At a Glance

• The central bank rejected reports that it returned commercial deposits over exchange rate discrepancies.
• Foreign transfers submitted before October 7 are being processed at 1,320 dinars per dollar.
• The regulator warned media outlets of immediate legal consequences for spreading misleading financial news.

The Central Bank of Iraq has categorically denied speculative reports that it rejected 600 billion dinars over exchange rate discrepancies, reaffirming that foreign transfers submitted before October 7, are being executed at the previous rate of 1,320 dinars per dollar.

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Key Statements and Focus Area

• The CBI stated that it refutes and denies claims circulated by a news agency quoting an anonymous source, which alleged that "the Central Bank returned funds amounting to 600 billion dinars because it did not adopt the previous rate of 1,320 dinars per dollar, demanding instead to bolster the amount based on the current exchange rate of 1,520 dinars per dollar." 
• The central bank warned that it will take legal action against any entity that disseminates rumors and misleading news.

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In an official statement on Monday, the Central Bank of Iraq reaffirmed its commitment to processing all foreign transfer requests submitted to commercial banks prior to October 7, 2026, at the previous official exchange rate without any additional fees. 

The CBI confirmed that all electronic payment cards remain fully operational at the officially approved exchange rate to facilitate transactions for citizens traveling abroad.

Furthermore, the central bank emphasized a directive from the Media and Communications Commission demanding absolute precision in all reporting on exchange rates, market trends, and public salaries. 

The monetary authority reiterated that all media outlets must rigorously verify their information with competent official sources prior to publication.

FYI

The official denial from the Central Bank follows a controversial report published on Sunday by the local news agency Baghdad Today.

Citing an anonymous "informed source," the report claimed that the central bank had abruptly returned over 600 billion dinars in financial deposits to prominent local companies specializing in the gold trade and foreign imports.

The publication alleged that these commercial trade entities had originally deposited their funds based on the previous official exchange rate of 132,000 dinars per $100 (1,320 dinars per dollar).

According to the source, the firms were caught completely by surprise when the central bank supposedly rejected their deposits, demanding they resubmit their funds under the newly established official rate of 152,000 dinars per $100 (1,520 dinars per dollar).

Baghdad Today warned that this sudden regulatory move had already fueled intense volatility in Iraq's parallel market, driving the black market dollar exchange rate on the Baghdad stock exchange up to nearly 165,000 dinars per $100.

The source argued that forcing import businesses to fund their balances at the higher 1,520 rate would trigger sustained downward pressure on the national currency, inflate import overheads, and dramatically increase consumer prices for imported commodities across local retail markets.

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