Iraq implements Dinar-Only policy to boost local economy

In a bid to fortify its domestic economy, the Central Bank of Iraq has unveiled a momentous decision to exclusively use the Iraqi dinar for all internal commercial transactions, effective from the beginning of 2024.

This move comes in response to Iraq’s ongoing economic challenges, even amid the backdrop of elevated global oil prices, as reported by Bloomberg. One of the central drivers behind this policy shift is the alarming divergence between the official exchange rate and the prevailing black market rate of the US dollar within the country.

Currently, the dollar is fetching a significantly higher rate of 1,550 dinars on the unofficial market, in stark contrast to the official rate of 1,320 dinars per dollar. This stark disconnect has triggered mounting concerns regarding the stability of the Iraqi dinar and the potential for inflationary pressures in the nation’s economy.