Central Bank rejects rumors of dinar exchange rate devaluation

BAGHDAD — The Central Bank of Iraq on Monday denied any plan to adjust the dinar’s exchange rate, responding to market speculation after the U.S. dollar’s price rose to 144,000 dinars per $100 on parallel markets.

“There is no intention to modify the exchange rate of the Iraqi dinar, in line with our central objective of ensuring price stability,” the bank said in a statement, adding that reports suggesting otherwise “aim to disrupt the markets.”

The official exchange rate remains 1320 dinars per dollar but is as high as 1440 to the dollar at street rates.

The bank cited Article 4 of Law No. 56 of 2004, which gives it authority to set and implement monetary policy, including exchange rate policy. It said inflation continues to decline and pointed to “strong” foreign currency reserves that support exchange-rate stability.

The statement said the bank will continue supplying U.S. dollars and other currencies — including the Chinese yuan, Turkish lira, Indian rupee and UAE dirham — to help stabilize markets.

“Any external statements or opinions regarding changes to the exchange rate do not reflect the central bank’s position,” it said. “They represent personal interpretations aimed at market disruption and triggering speculation.”