Iraqi Prime Minister Nouri al-Maliki said on Sunday that the process to re-evaluate the Iraqi dinar has to do with economic conditions that have to be strengthened.
“The Iraqi dinar has all the reasons to grow stronger thanks to an increase in revenues and development of the economy,” Maliki said in response to some questions through the National Information Center.
“The government would not rush matters but would rather work on finding all the guarantees to render this measure a success. The Central Bank of Iraq (CBI)Central Bank of Iraq (CBI) is currently entrusted with drawing up a study on the whole issue and would give its decision soon,” said the Iraqi premier.
The Iraqi dinar’s exchange rate is suffering from low value against foreign currencies as a result of decades of wars and economic embargo that brought the local currency’s exchange rate to the rock bottom from three dinars per dollar in the late 1970s and 1980s to 3,000 dinars per dollar after the 1990 invasion of Kuwait, followed by a 13-year crippling sanctions regime.
The exchange rate fell even more after 2003 to reach 1170 dinars per dollar due to the CBICBI’s policy of daily auction, in effect for more than five years now.
The policy was lambasted by several economists on the grounds that these auctions do not give the real value of the country’s local currency.
© Aswat Aliraq 2010

 

The amendments made on Iraq’s 2011 budget includes allocating 15% of the budget to the Iraqi people, member of the parliamentary financial committee Najiba Najib told Alsumaria News.

Al Mehrab Martyr Party threatened on Monday to refuse voting for Iraq’s budget if the ration card system which it labeled as a red line is not dealt with seriously.

Iraq’s government must deal with this issue as soon as possible, the party MP Habib Al Tarfi told Alsumaria News.
Al Tarfi believes granting 15000 Iraqi Dinar for citizens is little in comparison with the routine procedures they would have to go through in order to receive the money.

Al Fadhila (Virtue) Party for its part called to form a parliamentary committee specialized in the ration card system. The Party urged to compensate Iraqis for the lack of ration cards by an adequate amount of money.