Iraq Reduces Dinar Value Against the Dollar.. Central Bank: Economic Reforms

- The Central Bank of Iraq announced on Wednesday a reduction in the value of the local currency against the US dollar, bringing the price of the latter to 1520 dinars instead of 1300. This measure was described by the "Central Bank" as part of a series of "economic reforms." The Central Bank issued a statement saying, "In reference to the decision of the Council of Ministers made in its twenty-second session on October 6, 2026, which includes adjusting the exchange rates of the Iraqi dinar against the US dollar to meet the relevant financial, economic, and monetary requirements."

In a comment following the decision, the official Iraqi News Agency (INA) reported a statement from the Central Bank that "the adjustment of the exchange rate is part of a series of economic reforms." Samir Al-Waeli, the Director of the Statistics Department at the Central Bank, stated in a statement to Iraqi News: "The adjustment of the exchange rate from 1300 to 1500 dinars per dollar comes as part of a package of economic and financial measures imposed by exceptional circumstances that have affected the state's revenues and its financing needs."

Al-Waeli added that this "will maintain monetary and banking stability and is closer to the requirements of overall economic balance," explaining that "there are measures to stimulate the private sector and local production to contain inflationary effects, including supporting competitive requirements, which makes monetary policy supportive of the overall economy." He continued by saying: "The monetary situation is reassuring, and foreign reserves are at comfortable and sufficient levels," clarifying that "the Central Bank has the capacity to meet the demand for foreign currency to finance foreign trade."