Dollar prices hike in Kurdistan Region, economist reveals why

Economy 01:40 PM - 2021-04-13

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On Tuesday afternoon, the 100 US$ price reached 148,350 Iraqi dinars which is 250 dinars more than the morning price on the same day and an economist reveals the reasons for the dollar's rise, expecting a further hike in dollar prices.

 

"There are reasons for the rise and instability of the dollar price in Iraq in general and at the same time, politics also has a huge impact on the price of currencies and the Iraqi economy," said Khalid Haider, an economist and university lecturer in Sulaymaniyah.

 

He also said that the Iraqi Central Bank's demand for rising dollar prices, the statements of government officials and parliamentarians, the arrival of Ramadan, the increase in the demand of citizens to buy goods and food, and the large number of dollars used outside to import goods are among the most important reasons for the rise in the dollar price at the moment.

 

The economist did not hide that he expects the dollar prices to rise even more by 2,000 to 7,000 Dinars, expecting to reach 150,000 to 155,000 Iraqi dinars.  

 

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 conducted a currency devaluation of almost 20% in the 2021 budget to address the problem.

 

The prices of 100 US$ rose from around 125,000 dinars to 145,000 and more after Iraq's decision.

 

 

 

PUKmedia