On 6 October 2026, the Council of Ministers issued Decision No. 544 of 2026, adjusting the official USD-IQD exchange rate to 1,520, effective 7 October 2026

Following an urgent proposal by the Minister of Finance and the Governor of the Central Bank of Iraq, the Council of Ministers issued Decision No. 544 of 2026, on 6 October 2026. The Decision prompts a decrease of the official US dollar exchange rate against the Iraqi dinar, effective from 7 October 2026. 

According to official statements, the currency devaluation is being used as a fiscal measure to counter the disruption of oil sales and exports, aiming to unlock additional revenues to cover domestic spending.

Objections were raised by several officials against this rate adjustment, however it has been formally enacted and maintained following an emergency Parliament meeting on 8 October 2026.

Impact on taxpayers and financial reporting

• From 7 October 2026
  • Exchange rate of 1 USD : IQD 1,520 must be used for accounting, tax and social security reporting purpose  
    • Written instruction from the Central Bank to the Ministry of Finance and the Social Security office is yet to have been received, but the terms of the Decision No. 544 of 2026 are considered to be a sufficient legal basis to start applying the new rate.
       
• Practical application
  • Accounting software for the local bookkeeping must be set to the new rate from 7 October 2026.
  • Payroll data must be prepared using the new rate starting from October 2026 payroll, for employment tax and social security filing purposes.
  • Payments made to vendors, must be converted to the new rate for tax retention and withholding tax returns purposes.