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CURRENT IRAQI DINAR PEG WILL CONTINUE FOR NEXT FOUR YEARS: OFFICIAL

Director of the Department of Financial Operations and Debt Management of Iraq’s Central Bank Mahmud Dagher said on Wednesday (March 24) that the price of US dollar against Iraqi dinar will be fixed at the current price for the next four years.

During an appearance in NRT’s Tawtwe interview program, Dagher said that the Council of Representatives does not have the authority to make changes in the price of US dollar.

$100 was at 144,750 Iraqi dinars as of Wednesday evening.

The devaluation of dinar, which was included in the federal government’s draft 2021 budget, was designed to preserve Iraq’s dollar reserves and allow the government to spend more Iraqi dinars.

The move however made imports and goods originally priced in other currencies, like hydrocarbons, more expensive.

On Sunday, Governor of the Central Bank of Iraq Mustafa Ghalib said that the devaluation of the Iraqi dinar this winter enhanced the country’s financial sustainability because the move increased country’s foreign currency reserves and strengthened its public finances.