The Central Bank of Iraq has officially confirmed the recent adjustment of the Iraqi dinar exchange rate against the US dollar, describing the move as a strategic step aimed at strengthening financial stability and supporting long-term economic development.
Under the new rates, the Ministry of Finance will purchase dollars at 1,500 dinars per dollar, banks will receive dollars at 1,510 dinars per dollar, and cash sales to the public will be conducted at 1,520 dinars per dollar.
The Central Bank said the decision was made in coordination with the federal government and the Council of Ministers and is intended to support Iraq’s broader economic goals.
According to the bank, the exchange rate adjustment is designed to strengthen local industries by making Iraqi products more competitive against imported goods. Officials believe this will encourage the expansion of domestic factories and businesses while reducing reliance on imports.
The bank also said the new rate could help attract investment into non-oil sectors of the economy, creating a more favorable environment for productive industries and encouraging economic diversification.
Another objective of the move is to support small and medium-sized enterprises. The Central Bank said stronger opportunities for these businesses could lead to job creation, particularly for young Iraqis, and help reduce unemployment.
To address public concerns, the Central Bank emphasized that Iraq’s foreign currency reserves remain strong and sufficient to meet all legitimate demand for external transfers, trade financing, bank card settlements, and travel-related cash purchases.
The bank stated that all requests for foreign currency transactions would continue to be processed without restrictions and that the country’s financial position remains secure.
While the decision has faced criticism from some political and economic figures who fear it could lead to higher prices, the Central Bank maintains that the adjustment is part of a broader strategy to support domestic production, encourage investment, and strengthen the Iraqi economy over the long term.
The institution reaffirmed its commitment to maintaining financial stability and said it would continue taking measures aimed at protecting the country’s economic interests and ensuring the stability of Iraq’s financial system.
