| 2007: The dollar-IQD devaluation following IMF program |
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6/12/07 An Iraqi economic expert attributed the continuing high conversion rate of the Iraqi dinar and the relative decrease in the value of the dollar to the adoption of strict monetary and fiscal policies by the government. Dr. Khalid Ali, of the Center of Studies and Economic Researches, said, "The most important development this year is the continuing decline in the value of the dollar against the dinar, to its lowest level, 1250 to the dollar, from 1500 dinars a year a ago. The reason for this is the firm policy of the government in implementation of recommendations by the International Monetary Fund in return for extinguishing of Iraqi debt." Referring to the government's decision on July 1 to raise the current price of fuel following the recommendations of the International Monetary Fund, he said, "One of the necessary ways to counter the negative impact of rising fuel prices is lower interest rates and increased economic growth, allowing citizens to borrow money from banks for construction of housing units or to buy real estate." Source: Iraq Directory |