I would like to bring to your attention a few articles recently published in the Iraq media. According to Shufaq News, Iraq politicians and others are making 40 million dollars a day from the weakened Iraq dinar currency. The current rate is still in the 1300-1320 range and there is no sign of the Iraq dinar gaining appreciation against the almighty dollar.
The Central Bank of Iraq (CBI) has set the exchange rate for the Iraq dinar at 1166. The CBI has added the additional 13 dinar for the commission. This is what the CBI receives daily from the banking sector who participates in the currency auctions. No individual is allowed to purchase Iraq dinar directly from the CBI, only a banking institution.
An Iraqi politician has made an announcement that the government will start paying employees in US Dollars. This move would give the hundreds of thousands of government employees a reprieve of the rising prices when they purchase goods at the local store. However, when you have local Iraq politicians profiting millions of dollars a day from the depreciated Iraq dinar, no government worker is going to be receiving US dollars anytime soon. They will continue to be paid in Iraq dinar.
Another noteworthy event in the news is that the Iraq legislature is trying to form an FDIC like we have in the USA. This is a result from depositors unable to withdrawal deposits at al-Warka bank. Hopefully in the future, the Iraq parliament will pass a bill and return the depositors money from al-Warka Bank.
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