Savan Abdulrahman – Iraqi Kurdistan
As published on Iraqi News Agency (INA), The Iraqi central bank announced that Iraq decreased the value of the Iraqi dinar against the US dollar in order to bring as much as needed cash to the government banks.
Commenting on Saturday 19th of December the bank stated “In the last couple of months of this year, there are many conversations around the ratio of Iraqi dinar that took place between the authorities. And these conversations were centred around the economic crisis that Iraq is going through currently.”
The Central Bank sells the dinar to the countries finance ministry for 1,450 per USD and people can purchase dinar in the rate of 1,470 per USD.
This decision led to public outrage both in Iraq and in the Kurdistan governmental region. The ratio of gold rose along with the increase of the US dollar. And people’s fear for their daily earnings and spending arose as a result.
Dr. Ali Allawi the Iraqi Financial Minister announced “Of course, there will be people affected by this decision and there will be those who benefit. But it will not affect the poor because their concern is their house rate and the house rates will remain the same.”
People now are running to sell their gold, an owner of a gold shop says “Since the central bank’s decision, people are coming one after another to sell their gold in order to gain from this exchange.”
This decision also affected the value of products and shop owners fear that the products they export will cost them more. A shop owner says “I recommend that people don’t rush out to buy stuff and spend money, because it is possible that everything can change in the next months.”
According to AP News “Riot police were dispatched outside the central bank headquarters in central Baghdad prior to the announcement in the event news of the devaluation sparked protests.”
Many civil activists in Baghdad has announced a protest against the decrease of Iraqi dinar and call from all the people to participate in a protest that will take place in Tahrir Square on this coming Monday at 3:00 o’clock.