FSC postpones looking into the Dinar devaluation case

Shafaq News / The Federal Supreme Court postponed looking into the Dinar devaluation case until April 4.

Earlier, the Court opted to summon the Iraqi Minister of Finance and the Governor of the Central Bank of Iraq, to question them about the issue.

On December 19, 2022, 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.

CBI added that the devaluation decision came as a preemptive move to prevent "draining Iraq's foreign reserves" and help the government secure public servants' salaries.

But in Iraq's largely dollar-denominated economy, lowering the value of its dinar by a significant rate, which has the highest devaluation rate since 2003, immediately rose the price of goods, hitting living standards.