An economist warns: The dollar may soar “non-stop” after an American decision

Economic researcher Ziad Al-Hashemi warned yesterday, Saturday, of the return of the dollar crisis to square one, after the US Congress’ decision to freeze “Iran’s billions,” which may lead to “continuous rises in exchange rates, but perhaps without stopping this time.”

Al-Hashemi said in a post on the “X” platform, followed by “Jarida”, that “the US Congress’ decision to freeze (Iran’s billions) will push Tehran to look for quick alternatives to obtain the dollar, the closest of which is (the Iraqi dollar).”

He explained, “These financial sanctions (if approved) came as an American response to the supposed Iranian support for the Palestinian resistance in its war with the occupying entity.”

He added, “Despite these sanctions, Iran has many outlets that enable it to obtain dollars, whether through its trade with its neighboring countries, or through cross-border smuggling operations.”

He continued, “With regard to Iraq, it is expected that the American financial sanctions on Iran will translate into an increase in Iranian demand to withdraw more cash dollars from Iraqi markets.”

He stressed, “If this negative development actually occurs, it will return the Central Bank and the Iraqi government to square one and will end the effectiveness of many of the measures that were announced recently.”

He stated: “This will inevitably lead to a return to the fever of high demand for the dollar in exchange for its scarcity in the markets, and then we may witness continued rises in exchange rates, but perhaps without stopping this time.”