Question and answer.. Why is the Central Bank of Iraq heading towards issuing a category of 20 thousand dinars?

Question and answer.. Why is the Central Bank of Iraq heading towards issuing a category of 20 thousand dinars?

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The Central Bank of Iraq is heading to issue a new category of the local currency for monetary circulation that is not very high, after the depreciation of its currency against the dollar, in a move described as useless and will increase inflation on the one hand, and its goal is to improve the efficiency of the performance of the cash payments system in the country in intermediate currencies that serve the speed of monetary exchange Facilitating the settlement of transactions and payment methods within the economic community on the other hand.

This trend came on the lips of the Governor of the Central Bank of Iraq, Mustafa Makheeb, who revealed in an interview that the Central Bank of Iraq intends to issue a new denomination of the Iraqi currency with a value of 20 thousand dinars (approximately 13 dollars) based on a study and research compared with neighboring countries, and is working to complete the form of the paper In the coming days, it will be announced.

During the post-2003 years, the Iraqi currency went through volatile and volatile stages that lost its local value and market influence, but it was subjected to what can be described as a “semi-collapse” on December 21, 2020 when the Central Bank reduced the exchange rate from 1190 to 1450 dinars against One dollar, with the aim of better managing payments and the economic crisis in the country, and estimated that the value of the local currency in the market would fall by about 22% of its previous value.