On 7 October 2026, Iraq’s Ministry of Finance confirmed that the official exchange rate has moved from 1,310 to 1,500 Iraqi dinars per US dollar, following Cabinet Resolution No. 544 of 6 October, according to Iraq Business News. The ministry also suspended Cabinet Resolution No. 413 of 2026, which had required customs fees to be paid in advance.
What has been reported
Iraqi News reports a rate structure in which the Finance Ministry buys at 1,500 dinars per dollar, and licensed banks and non-bank financial institutions sell to end beneficiaries and private importers at slightly higher rates, up to 1,520. Oilprice, citing Reuters, describes the move as a 14.5 percent devaluation to 1,520. Iraqi News also reports that advance collection of estimated income tax before outward transfers has ended. Outlets differ on some details, and we have not reviewed the primary resolutions or the ministry statement. Treat the figures above as reported, not as confirmed text.
What is still unclear
Published detail is limited on how banks will apply the rate ladder, whether customs amounts already prepaid will be credited or refunded, whether the tax-side advance collection has also ended, and what transitional rules apply. Some lawmakers have criticised the rate change. Separately, the 2027 draft budget is only a draft and has not been approved by Parliament.
What foreign companies should review
If you import into Iraq or perform contracts priced in dinars, consider the following steps: review the price, currency and payment clauses in your contracts; check whether any adjustment or change-in-law mechanism applies; update customs cost assumptions in bids and budgets; confirm with your bank and customs broker how the new rates and the suspension are being applied in practice; and keep records of amounts prepaid under the earlier rule.
Iraq Gate Legal Consulting advises foreign companies and investors on tax, customs, commercial contracts and regulatory compliance in Iraq. To discuss how these developments may affect your operations, visit iraqgatelegalconsulting.com/contact/.
Sources: Iraq Business News, 7 October 2026; Iraqi News, 7 October 2026; Oilprice.com, 7 October 2026.
Disclaimer: This article is for general informational purposes only. It is not legal advice and does not create an attorney-client relationship. Outcomes depend on the facts of each matter and no result is guaranteed.
