Iraq Targets One Unified Exchange Rate
Iraq's government plans to bring the street dollar to 1,550 IQD, near the bank's 1,520. What one rate means for the IQD and the RV.
Thursday, October 15. On Wednesday Iraq's government put a number on the street.
Its spokesman, Haider al-Aboudi, said the government and the country's Central Bank have a plan to bring the dollar's parallel-market rate down to 1,550 dinars "in the near term." He said the bank's reserves are enough to back it. He did not say how it would be done.
Hold that beside the board. Baghdad's main exchanges closed Wednesday at 166,400 IQD for $100. Iraq's Central Bank sells the same $100 for 152,000. The target sits between those two numbers, about 2% above the bank's public rate of 1,520.
If you are new here: Iraq lowered its official rate to 1,520 on October 7, and we read that as step one of three, set out the same day in Devalue, Delete, Revalue. Take the zeros off the notes next. Then raise the value. Neither works until the two dollar prices become one. Since then we have measured it by one test: does the street fall to meet the bank. Now Baghdad has written down where it wants the street to stop. Today: the target, where the number comes from, what Washington told the IMF on the same day, and the vote in Iraq's parliament.
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