Compared to 1220 dinars in mid-March, the price of US dollar in the local market has reached 1300 Iraqi dinars. This has been marked as a significant drop in the value of Iraqi dinar to US dollar in last two years, by the experts.
It is known that the official price of the USD until this day, according to the Central Bank of Iraq is IQD 1166 and that means that the value of the Iraqi dinar has reduced more than 11%. No doubt this is a concern for the Iraqi economy at present.
According to the local news and media sources, it has been revealed that the decline has resulted into abrupt price rise of the regular essential items in the local markets of the country. However, Central Bank has promised to take preventive measures that are required to handle this situation, as expressed in local media reports. As the degradation rate of the dinar continued for up to 1,300 dinars per dollar, Iraqi Central Bank will definitely face hard time to cope with the situation.
The complains on inflation is rising in the country and employees or retirees who get their salary in dinar are suffering due to the rising inflation level and high essential commodity price rise in the local market. Not only that, people are also striving to pay their regular needs and bills.
Many believe that the growing demand to buy the dollar from local markets has led to this significant decline in the price of the dinar. This is attributed to smuggling the USD sold daily by the Central Bank of Iraq to Syria and Iran, which face financial sanctions and their growing need to hard currency.
The Iraqi Central Bank announced short period before new measures to restrict the availability of U.S. currency in markets. Hope the situation will get stabilized soon!
Updated 18 May 2013 | Soruce: AIN | By S.Seal