[ltr]2023.08.06 - 10:38[/ltr]
Baghdad - Nas
Experts in the financial affairs have identified a number of solutions that would create stability in the dollar exchange rate, putting at the forefront of these solutions the tightening of control over border crossings to implement the Central Bank’s proposal to prevent the import of goods not funded by documentary credits and official transfers issued by it, pointing out that this The decision, if implemented, would lead to a significant decrease in the parallel exchange rate, stressing at the same time the necessity of transferring all transactions to the Iraqi dinar, and increasing the use of electronic points of sale.
And the Central Bank stated, last week, that “the exchange market in which the dollar is traded is a speculative market in a currency with a fixed price and purposes, and it is illegal trading, and it cannot be legalized, or announce exchange rates fabricated by speculators, and the competent authorities must stop the platforms and sites that use it.” It announces the exchange rates for a specific currency.
In order to address the phenomena that led to fluctuations in the exchange rates of the dollar, and to reduce the phenomenon of the illegal market, the Central Bank confirmed working with the government and relevant authorities to take a number of measures, including the use of merchants and importers of the channel established for that, through the electronic platform, to achieve the objectives of this system and prevent the use of The cash dollar is in the market for other than its purposes, and this requires obligating this category to provide evidence that the amount of their imports has been duly transferred when their goods enter Iraq at the official border crossings, as well as motivating and supporting categories of merchants to enter the electronic platform by simplifying procedures, especially tax ones, and determining their ceilings in advance. According to the categories, and deposited in the account of the General Authority for Taxes through its accounts in banks.
And in continuation of Al-Mukrazi’s efforts to curb unofficial exchange rates, the Deputy Governor of the Central Bank, Ammar Hamad, confirmed that “the Central Bank provides exchange companies with weekly quotas of dollars for the purpose of selling them to travelers at the official rate and in limited quantities of 3 thousand dollars per traveler,” noting that “these exchange companies It is licensed by the Central Bank in accordance with controls and is in compliance with the Anti-Money Laundering Law.
The financial expert, Dr. Nabil Al-Marsoumi, explained that the dollar, like any commodity, is affected by supply and demand, the greater its scarcity, the higher its value, and this is an existing economic fact. To take a decision to set an administrative rate for the official exchange.
The spokesman believes that "the issue of the parallel price cannot be overlooked, and we cannot attribute the latter to speculators, since the demand for dollars in the parallel market is mostly real demand, and it is related to two basic issues, the first is that not all Iraqi travelers are able to obtain the official dollar, especially The traveler to the countries sanctioned by America.
He added that the spending of Iraqi travelers for the year 2022 in Iran was about 3 billion and 410 million dollars, which is the largest spending among tourists, and constitutes 55 percent of the total foreign tourists, and they obtain this money from the parallel market because the central bank does not finance or sell travelers since 2018. These countries have the official price, and therefore this is a real demand, not an imaginary one related to speculation.
And Al-Marsoumi indicated that the second issue is related to the fact that the demand for dollars in the parallel market is for the purposes of financing trade with Iran, which is the largest part, with more than $10 billion annually representing imports, and a smaller amount with Syria.
Al-Marsoumi stressed that the Central Bank submitted a very important proposal to the border crossings to prevent the import of goods not funded by it, that is, not funded by documentary credits and bank transfers, pointing out that this decision, if implemented, would reduce the parallel price, as it closes an important window of demand. On the dollar from the parallel market in financing trade, and therefore the exchange rate of the two exchanges will be very close.
For his part, financial expert Hassan Abd confirmed that "achieving the stability of the exchange rate and making it at close levels between the official and the parallel requires transferring all transactions to the Iraqi dinar," explaining by saying, "Here we will find that everyone will be convinced of the importance of the Iraqi dinar and there is no need for the dollar."
He added, however, that this must be accompanied by tight working mechanisms, and that the dollar be available in the market without trouble.
Source: the official newspaper
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