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.
On September 25, Iraq's central bank announced a new exchange rate of 1,520 dinars per US dollar for end-users, marking a shift from previous rates. The cabinet decision also adjusted the exchange rate to 1,500 dinars for purchases from the Ministry of Finance and 1,510 dinars for sales to banks. The central bank's statement, as reported by the Iraqi News Agency, emphasized its sufficient foreign reserves to handle external trade financing, card transactions, and cash dollar supply for travelers at the official rate.
Initially, the bank attributed the rise in the local market exchange rate to speculation, expectations, and regional geopolitical conditions, yet it reiterated its commitment to supporting foreign trade via approved channels.
The International Monetary Fund's latest assessment suggests that oil revenues will constitute roughly 31% of Iraq's GDP in 2026, with total reserves projected to reach $79.2 billion. This exchange rate decision aligns with Iraq's preparations for the 2027 budget, wherein the government anticipates an oil price of $58 per barrel and total spending of approximately 217 trillion dinars.
Notably, the budget draft proposes an exchange rate range of 1,400 to 1,500 dinars per dollar, given that oil sales remain the primary source of revenue for the state.
Written by urgent.news from Ajel English's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
