US dollar price increased in Iraqi markets

US dollar price increased in Iraqi markets
5 years ago

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SULAIMANI — The U.S. dollar price sold to Iraqi currency exchanges in the markets climbed on Wednesday (Jan. 13) in Iraq, following remarks from an Iraqi Parliament member questioning the Iraqi government’s use of the Central Bank.

The Rozh Office in Sulaimani told NRT that the prices at currency exchanges have been increased in the Kurdistan Region, and $100 US dollars has been exchanged on Wednesday (Jan. 13) for 128,000 IQD, while it was 126,000 in the morning.

According to the Global Stock Market in Iraq, $100 dollars is exchanged for 127,000 IQD in Baghdad.

Though the Iraqi Central Bank exhibits $180 million dollars to the markets per day, the dollar price has climbed in comparison to the Iraqi dinar in the country’s markets.

According to economists, the dollar price is expected to increase in the Kurdistan Region, devaluating the Iraqi currency.

Comparing the dollar prices to other currencies in the world, the U.S. dollar has not significantly increased. According to this formula, it is the Iraqi dinar value that has decreased in the country.

In March 2015, Iraqi dinars fell to 146,000 per $100 after the Iraqi Central Bank cut down on the amount of US dollars in the markets. After weeks of the increase, the Central Bank increased the amounts to the markets and the U.S. dollar price fell to 122,000 IQD.

Analysts have pointed out that despite the current economic crisis, Iraq still has $80 billion dollars in federal reserves, which will help to stabilize the currency when necessary.   

Head of the Finance Committee in Iraqi Parliament, Ahmed Haji Rashid, told NRT on January 6, 2015, that the Iraqi government increased the U.S. dollar price sold to currency exchange companies and banks through the Central Bank, adding Baghdad used increasing dollar price as a policy fix to fill the gap in the budget deficit.

“The Iraqi government sells oil for [US] dollars, so increasing the dollar price will add more profits to the government,” Rashid said.

“The government accomplishes this policy secretly and gradually in order to avoid public protests inside Iraq,” Rashid added. “It will leave a bad effect on markets and make famine in the country,” Rashid speculated.

The global slump in oil prices has posed a serious threat to Iraq's fiscal revenue, which relies heavily on oil exports.

Iraq is now in an economic crisis due to the fight against Islamic State (IS) militants and the fall of oil prices in the world markets, which have reached the lowest price point in over a decade.