Iraq Economic News and Points To Ponder Thursday Evening 10-8-26

EconomicsNews

Oct 8

CBI Tells Lawmakers New Dollar Rate Is Final

2026-10-08 Shafaq News- Baghdad Central Bank of Iraq (CBI) governor Nizar Hussein has informed parliament's Finance Committee that the new official exchange rate of 1,500 dinars to the dollar is fixed and cannot be changed, a parliamentary source told Shafaq News on Thursday. Hussein told committee members that changing the rate in the budget law would mean redrawing every table and line item in the draft, which was built on 1,500 dinars to the dollar, the source said.

Neither the governor nor Finance Minister Falih Sari came to parliament. Hussein instead sent the bank's position to the committee.

The committee had planned to meet both officials to discuss the decision and its consequences and to review the draft federal budget. The parliament's presidency had already canceled Thursday's full session, which was meant to host the two officials, and left the matter to the committee.

The central bank set the new rates on Wednesday, effective October 7. It now buys dollars from the Finance Ministry at 1,500 dinars, sells them to banks at 1,510 and to the public at 1,520.

Iraq's government earns almost all its revenue in dollars from oil exports and sells those dollars to the central bank for the dinars it needs to pay public salaries.

https://shafaq.com/en/Economy/CBI-tells-lawmakers-new-dollar-rate-is-final

Economist Urges One-Year Customs Cut After Dinar Devaluation

2026-10-08 Shafaq News- Baghdad Iraq should cut customs duties to a flat 5% for one year to soften the impact of the dinar's devaluation on prices and keep trade and industry from stalling, Manar al-Obaidi, head of the Iraq Future Foundation for Economic Studies and Consultations, said on Thursday.

In a Facebook post addressed to the Cabinet and parliament, al-Obaidi called for an immediate decision to freeze the rates and schedules of the amended Customs Tariff Law No. 22 of 2010 for that period. He proposed temporarily returning to Coalition Provisional Authority Order No. 38 of 2003, which introduced a 5% Reconstruction Levy on most imported goods, with exemptions.

The Finance Ministry and the General Customs Authority should also issue one set of tables and instructions for all border crossings, so costs are applied consistently, he said. Under his proposal, the measure would last 12 months, with a review after six months of its effect on inflation, prices, imports, revenues and industry.

Raising the central bank's purchase rate for dollars from the Finance Ministry from about 1,300 to 1,500 dinars increased the dinar value of each dollar by about 15.4%, giving the state significant extra fiscal room, according to al-Obaidi.

Keeping high customs rates on top of the new exchange rate, he said, places a double burden on imports that passes through to food, medicine, factory inputs, machinery, spare parts and transport costs, and ultimately to consumers. “Do not subject citizens and the market to two shocks at once,” he wrote.

Targeted protection for Iraqi producers could instead come through the Iraqi Products Protection Law, applied when local goods face dumping, foreign subsidies or harmful import surges, he added.

The Cabinet raised the official end-user rate from 1,320 to 1,520 dinars per dollar on Tuesday, and the same decision suspended a new system requiring importers to pay customs duties in advance. Shops and warehouses in Baghdad's Al-Shorja and Jameela wholesale markets, along with several exchange and money-transfer firms, closed after the decision.

https://shafaq.com/en/Economy/Economist-urges-one-year-customs-cut-after-dinar-devaluation

Dollar Rate Increase Pushes Food Prices Up 15%

2026-10-08 Shafaq News- Baghdad Prices of several food staples rose by as much as 15% in Iraqi markets on Thursday, a day after the Central Bank of Iraq (CBI) raised the official US dollar exchange rate from 1,320 to 1,520 dinars, with some traders immediately increasing prices and others suspending sales.

A box of eggs containing 12 trays climbed 10.7%, from 84,000 to 93,000 dinars ($55.26 to $61.18), while Mahmood rice rose 10.8%, from 65,000 to 72,000 dinars ($42.76 to $47.37).

Sugar recorded the sharpest increase, gaining 15.4% from 26,000 to 30,000 dinars ($17.11 to $19.74), followed by Zer cooking oil, which went up 9.1%, from 55,000 to 60,000 dinars ($36.18 to $39.47).

Food trader Abu Sajjad told Shafaq News that businesses had little choice but to adjust their prices to the higher dollar rate, although current selling prices remained below the cost of replenishing imported stock.

Apart from locally produced eggs, most affected products are imported, he explained, adding that some beverage companies had temporarily halted sales pending greater clarity on currency movements.

On Oct. 7, the CBI introduced a new exchange-rate structure, setting the dollar at 1,500 dinars for purchases from the Finance Ministry, 1,510 for sales to banks, and 1,520 for cash transactions with the public. The parallel-market rate remained higher, reaching 1,680 dinars per dollar after the adjustment.

1 US dollar = 1,520 dinar

https://shafaq.com/en/Economy/Dollar-rate-increase-pushes-food-prices-up-15

Iraq Targets Zero North Oil Flaring By 2027

2026-10-08 Shafaq News- Baghdad Iraq plans to capture an additional 80 million standard cubic feet of associated gas per day from three northern oil fields by the end of 2026, aiming to eliminate gas flaring across North Oil Company’s operations by the end of 2027, Deputy Oil Minister for Gas Affairs Izzat Saber Ismail said on Thursday.

According to the Oil Ministry, the additional volumes will come from the Bai Hassan, North Jambur, and Khabbaz fields, supplementing existing recovery operations.

During a visit to North Oil Company and North Gas Company, Ismail reviewed project progress and operational challenges, calling for faster implementation to boost fuel supplies for power plants and increase liquefied petroleum gas (LPG) production.

The three fields also form part of British energy company BP’s broader redevelopment program in Kirkuk. Oil Ministry spokesperson Salim Al-Rikabi previously outlined an agreement covering Bai Hassan, Jambur, Khabbaz, and Kirkuk, along with the expansion of North Gas Company facilities and construction of a planned 400-megawatt power station. A key component involves recovering gas currently burned off during oil production for use in electricity generation.

Iraq has set 2029 as its nationwide target for ending routine gas flaring. The World Bank’s 2025 Global Gas Flaring Tracker estimated that the country burned approximately 17.37 billion cubic meters in 2024, placing it among the world’s largest gas-flaring nations.

https://shafaq.com/en/Economy/Iraq-targets-zero-North-Oil-flaring-by-2027

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Iraq Economic News and Points To Ponder Thursday Evening 10-8-26

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