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Iraqi Dinar: IBBC issues Major New Paper on De-Dollarisation of Iraq

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\nThis revaluation of the dinar combined with restrictions on dollar transactions has also seriously\ninjured private sector businesses that were engaged in exporting. Previously, many contracts\nbetween international firms such as oil companies and their Iraqi employees and suppliers were\ndenominated and often paid in dollars. Iraqi employees and firms could then convert these\ndollars into dinars at the parallel rate \u2013 currently about 1,500 ID/$. However, beginning is 2024,\nthe GoI required, that regardless of the currency specified in contracts, payments will be made in\ndinars only and at the official rate \u2013 1,310 ID/$. Overnight, many Iraqi employees and firms\nsuffered about a 16% cut in compensation. Adjustment of payments to reflect the new currency\nrealities may not occur until contracts are up for renewal which may not occur for up to five\nyears.