At a glance

• Market Spokesperson Jabar Goran clarified that changing the exchange rate is an exclusive constitutional power of the Central Bank of Iraq, not the Ministry of Finance.
• Contacts within the Parliamentary Finance Committee confirmed that the proposal is entirely speculative and has not been drafted into any formal bill.
• Goran labeled a devaluation as "suicidal," warning it would devastate living standards.
• Unverified reports originating from an Iraqi MP claiming a proposed devaluation from 132,000 to 150,000 IQD per $100 triggered a massive parallel market panic.

The Slemani Currency Exchange Market spokesperson warned that recent unverified rumors of an official dinar devaluation to 150,000 IQD per $100 are triggering severe parallel market panic and volatility, labeling any such policy move as a "suicidal decision" for the economy.

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Key Statements and Focus Area

• Currency Market spokesperson Jabar Goran stated that the instability in local exchange markets “was triggered by statements from an Iraqi Member of Parliament claiming that the Minister of Finance discussed adjusting the exchange rate—devaluing it from 132,000 dinars to 150,000 dinars [per $100].”
• “This inherently created a highly negative reflection on the market and caused a massive panic. However, this proposal has neither become a draft bill nor has it been presented to the members of the Parliamentary Finance Committee,” Goran affirmed.
• A currency trader told Channel8 that “any rumor circulated in the market—whether accurate or inaccurate, and whether it drives up demand or supply—directly impacts individuals and traders alike.”

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Briefing reporters in Slemani on Monday, including Channel8, spokesperson Goran stated that according to the constitution and the regulations of the Central Bank of Iraq, "these powers reside exclusively with the Central Bank."

He noted that decisions of this nature require comprehensive analysis by Central Bank experts, adding, "a decision like this is never made haphazardly."

"This would be a suicidal decision,” he stressed, adding that it would create a severe negative impact on the market and drastically lower the citizens' standard of living.

"In my personal opinion, this decision will not be implemented,” he reaffirmed.

The spokesperson highlighted that "at a time when customs tariffs have already been increased on the public due to the ASYCUDA system, coming along and devaluing the currency on top of that would ultimately have a devastating impact on people's lives."

Goran confirmed that according to sources within the Parliamentary Finance Committee and the Central Bank, the exchange rate adjustment remains entirely speculative and has not been drafted into a formal legislative proposal.

Answering questions regarding the motives behind the circulated reports, he said that "the intention of the parliamentarians who circulated this news is either to gauge the public's reaction first or, in one way or another, to manipulate the market."

He called on media outlets not to broadcast this news until the source has been officially verified.

Meanwhile, a currency trader noted that the market witnessed intense volatility as the dollar rate surged past 160,000 IQD before retracing to 159,000 IQD, warning that the instability will persist until the Central Bank officially refutes the devaluation rumors.

He further said that the ASYCUDA system fails to adequately facilitate trade by significantly delaying dollar allocations for merchants importing essential goods, forcing them to purchase dollars directly from the parallel market and thereby driving up demand.

FYI

The instability in the parallel market across the Kurdistan Region comes as Iraqi Parliamentary Finance Committee member Dilan Ghafoor revealed that the draft 2027 budget proposes setting the exchange rate at 150,000 IQD per $100.

Lawmaker Ghafoor explained that this fiscal measure, developed by the Ministry of Finance, aims to completely eliminate the gap between official and parallel trading figures by aligning both rates at the 150,000 dinar threshold.

She added that while a principal agreement has been included in the initial budget draft to inject an additional 20 trillion dinars into state revenues, the adjustment is not yet final as it still requires formal approval and votes from both the Council of Ministers and Parliament.

The Central Bank of Iraq (CBI) has not issued any official statement regarding the matter so far.

However, the apex bank has previously and repeatedly reaffirmed its steadfast commitment to maintaining the official exchange rate at 1,320 IQD per dollar without any alterations.

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