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Don961: Daily revenues do not exceed 140 million dollars, and central bank sales reach 180 million dollars … Parliamentary economy determines to “Al-Zawraa” the reasons for the high exchange rate of the dollar in the local markets, and it is likely to decrease within two days.

December 15, 2020 12:10 am Al-Zawra / Hussein Faleh:

The Parliamentary Economic and Investment Committee has identified the reasons for the sudden increase in the exchange rate of the dollar against the Iraqi dinar in the local markets, and while it is likely that its normal price will return within two days, an economist attributed the reasons for the decrease in the exchange rate of the dinar to the decline in the cash reserve at the Central Bank of Iraq.

A member of the Parliamentary Economic and Investment Committee, Nada Shaker, said in an interview with Al-Zawraa: The sudden and significant increase in the exchange rate of the dollar against the dinar may be due to the lack of financial resources, as well as the Prime Minister’s statement that the salaries of the first month of next year will not be paid, as well as The increasing withdrawal of the dollar in the market as a result of economic concerns.

She added: The continued rise of the dollar without the presence of real solutions will have serious repercussions on the economy, and lead to an increase in the prices of goods entering Iraq.
Criticizing the central bank’s policy of maintaining the exchange rate :

She continued: There are well-known parties controlling the currency auction, which led to the fluctuation of the exchange rate. The exchange rate of the dollar is likely to return to normal within two days, because the government will have to take urgent measures to reduce it.

For his part, the economic expert, Saleh Al-Hamashi, said in an interview with Al-Zawra: The main factor that affects the high exchange rate of the dollar in the local markets is the rumors and the Iraqi economic situation, as the citizen recently felt insecure and insecure in dinars, so resorted to storing the dollar, and transactions also became in dollars.

He added: Most of the commercial transactions that occur at the level of sales Above the small ones, whether at the level of electrical appliances or cars, and even the role began to deal in dollars, and the demand for the dollar became very large, which led to its rise.

Stressing: There are fears among the Iraqi citizen of the collapse of the dinar, so he resorted to storage and hoarding.

He pointed out: Even the companies and banks that enter the window of currency sale have begun the process of storage and legalization of sale.

Indicating: The problem is not in the currency auction but in companies.

He continued: The central bank was supposed to take into account this issue and hold accountable the banks and financial companies entering the currency sale window and account for it accurately in the process of selling and exchanging the dollar. It is expected that the dollar will continue to rise as a result of the central bank selling quantities of dollars, offset by lower revenues from the sale.

Explaining: Iraqi revenues do not exceed 130 to 140 million dollars per day, while the central bank sells 160 to 180 million dollars per day, that is, more than revenues, which led to a deficit in the central bank and a decline in cash reserves from 68 billion dollars to 59 billion dollars,

Al-Hamashi confirmed: This greatly affected the reputation of the Iraqi dinar at home, especially for companies and monitors of the financial treasury, because the central reserve is monitored continuously by businessmen.

He went on to say: If the government does not speed up the process of commercial exchange, especially before The Ministries of Finance and Trade and the Central Bank, if they do not cooperate to control imports and the entry of goods and the quantity with the price, there will be a big problem and the price of the dinar will drop to frightening records.    link