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The dollar is getting "worst" within weeks and salaries are at stake... An international reading of the Iraqi [You must be registered and logged in to see this link.]
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- 23 minutes ago
- Iraq news
The Iraqi economy is exposed during the current and coming period to great pressures, according to what was reported by the "Middle East Eye" network, which expected that the coming weeks would witness a further deterioration in the value of the Iraqi dinar within the current crisis it is going through due to the restrictions imposed by the US Federal Reserve.
The network, through its report, which was translated by (Baghdad Today), confirmed that "officials from within the Central Bank of Iraq spoke to it in secret, about the nature of the current crisis, stressing that Iraq" does not suffer from a shortage of dollars, but rather dinars, "referring to the adoption of Iraq on the dollar to obtain Iraqi dinars from the markets.
"Middle East Eye" also confirmed that "the neighboring countries of Iraq, including Turkey, Iran and Syria, are under economic pressure due to the US restrictions imposed on the Iraqi stock of dollars," as central bank officials stressed, during their interview with it, that "the general economy in the region is under threat." due to US restrictions.
And she indicated that "the Iraqi government" will suffer "starting from the next few weeks by paying the salaries and dues of employees and retirees," explaining that "the Iraqi government will obtain dollars from selling oil through its account with the US Federal Reserve, then sell dollars through local outlets to obtain the dinar that It is submitted to the Ministry of Finance in order to pay the salaries and dues of employees and beneficiaries from the public sector.
And she continued, "With the diminishing amounts of dollars that reach Iraq, and previously reached ten billion annually allocated to cover salaries, the Iraqi authorities will not be able to pay the salaries of employees in Iraqi dinars, because they will lose their ability to collect the dinars from the market by exchanging it for dollars as they used to do previously." This was confirmed by one of the prime minister's advisors in an exclusive interview with the network.
The consultant, who refused to reveal his identity, confirmed to Middle East Eye that "the significant decline in the sale of the dollar due to the scarcity of its access from the Federal Reserve to a crisis in the currency auction, which is now unable to sell enough dollars to cover its daily needs and from the dinar, whose minimum amount reaches About $275 million, the government must sell daily to obtain enough dinars from the local markets to cover its needs.
The exchange rates between the dollar and the dinar reached a “historic” low through the currency auction, according to the network, as it sometimes recorded its decline to about 3 million dollars only for some days, noting that “the measures that the Central Bank is taking, including selling the dollar directly to citizens and excluding Exchange brokers with the aim of obtaining more dinars are "no longer sufficient".
The network's report made it clear that "the central bank reached dollar sales against the dinar to only about $90 million, out of the daily $275 million necessary to meet the government's need for dinars," stressing, quoting one of Al-Sudani's advisors, "we expect during the next few weeks a further deterioration in the crisis." After the central bank launched an electronic platform for selling dollars, "explaining that" most individuals do not want to disclose their personal information or sources of income through which they obtained dollars to the official website as part of the process currently required to sell dollars to them through the central outlets.
He added, "The pressure is increasing with the decline in Iraq's stock of dinars and its inability to meet its needs by selling the dollar. The situation will deteriorate further unless urgent measures are taken to contain the crisis," continuing, "The problem is that we do not have enough options, or enough time." his expression.
The advisor also indicated that the currency auction is "the only way through which the Iraqi government can summon the Iraqi dinar from the markets to recycle it into the economy through salaries and dues again, and with dollar sales remaining low, the central bank must print more currencies," which the network confirmed. It will lead to "inflation" and "the dinar's loss of more of its current value," thus exacerbating the crisis further.