The surge in oil prices will stabilize the Dollar's exchange against the Iraqi dinar, MP says

Shafaq News/ The Parliamentary Finance Committee suggested that the rise in oil prices would contribute to stabilizing the exchange rate of the U.S. dollar against the Iraqi dinar in local markets.

Committee member Ahmed Al-Hajj Rashid told Shafaq News Agency, "Oil prices in global markets recorded their highest rates in years after the OPEC group agreement and the recent increase in demand for oil."

"The rise in the dollar exchange rate affected citizens with limited income, and this caused a rise in the prices of real estate, food, construction and all commercial goods and merchandise."

Rashid indicated, "The rise in oil prices will contribute to stabilizing the dollar exchange rate against the Iraqi dinar through the central bank pumping the currency into the market."

Oil prices continued to surge today, following the cancellation of production talks for OPEC + countries, but fears that members may begin to increase production limited the gains.

After the Iraqi government’s decision to reduce the value of the Iraqi dinar against the dollar in late 2020, the exchange rate of every $100 reached 145,000 dinars, which led to a significant increase in prices in the Iraqi market.

This price was fixed in the 2021 federal budget. Until the moment, the dollar exchange rate has not been stable, as it had been below the official exchange rate for three months straight, but rose in the recent months to reach 151 thousand dinars per 100 dollars.