The rise of the dollar stifles the poor class as the return to school approaches

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[size=52]The rise of the dollar stifles the poor class as the return to school approaches[/size]

[size=45]Ali Al-Hamdani[/size]
[size=45]The prices of the US dollar against the Iraqi dinar continue to rise, as the exchange rate exceeded 156 thousand dinars for every 100 dollars, with the closure of the main Kifah and Harithiya stock exchanges in Baghdad.[/size]
[size=45]This increase was reflected in the increase in high prices and the rise in the price of goods and food and basic materials, which exacerbated the suffering of citizens, especially the poor and middle classes, and pushed them to resort to austerity to manage their affairs, amid difficult living conditions. With the start of the school year approaching (next October 1), families are heading to the markets to provide school supplies for their students, while families are facing difficulty in providing these requirements, due to financial pressure and high prices.[/size]
[size=45]High prices[/size]
[size=45]Citizen Umm Amir, a resident of Babil Governorate, is one of those affected by the rise in the dollar. She complains about the high cost of school supplies, and says: “The rise in the exchange rate has directly affected the poor class, and that she has given up buying school clothes for her children because of the high prices.” Umm Amir points out during her talk to: (Al-Mada) noted that “some shop owners took advantage of the dollar crisis and raised prices.”[/size]
[size=45]According to statistics from the Social Welfare Department of the Ministry of Labor and Social Affairs, the number of poor people in Iraq exceeds 10 million people, out of more than 41 million Iraqis, as more than 5 million people are included in social welfare salaries.[/size]
[size=45]The educational process in Iraq is witnessing a significant deterioration, whether in terms of school supplies and the provision of their requirements, or in terms of high school dropout rates, due to the lack of supervision and poverty in light of deteriorating living conditions, which has led to the graduation of generations who are educationally weak.[/size]
[size=45]Recession[/size]
[size=45]Specialists confirm that the crisis of the high exchange rate caused “inflation in the prices of basic materials, which caused a reluctance to shop for citizens, due to weak purchasing power, which portends an economic recession,” according to the economist, Omar Al-Halbousi.[/size]
[size=45]Al-Halbousi adds to (Al-Mada), “The process of the rise in the exchange rate has caused harm to the citizen who is struggling to obtain the dollar, due to the presence of exchange companies that obstruct the citizen’s access to the dollar and monopolize it for speculators with unofficial documents.” He continues, “The Iraqi state treasury is also one of Those affected, due to the difference between the real exchange rate and the exchange rate on the black market, which causes annual losses estimated at about 6 billion dollars that go into the pockets of speculators.”[/size]
[size=45]Reasons for the rise[/size]
[size=45]Al-Halbousi attributes the crisis of the exchange rate rise to a number of reasons, including “the inability of the Central Bank to control the speculators who control the black market and cause the exchange rate to rise and the value of the Iraqi dinar to fluctuate.”[/size]
[size=45]He adds, “In addition to the failure to implement the Central Bank’s procedures fairly, which made major speculators continue their activity, which caused the value of the Iraqi dinar to decline.” He continued, “In addition, trade with countries sanctioned by the US Treasury Department cannot be transferred through the platform or dollars can be purchased through the foreign currency sales window. Rather, merchants use black transfers, which makes them acquire dollars illegally and transfer them through money changers, which “It caused a decline in the supply of the dollar in the Iraqi market.” The economic expert expected “the exchange rate to continue to rise in light of the Central Bank’s failure to carry out its real duty of monitoring the work of banks and exchange companies, punishing violators, and controlling the black market, which is called the parallel market.”[/size]
[size=45]Futile procedures[/size]
[size=45]For his part, the researcher in economic affairs, Ahmed Eid, points out that “there is a major intersection between the state’s interest and the influential parties that benefit from the dollar and control the parallel market, with the aim of smuggling the currency through various means and achieving their financial goals internally at the expense of the citizen.”[/size]
[size=45]Eid explains to (Al-Mada) that “the illegal activities and large sales of the Central Bank of Iraq without interest, and its attempt to balance its sales between beneficiaries and influential people did not go according to the price balance equation adopted by the US Federal Reserve, which worked to reduce the dollar supply to the Central Bank of Iraq to less than half.” .[/size]
[size=45]He asserts, “The absence of price control, the continuation of smuggling, and currency traders’ exploitation of the market’s need for the dollar in light of the great need for merchants to import their goods necessary for the seasonal change in Iraq, led to the rise of the dollar in this way.”[/size]
[size=45]At the conclusion of his speech, Eid held “the Iraqi government responsible for its fruitless measures that exacerbated the economic crisis resulting from the financial market in Iraq.”[/size]
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