange rate comes within a package of economic and financial reforms, stressing that the monetary situation is reassuring and that foreign reserves are at comfortable levels that allow it to meet the demand for foreign currency to finance foreign trade.
He said that “the exchange rate channel is important for the Iraqi economy, and that adjusting the exchange rate from 1300 to 1500 dinars per dollar comes within a package of economic and financial measures and reforms imposed by exceptional circumstances that affected the state’s revenues and financing needs,” explaining that “the main objective of it is to enhance financial sustainability and maintain foreign reserves to strengthen the Central Bank’s ability to finance foreign trade,” according to what the official agency reported.
He added that the measure “will maintain monetary and banking stability, and is closer to the requirements of macroeconomic balance,” noting that there are measures to stimulate the private sector and local production and contain inflationary effects, which will enhance the competitiveness of the economy and support monetary policy.
He pointed to the agreement with the banking sector to support the private sector through the Iraqi Bank with an amount of one trillion dinars, in addition to allocating 500 billion dinars to the Housing Fund, and increasing the support of the Industrial Bank from 500 billion to one trillion dinars, stressing that these measures will contribute to stimulating the private sector, in addition to the previous initiatives of the Central Bank.
He stressed that “the monetary situation is reassuring and foreign reserves are at comfortable and sufficient levels,” explaining that the central bank has the ability to meet the demand for foreign currency to finance foreign trade.
He added that the bank directed banks to enhance their ability to finance the import bill and meet the private sector’s needs for foreign currency up to $1 billion, indicating that this will contribute to increasing the supply of foreign currency through official channels, thus supporting market stability and enhancing monetary stability.
The Central Bank of Iraq announced on Wednesday an adjustment to the exchange rate of the Iraqi dinar against the dollar, effective October 7, 2026. It set the purchase price of the dollar from the Ministry of Finance at 1,500 dinars per dollar, and the selling price to banks at 1,510 dinars, while the cash selling price of the dollar to the public was 1,520 dinars.
The bank confirmed the adequacy of its foreign reserves and its ability to meet external transfer requests for trade finance and bank card settlements, in addition to cash sales to travelers.
He explained that adjusting the exchange rate aims to support national products and local industry and enhance the ability of Iraqi goods to compete with imported products, which encourages the expansion of national factories and companies.
He pointed out that the measure provides a stimulating investment environment for non-oil productive sectors, and opens the way for small and medium enterprises to expand and create new job opportunities, which contributes to employing young people and reducing unemployment rates.
The Central Bank affirmed its continued commitment to taking measures aimed at supporting financial and monetary stability and maintaining the integrity of the financial system.
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