Episode Details

Iraqi Dinar: IBBC issues Major New Paper on De-Dollarisation of Iraq

link to My FX Buddies Blog Post

This revaluation of the dinar combined with restrictions on dollar transactions has also seriously injured private sector businesses that were engaged in exporting. Previously, many contracts between international firms such as oil companies and their Iraqi employees and suppliers were denominated and often paid in dollars. Iraqi employees and firms could then convert these dollars into dinars at the parallel rate – currently about 1,500 ID/$. However, beginning is 2024, the GoI required, that regardless of the currency specified in contracts, payments will be made in dinars only and at the official rate – 1,310 ID/$.