December 19th local time, the Central Bank of Iraq issued a statement announcing that it would adjust the official exchange rate of the US dollar against Iraqi dinars to 1:1470.
Previously, the official exchange rate had remained stable for a long time around 1:1200, but in recent months, due to the impact of the epidemic and low oil prices, Iraq’s fiscal difficulties, the market exchange rate has reached about 1:1250, and there is still a downward trend.
Iraqi Finance Minister Ali Alawi said that the global economic crisis caused by the epidemic has hit many countries, and Iraq is no exception. In the current situation, there is an urgent need for reform in many economic areas, of which the exchange rate is an important part.
Allawi said that the exchange rate adjustment is a difficult decision, but it can alleviate the current crisis in Iraq and avoid repeating the mistakes of other countries.