Central Bank: The Dollar Is Stable At 1320 Dinars, And The Rise In The Parallel Market Is Due To Demand Outside Banks.
Economy News – Baghdad Haider Ghazi, the media officer of the Central Bank of Iraq, confirmed that there has been no change in the exchange rate of the dollar against the dinar, and it remains fixed at 1320 dinars per dollar, explaining that what is being circulated as an exchange rate is only the demand of the unofficial market for dollars outside the system of banks licensed to work in foreign transfers through correspondent banks.
Ghazi, in a statement according to the official newspaper, attributed the main reason for the rise in the parallel market to the customs duty due to demand outside the banking system, noting that the application of the prior customs duty for transfer purposes may have put significant pressure on those seeking cash dollars, and was behind the rise in demand for the dollar against the dinar in the local markets.
He explained that traders are required to bring the customs declaration (customs statement) from the ASYCUDA system before the bank transfer is made to them, adding that on many occasions the Central Bank of Iraq stated that the ways to obtain dollars are through:
First, external transfers through banks in a systematic and documented manner with all parties, and second, through the traveler's dollar after depositing an amount in Iraqi dinars with companies of categories A and B, and it is received through outlets inside Iraqi airports, as the bank set the traveler's share per month at $3,000. https://economy-news.net/content.php?id=64273
Why won’t the Central Bank of Iraq devalue the dinar?
Economic reports show that devaluing the Iraqi dinar would reduce foreign investors’ profits when converted to dollars, weaken confidence in Iraq’s economy, and discourage new investment—directly harming long-term economic growth.
Clare Disclaimer
The following information is based on translated Iraqi economic reports and commentary shared by Clare. This content is for informational purposes only and reflects analysis, not financial advice. Always consult professional financial advisors before making investment decisions.
Economic Report: Why the CBI Refuses to Devalue the Dinar
An important economic report titled:
“An economic report reveals the reasons behind the Central Bank’s refusal to devalue the dinar”
provides critical insight into the Central Bank of Iraq’s (CBI) long-term strategy.
Key Quote from the Report:
“Foreign investors, when converting their profits into their national currencies, will find that their profits decrease as a result of the host country’s exchange rate falling against the dollar, which limits the attraction of new investments.”
Foreign Investment Depends on Currency Stability
The report highlights a fundamental truth of global economics:
Investors seek profit certainty
Currency devaluation reduces real returns
Falling exchange rates discourage new capital inflows
When a local currency weakens:
Profits shrink upon conversion to USD or other major currencies
This is why the CBI views currency stability as essential, not optional.
Confidence Is Everything in a Global Economy
The report further explains:
“This situation may also weaken confidence in the country’s economy and negatively affect the process of attracting foreign investments.”
Confidence is the foundation of:
International contracts
Infrastructure development
Oil and non-oil sector growth
Banking sector integration
A deliberate devaluation would signal economic weakness, something Iraq cannot afford at this stage.
Why the 1300 IQD Rate Appears in the 2026 Budget
A second article titled:
“A Sudanese advisor explains the repercussions of fixing the exchange rate at 1300 dinars in the 2026 budget”
adds crucial clarification.
Advisor Saleh Explained:
“The move to adopt the exchange rate of the US dollar at 1300 dinars and to raise the value of the Iraqi dinar in a limited way comes within a calculated coordination between the fiscal and monetary policies.”
Fiscal and Monetary Policy: Working Together
This statement confirms:
The 1300 IQD rate is intentional
It reflects policy coordination, not stagnation
It supports:
Budget stability
Inflation control
Investor confidence
In other words, this is a measured step, not the final destination.
Why the CBI Avoids Sudden Devaluation
From both articles, a clear strategy emerges:
The CBI is focused on:
Protecting foreign investment
Maintaining economic credibility
Coordinating government spending with monetary policy
Preparing Iraq for broader international integration
A sudden devaluation would:
Undermine contracts
Trigger capital flight
Damage long-term growth prospects
What This Means for the Iraqi Dinar
The message from Iraqi economic leadership is clear:
❌ Devaluation is not the goal
❌ Weakening the dinar is not acceptable
✅ Stability and gradual strengthening are preferred
✅ Confidence precedes growth
This aligns with broader expectations of future purchasing power improvement, not regression.
Q&A – Key Takeaways from Clare’s Articles
Q: Why won’t the CBI devalue the dinar?
A: It would reduce investor profits and discourage foreign investment.
Q: Does the 1300 rate mean no future change?
A: No. It reflects budget stability, not the final market rate.
Q: Is the 1300 rate intentional?
A: Yes. It is part of coordinated fiscal and monetary policy.
Q: What do foreign investors care about most?
A: Profit stability, currency confidence, and predictable returns.
Q: Does devaluation weaken an economy’s image?
A: Yes. It signals instability and increases perceived risk.
Strategic Insight
Rather than weakening its currency, Iraq is signaling to the world:
“We protect investor value”
“We prioritize stability”
“We are preparing for sustainable growth”
This approach is consistent with countries positioning themselves for greater international participation.
Final Thoughts
These economic reports reinforce a critical conclusion:
A country that wants foreign investment cannot afford a weak or unstable currency.
By refusing to devalue the dinar and carefully managing the 1300 IQD rate within the 2026 budget, Iraq is choosing credibility over chaos — a necessary step before any major currency evolution.
Article: "An economic report reveals the reasons behind the Central Bank's refusal to devalue the dinar"
Quote: “Foreign investors, when converting their profits into their national currencies, will find that their profits decrease as a result of the host country’s exchange rate falling against the dollar, which limits the attraction of new investments. This situation may also weaken confidence in the country’s economy and negatively affect the process of attracting foreign investments.”
Article: "A Sudanese advisor explains...the repercussions of fixing the exchange rate at 1300 dinars in the 2026 budget"
Quote: "Saleh, confirmed on Thursday that the move to adopt the exchange rate of the US dollar at 1300 dinars and to raise the value of the Iraqi dinar in a limited way comes within a calculated coordination between the fiscal and monetary policies."
Could Exchanging Our Dinar and Dong Be Like This ?????
The Central Bank Of Syria Requires Citizens To Follow New Procedures When Exchanging Currency.
Banks Economy News - Follow-up The Central Bank of Syria announced the regulations that must be followed by citizens and customers when submitting old Syrian pound banknotes to authorized entities for exchange for new banknotes, as part of the ongoing preparations for the upcoming exchange process.
The bank explained that these procedures aim to accelerate and simplify the replacement process in coordination with all relevant parties, stressing the importance of adhering to the correct arrangement of banknotes in bundles, so that each bundle contains banknotes of the same denomination and issue, and that the number of pieces in each bundle does not exceed 100 banknotes.
The bank explained that customers must arrange banknotes symmetrically so that the face is facing up in all bundles,while damaged banknotes must be sorted into separate bundles according to the same controls, with proof that they are damaged being provided, according to the Syrian News Agency “SANA”.
The bank stressed that compliance with these instructions contributes to saving time and effort for citizens and concerned parties, and enhances the cooperation necessary to make the replacement process a success and ensure that it proceeds smoothly and quickly.
66 Companies And 1,000 Outlets
The Governor of the Central Bank of Syria, Abdul Qader al-Hasriya, announced that there will be ease and flexibility in exchanging the new national currency, the Syrian pound, as the exchange will be done through 66 companies and a thousand outlets dedicated to this purpose.
Al-Hasri said that the new denominations of the Syrian currency will start with six denominations: 5, 10, 25, 50, 100, and 500 liras, with the new lira being equivalent to one hundred old liras, while the 500 new liras is equivalent to 50,000 old liras, noting that this contributes to making it easier to carry money and the money supply remains without additions.
He added that the currency replacement will not affect its value, since the change is a change in nominal value, so the value is the same and the replacement will not have direct effects on its value, explaining that the Syrian Central Bank will reopen its branch in Idlib, like the rest of the governorates.
Modern Security Features
The official stressed that the new currency has modern security features, in addition to special features that enable the visually impaired and blind to use it, explaining that removing zeros will not affect the common functions of the new lira, calling for cooperation from everyone to preserve the value of the lira.
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He explained that the standard for the replacement process is to remove two zeros from the nominal value, so that every hundred old Syrian pounds will be equivalent to one new Syrian pound, noting that the replacement process will begin on January 1, 2026 and will continue for 90 days, which is extendable, and will be carried out free of charge without imposing any fees or taxes.
He said that all central bank transactions will be in the new currency at the beginning of the year, calling on citizens not to abandon the old currency during the period of coexistence between the two currencies, as sellers will be required to deal in both. https://economy-news.net/content.php?id=63968
According to Tony’s TNT call on January 7, 2026, multiple global conflicts, military movements in Iraq, active currency exchanges for contractors and military personnel, and finalized international contracts suggest the RV process may be extremely close, though no exact timing is confirmed.
Tony Disclaimer
The following information represents Tony’s opinions and summarized notes from the TNT conference call. This content is for informational purposes only. Always consult licensed financial, legal, and tax professionals before making any financial decisions.
Notas del resumen de la conferencia telefónica de TNT del 7/1/26:
1. Están sucediendo muchas cosas por diferentes razones. Hay caos global.
2. No se sabe cuándo se irá realmente el RV.
3. Las fuerzas Delta están estacionadas en la frontera con Irak. El pueblo iraquí está nervioso.
4. La Primera Aerotransportada llegó a Irak. Están en misiones específicas. Hacen lo que hacen los equipos SEAL. Los ciudadanos que fueron a Irán no pueden regresar.
5. Los iraníes en el gobierno iraquí no tienen dónde esconderse y algunos están siendo atacados.
6. Hay planes para bombardear Irán de nuevo, lo cual beneficia a Irak.
7. Mañana es festivo en Irak.
8. Están intercambiando dinero de nuevo en Irak. Contratistas, empleados del gobierno, militares estadounidenses, pero no ciudadanos. Los contratistas recibieron $3.76 -
Los militares recibieron $4.86.
9. El sistema electrónico se cerró; todas las tarjetas de débito tuvieron que cambiar para que cambiara el tipo de cambio.
10. Los sistemas bancarios estuvieron inactivos durante dos días, excepto por el proceso de intercambio... extendido hasta mañana.
11. No habrá impuestos sobre los intercambios... eso es bueno.
12. Aviones estadounidenses están siendo trasladados a Ucrania.
13. Se producirán múltiples guerras simultáneamente.
14. Veremos si hay un anuncio esta noche... Putin está haciendo amenazas si ocurre.
15. Trump está cortando el suministro a China y Rusia. China recibía el 80%. No lo tolerarán. Pagaron 20 mil millones por petróleo que podrían no recibir.
16. Hay conflictos en todas partes que podrían afectarnos... Espero que la renegociación se apruebe para que podamos cobrar.
17. La ONU y el FMI piensan que será mañana. Los últimos contratos se firmaron esta noche. Los tipos de cambio son buenos.
18. El tipo de cambio del dong vietnamita es de $6.86. Los cheques agrícolas superan los 33 millones.
19. Sadonni anunció ayer que las tasas cambiarían. Un gran día que valió la pena esperar.
20. Venezuela amenaza con eliminar el dólar estadounidense.
Rusia y China están indignadas.
21. Historia bancaria:
Un hombre recibió 10 millones en su cuenta (no pendientes). Puede esperar sus otros 18 millones el viernes.
With mounting pressure on the public budget and a growing need for long-term economic stability, Iraq is entering a pivotal phase in managing its financial resources. All eyes are on the parliamentary session next Saturday to discuss non-oil revenues. This step comes at a time when policymakers are increasingly aware of the importance of reducing overall dependence on oil and strengthening alternative sources of funding that support public services and protect purchasing power. For the citizens.
MP Dr. Ali Saber Al-Kinani told Al-Sabah: “Opening the file on non-oil revenues is a national necessity,” noting that focusing on these revenues contributes to reducing dependence on oil, which alleviates pressure on monetary policy and strengthens purchasing power. For the citizens.
He added that the parliamentary debate will provide an opportunity to evaluate the performance of the relevant authorities, improve collection mechanisms, and expand the revenue base from various sources. Diverse.
In this context, MP Alaa Al-Haidari pointed out that boosting non-oil revenues is an important step to address financial imbalances in the general budget, support productive sectors, revitalize industry and agriculture, as well as improve the investment environment and create additional job opportunities, which contributes to strengthening economic and social stability.
As part of the government's efforts to increase non-oil revenues, Mazhar Muhammad Salih, the Prime Minister's advisor on financial affairs, explained that the government program to maximize non-oil revenues contributed to a significant increase in their share last year, as a result of adopting digital governance in the tax and customs sectors.
Salih told Al-Sabah newspaper that non-oil revenues rose to approximately 12% of the total 2025 budget, compared to about 7% in previous years. This reflects the government's efforts to improve tax and customs collection and achieve greater financial stability, moving away from total dependence on oil.
Saleh added that this improvement includes multiple categories of revenues, most notably commodity taxes, public sector profits, and customs duties, stressing that the government seeks to raise the percentage of non-oil revenues to about (20%) of the total general budget in the coming years by diversifying sources, improving collection mechanisms, and combating financial evasion.