Economist links the rise of the dollar against the dinar to the growth of Iraqi-Chinese relations

Economist links the rise of the dollar against the dinar to the growth of Iraqi-Chinese relations
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Economist Nabil Al-Marsoumi linked on Saturday the rise in the dollar exchange rate to the growth of Iraqi-Chinese relations and the recent US
warning about them.

Al-Marsoomi wrote on his Facebook page followed by (Baghdad Today) that
"the rise in the exchange rate of the dollar against the dinar by 4% in the parallel market is linked to the establishment of the electronic platform between the Central Bank of Iraq and the US Federal Bank, to conduct real external transfer requests, but it led to a decrease in the total sale of dollars in the Central Bank of Iraq, for the purposes of enhancing balances abroad (remittances, credits), to less than half, which led to restricting the supply of dollars and rejecting 30% of the funds transferred from Iraq to the world external".

He pointed out that "this matter led to an increase in demand for dollar remittances and then a rise in the dollar exchange rate, and it is remarkable that the activation of this electronic platform and the rise in the dollar came a few days after the US Pentagon warned countries in the Middle East, including Iraq, because of its extensive relations with China."

Last Thursday, the Central Bank of Iraq attributed the rise in dollar exchange rates in local markets during the previous days to the construction of an electronic platform that meets the requests of banks through it.
A statement by the Central Bank quoted an authorized source as saying that "the slight rise in the dollar exchange rate in the local markets during the previous days is due to some factors, including the construction of an electronic platform through which banks raise the requests of their customers," noting that "the bank began months ago to build that platform in coordination with international bodies for the purpose of governing and organizing the operations of the window of buying and selling foreign currency and ensuring the effectiveness of control over it, as a specialized international company was assigned to build it and link banks with the Central Bank from During it.
"The platform requires providing information about customers requesting transfers, beneficiaries, correspondent banks, etc.," he said, explaining that "due to the novelty of using this platform, many errors are being discovered, which requires the bank to re-upload them. These procedures take additional time to accept the application and pass it through the global financial system."
The source said, according to the statement, that "in this regard, the reserves of the Central Bank and the solvency of the state in general are in excellent condition and at their best levels in decades, and that the current supply of foreign currency is not linked to resources, but to administrative and audit procedures, which will be exceeded in the coming days in addition to that."
He stressed that "the Central Bank has taken a number of measures to expand the foreign exchange supply to meet the public's demand for cash dollars, and the window management has been directed to meet the requests of banks for the coming days faster by implementing double requests and a preferential rate has been given for the implementation of documentary credits, and for the purpose of covering domestic demand," according to a statement received by Baghdad Today.
 A member of the Finance Committee, Jamal Kojar, had revealed on Friday, the reasons for the fluctuation and rise in dollar prices in the local markets, noting that "after 42 banks were participating in the auction of the sale of currency in the Central Bank, 7 banks were excluded from the auction due to US pressure on the Central Bank of Iraq due to corruption and money laundering."