The Parliamentary Finance Committee suggested, on Tuesday, that the rise in oil prices would contribute to stabilizing the exchange rate of the US dollar against the Iraqi dinar in the local markets.
Committee member Ahmed Al-Hajj Rashid told Shafaq News Agency, “Oil prices in global markets recorded their highest price in years after the OPEC group agreement, especially after the recent increase in demand for oil.”
He added that “the rise in the exchange rate of the dollar affected the citizens and people with limited income, and this caused a rise in the prices of real estate, food, construction and all commercial goods and merchandise.”
And Rashid indicated, “The rise in oil prices will contribute to the stability of the dollar exchange rate in front of the Iraqi dinar through the central bank pumping the currency into the market to control the change in exchange rates.”
Oil prices continued to rise today, after yesterday’s rise, with the cancellation of production talks for OPEC + countries, but fears that members may begin to increase production limited the gains.
After the Iraqi government’s decision to reduce the value of the Iraqi dinar against the US dollar in late 2020, the exchange rate of every $100 reached 145,000 dinars, which led to a significant increase in prices in the Iraqi market.
This price was fixed in the federal budget for the year 2021, and since then until now the dollar exchange rate has not been stable, as it continued for about three months below the official exchange rate, rising in recent months and reaching 151 thousand dinars per 100 dollars.