Price hikes at Sulaimani market following dinar devaluation

SULAIMANI, Kurdistan Region — Traders in Sulaimani say the devaluation of the Iraqi dinar is driving up prices for local shoppers. 

Sulaimani's busiest market can be found near the city's Grand Mosque. Traders say the price of imported goods has gone up after Iraq's central bank decided to devalue the Iraqi dinar amid an ongoing economic crisis. 

"We used to sell [tomato paste] for 16,000 IQD, but we sell it for 18,000 IQD now," said trader Hoshyar Hamagharib. 

Iraq's Central Bank announced on Saturday it would sell the dinar to the country’s finance ministry at 1,450 IQD per 1 USD. The public can purchase the dollar at 1,470 IQD.

"It’s a real problem for customers. For example, a customer used to buy goods for 150,000 IQD. He now has to pay 12,000 to 15,000 more for the same amount compared to two weeks ago," said Hassan Mam Ali. 

The Kurdistan Region’s main trading partners are China, Turkey and Iran. Most trade with Turkey and China is in dollars, and in tomans in Iran. 

Paid in Iraqi dinars, civil servants across the country are particularly affected by the bank's decision. 

Civil servants have gone unpaid for months - prompting protests across Sulaimani province, Halabja province and the Garmiyan administration earlier this month. 

Ten people, including two Peshmerga officers, were killed in the demonstrations.

 

Translation and video editing by Sarkawt Mohammed