Shafaq News- Baghdad

Prices of several food staples rose by as much as 15% in Iraqi markets on Thursday, a day after the Central Bank of Iraq (CBI) raised the official US dollar exchange rate from 1,320 to 1,520 dinars, with some traders immediately increasing prices and others suspending sales.

A box of eggs containing 12 trays climbed 10.7%, from 84,000 to 93,000 dinars ($55.26 to $61.18), while Mahmood rice rose 10.8%, from 65,000 to 72,000 dinars ($42.76 to $47.37).

Sugar recorded the sharpest increase, gaining 15.4% from 26,000 to 30,000 dinars ($17.11 to $19.74), followed by Zer cooking oil, which went up 9.1%, from 55,000 to 60,000 dinars ($36.18 to $39.47).

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Food trader Abu Sajjad told Shafaq News that businesses had little choice but to adjust their prices to the higher dollar rate, although current selling prices remained below the cost of replenishing imported stock.

Apart from locally produced eggs, most affected products are imported, he explained, adding that some beverage companies had temporarily halted sales pending greater clarity on currency movements.

On Oct. 7, the CBI introduced a new exchange-rate structure, setting the dollar at 1,500 dinars for purchases from the Finance Ministry, 1,510 for sales to banks, and 1,520 for cash transactions with the public. The parallel-market rate remained higher, reaching 1,680 dinars per dollar after the adjustment.

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1 US dollar = 1,520 dinar