Prominent Iraqi cleric urges dollar salaries after devaluation
Shafaq News- Najaf
The Iraqi government should reconsider its decision to devalue the dinar and pay public employees in US dollars if the measure remains in place, senior leader in the Islamic Supreme Council of Iraq Sadr Al-Din Al-Qubbanji said on Friday.
Al-Qubbanji, who also leads Friday prayers in Najaf, expressed support for public calls to reverse the decision during his sermon, citing Iraq’s reliance on oil for roughly 90% of its revenues, compared with 3% from religious tourism.
Iraq’s new official exchange rate of 1,520 dinars per US dollar took effect on Wednesday, marking the country’s first devaluation since 2020, as disruptions to oil exports during the US war with Iran strained government revenues.
Under the revised structure, the Central Bank of Iraq (CBI) purchases dollars from the Finance Ministry at 1,500 dinars, sells them to banks at 1,510, and to end users at 1,520, compared with the previous official rate of 1,320 dinars. The adjustment raises the official cost of $100 by 20,000 dinars.
