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Shafaq News/ The exchange rates of the dollar in the parallel market are still high by about 20 points from the official price that was set in the budget for the current year, which is 130,000 dinars compared to 100 dollars, and it has not decreased despite the central bank’s attempts to correct the course of foreign transfers towards their stated goals, which is to cover imports .
The financial and economic expert, Hilal Al-Taan, said in an interview with Shafaq News agency; The reasons for the dollar’s rise in the parallel market are several, including the presence of exchange offices that manipulate the price of the dollar up and down according to their interest, as well as a number of black market traders who manipulate prices.
He continued, "Administrative and financial corruption is the main reason for smuggling currency abroad, and there are no strict laws to control the sale of dollars and punish smugglers of foreign currency."
The economist Dergham Muhammad Ali said in an interview with Shafaq News agency, "The exchange rate of the dollar is controlled by the banks participating in the currency auction. There are two non-economic elements that control the exchange rate. It must create a parallel exchange rate that stifles the market and raises the level of pressure on the citizen.”
He added, "The second element is the delay in the budget, which some political forces often acquire a part of, either through projects or institutions that dominate them. Whenever the budget is delayed, those parties and forces need funding, so they resort to creating a gap between the official and parallel exchange rate to increase their financial revenues."
The economist, Muhammad al-Hassani, said in an interview with Shafaq News Agency, "Despite the increase in the bank's daily sales, especially foreign remittances, to feed Iraq's imports, these remittances need to be checked by financial institutions that Iraq has contracted with in order to prevent smuggling and money laundering, and therefore it takes a long time to finish. From it, which pushes the trader to the parallel market to obtain the dollar as quickly as possible.
Also, "most of the small traders resort to the parallel market to obtain dollars to finance their simple trade instead of obtaining it from the Central Bank, because they do not have their own companies, which increases the demand for dollars more than the supply."
The exchange rates of the dollar in the parallel market rose to approaching 150,000 dinars against 100 dollars, despite the Central Bank’s attempts to reduce the gap between the parallel market and the official rate that is fixed in the budget at 130,000 dinars against 100 dollars.
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