The new exchange rate of the Dinar against the US dollar will remain until 2025

Shafaq News / Iraq’s Parliamentary Economic and Investment Committee confirmed, on Thursday, that the exchange rate of the Iraqi Dinar against the US Dollar will remain the same until 2025.

"It was supposed that the new exchange rate will remain for one year, but the agreement of the political forces and the government breached the agreement that said the exchange rate of the dollar remains the same until 2025." the Committee member Nada Shaker Jawdat said.

“For this, the prices rose by 25%." She said

“Prime Minister Mustafa Al-Kadhimi, the Minister of Finance and the Governor of the Central Bank have dared to change the exchange rate because they have a political approval," Jawdat continued.

Last December, Iraq’s central bank increased the sale price of U.S. dollars to banks and currency exchanges to 1,460 dinars, from 1,182 dinars, seeking to compensate for a decline in oil revenue due to low crude prices.

The central bank of Iraq said the key reason behind the dinar’s devaluation was to close the gap of widened 2021 budget inflation after a collapse in global oil prices, a major source of Iraq’s financial resources.

On March 2021, the Iraqi parliament voted on the first article of the budget law, which included to adopt the dollar exchange rate of 1450 dinars per dollar.