THE BATTLE FOR THE STABILITY OF THE EXCHANGE RATE WITH SPECULATORS IN THE BLACK MARKET WILL END WITH THE RECOVERY OF THE DINAR, 16 AUGUST

 AL-NUSAIRI: THE BATTLE FOR THE STABILITY OF THE EXCHANGE RATE WITH SPECULATORS IN THE BLACK MARKET WILL END WITH THE RECOVERY OF THE DINAR

Samir Al-Nusairi, advisor to the Association of Iraqi Private Banks, confirmed today, Monday, that the battle led by the government and the central bank with speculators to control the stability of the dinar exchange rate against the dollar on the black market will end with the gradual recovery of the dinar and that the rise in the exchange rate is temporary, and will inevitably decrease back to the target rate of the central bank in Iraq.

Al-Nusairi said in an interview with “Al-Iqtisad News”, that “one of the most prominent reasons for the rise in the dollar is the news of depriving 14 banks of dealing in US dollars and what the big speculators did in withdrawing cash dollars and the manipulation of unauthorized exchanges with exchange rates.” In addition, some small retailers did not enter the electronic platform for external transfer.

And he added, “Some media outlets and analysts exacerbated the confusion of the market by amplifying unreal and incomplete data and information, as well as websites and microbes that announce daily the exchange rate on the black market despite the warnings of the Central Bank.

And he continued, “The Central Bank is working to diagnose and study the causes and obstacles to entering the electronic platform, delaying some transfers, and setting up procedures that facilitate merchants’ conduct of their business smoothly and easily, and taking possible flexibility to accelerate external transfers in banks, the Central Bank, and in the relevant international banking agencies.”

Al-Nusairi noted that “the measures will inevitably result in a decrease in the exchange rate on the black market for the illegal dollar, and that the Central Bank is currently working on adopting new mechanisms and work contexts to control monetary stability, and their results will appear soon.”

We urge all government agencies, wholesalers, and businessmen to support the Iraqi dinar and deal with it in all local monetary activities and transactions, as it is strong and covered by foreign monetary reserves that exceed $113 billion, and that its purchasing power is gradually recovering. In addition to being an essential pillar of national sovereignty.

-----

THE SUDANESE GOVERNMENT ACKNOWLEDGES THE EXPERIENCE OF DOLLAR SPECULATORS AND COUNTS ON SEPTEMBER

On Sunday, the Iraqi government expressed its hope that the release of budget funds would contribute to reducing the price of the dollar in the parallel market, while it acknowledged that currency speculators have long experience and fraudulent methods dating back to the nineties of the last century.

The government spokesman, Basem Al-Awadi, told Shafaq News agency, “The launch of the budget definitely means the availability of funds. Therefore, the funds will be released towards ministries, departments, and general directorates in the governorates, independent bodies, and all state institutions, and this means that there is a large cash flow.”

Al-Awadi added, “Many financial advisors in the government hope, with the release of budget funds, that next month will be a catalyst for the very large decrease in the dollar exchange rate.”

He pointed out that “the recent rise in the exchange rate came as a result of the decisions taken to prevent 14 Iraqi banks from dealing in dollars, as this negatively affected the market, in addition to the way speculators performed in the currency.”

Al-Awadi pointed out, “The Iraqi government’s procedures are clear from five months ago until the moment, and the exchange rate fluctuates between ups and downs, but the government is serious about these measures and has a specific plan.”

He explained that “price speculators have long experience since the nineties of the last century, and they move in a way that has a lot of experience and fraud, and despite that, the government’s program is clear according to the scheme of the Central Bank, banks and merchants, to correct the work to go towards buying and selling trade through the central and in the right ways.”

The Iraqi government spokesman concluded by saying, “The government deals with speculators in dollars according to the law, and that requires legal measures from economic security and the state to move in this direction.”

The government statements contradict the assumptions of economists that the exchange rate of the dollar will stabilize at its current rates in the parallel market, which exceed the barrier of 150 thousand dinars for every 100 dollars.

Over the past few months, the Central Bank of Iraq’s attempts to control the parallel currency market, subjugate the exchange rate and return it to the official rate of 1,320 dinars per dollar have failed.