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The exchange rates of the US dollar continue to rise against the Iraqi dinar, in the markets of Baghdad and Erbil, the capital of the Kurdistan Region, for several days.
Al-Kadhimi told Shafaq News Agency, “The price of the dollar will reach 1,450 dinars if the Central Bank’s procedures are implemented to facilitate transfers, arrange tax procedures, and pay them directly without referring to the Tax Directorate, which will provide a reserve and liquidity of dollars in the black markets.”
The dollar is likely to fall to the aforementioned price during the next three months if the scheduled and imposed government measures are successfully implemented.
In response to other parliamentary expectations that the dollar exchange rate would fall to 1,320 dinars, Al-Kadhimi ruled that out, and considered it a far-fetched matter in light of the current financial conditions, even though the government secures the needs of the markets and imported goods at a rate of 80% of its needs through the currency sale window at a price of 1,320 dinars.
Almost since the beginning of this year, the Central Bank of Iraq launched a working mechanism in an electronic platform and the international financial transfer system “SWIFT”, but this did not help the dollar exchange rates stabilize in Iraq, despite the attempts of the government and the Central Bank to control the exchange rate in the parallel (black) markets. ).
In its August 2023 issue, the administration of the Central Bank of Iraq considered the exchange rate of the dollar against the dinar being traded in the markets by speculators “illegitimate,” calling for the need for all parties to come together to achieve stability in the exchange rate, especially since Iraq has Sufficient foreign reserves to meet legitimate needs.
On Wednesday, July 19, the US Treasury Department imposed sanctions on 14 Iraqi banks in a campaign aimed at preventing the dollar from reaching Iran.
As a result, the Central Bank of Iraq decided to prevent the sanctioned banks from dealing in dollars, pointing out that the sanctions were imposed as a result of auditing transfers dating back to last year (2022), before the implementation of the electronic platform, and before the formation of the current government as well.
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