ERBIL, Kurdistan Region - Iraq’s Council of Ministers on Tuesday approved a de facto devaluation of the Iraqi dinar, raising the official exchange rate from 1,320 dinars per US dollar to 1,520 dinars per US dollar for final beneficiaries, effective Wednesday.
The cabinet adopted the decision during its regular Tuesday session after an urgent submission by the finance minister and the governor of the Central Bank of Iraq (CBI).
Under the new rates, the Finance Ministry will purchase dollars at 1,500 dinars per dollar, sell them to banks at 1,510 dinars, while banks and non-banking financial institutions will sell them to final beneficiaries at 1,520 dinars.
The move comes after the dinar weakened sharply in recent months, with exchange markets in Erbil and Sulaimani trading at around 162,000 dinars per $100 on Tuesday amid speculation of an official devaluation.
Earlier Tuesday, Dhia al-Tai, representative of the Association of Exchange Companies in Iraq, had said there was no confirmed plan to alter the official rate, stressing that “Changing the exchange rate is an exclusive decision that rests solely with the Central Bank.”
“The fundamental and primary decision lies in the hands of the Central Bank,” Tai said.
The new rate also comes amid mounting fiscal pressures, with Iraq recording a budget gap of more than 29 trillion dinars ($22.4 billion) in the first seven months of 2026, according to Finance Ministry figures.
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