Iraq's government struggles to control US dollar price
The Iraqi economy is suffering from the US dollar's rise as a result of smuggling dollars outside of Iraq.
As Prime Minister Muhammad Shia al-Sudani entered Basra Stadium on Thursday to attend the final game of the 25th Arabian Gulf Cup, hundreds of Iraqis chanted, “Bring the dollar price down.”
The exchange rate of the US dollar to the Iraqi dinar reached 1:1,659 Friday, the highest price since 2004.
The rise in the dollar price began shortly after the new government came to office in late October of last year, During the previous government, the rate was stable at between 1,450 to 1,470 dinars to the dollar.
Several reports attribute the rise to the "smuggling" of US dollars — or illegal transfers — from Iraq to Iran during the term of the new government, which was formed by a majority of militias and political groups close to Iran.
