Iran Continues To “Dry Up” Iraqi Dollars.. The Dollar Is On The Way To Flying Towards 160 Thousand (Details), 11 SEPT

 Iran Continues To “Dry Up” Iraqi Dollars.. The Dollar Is On The Way To Flying Towards 160 Thousand (Details)

Baghdad today - Baghdad   Today, Sunday (September 10, 2023), the expert in economic affairs, Nabil Al-Marsoumi, detailed the reasons for the continued rise in the exchange rate of the dollar against the Iraqi dinar, despite the many decisions taken by the Central Bank.

Al-Marsoumi said in an interview with “Baghdad Today” that “the reason for the large gap between the dollar in the official market and the parallel market is due to the large trade with Iran, as the latter exports goods to Iraq worth 10 billion dollars annually, and this trade is covered through bank transfers that go to banks.” UAE and then to Iran.”

He added, “After implementing the electronic platform system, bank transfers were stopped, and trade with Iran is now being covered through the parallel market, so there is pressure on the dollar,” noting, “There are parties that monopolize the dollar in order to pump it back to Iran for the purpose of commercial settlement with "Tehran."

Although Al-Marsoumi does not hide that Iraq faces many economic problems in this aspect, he confirms that the demand for investment and consumer goods will increase after the release of budget allocations.

“Due to the limited national production base, the demand for the dollar will increase again and cause it to rise to high levels,” the economist says.

Al-Marsoumi was not satisfied with this, but rather warned that the price of the dollar was on its way to jumping above the barrier of 160 thousand dinars, in the coming weeks due to a number of reasons mentioned, and “the failure to take decisions that would reduce the difference.”

According to US sanctions, any deal between Iran and Iraq must be based on the dinar, and the use of the US dollar in these transactions is prohibited.

14 private Iraqi banks were prevented from purchasing US dollars from the Central Bank of Iraq as part of a campaign by the US Treasury Department to smuggle dollars to Iran through the Iraqi financial system .

Banks were prohibited from purchasing US dollars through the "foreign exchange auction window", known as dollar and conversion auctions .

It is an officially approved mechanism to cover the foreign currency needs of banks and public and private commercial institutions, and ensures the ability of these institutions to finance their financial activities and foreign trade .

The American step taken by Washington on July 19, 2023 is part of a broader effort to prevent Iran from depleting Iraq’s dollar reserves through false or fictitious import transactions carried out with “inflated” invoices or “fraudulent” money transfers.

The Central Bank of Iraq works with the US Department of the Treasury to implement anti-money laundering and counter-terrorism financing initiatives .

The Central Bank explained that within the framework of this partnership, an “electronic platform” was developed to ensure the safety and accuracy of money transfer transactions in all aspects, in accordance with international standards and practices.   LINK