Iraq Reviews Dinar Exchange Rate Change and Three-Zero Currency Redenomination
Al-Jabri projected that state revenues could exceed $110 billion in the 2027 federal budget, supported by oil exports, domestic petroleum sales and rising customs and tax receipts.
Iraq’s federal government is reviewing a proposal to change the official exchange rate from 1,310 dinars to 1,500 dinars per US dollar, while officials are also discussing a possible redenomination of the national currency through the removal of three zeros. Safaa Al-Jabri, a member of parliament’s Al-Sadiqoun bloc and the Parliamentary Economic Committee, disclosed the discussions in a televised interview, noting that no final government decision has been made on the exchange rate adjustment.
Al-Jabri projected that state revenues could exceed $110 billion in the 2027 federal budget, supported by oil exports, domestic petroleum sales and rising customs and tax receipts. He estimated crude oil export earnings at more than $85 billion, with monthly revenues of around $5 billion at prices of $80 to $82 per barrel.
The proposed budget reportedly includes a deficit of between 25 trillion and 30 trillion dinars. Meanwhile, discussions between the Prime Minister’s Office and the Central Bank of Iraq on removing three zeros from the currency remain subject to legal reviews to determine the authority responsible for approving the change.
Al-Jabri also highlighted outstanding government liabilities, including payments owed to local wheat farmers, ration supply contractors and road and bridge construction firms. He said Prime Minister Ali Faleh Al-Zaidi had cancelled older public works contracts where less than 20% of the work had been completed.
