
The Central Bank of Iraq (CBI) issued a firm denial on Saturday, September 5, 2026, rejecting unverified reports and social media claims that federal monetary authorities intend to devalue the Iraqi dinar against the US dollar. Reaffirming its official policy baseline, the CBI confirmed that no adjustments to the exchange rate have been enacted, describing circulated rumors of a rate hike to 1,460 IQD as unfounded attempts to destabilize local currency markets.
| Exchange Framework | Benchmark Rate (IQD per $1 USD) | Policy / Operational Status |
| Budgetary Base Rate | 1,300 IQD | Government fiscal accounting baseline |
| CBI Official Bank Rate | 1,310 IQD | Standard rate for commercial bank foreign transfer sales |
| Parallel Market (Baghdad) | ~1,547 IQD (154,750 per $100) | Unofficial exchange bureau rate (subject to continuous market changes) |
| Parallel Market (Erbil) | ~1,540 IQD (154,000 per $100) | Unofficial regional exchange rate (subject to continuous market changes) |
The central bank's statement followed a wave of digital posts claiming that starting September 6, official financial institutions would adjust dollar conversion pricing to 1,460 IQD per USD. Rebutting the speculative claims, the CBI clarified that monetary policy remains firmly anchored to the structural framework established alongside the Ministry of Finance.CBI officials highlighted that foreign exchange reserves and trade processing mechanisms remain stable, preventing the need for currency devaluations.
The CBI continues to manage the structural spread between official bank transfer rates and informal exchange markets. While local exchange bureaus in Baghdad, Erbil, and Basra traded between 1,540 and 1,547 IQD per dollar on Saturday, central bank regulators reiterated that official trade imports and foreign transfers continue to be processed at the pegged rate. Regulators warned that spreading forged notices or unauthorized policy claims would trigger legal oversight to preserve financial system security.
By immediately countering exchange rate rumors, the CBI aims to prevent speculative hoarding and artificial inflation spikes across local consumer markets. Maintaining a firm peg at 1,310 IQD reinforces the government's commitment to fiscal continuity, though persistent parallel market spreads highlight the ongoing challenge of meeting cash-dollar demand outside official banking channels.
Follow Channel8 for continuous updates:
CBI Names Custodian For Al-Taif Islamic Bank Amid Asset Concerns
Iraq Finance Committee and CBI Discuss Crisis Resolution Strategies
CBI Reaffirms Exchange Rate Stability, Advances Sweeping Reforms to Reintegrate Restricted Banks
