The Dollar Is Exhausting The Dinar.. The US Treasury Scatters Government Reforms And The Central Bank Negotiations “Fail”, 18 SEPT

The Dollar Is Exhausting The Dinar.. The US Treasury Scatters Government Reforms And The Central Bank Negotiations “Fail”

Information / private..  The series of rising dollar exchange rates in Iraqi markets continues, amid conflicting opinions about the real reasons that led to the exhaustion of the local currency again, especially as it began to rise to levels that warn of a great danger to the country's economy.

Despite the many reasons, the timing of the visit of the US Assistant Secretary of the Treasury to Iraq and the meeting of the US delegation with the Governor of the Central Bank, and the subsequent significant rise in prices, raises controversy and questions.

Today, Monday, the dollar exchange rates witnessed a significant rise in the Iraqi markets, reaching more than 158 thousand dinars for every 100 dollars, amid fears that this rise will continue.

"Political file"

The economic file is perhaps more important than politics and what is happening in it, and it is the aspect that is focused on to thwart any government if it achieves successes and is able to get closer to the people.

Former member of the House of Representatives, Fadel Al-Fatlawi, considered the issue of the rise in the dollar exchange rate in local markets “purely political,” in relation to the relationship of the visit of the US Assistant Secretary of the Treasury to the rise of the dollar.

Al-Fatlawi said, in an interview with the “Al-Ma’louma” agency, that “the rise in the dollar exchange rates in the local markets inside Iraq is a political file to put pressure on Muhammad Shiaa Al-Sudani,” pointing out that “the government is serious about reducing the exchange rate, especially since it approved the amount of 132 thousand for every 100 dollars.” .

He adds, "There is a large financial reserve with the government, in addition to the large financial habits achieved from selling oil prices in global markets, all of which contribute to securing the Iraqi economy and maintaining the stability of the price of the local currency."

The former MP explains that “this pressure is being exerted on the government in agreement with the US Federal Bank,” suggesting that “prices will decline in the coming days.”

Al-Fatlawi explains, “The visit of the US Assistant Secretary of the Treasury to Iraq, in addition to the sanctions imposed on some banks, are all factors that caused the exchange rate to rise to these levels.”

"America's role"

The visit of US Assistant Secretary of the Treasury, Elizabeth Rosenberg, to Iraq scattered all the papers and reforms that the government was able to undertake during the previous period, and this was not to the liking of the American side, which imposed a new condition that led to prices rising again.

In turn, a knowledgeable economic expert revealed the main reason behind the continued rise in the dollar exchange rates in Iraqi markets, while he considered the Central Bank’s negotiations with US Treasury assistance “not successful.”

The expert stated, in an interview with the “Al-Ma’louma” agency, that “the rise in the dollar exchange rates in the Iraqi markets came as a result of the recent decision of the Central Bank of Iraq, which stipulated reducing cash sales to exchange companies of various types by half, which was implemented since yesterday.”

He points out, “The companies that used to get two million now have only one million, for example,” noting that “this decision will lead to a large deficit in the local markets, because the exchange companies’ sales go in parallel.”

The economist (who preferred to remain anonymous) confirms that “the decision to reduce the sales of exchange companies was taken at the request of the US Secretary of the Treasury during her visit to Baghdad.”

The expert continues, "The central bank negotiations with the American side were certainly not successful, and the evidence for this is the lack of control over the rise in exchange rates."

If the Iraqi economy wants to get rid of American hegemony, it must think about radical solutions that are far from a rentier economy and complete dependence on oil. Considering that all of the country's financial revenues come through this resource, whose money goes to the US Federal Bank, which allows the country's economy to be managed instead of the government. LINK