Economy & Finance

Iraq central bank devalues dinar by 1.37 percent versus dollar


BAGHDAD Iraq’s central bank has increased the sale price of U.S. dollars to banks and currency exchange companies by 16 dinars, or 1.37 percent, as the government seeks to compensate a decline in oil revenue, a government official and the central bank said.

The sale price of the dollar “has been adjusted to 1,182 dinars,” the central bank said in a statement on Monday.

The previous price was 1,166 dinars for a dollar, Mudher Saleh, a top economic adviser to Prime Minister Haider al-Abadi and former deputy central bank governor, told Reuters.

“This is a small adjustment, it’s not a devaluation. It will increase government revenue to meet local needs,” said Saleh.

A global oversupply of crude oil has pushed prices to below $40 a barrel from more than $100 a barrel in June 2014. The government depends on oil sales for 95 percent of its revenue.

(Reporting by Ahmed Rasheed- Writing by Maher Chmaytelli- Editing by Hugh Lawson)

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