Exchange rate move impacts markets and slows growth
The article stated that the Iraqi Council of Ministers' decision to adjust the exchange rate of the dollar against the dinar has led to an economic stagnation in local markets and a rise in the prices of essential goods. This decision, which aims to increase government revenues and compensate for the resource shortages resulting from regional tensions and the halt of navigation through the Strait of Hormuz, has caused market paralysis and contraction since its implementation this morning. There has been a noticeable increase in the prices of food and basic commodities, which has weakened citizens’ purchasing power. It is worth mentioning that the new exchange rate raised the value of the dollar from 130,000 dinars to 150,000 dinars for every hundred dollars, generating additional revenues for the national treasury of 20,000 dinars for each hundred dollars. Experts confirm that the goal of this adjustment is to address the fiscal deficit caused by regional tensions, but the repercussions have cast a shadow over citizens’ livelihood, leading to a widespread wave of inflation.
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