Economic researcher Ziad Al-Hashemi warned of serious economic repercussions as the deadline to stop the dollar platform approaches in six weeks, noting that the Central Bank of Iraq is still dealing with the crisis coldly, which could lead to higher exchange rates and a shortage of imported materials.
Al-Hashemi explained in a post on the X platform that “dollar platform transfers represent about 22% of the total monthly transfers, which is a large number that has not yet been zeroed out, indicating that the continuation of this high percentage and its failure to adapt it to the new correspondent bank transfer system before the specified date may cause major disturbances in the markets.”
He added that “not addressing this issue will lead to some of the remittances going to the parallel market, which will increase the demand for the dollar and raise its exchange rate significantly, which will negatively affect the prices of goods and services in the Iraqi market. He also expected that this will hinder the ability of a large number of traders to import, which will cause a shortage of imported goods and an increase in their prices.”
He pointed out that “the Central Bank seems to be betting on a smooth transition process without problems, but it considered this bet unrealistic in light of the absence of a clear plan to manage the transitional phase.”
Al-Hashemi concluded his warnings by saying, “The Central Bank has only six weeks to act and manage this crisis, otherwise the delay will lead to disastrous results that will cast a shadow over the Iraqi economy by the end of this year.”
(There repercussions of the dollar platform will not happen if the sole peg to the dollar is also repegged away from the dollar and the demand for the dinar by global trading is realized. Many more banks “correspondent” banks will take up the exchange slack and avert any issues. But to do this means getting the reinstatement back to FOREX. Is this the plan? Is this why the remaining 22% does not seem to bother the CBI? Do they know something the author of this article does not know?)
