Why Iraqi Domestic Markets are Experiencing Shortage of Iraqi Dinar?

One of the senior government officials has confirmed that the financial policy of the Iraqi government is experiencing a significant amount of shortage of Iraqi dinars in the domestic markets. He pointed out that Iraqi Ministry of Finance is selling revenues of U.S dollars estimated at 80 percent to Iraqi Central Bank. The source didn’t mention name but confirmed that there is a large amount of hard currency moving out of Iraq due to poor security and economic conditions in the country. He also pointed out that the Iraqi Central Bank has given the self-determination for individuals to participate in the funds. The CBI has implemented mechanisms in the currency conversion and carrying currency due to traveling or investing outside Iraq.

Why Iraqi Domestic Markets are Experiencing Shortage of Iraqi Dinar?

Point to be noted that Iraqi dinar currency is being used to manage the internal expenses and to fulfill requirements of governmental contracts, while the imports are being covered by hard currency. He pointed out that Iraqi government has been experiencing a considerable amount of shortage of Iraqi dinar currency in its domestic markets due to its fiscal policy. He added that Iraqi Finance Ministry is getting foreign exchange earnings as it was increased by 100 percent. The Ministry is selling at least 80 percent of the foreign currency to the Central Bank of Iraq to sell in order to fulfill the requirements of Iraqi domestic markets. He stressed that financial crimes and theft of money allowed the Iraqi Central Bank to take essential steps to protect Iraqi capital. He confirmed that Central Bank of Iraq hasn’t any kind of auction of hard currency in the country.

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