Iraqi MP: The high dollar exchange rates will remain for next 3 years

Economy 11:23 AM - 2021-01-20

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The Iraqi Parliamentary Finance Committee confirmed on Wednesday, that the rise in the price of US dollar against the Iraqi dinar will continue for the next three years.

 

MP Shirwan Mirza, a member of the Parliamentary Finance Committee and PUK bloc MP in Iraqi Parliament, said during a special statement to PUKmedia: "The exchange rate of US dollar against the Iraqi dinar will remain high for the next three years according to the plan of the Central Bank of Iraq."

 

He added: "The government won 12 trillion dinars from the decision to raise the price of the dollar against the Iraqi dinar, and this will lead to reducing the deficit in the federal budget for the year 2021."

 

The Central Bank of Iraq had decided to raise the exchange rate of the dollar against the Iraqi dinar, by adopting the new dollar price.

 

In a document bearing the signature of the bank’s governor, the Central Bank said, “Given the change of the foreign currency exchange rate (US dollar) to the Iraqi dinar as of December 20,2020, the following exchange rates will be adopted as shown below:

 

1,450 dinars for every dollar purchase from the Ministry of Finance.

 

1,460 dinars as the selling price of the dollar to banks through the foreign currency sale window.

 

1,470 dinars as the sale price by banks and non-bank financial institutions to the ultimate beneficiary.

 

Currency exchange rates against the dinar has recently hiked in Iraq, which largely relies on oil sales and is facing large budget deficit due to the drop in oil prices as a result of the coronavirus pandemic.

 

To cover the budget deficit, the Iraqi government has recently deducted government employees salaries, as well as a currency devaluation by almost 20% in the yet to be voted on 2021 budget to address the problem.

 

 

 

PUKmedia Exclusive