Central bank raises value of Iraqi dinar

The new rate, which takes effect immediately, aims to ease financial strain on Iraqis but could make Iraq more vulnerable to future crises.
Iraqi Prime Minister Mohammed Shia al-Sudani speaks at a press conference after a Cabinet meeting on Feb. 7, 2023. (Photo credit: Prime Minister's Office)

Iraq's central bank is increasing the value of the Iraqi dinar, reversing a pillar of the previous government's economic reform policy and raising the danger of future fiscal challenges.

The Prime Minister's Office announced Tuesday that the Cabinet had "approve[d] the decision of the Board of Directors of the Central Bank of Iraq to set the Iraqi Dinar to U.S. Dollar exchange rate at 1,300 IQD per 1 USD" — strengthening the currency by more than 10 percent compared to the previous rate of 1,450 dinars per dollar. The CBI confirmed in a subsequent statement the new exchange rate will take effect Wednesday.

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