Iraqi Citizens Demanding the Iraqi Dinar Be Revalued

Last December, the Central Bank of Iraq, changed the exchange rate of the U.S. dollar, from 1,182 dinars to 1,460 dinars because of the COVID-19 economy, and lower oil revenues. The Iraqi government wanted to stop the Iraqi national currency and the purchasing power of the IQD from spiraling out of control.

Now, Iraqi citizens are demanding that the currency be revalued.

As oil prices gradually climbed beyond 80 dollars a barrel. Iraqi citizens and economists are making demands to revaluate the dinar, in next year’s budget. The white paper organizes the process over three to five years. However, some people in Iraq think because oil revenues are up, that things can change immediately. This is not true. Economist, Bassem Jamil Antoine, made the following statement: “The state cannot change its currency. Still, real reform that serves the poor classes is essential.”

He continued, “The currency rate is not as vital as compensation for the poor classes, which constitute the bulk of the population; social welfare, ration card availability, and job development are all critical,” he said, “unemployment and poverty rates skyrocketed due to lack of job opportunities in the public sector. On the other hand, the private sector is frozen and unable to function properly.” In other words, Iraq is playing catchup.