Iraq Economic News and Points To Ponder Monday Evening 9-14-26
The Central Bank Of Iraq Is Taking Steps To Reduce The Dollar Gap; A Unified Exchange Rate For Currency Exchange Offices Is Approaching 1320
Last updated: September 14, 2026 Independent/- Informed sources revealed to the Independent Press Agency new moves within the Central Bank of Iraq aimed at reducing the large gap between the official exchange rate of the dollar and the prices circulating in the local market, through a package of measures being worked on to regulate the sale of foreign currency and tighten control over exchange companies, in conjunction with the continued rise of the dollar in Baghdad and other governorates.
The sources said the anticipated measures focus on reorganizing the mechanism for the dollar’s access to the market and meeting the actual and legitimate demand for foreign currency, thereby reducing the dependence of traders and citizens on the informal market and limiting speculation that has pushed the exchange rate away from the levels set by the central bank.
According to information obtained by the Independent Press Agency, one of the options being considered in the coming period is setting a more disciplined and unified price for selling dollars through exchange companies and authorized outlets, so that the prices are much closer to the official price, instead of the wide gap currently recorded between the dollar available through official channels and its price in the market.
The sources indicated that the move, according to the available information, is not related to changing the official price of the dinar, but rather to trying to bring the price at which the dollar reaches the end beneficiary closer to the approved official levels, foremost among them the level of 1320 dinars per dollar, through procedures related to distribution, control, pricing and the mechanism of the work of exchange companies.
This information comes at a time when the Central Bank officially confirms that there is no intention to change the official exchange rate, as it categorically denied on June 17, 2026, the news that spoke of amending the price of the dinar, warning against circulating documents or information not issued by it.
The official pricing system announced by the Central Bank in February 2023 is based on a rate of 1,300 dinars for purchasing dollars from the Ministry of Finance, 1,310 dinars for selling dollars to banks, and 1,320 dinars as the maximum selling price from banks and non-bank financial institutions to the end user. Official bank data also shows the rate remaining at 1,310 dinars per dollar.
Tightening restrictions on exchange companies
Sources from “Independent Press” confirm that the current phase is already witnessing increased oversight of exchange companies, and that this trend is likely to expand in the coming days, especially with regard to the sources of buying and selling dollars, the approved prices, the movement of funds, and compliance with the Central Bank’s regulations.
These moves are consistent with measures taken by the bank during the past months to strengthen oversight of the money exchange sector. In June 2026, the bank asked A and B category money exchange companies and brokerage firms to provide it with data relating to bank accounts for regulatory and supervisory purposes. It also continued during 2026 to withdraw licenses from violating companies and tighten compliance requirements.
Last April, the Central Bank confirmed its ability to meet all requests from banks and exchange companies for dollars allocated to travelers, pilgrims, and foreign transfers, indicating that a key part of its strategy is based on increasing access to dollars through official channels instead of allowing demand to flow to the informal market.
25,000 dinars gap for every 100 dollars
The anticipated moves are gaining even greater importance as the large gap between the official price and the local market continues.
The selling price of the dollar in Baghdad exchange shops on Monday, September 14, 2026, was recorded at about 157,000 dinars per 100 dollars, while the buying price was about 156,000 dinars, while the Al-Kifah and Al-Harithiya exchanges recorded about 156,500 dinars per 100 dollars.
Assuming a rate of 1320 dinars per dollar for the end beneficiary through official channels, the value of 100 dollars is approximately 132,000 dinars, which means there is a gap of approximately 25,000 dinars per 100 dollars compared to the selling price traded in some exchange shops in Baghdad.
According to sources, this gap is what the central bank seeks to gradually reduce, not by changing the official price, but by expanding official channels and facilitating the fulfillment of the real demand for dollars, while increasing oversight of entities that buy currency at the official price and then these prices are not actually reflected in the end beneficiary.
The Central Bank had previously paved the way for this path.
The anticipated move brings back to the forefront a previous position of the Central Bank, in which it stressed that the dollar circulating in Iraq comes mainly from the Central Bank through banks, exchange companies and brokerage, and that dealing at prices far from the set price is related to speculation more than it is a normal independent exchange market.
The bank also confirmed on June 22, 2026, the continuation of its reform program to maintain monetary and financial stability, stressing its continued commitment to meeting legitimate demand for dollars and taking the necessary policies to maintain exchange rate stability and the integrity of financial channels.
According to sources from the Independent Press Agency, the coming days will be important regarding the dollar issue, and may witness the implementation of additional measures at the level of exchange companies and pricing and distribution mechanisms, in an attempt to create a more disciplined price in the market and reduce the space in which speculation moves.
The sources confirmed that the ultimate goal of the proposed measures is to bring the dollar available to citizens and merchants through legal channels closer to the official rate, and to increase the ability of official channels to meet demand, which, if the measures are implemented efficiently and the required quantities are provided, may lead to increased pressure on the informal market and push exchange rates to gradually decline.
However, the sources stressed that the success of these measures will remain linked to the central bank’s ability to ensure that the dollar reaches the rightful beneficiary at the set price, and to prevent its resale outside official channels, in addition to securing the needs of trade and foreign transfers on a regular basis.
Thus, the Iraqi exchange market enters a new phase of anticipation, amid a still significant gap between the official and parallel market rates. All eyes are on the Central Bank to see what measures it may announce in the coming days, and to what extent they can bring the dollar back to levels closer to the official rate.
https://mustaqila.com/المركزي-العراقي-يتحرك-لتقليص-فجوة-الد/
DINAR VET MEMBER NWGUY: Not liking that bit of news. That seems to be going the wrong direction!
DINAR VET MEMBER EARLY RETIREMENT: I’m sorry to disagree with you nwguy….
We have heard from the central bank for the past 20 years that they have PURPOSELY manufactured the exchange rate by flooding the market with US dollar…I have been looking for the CBI to limit the flow of dollar and that’s exactly what they are going to do…
remember we NEED the Iraqi citizen to want to use the dinar over the dollar, how can that be done if there are different exchange rates from the selling price to the market price. This is a HUGE step in right direction we have been waiting for!!!
Some dinar holders are looking for them to change the exchange rate overnight but they have NO basis to do so……they have to create a stronger value for the dinar and that’s what they have been doing for sometime now, such as diversifying their GDP and not relying solely on oil….
I have been following the auctions since 2009 and they did a test of not auctioning the dollar for 1 month back in November of 2011 and I believe this was to test how the market reacted….and low and behold it reacted positively!
The problem was they weren’t ready to pull the trigger with the process of dropping the zeros…..but now everything is lining up. Iraq is submitting their paperwork to become full members of the WTO, the HCL is being discussed again and hopefully be passed soon, massive info about the new currency coming out, etc……lots of great news and this latest info about the closing of the gap of the exchange rate is HUGE. Stay tuned!!!