Food prices rise in Iraq after dollar exchange rate adjusted to 1,520 dinars
Prices for boxes of eggs, rice, sugar and oil rose by between 9.1% and 15.4% after the government adjusted the dollar exchange rate to 1,520 dinars for the public, while some traders raised prices and others temporarily stopped selling.
Several food prices in Iraqi markets rose noticeably on Thursday after the government raised the official U.S. dollar exchange rate from 1,320 dinars per dollar to 1,520 dinars per dollar. Some traders immediately increased prices of goods, while others chose to stop selling until market developments became clearer.
The price of a box of eggs containing 12 layers rose from 84,000 dinars to 93,000 dinars, an increase of 9,000 dinars or 10.7%. The price of “Mahmoud” rice rose from 65,000 dinars to 72,000 dinars, an increase of 7,000 dinars or 10.8%.
Sugar rose from 26,000 dinars to 30,000 dinars, an increase of 4,000 dinars or 15.4%, while the price of one-liter 'zir' oil rose from 55,000 dinars to 60,000 dinars, an increase of 5,000 dinars or 9.1%.
Food trader Abu Sajad said: "Traders are forced to raise prices on some food items as a result of the higher dollar exchange rate," adding that the new selling prices are still below their current cost if imported from abroad. He explained: "The items that rose in price are imported goods, except for eggs, which are a local product," noting that the change in the dollar exchange rate quickly affected prices of imported goods in local markets. Abu Sajad added: "Some beverage companies have temporarily stopped selling until the dollar exchange rate stabilizes and price trends in the market become clearer, amid the state of anticipation in Iraqi markets."
The Central Bank of Iraq, based on a Cabinet decision, adjusted the dinar’s exchange rate against the dollar so that the selling price of the dollar to the public is 1,520 dinars, 1,510 dinars for banks, and 1,500 dinars as the purchase price of the dollar from the Ministry of Finance. The new rates take effect from 7 October 2026.
The new rate is an adjustment to the official price of 1,320 dinars per dollar, representing a devaluation of the dinar of about 15.2% according to the dollar selling price to the public.
