Iraq revalues its currency against US dollar following months-long fluctuation

ERBIL (Kurdistan 24) – The Iraqi government on Tuesday reset the local currency value against the US dollar, as the IQD value fluctuations for months had soared commodities prices in markets, according to the government.

The new exchange rate is fixed at 1,300 dinars to a US dollar, Prime Minister Mohammad Shia’ Al-Sudani’s office announced, reasoning the decision has been made to “alleviate people’s burden.”

The decision was made at the recommendation of the Central Bank of Iraq’s (CBI) Board of Directors, according to the statement.

Previously, the official exchange rate was set at 1,470 to a dollar while the street vendors were trading the currency at 1,750 dinars to a greenback.

The country’s currency has witnessed a dramatic change in its value as the Iraqi banks were putting in efforts to come into compliance with SWIFT, the international electronic money transfer system.

The decision had an immediate impact on the unofficial market, as the currency started to be traded at below 1,500 to a dollar.

Iraq has been blamed for its leniency against dollar smuggling, a charge the government does not deny and promises to tackle.

But for the country to comply with the regulatory measures, it has to provide better financial transparency as well as enforce the sanctions imposed against Iran and Russia by the Western countries.

A new electronic transfer system has been introduced by the CBI in recent months to better control money transfers by importers. It also enables vigorous screenings for transactions.