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.
Economist Dhurgham Mohamed Alin. said that revaluating the dinar shall be contingent upon several factors, “The exchange rate of the dollar should be gradually reduced to 1,300 dinars while keeping an eye on the cash transactions to preclude creating a black market, dollar smuggling, and tighten the control over imports.” The article goes on to talk about what the government should or should not have done, or should do. A government source told Shafaq News agency that the dollar rates will remain unchanged in the fiscal year of 20 22.
This may or may not be true.
Sandy Ingram, the publisher of the Education Matrix channel said, “Iraq is definitely at the center of the wealth shift, and you must realize there are many people who do not want this shift to happen. The bottom line is, this article’s discussion is only about returning the Iraqi Dinar to 1300 dinars to one U.S. dollar.
We as investors and supporters of Iraq are looking for the discussion on a revalue, or afloat, of one Iraqi Dinar, to one to three U.S. dollars. We must keep in mind, there may not be a revalue, but instead, a gradual, increase in the Iraqi Dinar value, against the US, dollar
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