By Mustafa Saadoun for Al Monitor. Any opinions expressed here are those of the author(s) and do not necessarily reflect the views of Iraq Business News.
Iraq increases deficit to pay salaries
The Iraqi parliament approved on November 12th the funding deficit law, entitling the government to borrow 12 trillion dinars ($10 billion) from internal and external parties in an effort to pay state employees who have seen their salaries delayed for nearly two months.
The loan value decreased from 41 trillion dinars ($34 billion) to 12 trillion dinars under the new law.
Why are they paying salaries in IQD , they have to pay in US $ and then appreciate the value of IQD for future.. strong local currency means more buying power, easy to servive.
Devaluation of local currency means more inflation, everything shall more expensive... Middle class people shall die in this crushing...
Or you need to let the open market to decide its
value ... Why the cbi is fixed it's value...