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Iraqi Dinar Slides to 1,590 Against Dollar as Reserves Fall

By Markets Desk · 2026-09-20 · 1 min read
A stack of paper banknotes and a foreign currency bill resting on a wooden desk
Illustration: Tradingbird

The Iraqi dinar weakened to 1,590 per dollar in Sulaimani. Central Bank reserves dropped to $80.6 billion in July.

The Iraqi dinar fell to 1,590 per dollar in local markets on Saturday. The currency lost value despite official interventions by the Central Bank of Iraq (CBI). The official rate remains fixed at 1,300 dinars per dollar. The maximum selling price for banks is set at 1,320 dinars. The gap between the official and market rates has widened significantly.

The CBI stated it holds sufficient foreign reserves to meet demand. This covers trade financing, bank-card transactions, and traveler cash needs. The bank attributed the volatility to market speculation and geopolitical conditions. It did not identify the parties involved in these activities. The statement aimed to stabilize confidence in the financial system.

Reserve Decline Accelerates Over Seven Months

Foreign reserves fell to $80.633 billion at the end of July. This figure is down from $97.432 billion at the end of 2025. The decline represents a loss of 17.2 percent in the first seven months. The CBI reduced the monthly cash allowance for adult travelers. The limit dropped from $3,000 to $2,000 in July. This measure aims to improve the allocation of foreign currency.

Market Volatility Driven by Regional Tensions

The dollar rose from 1,563 dinars at the start of the week. It reached 1,590 dinars by Saturday in the Kurdistan Region. In late February, the rate was around 1,450 dinars. Exchange shop owners cite fears of US sanctions as a driver. Tensions with armed groups are rising as September 30 approaches. This date marks the scheduled end of the US-led coalition mission.

Iraqi Security Adviser Qasim al-Araji stated there is no deadline for weapons control. Talks with armed groups are ongoing. Rumors of sanctions have fueled speculation in currency markets. The CBI denied a document claiming a rate change to 1,600 dinars. The bank urged citizens to rely on official information sources. It continues to finance foreign trade through approved channels.

Based on reporting by rudaw.net, compiled by the Tradingbird desk.

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