Iraqi Central Bank Shields Traders from New Exchange Rate Difference
The Central Bank of Iraq said traders will not be charged the difference for transfers confirmed at the old dollar rate before the seventh of this month. The bank is monitoring transactions after raising the budget exchange rate from 1,320 to 1,520 dinars per dollar. The change has pushed the parallel market rate to 1,665 dinars and raised prices for essential goods.
Iraq's central bank raised the official dollar rate in its 2027 budget draft from 1,320 to 1,520 dinars, a move markets did not anticipate. Transfers for imports confirmed at the earlier rate before the seventh of this month will not face the difference, the bank said, adding that it had already credited banks to cover those transactions.
Officials are checking whether banks followed instructions, and traders who see delays or extra charges can file complaints through the bank's platform. The bank also said it is working with banks and payment firms on foreign trade cards aimed at smaller importers.
The higher official rate and the parallel market's climb to 1,665 dinars could squeeze households already facing steeper prices for food and appliances. Small traders may bear the heaviest burden, since delayed transfers or unexpected charges can tie up limited capital. The central bank's complaint channel and planned trade cards may soften some friction, though whether they reach smaller importers quickly enough remains uncertain. Public patience with price pressures could shape how the policy is received.