Dollar prices in Iraq.. “a single obstacle” on the way back, and warnings of “terrifying numbers”

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[size=52]Dollar prices in Iraq.. “a single obstacle” on the way back, and warnings of “terrifying numbers”[/size]

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About a month ago, the exchange rates of the dollar against the Iraqi dinar began to rise, which was reflected in market prices in general, as the prices of foodstuffs, medicines, and other materials of various kinds rose, which sparked a state of discontent among citizens, and in what the deputies confirm their determination to reduce the exchange rate and continue to demand this. Trend, economists warn of an increase in the exchange rate to “alarming” numbers during the coming period, due to manipulation of Iraqi monetary policy.[/size]
[size=45]Citizen Abu Hussein says, “The markets are witnessing an unprecedented rise in the levels of prices of food commodities and clothing after the rise in the exchange rates of the dollar.” He calls, during his speech, “the Sudanese government to reduce the exchange rate, to serve the poor citizen,” noting that “the stability of the country depends on the stability of the economic situation, and vice versa. ".[/size]
[size=45]The government of Muhammad Shia’ al-Sudani and prominent leaders in the “Coordination Framework” coalition to which he belongs promised, with the beginning of granting confidence to the government, a tendency to raise the value of the dinar against the dollar, blaming the previous government of Mustafa Al-Kazemi for reducing its value due to “mismanagement” and what they called “special agendas.” ".[/size]
[size=45]However, what happened seemed to be the opposite, especially with successive jumps in the exchange rate of the dollar, which reached the equivalent of 153 dinars against one dollar, after it was equivalent to about 147 dinars or less.[/size]
[size=45]And the government considered that the rise was “temporary,” holding the Central Bank responsible, and Al-Sudani’s office said in a statement, “The government affirms its commitment to maintaining the stability of the local market, by supporting the stability of the dollar exchange rate against the Iraqi dinar, and it supports the steps of the Central Bank in this regard.”[/size]
[size=45]And he indicated that “the rise in the exchange rate is temporary, and it is the result of changing the mechanism by which the window for selling foreign currency in the Central Bank operates, and we assure all citizens that the financial situation of Iraq is in its best condition.”[/size]
[size=45]"lone hurdle"[/size]
[size=45]Aref al-Hamami, a representative of the State of Law coalition, confirms that “the state of law is with a reduction in the exchange rate of the dollar, and we are continuing to demand a reduction in it, and more than 100 signatures were collected before the legislative recess for this purpose, and the state of law was among the signatories, and we hope to reduce it, because It affects the poor and middle class.[/size]
[size=45]Al-Hamami indicated in an interview that “it is government policy that delays the proceeding with lowering the rate, and that the only current obstacle is the central bank, and in the event of pressures, it will be reduced, as in the past when the central bank wanted to raise the exchange rate, but it did not obtain support from either the government or From the political blocs, until it was voted on in the House of Representatives, at which time the Central Bank was able to raise the price.[/size]
[size=45]The Central Bank had commented on the high exchange rate, saying that Iraq is still complying with international requirements on the issue of the dollar, combating money laundering, and terrorist financing, and that some banks took time to implement these requests, stressing that it is working to return it to its price. , Within two weeks.[/size]
[size=45]Height fears[/size]
[size=45]The economist, Ahmed Fouad, says, “The problem of the US dollar began about a month ago, due to the Central Bank’s reduction in its sales of dollars, in order to audit some transactions and some of its clients from banks and exchange and remittance companies, after the Central Bank suspected that some of the money was being used for laundering.” And also in bank transfers outside Iraq, for the purpose of transferring hard currency only.[/size]
[size=45]Fouad added during his speech, “Therefore, the amounts sold in the currency auction and transactions with existing companies and banks were reduced, in order to control this process, which led to the problem of increasing prices in the exchange of the dollar,” noting that “banking companies and financial dealers in Iraq raised the value of the dollar sold in Iraq's black markets, in Al-Harithiya and Al-Kifah, and this led to the exchange rate reaching 153 thousand dollars for every 100 dollars.[/size]
[size=45]And he continues, “But the fears now are that the exchange rate will increase in the coming months to more than these numbers, and there are alarming numbers with an increase of two thousand dinars or more due to the lack of control of the government and the central bank over the currency auction, and also the endeavor of some external parties economically to raise the value of the US dollar in order to internal and external gains.[/size]
[size=45]And the economist, at the end of his speech, suggests that “prices will decrease after the New Year’s holiday, in the event that the central bank increases its sales, and works through some mechanisms to reduce the price of the dollar simultaneously in the Iraqi market, but as long as the price of the dollar has been raised and lowered, it is certain that the price will not remain.” low, but the problem will repeat itself every period, and it is possible for prices to jump to what is not worthy of its consequences during the coming period, due to manipulation of Iraqi monetary policy.[/size]
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