During the meeting with the Iraqi Parliamentary committee, CBI Governor detailed the bank’s monetary policy direction for upcoming fiscal years, outlining “mechanisms to maintain monetary stability, manage liquidity, and enhance the role of the policy interest rate, explaining the impact of monetary policy on economic activity and the importance of a gradual transition to support the real economy.”
Read more: https://channel8.com/english/news/6
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🇮🇶🏦 CBI REVEALS IRAQ’S NEXT MONETARY POLICY DIRECTION
The Central Bank of Iraq outlined its strategy for the coming fiscal years, focusing on:
💰 Monetary stability 💧 Liquidity management 📈 A stronger role for the policy interest rate 🏭 Supporting the real economy 🐢 A gradual transition to avoid financial shocks
🔎 Why it matters: This points to continued modernization of Iraq’s monetary system and a more structured approach to managing liquidity, interest rates and economic growth.
⚠️ This announcement does not confirm a dinar revaluation or deletion of zeros, but it shows the CBI is actively preparing its monetary framework for the years ahead.
📢 Another major step in Iraq's customs and financial reform process!
The implementation minutes for the ASYCUDA customs system have reportedly been finalized and are now awaiting approval from Iraq's Council of Ministers.
🏛️ Once approved, the protocol is expected to be officially circulated and implemented.
📊 WHAT DOES ASYCUDA BRING?
The system is designed to improve the registration, organization and tracking of customs data at Iraq's borders.
According to customs officials:
✅ It is not intended to automatically increase prices on all goods. 🛒 Tariffs on certain essential daily goods could actually decrease. 📈 Better tracking can help improve customs collection. 🔍 Greater transparency can help combat tax evasion and corruption.
🤝 BAGHDAD & ERBIL CUSTOMS REVENUE AGREEMENT
A key development is also emerging between Baghdad and Erbil.
💰 Officials say an agreement has been reached for a 50/50 split of customs revenues between the federal government and the Kurdistan Regional Government.
🏦 Separate bank accounts for federal and regional customs authorities are expected to be established to facilitate the arrangement.
📉 BORDER REVENUES UNDER PRESSURE
Customs revenues at some Kurdistan Region crossings have reportedly declined amid regional military tensions and disruptions to trade.
The Ibrahim Khalil border crossing has been particularly affected, with trade reportedly slowing after the Central Bank restricted access to official-rate dollars for some Kurdistan traders.
🌐 ASYCUDA & IRAQ'S BROADER REFORM
🇮🇶 Iraq began fully operating ASYCUDA at federal border crossings in January 2026, while the Kurdistan Region is expected to join the system in September.
📌 The Kurdistan Region currently uses approximately 14,000 customs tariff classifications, which are expected to be reorganized under ASYCUDA to better align with international standards.
🔧 Baghdad and Erbil are still working through additional issues involving:
▪️ Tax collection authority ▪️ Central treasury transfers ▪️ Regulatory alignment ▪️ Six unofficial border crossings
👀 WHY THIS MATTERS
ASYCUDA is more than a customs database—it forms part of Iraq's broader effort to modernize revenue collection, increase transparency, reduce leakage and integrate federal and regional financial systems.
💡 With the implementation minutes now reportedly finalized, the next key milestone is the Council of Ministers' approval.
🇮🇶📈 Another piece of Iraq's financial modernization puzzle is moving closer to implementation.
ASYCUDA IMPLEMENTATION MINUTES FINALIZED, AWAITING CABINET GREEN LIGHT
At a Glance
ASYCUDA execution minutes are finalized and await Council of Ministers approval.
A KRG customs official confirmed the protocol will be circulated post-approval.
Customs officials state prices on daily necessities will actually decrease.
Border income has dropped due to regional U.S.-Iran military tensions.
The implementation minutes for the ASYCUDA custom system are finalized and pending Council of Ministers approval, amid declining customs revenues and reduced trade at the Ibrahim Khalil border crossing.
Key Statement and Focus Area
A KRG customs official told Channel8 that the ASYCUDA minutes will be officially circulated following approval by the government.
Customs officials point out that this system will not increase the price of all goods, and tariffs on certain daily necessities will actually decrease.
Customs revenues at Kurdistan Region border crossings have dropped due to regional military tensions and the conflict between the U.S. and Iran.
This decline coincides with a Central Bank decision to deny official-rate dollars to Kurdistan traders, stalling trade at the Ibrahim Khalil border crossing.
To counter the resulting deficit, customs officials revealed that a new revenue-sharing mechanism is being implemented with Baghdad. Speaking to Channel8, an official at the Kurdistan Region Directorate General of Customs said that border revenues at the Iranian crossings have decreased due to wartime repercussions.
The official confirmed that an agreement has been reached on a 50-50 customs revenue split between Baghdad and Erbil. To execute this, he added, separate bank accounts for federal and regional customs authorities will open.
Regarding the implementation of the border tracking system, the official noted that the surge in collections stems directly from government anti-corruption campaigns and tax evasion crackdowns. The source also stressed that the ASYCUDA system is a registration and organization database, not a magic wand.
FYI
Iraq began fully operating the ASYCUDA electronic system at its federal border crossings in January 2026, and the KRG is scheduled to join the process in September.
Erbil and Baghdad spent several months of intensive negotiations before achieving a draft breakthrough.
The Kurdistan Region currently utilizes 14,000 customs tariff classifications, which will be restructured under the ASYCUDA system to align precisely with international standards. Despite the agreement on the automated customs data, both governments are still negotiating final regulatory alignment regarding regional tax collection authority versus central treasury reallocation, alongside the legal recognition or closure of six unofficial border crossings operating within the Kurdistan Region.
🚨🇮🇶 ECONOMIC OBSERVATORY: SILENCE OVER IRAQ’S “CURRENCY CHANGE” IS FUELING MARKET CONFUSION 💵📉
📢 The Economic Observatory of Iraq is calling for immediate clarification regarding recent statements about a possible change to Iraq’s national currency.
⚠️ The organization criticized what it described as conflicting government messaging, particularly because sensitive monetary decisions are reportedly being discussed through entities that are not the competent monetary authorities.
🏦 WHERE IS THE CBI?
The Observatory pointed to the continued silence of the Central Bank of Iraq (CBI) and the Ministry of Finance.
📌 According to the statement, decisions involving the national currency should be communicated through:
🏦 The Central Bank of Iraq 💰 The Ministry of Finance 📢 Official government announcements
Instead, scattered statements are creating uncertainty and leaving room for rumors, speculation and market disruption.
💵 WHY DOES THIS MATTER?
The Economic Observatory warned that uncertainty surrounding the currency could:
⚠️ Increase market anxiety 💱 Encourage greater demand for foreign currencies 🥇 Increase demand for gold 📉 Put additional pressure on the Iraqi dinar 🏦 Reduce public confidence in the national currency
The organization emphasized that unclear communication could ultimately affect economic security and citizens' savings.
📢 WHAT DOES THE OBSERVATORY WANT?
The Economic Observatory is calling on the CBI and Ministry of Finance to issue an official statement explaining:
🔹 Whether a currency change has actually been approved 🔹 The reasons behind the proposed change 🔹 How implementation would work 🔹 The expected timetable 🔹 How citizens' savings would be protected 🔹 What measures would be taken to maintain market stability
👀 The key takeaway: Until Iraq's competent monetary authorities provide an official explanation, the recent statements about changing the currency remain surrounded by uncertainty.
🇮🇶 For the market, official confirmation from the CBI and Ministry of Finance could be far more important than statements from other government entities.
ECONOMIC OBSERVATORY: GOVERNMENT SILENCE REGARDING “CURRENCY CHANGE” IS CONFUSING THE IRAQI DINAR MARKET
On Sunday, the Economic Observatory of Iraq criticized the confusion in the government’s discourse, which is represented in announcing sensitive economic and monetary decisions, such as changing the currency, through unqualified entities, amid the silence of the Central Bank of Iraq and the Ministry of Financ
e.
The observatory stated in a statement received by Shafaq News Agency that “managing a file as large as the national currency through scattered statements, instead of clear official conferences and statements issued by the competent monetary and financial authorities, reflects a weakness in government coordination,” explaining that “such confusion opens the door to rumors, speculation, market disruption, and harm to citizens and the country.”
The observatory warned that “this ambiguity affects the economic security of citizens and may affect their confidence in the national currency and increase the demand for foreign currencies and gold, thus exacerbating the state of anxiety in the market.”
Eco Iraq held the Central Bank and the Ministry of Finance “responsible for clarifying the truth about the decision and any confusion in the Iraqi market resulting from their silence,” demanding that the competent authorities “issue an official statement explaining the reasons for changing the currency, the implementation mechanisms, the timetable, and guarantees to protect citizens’ savings and market stability.”
🚨🏦 Frank26: Banks Are Preparing & The Next Step Is Lower Denomination Notes 🇮🇶💵
📢 Frank26 shared his latest perspective on Iraq's monetary reform and what he believes banks are doing behind the scenes.
🤝 Banks Are Beginning to Reach Out
According to Frank26:
💬 "I think there's a campaign by banks now to come after us and start relationships."
He believes some financial institutions are beginning to position themselves ahead of future developments, although he notes that not every bank may be participating at this stage.
💵 About the Lower Denomination Notes
Frank26 also addressed images circulating online that some content creators claim are Iraq's new lower denomination banknotes.
⚠️ According to him:
❌ Those are NOT the new lower denominations.
He explains that the images being shared are specimen or sample notes previously released by the Central Bank of Iraq (CBI) for demonstration purposes—not the actual notes intended for circulation.
🔒 Frank26 argues that the genuine lower denomination notes would be among the most secure and closely protected elements of the monetary reform process until their official release.
⚙️ The Three Zeros Process
Frank26 also stated that Iraq's banking system is now highly digitalized, and he believes the process of lifting the three zeros is largely a technical step.
📌 In his view:
➡️ The banking infrastructure is ready. ➡️ The mechanics of removing the three zeros are in place. ➡️ The next milestone is the official release of the lower denomination banknotes.
⏳ As always, these comments represent Frank26's personal opinions and analysis. Investors continue to monitor official announcements from the Central Bank of Iraq (CBI) for any confirmed developments regarding monetary reform or the issuance of new currency.
🚨🇮🇶 IRAQ’S DINAR RATE GAP REMAINS A MAJOR ECONOMIC CHALLENGE 💵📊
📢 Iraq continues to struggle with the significant gap between its official exchange rate and the parallel market.
🏦 The Central Bank of Iraq's official rate is reported at 1,320 IQD per $1, while parallel-market rates remain around 1,530 IQD per $1, highlighting the difficulty of maintaining a unified currency market.
📉 FROM HISTORIC HIGH TO MODERN PRESSURES
The Iraqi dinar has experienced dramatic changes throughout its history:
💰 1968–1979: Around $4 per dinar — its historic peak. ⚔️ 1980–1988: War-related economic pressures reduced its value. 📉 1991–2003: Sanctions, economic isolation and increased currency printing contributed to a severe collapse. 🏦 2004–2021: The introduction of a new currency helped stabilize exchange rates around 1,180–1,200 IQD per dollar.
💱 OFFICIAL VS. PARALLEL MARKET
📌 Iraq devalued the dinar to 1,460 IQD per dollar in 2021, before moving the official rate to 1,320 IQD in 2023.
However, the parallel market continued to resist the official rate, with street prices at times reaching approximately 1,700 IQD per dollar.
📈 More recently, the parallel rate reportedly improved from around 160,000 IQD per $100 to approximately 153,000 IQD per $100.
🔧 WHAT IS HELPING THE MARKET?
Several factors are being cited as contributing to improved market stability:
🇺🇸 Changes in U.S. restrictions affecting Iraqi banks 🏦 Central Bank measures addressing currency rumors 💰 Improved customs collection 💻 Implementation of the ASYCUDA customs system 📊 Broader government financial-stabilization measures
🔢 WHAT ABOUT "DELETE THE ZEROS"?
👀 Jabar Goran, spokesperson for the Slemani Currency Exchange Market, said that removing zeros could force holders of large amounts of undisclosed cash to reveal the origins of their funds.
💬 He also dismissed rumors of an imminent exchange-rate adjustment, arguing that Iraq's increased revenues have helped offset rising government expenditures.
🌍 He previously suggested that if regional tensions ease and maritime trade routes—including the Strait of Hormuz—remain stable, the parallel-market rate could potentially strengthen toward 146,000–147,000 IQD per $100.
📌 THE BIGGER PICTURE
Iraq's currency history shows how war, sanctions, oil dependence, fiscal policy, banking restrictions and geopolitical developments have all influenced the dinar.
🇮🇶 Today, the challenge is not simply setting an official exchange rate—it is closing the gap between the official rate and the parallel market while strengthening confidence in Iraq's financial system.
👀 The direction of the parallel market remains one of the key indicators to watch as Iraq continues its monetary and banking reforms.
IRAQ STRUGGLES TO CONTAIN VOLATILE DINAR CURRENCY DISPARITY
At a Glance
The Iraqi dinar reached its peak value during the 1970s when one dinar was worth four U.S. dollars.
Conflict and economic embargoes during the 1990s caused the currency to crash to 3,000 dinars per dollar.
The Central Bank fixed the official rate at 1,320 IQD, but parallel market rates remain high at 1,530 IQD.
The government has failed to contain the significant price gap between official state channels and open market vendors.
Channel8 has learned that decades of geopolitical conflict, sanctions, and market resistance have left Iraq unable to bridge the gap between its official 1,320 IQD peg and parallel market rates exceeding 1,530 IQD, cementing a historic decline from its four-dollar peak in the 1970s.
Key Statements and Focus Area
On current market disparity: A persistent, wide gap remains between Iraq’s official and market exchange rates, with open markets trading at 1,530 IQD despite the Central Bank’s 1,320 IQD official peg.
On structural historical declines: This modern monetary disparity mirrors the volatile historical trajectory of the Iraqi dinar, which collapsed from its historic peak of four dollars per dinar to some of its lowest historical levels.
On modern monetary interventions: Although the government devalued the dinar to 1,460 IQD in 2021 due to crashing oil revenues and later revalued it to 1,320 IQD in 2023, the market resisted, with street prices occasionally spiking to 1,700 IQD.
CHRONOLOGICAL ERAS OF THE IRAQI DINAR VALUE
1968–1979 (The Peak): The currency maintained its absolute highest valuation, trading at a stable rate of 1 IQD to $4.00 USD.
1980–1988 (The Iran-Iraq War): Wartime economic strain caused a minor depreciation, adjusting the value to 1 IQD to $3.30 USD.
1991–2003 (The Sanctions Era): Under a crushing economic blockade and excessive domestic printing, the currency collapsed to 3,000 IQD to $1 USD.
2004–2021 (Post-War Stabilization): The introduction of a new currency stabilized the market, keeping exchange rates steady between 1,180 IQD and 1,200 IQD per dollar.
In recent weeks, the Iraqi dinar strengthened against the U.S. dollar, with the exchange rate dropping from a peak of nearly 160,000 IQD to 153,000 IQD per 100 dollars.
This decline was driven by the U.S. government lifting restrictions on several private Iraqi banks and the Central Bank of Iraq addressing rumors of currency devaluation.
Market traders told Channel8 that ongoing government financial stabilization measures, including organized customs duty collections via the ASYCUDA system, helped restore public sector confidence, keeping the dollar from climbing back to its June peaks.
Speaking to Channel8 today, Jabar Goran, spokesperson for the Slemani Currency Exchange Market, highlighted that deleting zeros from the dinar would compel holders of hidden cash reserves to disclose their origins, effectively rendering tens of trillions in illicit funds unusable.
Goran also dismissed rumors of an Iraqi dinar exchange-rate adjustment, stating that a devaluation is unnecessary because rising revenues have offset increased expenditures.
The spokesperson previously predicted that if regional geopolitical tensions ease and vital maritime trade channels like the Strait of Hormuz remain stable, the parallel market exchange rate could significantly strengthen, potentially dropping down to a range between 146,000 and 147,000 IQD per $100 USD.
FYI
The Iraqi dinar was originally introduced into circulation in 1932. Following the regime change in 2003, the Coalition Provisional Authority introduced an entirely overhauled banknote series widely known as the “Bremer Print.”
This new issue systematically replaced both the pre-1991 high-quality “Swiss Print” and the poorly printed, easily counterfeited banknotes produced locally during the 1990s sanctions era.
This monetary timeline demonstrates that prolonged foreign wars, domestic mismanagement, and geopolitical shifts remain the primary drivers behind the dynamic instability of the dinar against global currencies.