ERBIL, Kurdistan Region - The Iraqi government on Tuesday decided to sell US dollars to those businesspeople who import gold, cars, mobile phones and cigarettes in a bid to devalue the foreign currency against the Iraqi dinar.
Prime Minister Mohammed Shia’ al-Sudani’s cabinet held its weekly meeting on Tuesday, issuing several decrees, including selling dollars to certain importers.
“The Council of Ministers has implemented measures to aid importers in obtaining foreign currency at the official exchange rate, specifically for commodities like gold, cars, mobile phones, and cigarettes. This aims to alleviate the need for importers to turn to the parallel market for currency purchase,” read a statement from Sudani’s office.
“The measures implemented, including reducing customs duties on shipping containers, easing procedures for importing gold through airports, and approving certificates of origin from exporting countries, are expected to have a positive impact on lowering foreign currency prices in the parallel market. This is particularly relevant as these materials constitute a significant portion of the demands for foreign currency in the parallel market,” it added.
A dollar is worth nearly 1,600 dinars in the market but the Iraqi Central Bank rate for a dollar is 1,320 dinars.
The Iraqi dinar has been losing value against the US dollar for several months, leading to a surge in prices of basic goods and consequent outcry from the Iraqi public. The depreciation has been attributed to the smuggling of dollars out of Iraq, mainly to neighboring Iran.
Prime Minister Mohammed Shia’ al-Sudani’s cabinet held its weekly meeting on Tuesday, issuing several decrees, including selling dollars to certain importers.
“The Council of Ministers has implemented measures to aid importers in obtaining foreign currency at the official exchange rate, specifically for commodities like gold, cars, mobile phones, and cigarettes. This aims to alleviate the need for importers to turn to the parallel market for currency purchase,” read a statement from Sudani’s office.
“The measures implemented, including reducing customs duties on shipping containers, easing procedures for importing gold through airports, and approving certificates of origin from exporting countries, are expected to have a positive impact on lowering foreign currency prices in the parallel market. This is particularly relevant as these materials constitute a significant portion of the demands for foreign currency in the parallel market,” it added.
A dollar is worth nearly 1,600 dinars in the market but the Iraqi Central Bank rate for a dollar is 1,320 dinars.
The Iraqi dinar has been losing value against the US dollar for several months, leading to a surge in prices of basic goods and consequent outcry from the Iraqi public. The depreciation has been attributed to the smuggling of dollars out of Iraq, mainly to neighboring Iran.
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