By Ahmed Tabaqchali, for the Atlantic Council. Any opinions expressed here are those of the author(s) and do not necessarily reflect the views of Iraq Business News.
Iraq needs to address the economy's structural imbalances to halt the dinar's volatility
A planned implementation of global procedural requirements for cross-border payments by the Central Bank of Iraq (CBI) in mid-November 2022 had a detrimental effect on the volumes of the CBI's daily "Foreign Currency Selling Window," better known as the CBI's US Dollar (USD) auction.
The decreased volumes versus the continued high demand for USD led to a supply-demand mismatch and, consequently, to a depreciation of the market price of the Iraqi Dinar (IQD) versus the USD.
As a result, it ignited a firestorm of controversy.
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