Economist: Iraq's currency devaluation will remain for the coming years

Economy 11:11 AM - 2021-03-24

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The exchange rates of the dollar against the Iraqi dinar have fluctuated in the currency markets in Iraq, while an economist confirmed that the prices will remain the same for the coming years.

Currency exchange rates against the dinar have recently hiked in Iraq, which largely relies on oil sales and is facing a 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 conducted a currency devaluation by almost 20% in the yet to be voted on 2021 budget to address the problem.

Iraqi lawmakers have recently demanded the government to end the currency devaluation as it has caused a financial crisis for the people of Iraq.

The Kurdish economist, Izzat Saber, said during a special statement to PUKmedia that the news about reducing the dollar’s ​​exchange rate against the Iraqi dinar is not correct because the Iraqi Central Bank has set an exchange rate of 100 US dollars at 145 thousand dinars for the next three years.

He pointed out that the exchange rate of the dollar is exclusively determined by the Central Bank, and no party has the authority to intervene in this, neither from the Council of Representatives nor from the government.

Regarding the matter, the exchange rate of the dollar against the Iraqi dinar has decreased on Wednesday in the currency markets of the Kurdistan region, and the exchange rate of 100 US dollars reached 144,250 dinars on Tuesday.

For his part, Shuan Hadi, a currency dealer in the Sulaymaniyah, told PUKmedia: "The exchange rate of 100 US dollars on Wednesday reached 143,750 dinars."

The prices of the rest of the currencies against the Iraqi dinar are as follows:

100 euros = 170,000 dinars.

100 pounds = 197,000 dinars.

100 Turkish lira = 18.000 dinars.

100 thousand Iranian tomans = 5.750 dinars.

PUKmedia