Iraq Targets 1,550 Dinars per Dollar in Parallel Market
At a Glance
- Iraqi government spokesperson Haider al-Aboudi says the government and Central Bank are working toward bringing the parallel-market dollar rate to 1,550 dinars in the near term.
- Al-Aboudi says sufficient Central Bank reserves are available to finance foreign trade and meet import needs.
- He says financial allocations for transfers made before the latest exchange-rate adjustment were secured at the previous rate.
- Imported food and medicines have been exempt from customs duties since October 7, following a Cabinet decision.
Iraqi government spokesperson Haider al-Aboudi says the government and Central Bank are pursuing a plan to bring the U.S. dollar’s parallel-market exchange rate to 1,550 Iraqi dinars in the near term, while assuring that foreign trade financing and commitments linked to the previous exchange rate remain covered.
Key Statements and Focus Areas
Government’s Parallel-Market Target
Al-Aboudi told the Iraqi News Agency (INA) that the government and Central Bank are working under a “studied plan” to bring the parallel-market rate to 1,550 dinars per dollar in the near term.
He said the plan is supported by sufficient Central Bank reserves to finance foreign trade and meet import requirements.
Previous Financial Transfers
Al-Aboudi said financial allocations had been secured for transfers initiated before the latest exchange-rate adjustment, based on the previous rate, to meet the associated commitments.
Customs Relief for Food and Medicine
The spokesperson also cited a Cabinet decision exempting imported food and medicines from customs duties, effective October 7, 2026.
The measure comes amid concerns over the impact of the exchange-rate adjustment on import costs and domestic prices.
Iraqi government spokesperson Haider al-Aboudi announced Wednesday that the government and the Central Bank of Iraq are working to bring the U.S. dollar’s exchange rate in the parallel market to 1,550 dinars in the near term.
Speaking to the Iraqi News Agency, al-Aboudi said the plan relies on what he described as adequate Central Bank reserves, which he said would enable the smooth financing of foreign trade and meet import demand.
He also addressed financial transfers made before the latest exchange-rate adjustment, saying the necessary allocations had been secured at the previous rate to fulfill the related obligations.
Al-Aboudi further noted that the Council of Ministers had decided to exempt imported food and medicines from customs duties beginning October 7.
The government’s stated target concerns the parallel market and should not be confused with the official exchange rates introduced on October 7. Under the revised system, the Central Bank set the dollar’s sale price at 1,520 dinars for the public, 1,510 dinars for banks, and 1,500 dinars for purchases from the Ministry of Finance.
Data Table
| Measure | Details |
|---|---|
| Government’s stated parallel-market target | 1,550 IQD per USD |
| Official rate for the public | 1,520 IQD per USD |
| Official rate for banks | 1,510 IQD per USD |
| Ministry of Finance dollar purchase rate | 1,500 IQD per USD |
| Customs exemption | Imported food and medicines |
| Effective date of exemption | October 7, 2026 |
FYI
Iraq’s exchange-rate adjustment on October 7 raised the official public selling rate from 1,320 to 1,520 dinars per dollar, amid significant economic pressures. The government’s latest statement emphasizes the availability of foreign-currency reserves and the continuity of trade financing, while the customs exemption for food and medicine offers a separate measure intended to ease pressure on essential imports.
However, the announced target is a policy objective, not confirmation that the parallel-market rate has reached 1,550 dinars. Market reports on October 11 put the dollar at approximately 1,631–1,633 dinars in Baghdad and Erbil, indicating that bringing the rate down to the stated target would require a further decline.
The key indicators to watch are whether the parallel-market rate moves toward the announced target, whether official channels continue to meet importers’ demand for foreign currency, and whether the customs exemptions help limit the pass-through of higher exchange costs to consumer prices.
Dive Deeper: Handpicked Stories for You
Follow Channel8 for continuous updates:
Iraq Raises Official Dollar Rate to 150,000 Dinars Per $100
CBI Denies Rejecting 600 Billion Dinars, Reaffirms Old Exchange Rate
3 hours ago