The economist Mohammed Hashim Helou confirmed that the central bank cannot float the dinar’s exchange rate.
“The Central Bank of Iraq cannot consider floating the exchange rate because it will abandon its only influential tool in light of the weakness and disruption of other economic tools,” Helou said.
He added that the exchange rate is the nominal proof of monetary policy in Iraq, and the thought of abandoning it, this is an economic suicide and the bank cannot even think about it.
He continued, in addition, the float in the exchange rate with the presence of a parallel market and big speculators, and the presence of people who own billions of dinars and others who own billions of dollars will push a sharp decline in the value of the currency, high inflation levels and high prices.
