CBI Defends Dinar Devaluation, Cites Strong Reserves
2026-10-13 / 04:06 Shafaq News- Erbil Iraq’s recent dinar devaluation was the best option to protect foreign reserves from an oil revenue shock, although the country still holds enough reserves to cover at least a year of imports, Central Bank of Iraq (CBI) Director General of Statistics and Research Samir Fakhri Nima said on Tuesday.
Speaking at the Middle East Research Institute’s MERI Forum 2026 in Erbil, Nima said disruptions around the Strait of Hormuz had sharply reduced oil revenue, with the effects emerging in May and June because of deferred payments for oil sales. He put oil’s share of government revenue at more than 93%.
Nima put monthly government spending at the equivalent of about $6 billion to $6.7 billion at the new Finance Ministry exchange rate, but said average oil exports had recently exceeded 2.5 million barrels per day, easing financing pressure on the government and the CBI. The oil revenue shock made it “necessary” to assess domestic and foreign borrowing options, while Iraq’s external debt declined in recent years.
Government operating spending generates demand for dollars at the CBI, adding pressure to foreign reserves, he said.
On October 7, Iraq raised the public dollar-selling rate from 1,320 to 1,520 dinars, while the rate applied to Finance Ministry transactions rose from 1,300 to 1,500. Iraqi analyst Mohammed Al-Saffar told Reuters the adjustment would give the government more dinars per dollar of oil revenue but raise import costs. CBI data showed foreign reserves had fallen to $80.6 billion by the end of July, from $97.4 billion at the end of 2025.
Read more: Iraqi dinar devaluation sparks backlash from blocs inside the cabinet
Read more: Why Iraq’s dinar keeps sliding despite fresh US cash
Latest Updates From Bahaa Al-Araji: Al-Zaydi Dissolved The “Al-Muhandis” Company, And The World Bank Wants The Dollar At 200,000 Dinars
2026-10-13 | 23:50 Baghdad – 964 Media Member of Parliament and head of the Reconstruction and Development bloc, Bahaa Al-Araji, confirms the existence of a severe financial crisis that threatens salaries by the end of this year, noting that the World Bank is asking Baghdad to price the dollar at 200,000 dinars per 100 US$. (2,000 IQD / $1)
At the same time, he reveals that Washington agreed to amend the Popular Mobilization Forces Law in exchange for abolishing the company of (Abu Mahdi) Al-Muhandis, as he put it in an interview with journalist Samer Jawad, on Iraq 24 channel, which was followed by the 964 network.
Bahaa Al-Araji:
Brother Humam Hamoudi, my teacher, but where is the state for there to be a State Leadership Council? I, Bahaa Al-Araji, cannot be in this council. The state has been exhausted, paralyzed, and weakened, so why these titles? We are the ones who brought the state to this stage, is it right for us to come up with the solutions?
We have a constitution that includes the institutions of the Prime Minister, Parliament, Republic, and Judiciary, and there is no State Leadership Council. This proposal wants to swallow up the state, like the previous regime that reduced it to a temporary constitution and a Revolutionary Command Council.
Regarding the lack of salaries for the deputy prime ministers: At the beginning of the national session, Ahmed Chalabi suggested giving an advance of $50,000 to each deputy, to sort out his situation and fill his eye with something other than theft, because when you don’t give him a salary, how will he live?
We export Iraqi oil through Hormuz, with American approval and via the Omani side, without Iran’s approval. The Islamic Republic did not stand with Iraq as we stood with it.
Our imports from Iran are around $15 billion annually, and some say we have become your backyard. So when you prevent me from exporting, where will I be?
We paid a higher price for the war than Iran. If the war stops, Iran will recover in one year, while Iraq will not recover its financial situation in five years.
Iranian influence in Iraq has weakened over the last three years, and Iran has put up many indicators in Iraq, but these are things that are not in our hands, as we cannot do anything to American and Israeli aircraft.
When the previous government wanted to open outlets from Jordan and Syria, some “Shait and Mait” came out to say: I will blow up the pipeline and other things. We should hang these people now in Hormuz.
Some were “shouting” from the factions, which were outside the state institution, so how will they be now that they are inside the state in the ministerial formation, and will become influential in weapons and decision-making, and none of them will hand over their weapons, as long as the war exists in the region.
The state pays salaries with loans from the Central Bank, and salaries are secured until December of this year, after which the situation is difficult.
Raising the exchange rate will not solve the budget crisis, and the Central Bank has advised that the exchange rate should be 220,000 per 100 dollars.
The Popular Mobilization Forces (PMF) law has been transformed from the blacklist to the whitelist, due to some amendments, including the cancellation of the Engineer Company.
The Americans also have reservations about the PMF structure, especially regarding some professional positions, as well as the issue of affiliation.
For example, there is a certain party or faction present in the PMF. These people are affiliated with the party, but today their affiliation is being severed and they may be scattered and not be in one group. https://964media.com/725304/
