Central Bank of Iraq’s Foreign Currency Sales Decline in 2026
Data from the Central Bank of Iraq (CBI) showed that foreign currency sales declined to approximately $35.27 billion during the first eight months of 2026, compared with around $53.83 billion during the same period in 2025.
According to the data, this represents a year-on-year decline of approximately 34.5%. The drop in sales is linked to lower demand recorded through official channels, as well as changes to foreign trade financing mechanisms and enhanced scrutiny of financial transfers.
The decline comes at a time when Iraq’s parallel foreign exchange market is experiencing noticeable fluctuations, with a persistent gap between the official exchange rate and rates traded in local markets.
Experts note that lower foreign currency sales do not necessarily indicate a decline in Iraq’s foreign currency reserves. Instead, they may reflect changes in demand for the U.S. dollar or a shift in some transactions toward other channels and currencies.
The Central Bank continues to pursue banking sector reforms and strengthen compliance procedures, with the aim of improving Iraqi banks’ ability to process trade-related transfers through regulated and official channels.