Value of Iraqi dinar against US dollar drops further
ERBIL, Kurdistan Region - The value of the Iraqi dinar on Sunday saw another dramatical drop despite Baghdad’s efforts to maintain the value of its currency.
Haji Sabir Bawajani, a member of Erbil’s currency exchange council, told Rudaw on Sunday that the value of a US dollar against the Iraqi dollar increased to over 1,550 IQD but dropped to 1,541 IQD when markets closed.
Iraqi dinar has been losing value against the US dollar recently.
Bawajani added that there are a number of reasons behind the dramatic drop of the value of Iraqi dinar, such as “New Year holiday and closure of banks as well as US pressure on Iraq.”
Jamal Kochar, a Kurdish member of Iraqi parliament, told Rudaw on Sunday that nearly 50,000 US dollars are exported to neighbouring countries through border crossings every day.
Haji Sabir Bawajani, a member of Erbil’s currency exchange council, told Rudaw on Sunday that the value of a US dollar against the Iraqi dollar increased to over 1,550 IQD but dropped to 1,541 IQD when markets closed.
Iraqi dinar has been losing value against the US dollar recently.
Bawajani added that there are a number of reasons behind the dramatic drop of the value of Iraqi dinar, such as “New Year holiday and closure of banks as well as US pressure on Iraq.”
Jamal Kochar, a Kurdish member of Iraqi parliament, told Rudaw on Sunday that nearly 50,000 US dollars are exported to neighbouring countries through border crossings every day.
In December of 2020, Iraq’s central bank announced devaluing the country’s currency in an effort to combat a national liquidity crisis and bring in much-needed cash to the government’s coffers.
The devaluation of the dinar struck the public hard as government employees get paid in dinar, and they would be able to afford less with their salaries given that many imported goods are paid for in dollars.
The devaluation of the Iraqi dinar is a step taken towards reform and creating a “financial balance” and will revive the economy, former Finance Minister Ali Allawi said at the time.
In mid-August of last year, a member of the parliament’s finance committee said the dinar-dollar exchange rate will be fixed for the next five years.