Raising the value of the Iraqi dinar against the dollar by 10%, and an American adherence to the dem

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[size=52]Raising the value of the Iraqi dinar against the dollar by 10%, and an American adherence to the demand to close the smuggling outlets to Iran[/size]

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Baghdad - (AFP) - Washington[/size]
[size=45]The Iraqi authorities decided to raise the official exchange rate of the dinar against the dollar by 10 percent, a measure aimed at To combat the devaluation of the currency, which accompanied the adoption of stricter regulations regarding financial transfers outside the country. ‬[/size]
[size=45]While the Iraqi Foreign Minister Fouad Hussein arrives in Washington authorized by his government to discuss the financial file of Iraq M P. The Federal Bank and the issue of foreign remittances, and sources in the US administration told the correspondent of "Azaman" that President Biden promised the Iraqi prime minister, in a phone call a few days ago, to support Iraq, but there are international obligations They must abide by it, including controlling the border crossings, preventing smuggling and cutting off all means of that with the punishing Iran From Washington in addition to internal reforms.[/size]
[size=45]For two months, the Iraqi dinar has fluctuated sharply, losing 15% of its value on some days against dollar, sparking sporadic demonstrations by Iraqis worried about losing their purchasing power.[/size]
[size=45]In order to confront this spiral, the Central Bank of Iraq proposed in recent days to raise the value of the national currency by about 10%. And the exchange rate was raised from about 1470 dinars to 1300 dinars per dollar.[/size]
[size=45]On Tuesday, the Council of Ministers approved the decision of the Central Bank Board of Directors to amend the exchange rate of the dollar against the dinar, which It reaches 1,300 dinars for one dollar, according to a press release issued by the media office of Prime Minister Muhammad Peanut chia.[/size]
[size=45]The measure immediately had repercussions on the foreign exchange market, with the rate dropping to less than 1,500 dinars For the dollar, after it had reached 1,700 dinars on certain days. The Iraqi economist, Bariq Chopper, said it was a "temporary" improvement. In response to a question by Agence France-Presse, he indicated a decrease in market demand because “dollar buyers Now they are waiting to buy the dollar at a cheaper price and directly from the Central Bank.[/size]
[size=45]However, he believes that resolving the crisis requires "radical solutions", such as better control over the remittance and transfer market And a complete shift to letters of credit.” Analysts and officials attribute the depreciation of the dinar to the regime's compliance Iraqi banker of international money transfer regulations.[/size]
[size=45]Iraqi banks must now manage these transfers through the electronic platform SWIFT, which is synonymous with more monitoring strictness of transactions, in particular by the US Federal Reserve, which rejects any transfer deemed suspicious .[/size]
[size=45]But the authorities acknowledged that the old system allowed for many abuses, with some users getting dollars from the system The central bank, through official channels, to carry out money laundering operations abroad or capital flight.[/size]
[size=45]Deprived of official channels, these users returned to the parallel market, causing an increase in demand. ‬‮ ‬[/size]
[size=45]The Prime Minister recently admitted fraudulent transfers of dollars from Iraq to foreign countries.[/size]
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