Iraq’s Central Bank Denies Plans to Devalue Dinar as Dollar Price Surges in Parallel Market

Peregraf — Iraq’s Central Bank on Wednesday denied reports that it plans to change the official exchange rate of the Iraqi dinar, dismissing as false a widely circulated document claiming the government was seeking to devalue the currency.

In a statement, the Central Bank of Iraq (CBI) said it “categorically denies” reports suggesting that authorities intend to adjust the dinar’s exchange rate.

The bank also warned against the spread of misinformation, revealing that it had identified a forged document circulating on social media and messaging platforms.

According to the CBI, the fabricated document falsely claimed that the Prime Minister’s Office had submitted a request to the parliamentary Finance Committee proposing a new exchange rate of 1,600 dinars per U.S. dollar.

“The Central Bank warned against engaging with misleading news,” the statement said, urging media organizations and the public to rely exclusively on official information issued by the bank.

The denial comes amid renewed pressure on the Iraqi dinar in the parallel currency market, where the gap between the official and unofficial exchange rates has widened in recent days.

The official exchange rate remains fixed at 1,320 dinars per U.S. dollar, equivalent to 132,000 dinars per $100.

However, the dollar has continued to appreciate in local exchange markets across Iraq and the Kurdistan Region. On Wednesday, the market rate reached 155,500 dinars per $100, more than 23,000 dinars above the official rate.

The widening disparity has fueled speculation among traders and the public that monetary authorities could eventually be forced to revise the exchange rate, though the Central Bank has repeatedly denied such plans.

Iraq’s currency market has experienced periodic volatility over the past several years, driven by fluctuations in dollar supply, U.S. banking restrictions, demand for imports, and regional economic pressures.

The difference between the official and market rates has become a key economic concern, affecting consumer prices, imports, and public confidence in the currency.

Despite the recent depreciation in the parallel market, the Central Bank reiterated that no changes to the official exchange rate are under consideration and called on the public to disregard unverified reports.