Today, Tuesday, the currency exchange in the Iraqi capital, Baghdad, recorded new gains achieved by the Iraqi dinar against the dollar , as the monetary authorities and the Iraqi government continue to implement measures to combat the parallel market and pursue currency speculators.
Today, Tuesday, the Al-Kifah and Al-Harithiya Stock Exchanges in Baghdad, along with the Erbil Stock Exchange, recorded an increase in the value of the Iraqi dinar against the dollar, by 1,490 dinars to one dollar, which is the best value the dinar has reached in more than 8 months, but it remains far from the official value that it has reached. Set by the Central Bank of Iraq, it is 1,320 dinars per dollar.
Experts suggest that the exchange rate of the dinar will gradually rise against the dollar for several reasons, including the recent agreement between the Iraqi Central Bank and the US Federal Reserve for the gradual transfer of operations to enhance the advance balance of the dollar in the accounts of a number of Iraqi banks.
In addition to imports from some countries sanctioned by the United States with their local currency, such as Iran, Syria, and Lebanon, which now have common financial systems that reduce the demand for the dollar from the Iraqi market.
While others believe that this period, at the end of each year, witnesses a stagnation in trade exchange operations and a temporary cessation of a number of deals due to the end-of-year holiday.
The recovery of the Iraqi dinar
Economic expert Abdul Rahman Al-Sheikhli confirmed that the continued decline in the exchange rate may reach 1,450 dinars to one dollar during the coming period in light of the means of intervention currently available to Iraq.
Al-Sheikhli explained, during an interview with Al-Arabi Al-Jadeed, that the dollar may fall below this price if the sources of diversification of Iraqi income grow when there is a tangible development in industry, agriculture, trade, and investment of other wealth.
He pointed out that investing these wealth and using modern and advanced means in management, work, industry and agriculture reduces the rate of imports from abroad and the national economy begins to recover, which reflects positively on the gross domestic product in Iraq.
For his part, Jamal Kujar, a member of the Finance Committee in the Iraqi Parliament, confirmed that the decline in the dollar exchange rate is not guaranteed
In an interview with Al-Araby Al-Jadeed, Cougar explained that the reason for the decline in the exchange rate these days is due to reasons related to the decline in demand for it for commercial deals and financial exchange operations, as countries witness New Year’s celebrations.
He added that the Iraqi financial market is controlled by groups of speculators, and they are the ones who set prices according to what is required by the nature of their work in the market, stressing that the Iraqi government does not control these speculators.
Koger pointed out that the basic problem that Iraq suffers from in the economic and financial structure, including the dollar crisis, is caused by the imbalance in the economic structure resulting from total dependence on oil exports, while the country remains in constant need of the dollar to cover foreign expenses because the country is still hostage to imports in the absence of… Effective national production.
In this context, economic researcher Ali Jassim Al-Hayani expected that despite the relative demand for buying the dollar by the end of 2023, due to the travel of a significant number of Iraqis abroad to spend the end-of-year vacation, and the cessation of many commercial events and operations, the exchange rate may decline again in a significant way. Gradual if the Iraqi government takes strict measures against speculators.
He added, in an interview with Al-Arabi Al-Jadeed, that the reasons for this decline were linked to the reduction in black transfers, after the recent Iraqi agreement to finance foreign trade with non-dollar means, especially with the Turkish side.
He warned against the exploitation of money laundering networks and influential parties in an attempt to directly control the dollar in the market after the decline in prices, calling on the government to activate economic security and spread it in the market to limit fraud and price manipulation.
Government actions
Media Advisor to the Presidency of the Government, Hisham Al-Rikabi, said that the Iraqi government is serious about solving the dollar problem through several legal means and government decisions related to confronting manipulation of the exchange rate and reducing currency smuggling operations.
Al-Rikabi explained in a press statement that the government’s battle with the dollar is “near the end,” as he described it, and that the government’s measures to reform the financial system contributed to strengthening confidence between Baghdad and Washington.
He added that the Iraqi government’s measures related to reforming financial institutions and correcting the course of monetary systems were important and effective factors in restoring balance and enhancing confidence between Iraq and the United States, which contributed to forming positive steps to work towards achieving success within the Iraqi banking sector.
He pointed out that the coming days will witness a tangible change in the nature of the currency market, in accordance with the measures taken by the government, as well as the instructions issued by it to the Central Bank to deal decisively in order to address the problem of manipulation and smuggling.
The US Ambassador to Iraq, Alina Romanowski, said last Sunday that her country continues to provide dollar services to Iraq in the interest of economic stability.
She added on her account on the “X” platform that many Iraqi banks have established relationships with international banks, in a step she described as positive towards making progress in reforming the Iraqi banking sector.
alaraby.co.uk
