Iraq is not considering floating the currency

Shafaq News/ Floating the currency is detrimental to Iraq's economy, a government official familiar with the matter said on Wednesday.

"Iraq's rentier economy hinders the liberation of the dinar from the dollar's peg," the official said, "Iraq is not considering this option currently."

"The majority of the foreign currency engenders from the oil imports controlled by the Iraqi government. The market does not generate enough influx. Therefore, floating the exchange rate will jeopardize the Iraqi economy because of the high demand."

"Without diversifying the economy. It will dampen the purchasing capacity of the medium and lower class," he added, "on the long run, floating might benefit the productivity of the economy, however."