The average exchange rate of the dollar against the Iraqi dinar stabilized this evening, Friday May 14, 2021, amid limited transactions.
The main dollar exchange in Baghdad was suspended due to the Eid al-Fitr holiday.
According to Iraqi media, the dollar prices stabilized in the money exchange shops in the local markets in Baghdad, some of which have opened their doors.
The price of the dollar to buy was about 1477.50 dinars, compared to 1487.50 dinars for sale.
Official data revealed an increase in poverty indicators in Iraq, and high inflation rates after the decision to raise the exchange rate of the Iraqi dinar.
And the Iraqi Ministry of Planning announced that poverty indicators rose in the country, and that it had completed a three-track reform plan concerned with developing remedies and finding solutions to reduce inflation and economic downturn levels.
Iraq is the second largest producer in OPEC, and oil contributes at least 95 percent of its income.
The collapse of demand and oil prices due to the Covid-19 pandemic severely affected Iraq last year.
But the market is recovering, which prompted the Organization of the Petroleum Exporting Countries (OPEC) and its allies to agree to slightly increase production from May 1.
According to a study conducted by the Iraqi Ministry of Planning in cooperation with the World Bank and UNICEF, about 32% of the country’s population lives below the poverty line. Last year alone, the poverty rate in Iraq increased by 3% compared to 2019, meaning that the number of people living below the poverty line reached more than 12 million. And 600 thousand people.
And approved the Iraqi budget for 2021, fixing the exchange rate of the US dollar at 1450 dinars per US dollar.
The passage of the fiscal budget for 2021 without changing the dollar’s exchange rate caused the green currency to rise in the local market.