Iraq’s dinar devaluation tests efforts to protect consumers from rising prices
The Central Bank of Iraq raised the official dollar selling rate from 1,320 to 1,520 dinars on October 7, a devaluation of about 15 per cent. Residents warned of rising living costs while economists argued the move could help protect public finances amid a sharp fall in oil revenue. In Erbil, the dollar was selling for about 166,350 dinars per $100 this week, around nine per cent above the official rate, after exchange shops quoted prices as high as 180,000 dinars per $100 following the announcement.
Why it matters: The devaluation illustrates the trade-off between protecting public finances and shielding households from rising consumer prices.