Iraq’s Prime Minister Dismisses Central Bank Governor Amid Currency Drop

Iraqi Prime Minister Mohammed al-Sudani has dismissed the country’s central bank governor amid growing anger over the weakening of the local currency in recent weeks that has caused the price of food and imports to rise, the Wall Street Journal reported. Mr. Sudani said on Monday that he decided to replace the governor, Mustafa Ghaleb Mukheef, who requested to be relieved of the post he has held since 2020. The prime minister named Muhsen al-Allaq as the new central bank governor, according to the state-backed Iraqi News Agency. Mr. Allaq previously served in that role between 2014 and 2020. Iraq’s dinar has dropped sharply against the U.S. dollar in unofficial currency markets since mid-November, raising the cost of living for ordinary Iraqis in the country’s dollar-dependent economy. The dinar last traded at around 1,600 to the dollar on Monday, compared with the official exchange rate of 1,460. A weaker dinar has led to higher prices for imported goods, including staples such as eggs, flour and cooking oil, hurting the ordinary Iraqis whose support Mr. Sudani has been courting. (Subscription required.) Read more. (Subscription required.)