Current Iraqi dinar’s US dollar peg will be fixed in 2022 budget bill: spokesperson

An employee counts US dollar bills at a money exchange in central Cairo, Egypt, March 20, 2019. REUTERS/Mohamed Abd El Ghany

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SULAIMANI — Spokesperson for Iraq's federal government Hassan Nazim said on Monday (September 6) that the price of US dollar against Iraqi dinar will be fixed at the current price in the draft 2022 Federal Budget Law and does not change.

Nazim told state-owned al-Sabah newspaper that the devaluation of Iraqi dinar is an idea that has been discussed for years.

He said that the former government did not dare to take this step because of the risks and controversies around it, adding that Prime Minister Mustafa al-Kadhimi’s cabinet was bold in taking this decision as it was in the interest of the country’s economy.

$100 was at 147,550 Iraqi dinars as of Monday afternoon.

Iraq devalued the dinar significantly as a part of the 2021 Federal Budget Law to 1,450 Iraqi dinars per US dollar. It was designed to preserve Iraq’s dollar reserves and allow the government to spend more Iraqi dinars.

On March 24, Director at Iraq’s Central Bank Mahmud Dagher said that the price will be fixed at the current price for the next four years.

(NRT Digital Media)