[size=36]The central bank reveals the reasons for the high exchange rate of the dollar against the dinar[/size]
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revealed the Director General of the Financial Operations and Debt Management Department at the Central Bank of Iraq, Mahmoud Dagher, on Friday, the reasons for the high exchange rate of the dollar against the dinar.
Dagher said, "The rise in the exchange rate of the dollar is due to the overlapping of a set of expectations for the financial crisis that Iraq is going through, resulting from the drop in oil prices and accompanied by the impact of the Corona virus and curfews, which resulted in the resulting halt in economic activities."
He added, "All of these factors are added to them by stopping the outlets of selling currencies in the central bank, which led to a rise in the exchange rate of the dollar and a decrease in the value of the Iraqi currency," noting that "the central bank was unable to stop the rise in exchange rates, due to the interruption of the auction of selling the currency, There is no real interventionist management at the exchange rate from the central bank, as it had done previously. "
He explained, "The window has stopped, and there is no real economic activity in the market only for foodstuffs, and we find that the demand for dollars rises, and the exchange rate rises with it," noting that "the issue relates to future expectations and that the assurances were not at the required level regarding the payment of salaries and talk Printed the currency, which led to a lot of efforts to convert what he has from dinars to dollars.
He continued: "I think with the intervention of the Central Bank from next week and the expected increase in the price of oil, it might reduce the severity of the increase in the exchange rate," explaining that "the central bank announced the opening of the dollar sale window next week, and it has already opened the doors of certain transfers for the purposes of Food and medicine, and it didn't work out much because it stayed open for a short time. "
He pointed out that "if there is reassurance in terms of oil prices and improvement in public finances due to high ratios of revenue and because of the intervention of the central bank and foreign currency injections into the market, then all of these factors, if combined correctly, and not one of them, the exchange rate will end."