Iraq adopts exchange rate of 1,500 dinars per dollar and halts customs prepayment
The Finance Ministry announced the adoption of 1,500 dinars per dollar and the suspension of the previously issued decision on advance collection of customs duties.
Iraq's Ministry of Finance announced today, Wednesday, the adoption of the dollar exchange rate against the Iraqi dinar, setting it at 1,500 dinars per one US dollar.
The ministry said in a statement that this adjustment came based on Cabinet Decision No. (544), issued at its session held on 6/10/2026.
The ministry added that it decided to suspend implementation of Cabinet Decision No. (413) of 2026, which related to the advance collection (prepayment) of customs duties.
The Cabinet had approved, on 18 August, the principle of advance collection of customs duties and the estimated tax deposits on imported goods, with implementation scheduled to begin on 1 October 2026.
Under that principle, the importer was required to deposit the amounts for the external transfer with licensed banks, and funds would not be transferred abroad until customs duties and the estimated tax deposits were paid through the ASYCUDA system and approved electronic payment methods.
The decision specified that the estimated amount would be calculated based on the preliminary data provided by the importer, including the commercial invoice, shipping documents, customs classification, the type of goods, their origin, and their value according to the approved tariff schedules.
In a related context, the Iraqi Customs Authority announced on 30 December 2025 the start of applying the new customs tariff as of 1 January 2026, noting that the customs duty on cars became 15% after it was reimposed on hybrid vehicles that had previously enjoyed an exemption.
The authority also announced on 1 January 2026 the start of implementing Cabinet Decision No. 957 of 2025 and the cancellation of the lump-sum fee system on containers, applying tariffs according to materials and their classification.
On 9 January, the authority clarified that Customs Tariff Law No. 22 of 2010 is the legislative basis for the decision, and that its non-implementation in previous years was linked to a lack of automation of procedures, weak infrastructure, and insufficient control over customs centers.
