Dinar value falls as Iraq contemplates currency devaluation

MPs say Iraq's 2021 budget is likely to bring a significant drop in the value of the dinar, helping the government's balance sheet but hurting the purchasing power of most Iraqis.
Dinar value falls as Iraq contemplates currency devaluation
Money changers count wads of Iraqi dinars in Baghdad on Oct. 1, 2012. (SAAD SHALASH/Reuters) Money changers count wads of Iraqi dinars in Baghdad on Oct. 1, 2012. (SAAD SHALASH/Reuters)

BAGHDAD/ERBIL - The street value of Iraq's currency is dropping, as markets anticipate the likelihood the dinar will soon be devalued in response to a dire economic crisis.

Money exchangers in Iraq on Monday were charging 1,300 Iraqi dinars for each U.S. dollar, compared to the Central Bank of Iraq's (CBI) official rate of 1,182 dinars per dollar — the widest spread between market rates and the bank's official "window" rate since December 2016, according to an Iraq Oil Report analysis based on CBI data.

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