Iraq's government says it plans to bring the dollar's street price in Baghdad down to 1,550 dinars in the near term, backed by the Central Bank's reserves.
That is 30 dinars above the bank's public rate of 1,520.
The target
The government spokesman, Haider al-Aboudi, gave the target on Wednesday and tied the Central Bank to it. He did not say how it will be done. Baghdad's main exchanges closed Wednesday at 166,400 IQD for $100, against the bank's 152,000. The street never traded near the old official 1,320; it was above 1,630 the day before the cut on October 7.
What moved this week
- The IMF — US Treasury Secretary Scott Bessent told the IMF it must go further on exchange rates or risk being sidelined, on the same day Iraq's finance minister and Central Bank governor met IMF directors in Bangkok.
- The cabinet — parliament votes today on the last empty ministries and four deputy prime ministers.
- The budget — today is the legal date for the 2027 budget to reach parliament. Its draft is written at 1,500 to the dollar.
- Food prices — Baghdad reopened imports of potatoes, tomatoes and onions to bring prices down.
- Riyadh — Prime Minister Ali al-Zaidi met Crown Prince Mohammed bin Salman and repeated that Iraq's territory should not be used to attack the kingdom.
- Hormuz — two ships sank near the strait in 24 hours, the first sinkings since March.
The question
Why 1,550, and why now? And what does one exchange rate mean for the dinar you hold?
Credit: Written by Reset Intelligence — David E. Atterton, author of Head of the Snake (@EXIT_FIAT). Read the full briefing: Iraq Targets One Unified Exchange Rate
Research and commentary only. Not financial, legal, or tax advice. Consult qualified counsel in your jurisdiction before acting on any position.