The decision was announced after a meeting of the Iraqi Council of Ministers headed by Prime Minister Mohammed Shia' al-Sudani, which decided to raise the value of Iraq's currency to 1,300 Iraqi dinars for one U.S. dollar, up from 1,450 dinars, said al-Sudani's media office in a statement.
Meanwhile, a statement from the Central Bank of Iraq (CBI) said it would start selling U.S. dollars at the new official price on Wednesday.
The goal of the move is to stabilize the goods' prices to protect the purchasing power of Iraqi citizens, the statement said.
The government took the action in an attempt to control the exchange rate of the U.S. dollar in Iraq after sharp fluctuations in the Iraqi exchange market recently, as the value of one U.S. dollar rose to more than 1,700 Iraqi dinars, compared to the official rate of 1,450 dinars.
The recent dollar inflation led to an increase in the prices of commodities, including food products in Iraq.
Late last month, hundreds of demonstrators gathered outside the CBI complex on the al-Rasheed Street, protesting the devaluation of the Iraqi dinar and demanding the government take action to stabilize the currency.
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