During the Covid crisis, the CBI devalued the local currency by over 20 percent, marking the largest devaluation since 2003, with the exchange rate adjusted from IQD 1182/USD to IQD 1450. Following the crisis and the resumption of oil flow, it was ‘revalued’ back to 1320/USD; however, it has not returned to its original pre-crisis value of 1182. These fluctuations in the dinar are not due to structural banking issues but rather local, short-term financial factors stemming from a decline in oil exports. This situation arises from an excessive dependence on oil to cover Iraq’s expenses. When oil supply is disrupted or diminished, Iraq suffers. We are all aware of al-Zaidi’s proposal to address this issue by ensuring that the economy generates at least 45%-50% of its revenues from non-oil sources to safeguard against future oil crises. The most compelling aspect of Al-Zaidi’s plan relates to the exchange rate… It is not yet transitioning to FOREX. We will require the FOREX rate to align with their projections of exceeding $3…
These are Iraqi Dinar Guru Updates, News, Opinions, and Intel Dinar Opinion
