Iraq’s Central Bank Reveals Decreasing Inflation Amid Regional Economic Turmoil, 29 NOV
The Central Bank of Iraq has recently shared insightful data on the inflation patterns not only within Iraq but also in neighboring nations and other Arab states. In a surprising turn of events, the inflation rate in Iraq has demonstrated a decrease compared to the previous year. This achievement of price stability stands in stark contrast to the economic situation in many of its neighboring countries and other Arab nations, where inflation has soared to double, even triple-digit numbers.
Steady Amid Turbulence
As of August 2023, Iraq’s inflation rate stands at an approximation of 3.7%. This figure is particularly impressive when compared to the inflation rates of its major trading partners, Iran and Turkey, which have recorded inflation rates of 46% and 57% respectively. The stark contrast in these numbers is a testament to the success of the Central Bank’s monetary policy tools in maintaining price stability and keeping inflation rates within acceptable bounds.
Challenges Across Borders
In neighboring Iran, a leaked document from the Islamic Revolutionary Guard Corps (IRGC) has raised alarm bells. The document warns of a dramatic increase in discontent due to the deteriorating economy, which has been severely impacted by U.S. sanctions and years of mismanagement. The document cites a staggering 300% rise in social discontent over the past year and reveals that protests have increased by nearly 50%. Even more concerning, the number of protesters involved has almost doubled. The real inflation rate for basic food items in November 2021 was registered to be between 86% and 268%.
Resilient Currency
Despite the inflation trends, the Iraqi Dinar has shown resilience. As of November 29, 2023, the exchange rate for the Iraqi Dinar to the Dollar stood at 0.0008. This value is higher compared to the previous day’s rate. An amount of 50 Iraqi Dinar was buying 0.04 Dollars at interbank exchange rates.
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