Dollar Wars & Dinar Drama: Iraq’s Long Road to Stability
Five years. Three exchange rate resets. And the crisis continues.
link to My FX Buddies Blog Since the 2020 devaluation under Mustafa al-Kadhimi, Iraq has been struggling to stabilize its exchange rate. Al-Sudani’s government reduced the rate again in 2023, introduced an electronic platform for transfers, and eventually abolished it — yet the gap between the official and parallel market rates remains wide.
In this episode, we cover:
How the 2020 devaluation saved the budget but triggered inflation
Why the 2023 rate reduction and electronic platform failed to fully stabilize markets
Why the…
The skinny
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