The Central Bank Tells The Ministry Of Finance: The Official Exchange Rate Will Be 1300 Dinars In The 2026 Budget.
Baghdad-INA The Central Bank of Iraq addressed the Ministry of Finance on Thursday regarding the draft federal general budget law for the year 2026, noting that the official exchange rate will be 1300 dinars in the 2026 budget.
The Central Bank addressed the Budget Department at the Ministry of Finance regarding the draft Federal General Budget Law for the Republic of Iraq for the year 2026.
The Central Bank stated that "the official exchange rate that will be adopted in 2026 is (1300) dinars per dollar, which has been in effect since February 2023."
Sources revealed that "the Central Bank will buy dollars at a price of 1300 dinars from the Ministry of Finance and sell them at a price of 1310 dinars to banks, which will sell them at 1320 dinars to traders and foreign transfers." https://ina.iq/ar/economie/252092-1300-2026.html
Why hasn’t Iraq completed the currency swap yet? According to Mnt Goat, the Central Bank of Iraq was prepared to begin the currency swap in late December, but political complications—particularly unresolved Iranian-related issues—caused delays. The process is expected to resume once these obstacles are resolved.
Mnt Goat Disclaimer
The following content reflects Mnt Goat’s personal opinions and sourced commentary. This information is shared for educational purposes only. Always consult licensed financial and legal professionals before making financial decisions.
The “18 Crucial Issues” Facing Iraq in 2026
An article referenced by Mnt Goat highlights:
“18 crucial issues” that Savaya said would be among the priorities of his mission in Iraq during the new year.
Article Quote: "18 crucial issues” that Savaya said would be among the priorities of his mission in Iraq during the new year,"
Savaya just needs to convince the Iraqi government of these things he wants to accomplish in 2026. Do we investors in the dinar have to wait for the RV to get all of these items fixed? Of course not...some items that we know
must be accomplished and are already known issues they have been working on for years already.
I believe the people of Iraq... realize the U.S. is there to help continue the progress of al-Sudani’s first term in office. Part of that work is the reinstatement and the change over of the currency. In speaking to my CBI contact over the weekend she has said her committee is still waiting for the direction to begin the swap out of the currency. She told me it was planned for the last week in December but was stalled due to political reasons. My personal belief is that it will not occur until this Iranian issue is resolved.
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.
Discover more
Dinar investment book
newsletter
Financial advisory services
Iraqi Dinar investment guides
Dinar investment forum
Investment books
Cryptocurrency investment guides
Dinar research reports
Dinar expert consulting
International banking services
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