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September 26, 2023[You must be registered and logged in to see this link.]
Baghdad/Al-Masala Al-Hadath: Iraqi contractors contracting with the United Nations and humanitarian organizations appealed, on Tuesday, to the Central Bank of Iraq to exclude them from dealing in the Iraqi dinar because it would affect the service projects they are implementing.
A number of contractors said in communication with Al-Masala, “They are appealing to the concerned authorities and the Central Bank to stand by them, as they are contracted with the United Nations and humanitarian organizations that give them amounts in dollars.”
A contractor who has investment projects and intends to expand them to serve the Iraqis said, “The Central Bank of Iraq forced Iraqi banks to give amounts in dinars at the official rate of 132 thousand dinars for every 100 dollars, while the exchange rate in the parallel market is 158 thousand dinars for every 100 dollars.”
In contact with them, contractors said: “This will harm them and will therefore affect service projects and may lead to their cessation, noting that all amounts granted by the United Nations to finance these projects are in dollars, not dinars.”
Limiting investors to dealing in the Iraqi dinar leads to many challenges, including the high exchange rate and the decline in the value of the Iraqi dinar, which increases the cost of investment in Iraq. The decline in the value of the Iraqi dinar reduces investment profits, as well as the fluctuation of the exchange rate and high inflation increase the risks of investing in Iraq.
Investment experts call on the government of Iraq to provide facilities to investors, such as simplifying administrative procedures and providing financial support, and excluding them from dealing in the Iraqi dinar.
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