By John Lee.
The Iraqi Cabinet has agreed a package of measures aimed at propping up the value of the Iraqi dinar, following continued downward pressure on the currency relative to the dollar:
- All government agencies are required to sell all goods and services inside Iraq based on the Central Bank USD exchange rate of 1470 IQD per 1 USD.
- What was stated in Paragraph (1) above includes sales of goods and services from the private sector, especially the offices of national and foreign airlines, commercial agencies, telecommunications and Internet companies, and sales of residential investment complexes. It is emphasized that the prices of goods and services are in Iraqi dinars based on the Central Bank exchange rate.
- The Central Bank sells dollars to the parties mentioned in Paragraph (2) at a rate set by the Central Bank of 1460 IQD per 1 USD for remittances and 1455 IQD per 1 USD to cover letters of credit after they pledge to sell using Iraqi Dinar. It will be announced on the official websites of the concerned authorities of sales outlets.
- The Central Bank of Iraq develops a streamlined mechanism within one week from the date of the decision, through which the private sector mentioned in paragraphs (2 and 3) above can get US dollars at the official exchange rate. The bank also secures private sector transfers outside Iraq at the official exchange rate to cover their obligations.
The decison was made at this week's cabinet meeting, chaired by Prime Minister Muhammad Shia Al-Sudani.
(Source: Govt of Iraq)