The primary objective behind this decision is to wrest control over a fluctuating black market exchange rate and bolster the utilisation of the Iraqi dinar. Iraq’s de-dollarisation strategy is intrinsically tied to its pursuit of greater economic self-reliance and enhanced sovereignty. As it stands, the local currency, the Iraqi dinar, maintains an exchange rate of approximately 1,300 dinars per US dollar. China’s expanding economic influence in Iraq, closely linked to its BRI, plays a pivotal role in Iraq’s de-dollarisation journey. However, the question of whether the US dollar can maintain its status as the world’s primary reserve currency can no longer be disregarded.

Source: The Express Tribune November 14, 2023 21:35 UTC