The Central Bank of Iraq announced on Saturday that traders will not be charged the difference under the new dollar exchange rate for transfers whose purchases and funding were confirmed at the previous rate before the seventh of this month. Iraqi markets have experienced disruption following the central bank’s unexpected decision to raise the dollar exchange rate in the draft federal budget for fiscal year 2027 from 1,320 dinars to 1,520 dinars per dollar. In a statement issued on Saturday regarding traders’ transfers awaiting execution, the Central Bank of Iraq said it was monitoring banking transactions carried out before and after the exchange rate adjustment and verifying that banks comply with the applicable instructions and regulations, in order to protect the rights of traders and customers. The central bank urged companies and traders whose transfers to finance imports were due for execution before the seventh of this month to contact their banks and confirm that the transfers had been processed. It noted that it had previously strengthened banks’ accounts to cover these transfers, monitor any delays, and ensure that traders were not charged exchange rate differences on transfers confirmed as purchased and funded at the previous rate. The bank stressed that “if execution is delayed or additional amounts are demanded, a complaint can be submitted through the Central Bank of Iraq’s complaints platform for follow-up with the bank concerned.” It added that it was coordinating with banks and electronic payment companies to introduce special foreign trade cards for small-scale traders to facilitate import financing, in accordance with the mechanisms and regulations set by the central bank. The exchange rate adjustment has pushed the dollar’s price in Iraq’s parallel market to 1,665 dinars and led to a sharp increase in the prices of essential goods and electrical appliances.
