Al-Kadhimi: Dollar exchange rate against Dinar is based on “meaningful vision and strategy”

2021-03-30T13:18:18.000000Z

Shafaq News / The Iraqi Prime Minister Mustafa Al-Kadhimi confirmed, on Tuesday that the dollar exchange rate against the Iraqi dinar was decided according to a vision and a strategy.

The PM said during the cabinet session which held today, the decision was taken by a “meaningful vision and strategy.” 

He added that this step affected positively on the cash reserves, and on Iraq's international credit rating.

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.

Political blocs, including the Al-Fatah, the State Of Law and Al-Nasr are rejecting lifting subsidies on the dollar, which is one of the main reasons that delay approving the 2021 federal budget.

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