Shafaq News – Baghdad

The Central Bank of Iraq (CBI) on Monday denied any intention to change the dinar’s exchange rate after a sudden spike in the dollar unsettled the market.

Today's sharp dollar rise put renewed pressure on Iraq’s currency market, prompting debate among experts. Some told Shafaq News that the dinar is exposed because oil, tax, and customs revenues have weakened, while others argued that liquidity remains stable and financing needs are covered. All agreed that lasting stability requires comprehensive financial and administrative reform.

Read more: Dinar slides: Why Iraq’s oil billions aren’t buying currency stability

In a statement, the CBI described predictions of an imminent rate shift as attempts to disrupt the market, fuel speculation, and undermine confidence in the national economy, stressing that such remarks are personal opinions that do not reflect its policy direction.

The bank noted that Law No. 56 of 2004—particularly Article 1/4/A—assigns the CBI exclusive authority over monetary policy, including the exchange-rate system. It said maintaining price stability remains its priority and highlighted tangible progress in reducing inflation to “historically low levels” through targeted monetary tools and measured interventions.

According to the bank, support for the dinar is reinforced by “ideal levels” of foreign-currency reserves in cash and gold, enabling full coverage of banks’ external-financing requests in US dollars and in the Chinese yuan, Turkish lira, Indian rupee, and UAE dirham.