On Friday, the Iraqi dinar hit a new disappointing plateau, equaling a rate of 1,670 to the US dollar
The Iraqi Prime Minister has taken action to put a new governor in charge of the country’s Central Bank after the currency suffered a dramatic drop in value over weeks, according to the state news agency.
On Monday, the Iraqi News Agency reported that, following Central Bank of Iraq Governor Mustafa Ghaleb Mukheef’s expression of wanting to step down, Prime Minister Mohammed Shia al-Sudani accepted the resignation.
Muhsen al-Allaq was appointed to replace Mukheef, who had been occupying the position since 2020, according to the agency.
In his speech, al-Sudani announced that both the Central Bank Governor’s request for discharge and the President of the Trade Bank of Iraq‘s request for retirement had been approved.
Al-Sudani indicated that the people appointed to the key roles had been chosen based on their qualifications, capabilities, and trustworthiness, without divulging any names.
The former head of the central bank, Al-Allaq, was appointed to be the “acting governor”, suggesting that the position may be temporary.
On Friday, the dinar dropped to an all-time low of 1,670 per U.S. dollar. Since mid-November, the currency has depreciated by almost seven percent. The official exchange rate for the dinar is 1,470 to the dollar.
The past two months have seen a dip in the markets of Iraq, causing a decrease in the buying power of its citizens.