Ali al-Alaq, the Governor of the Central Bank of Iraq (CBI), has denied any talks to adjust the value of the dinar against the dollar, saying the country's foreign exchange reserves have reached $100 billion.

 al-Alaq said that the reason Iraq experiences the “lowest level of inflation” is due to “successfully controlling the movement of cash.”

He noted that the daily balance between demand and supply of dollars has been achieved.

"Through several channels and electronic platforms for foreign remittances, we have been able to control the supply of cash and prevent the appreciation of the dollar. The process is under global scrutiny," al-Alaq added.

Foreign Exchange and Gold Reserves

Iraq’s Central Bank governor remarked that the country’s foreign exchange reserves total $100 billion, while gold reserves are valued at 22.8 trillion dinars.

Official vs. Black Market Rates

The history of the Iraqi dinar against the US dollar has passed through four main stages: from the golden age, when one dinar was four dollars, to the collapse, when one dollar reached three thousand dinars.

Although the Central Bank has always set the official price, the black market price has always been higher due to high demand and smuggling. In the latest decision, the Central Bank fixed the official exchange rate of 100 dollars at 132,000 dinars in February 2023, but the markets have always been above 140,000 dinars.