If you’re checking the USD to IQD exchange rate today, you’re probably looking at two completely different worlds. On one hand, you’ve got the official rate from the Central Bank of Iraq (CBI). On the other, there’s the "street" price that actually dictates what you’ll pay at a currency exchange in Baghdad or Erbil.
Honestly, it’s a mess.
As of January 16, 2026, the official rate is holding steady around 1,310 to 1,320 IQD per dollar. But if you walk into a local shop in Al-Kifah or Al-Harithiya, you’re looking at something closer to 1,480 or 1,485 IQD. That’s a massive gap. It's the kind of "spread" that makes business owners pull their hair out and travelers feel like they're getting ripped off.
The 1,300 Anchor: Why the Government Won't Budge
The Iraqi government is playing a very specific game right now. Just a few days ago, on January 9, the CBI confirmed they are sticking with the 1,300 IQD rate for the 2026 federal budget.
They want stability.
By keeping the budget rate at 1,300, the Ministry of Finance can project oil revenues with some level of sanity. Government economic adviser Mudher Mohammed Saleh recently pointed out that this isn't just a random number; it's a "calibrated coordination" intended to stop inflation from spiraling. If they devalue the official rate to match the street, the price of bread, milk, and medicine—mostly imported—would skyrocket.
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But here’s the kicker: just because the government says a dollar is worth 1,300 dinars doesn’t mean the market agrees.
What’s Actually Happening in the Markets Today?
If you’re trading USD to IQD exchange rate today, here is the breakdown of what people are actually paying across the country. These numbers move by the hour, but as of this morning:
- Baghdad (Al-Kifah & Al-Harithiya): Selling at roughly 148,500 IQD per $100. Buying at 148,000 IQD.
- Erbil: Usually a tiny bit cheaper, trading around 147,250 IQD per $100.
- Basra: Mirrors Baghdad closely, holding at 148,500 IQD.
Notice the trend? The market rate is nearly 15% higher than the official bank rate.
Why? Because of the "Electronic Platform." To get dollars at the 1,320 rate, banks and traders have to go through a rigorous compliance check managed by the CBI and, indirectly, the U.S. Treasury. They have to prove the money isn't being smuggled to sanctioned neighbors or used for money laundering.
The "Trump Factor" and U.S. Treasury Pressure
We can't talk about the Iraqi dinar without talking about Washington.
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Yesterday, Mark Savaya, the U.S. Special Envoy to Iraq, made it clear that the Treasury and OFAC (Office of Foreign Assets Control) are still heavily auditing Iraqi banks. They are looking for "fraudulent financial contracts" and "illicit transactions."
Under the current Donald J. Trump administration, the pressure has intensified. The U.S. is tightening the faucet on how many physical dollars actually enter Iraq. When the supply of physical greenbacks drops, the price on the street goes up. It’s basic supply and demand, but with a heavy side of international geopolitics.
Is a Revaluation (RV) Coming in 2026?
If you spend five minutes on "Dinar Guru" forums, you’ll see people screaming about a "Global Currency Reset" or a massive revaluation where 1 IQD becomes worth $3.
Let's be real.
The CBI literally just issued a document to the Ministry of Finance confirming the 1,300 rate for the next year. They aren't planning a surprise jump to 1:1. In fact, they’ve gone out of their way to deny these rumors. A sudden revaluation would require a level of economic diversification that Iraq simply doesn't have yet. Right now, oil is the only engine, and oil is priced in dollars.
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Why the Gap Persists
You might wonder why the CBI doesn't just flood the market with dollars to bring the street price down.
They try. They hold daily auctions.
But a huge chunk of the demand for dollars in Iraq is "informal." Small traders who don't have proper import licenses, people moving money across borders, or citizens just trying to hedge against inflation—they can't use the official electronic platform. So, they go to the black market.
This creates a self-fulfilling prophecy. As long as the U.S. Treasury restricts the flow of dollars to "clean" banks only, the "unclean" demand will keep the street rate high.
Real-World Impact: What This Means for You
If you are an expat working in Iraq or a local business owner, the USD to IQD exchange rate today is a double-edged sword.
- If you earn in Dollars: Your purchasing power on the street is actually quite high. Your $1,000 is worth about 1,480,000 IQD today, whereas two years ago it was significantly less.
- If you earn in Dinars: Everything is getting more expensive. Even if the government claims inflation is "controlled," the guy selling car parts or electronics is pricing his goods based on the 1,480 rate, not the 1,320 rate.
- For Investors: The Iraq Stock Exchange (ISX) is actually showing some backbone. In the first week of January, the index rose about 0.9%. Banking stocks like Bank of Baghdad and National Bank of Iraq are seeing high volume because they are the ones handling the "official" dollar flows.
Actionable Steps for Handling IQD Right Now
Don't get caught in the hype. If you're dealing with Iraqi currency this week, keep these things in mind:
- Avoid the "RV" Scams: Anyone telling you the Dinar is about to "overnight" become worth millions is selling you a fantasy. Stick to the data provided by the CBI and reputable news outlets like Shafaq News or 964media.
- Check the Spread: If you're exchanging money, check the rates in both Baghdad and Erbil. Erbil often has slightly better liquidity for the dollar, meaning you might get a slightly better deal if you're buying IQD.
- Monitor the Auctions: Keep an eye on the CBI’s daily currency auction results. If the volume of "Cash Sales" drops significantly, expect the street price of the dollar to climb within 24 hours.
- Watch the Border: Regional instability—like the current economic volatility in Iran—often spills over. When the Iranian Rial crashes (which it did recently, hitting over 1.4 million to $1), it puts pressure on the Iraqi market as traders scramble for hard currency.
The USD to IQD exchange rate today is a reflection of a country trying to modernize its banking system while caught between the demands of the U.S. Treasury and the realities of a cash-heavy local economy. Expect the volatility to continue as long as the "dual-rate" system exists.