The Iraqi government has taken action to limit the impact of the dollar’s appreciation on its citizens by increasing the value of the Iraqi dinar against the US dollar. In a meeting of the Iraqi Council of Ministers, Prime Minister Mohammed Shia’ al-Sudani announced that the value of Iraq’s currency will be raised to 1,300 Iraqi dinars for one US dollar, up from 1,450 dinars.
According to a statement from the Central Bank of Iraq (CBI), the bank will start selling US dollars at the new official price on Wednesday. The move is aimed at stabilizing the goods’ prices and protecting the purchasing power of Iraqi citizens. The government hopes to control the exchange rate of the US dollar in Iraq after sharp fluctuations in the Iraqi exchange market.
The recent dollar inflation led to an increase in the prices of commodities, including food products, in Iraq. The government’s action comes after hundreds of protesters gathered outside the CBI complex last month, demanding the government take action to stabilize the currency.