Iraq fixes 2026 budget at 1,300 dinars per dollar
Shafaq News– Baghdad
Iraq’s Central Bank (CBI) has set the official exchange rate at 1,300 Iraqi dinars per US dollar for the 2026 federal budget, according to an official document.
The bank described the rate, in place since February 2023, as part of its established monetary policy.
Speaking with Shafaq News, government economic adviser Mudher Mohammed Saleh said the decision reflects calibrated coordination between fiscal and monetary policy, including a limited strengthening of the Iraqi dinar.
He explained that the step sends “a positive signal” to economic expectations, underscoring the strength of Iraq’s foreign currency reserves and the CBI’s ability to “manage stability with confidence.”
From a fiscal perspective, the move points to a shift toward sound revenue alignment, steering away from what Saleh termed “monetary adjustment” —the use of the exchange rate as an indirect financing tool— in favor of relying on core fiscal mechanisms to mobilize resources and control spending.
The decision, he added, also reinforces priorities of economic stability and inflation containment, while reaffirming the independence of monetary policy and encouraging fiscal authorities to deploy their instruments responsibly to sustain overall macroeconomic balance.
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