Iraqis protest as currency plummets against the U.S. dollar

Record ID: 1705293

  • Title: Iraqis protest as currency plummets against the U.S. dollar
  • Date: 4th January 2023
  • Summary: BAGHDAD, IRAQ (JANUARY 4, 2023) (REUTERS) POLICE FORCES LINED UP VARIOUS OF PROTESTERS CHANTING, HOLDING UMBRELLAS AS RAIN POURS, SOME WAVING IRAQI FLAGS (SOUNDBITE) (Arabic) PROTESTER, MOHAMED EL MANSOURI, SAYING: “In the great Tishreen revolution, we said no to the corrupt political leadership, from which we haven’t gained anything but bad luck, destruction, and bloodshed of innocent people. Today we represent part of our demands which is to lower the price of the exchange rate for the US dollar because the high exchange rate of the US dollar against the Iraqi Dinar has had negative effects on the Iraqi citizen and the poor people. According to the controversial remarks of the labor ministry, there’s more than 42 percent of unemployment in Iraq, this category of people has been hit hard from the high exchange rate of the US dollar.” POLICE FORCES WEARING RAINCOATS LINED UP VARIOUS OF MARKET SELLER WEIGHING RICE SELLER PLACING ITEMS IN BAG CUSTOMER PAYING FOR ITEMS (SOUNDBITE) (Arabic) SHOP OWNER, ABDALLAH GABR, SAYING: “The higher exchange rate is causing the market to be gradually paralyzed. There’s no customer demand. Prices are very high; they are higher every day. The citizen wants the exchange price of the dollar to be less, it has reached 160,000 Iraqi Dinars for 100 US dollars (in the black market), so prices are increasing, and they have increasing for a while now.” VARIOUS OF MAN STANDING IN A MARKET LOOKING AT HIS PHONE VARIOUS OF PEOPLE IN A MARKET (SOUNDBITE) (Arabic) RETIRED CITIZEN, ABU ZAHRAA, SAYING: “Instead of buying two kilograms you’d only buy half a kilo, the prices of everything have soared, each day after the other, matters are getting worse.” VARIOUS OF CUSTOMERS IN MARKET (SOUNDBITE) (Arabic) CIVIL WORKER, ALI, SAYING: “It’s been difficult. On the 15th of the month, the salary is finished. Prices of the meat has increased. You see this Shurja market, this is half a kilo of milk that I previously bought for 4,000 dinars. Now it’s for 6,000. These sweets are for 12,000 and 15,000 Dinars per kilo, the high exchange rate of the US dollar has affected us greatly.” CUSTOMERS IN MARKET VARIOUS OF EXCHANGE OFFICE (SOUNDBITE) (Arabic) ECONOMIST, KOVIND SHERWANI, SAYING: “The first reason (for the high exchange rate) are the sanctions imposed by the US Treasury Department on a number of Iraqi banks that accounted for a large share of the currency exchange. The second issue is that the Central Bank of Iraq has developed an electronic platform for Iraqi banks and exchange offices to apply for currency purchase requests. This platform asks for requirements imposed by the US Treasury and the Federal Bank. It seems that the Iraqi banks have been delayed in fulfilling these requirements. The third issue is the speculations in the markets by some traders who keep the foreign currency and store it to sell later.” VARIOUS OF STREET MARKET AND TRAFFIC
  • Embargoed: 18th January 2023 15:07
  • Keywords: ECONOMY EXCHANGE RATE IRAQ US DOLLAR
  • Location: BAGHDAD, IRAQ
  • City: BAGHDAD, IRAQ
  • Country: Egypt
  • Topics: Middle East,Government/Politics
  • Reuters ID: LVA001027204012023RP1
  • Aspect Ratio: 16:9
  • Story Text:Tens of Iraqis gathered for a protest in front of the central bank on Wednesday (January 4), demanding that the government intervene to regulate the exchange rate of the Iraqi Dinar against the US dollar.
    Exchange prices in the black market have hit high records of 158,000 Dinars for each 100 US dollars. Meanwhile, the exchange rate in the central bank was kept at 146,000 Dinars for each 100 US dollars.
    The fluctuating rates and the currency devaluation has trigged inflation waves that hit the market hard.
    “The higher exchange rate is causing the market to be gradually paralyzed. There’s no customer demand. Prices are very high; they are higher every day,” a shop owner in Baghdad, Abdallah Gabr, said.
    Iraqi economist Kovind Sherwani believes that the one of the reasons behind the currency shortage are the sanctions imposed by the US Treasury Department on a number of Iraqi banks which used to contribute to a large share of the currency exchange.
    In December of last year, Iraqi Prime Minister Mohammed Shia al-Sudani said that the central bank's foreign currency reserves rose to $96 billion, after the government asked the central bank to take urgent steps to compensate for a dollar shortage in local markets.
    The Iraqi economy has been struggling to tackle the fallout from years of war and rampant corruption.
    (Production: Maher Nazeh, Mariam Rizk)
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2023. Open For Restrictions - http://about.reuters.com/fulllegal.asp
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