After The Dollar Jumped, Experts Explain The Reasons And Solutions That May Reduce It To 1,300 Dinars, 15 OCT

 After The Dollar Jumped, Experts Explain The Reasons And Solutions That May Reduce It To 1,300 Dinars

Posted On2023-10-15 By Sotaliraq    Ali Al-Hamdani  Experts in the Iraqi economy expect that the crisis of the rise in the exchange rate of the US dollar against the Iraqi dinar will continue for several reasons, most notably commercial dealings with sanctioned countries, the evasion of taxes and customs by speculators and small traders, and the obstacles surrounding the relationship between banks and customers, including merchants, importers, and others, calling for a package to be taken. Measures, including those that may contribute to reducing the exchange rate to 1,300 dinars.

On Thursday, the dollar exchange rates on the Al-Kifah and Al-Harithiya stock exchanges recorded 160,400 dinars for 100 dollars, while in exchange shops in the local markets in Baghdad, the selling price reached 161,500 Iraqi dinars, while the purchasing price reached 159,500 dinars for every 100 dollars.

In Erbil, the selling price in banking shops was 160,400 dinars for 100 dollars, and the purchase price was 160,300 dinars for 100 dollars.

Causes of the dollar crisis

Researcher and writer, Halim Salman, attributes the dollar crisis and the exchange rate difference to “international restrictions imposed on trade with some neighboring countries, which causes pressure on the parallel market, and other reasons related to speculators and small merchants who escape taxes, customs, etc.”

Salman adds to (Al Mada), “In addition to the obstacles surrounding the relationship between banks and customers, merchants and importers, which result in difficulties in opening accounts, forcing some of them to go to the parallel market to obtain dollars for ease.”

He continues, “In addition to the behavior of the Iraqi individual to keep the dollar due to weak confidence in his national currency, this is the result of weak confidence in the banking system, and the problems of the blockade and conflicts that arose previously, which cast a shadow on the citizen’s confidence in his national currency.”

Solutions to the dollar problem

For his part, the financial and economic expert, Mahmoud Dagher, rules out solving the dollar problem “except by controlling the borders, completing the unified customs wall for all of Iraq, and ending the existence of two customs and two border crossings, one of which belongs to Baghdad and the other to the region.”

Dagher confirms to (Al Mada), “After the platform and compliance with the rules of international transfer, the dollar crisis cannot be ended as long as there are sanctioned entities that the country deals with, which requires stopping trade with these entities or at least establishing a customs wall with them, otherwise the crisis will continue.”

In turn, the economic researcher, Dr. Ali Daadush, explains that “the solution to prevent the crisis from escalating is through concerted efforts between the Central Bank and the government, and by meeting the former with his Iranian counterpart and determining dealing in the two countries’ currencies (the dinar and the toman), and setting a fixed exchange rate for commercial transactions that amount to approximately 11 billion dollars annually.” That is, about (14.5) trillion Iraqi dinars.

Speaking to Al Mada, Daadoush stressed the importance of “controlling border crossings and placing a customs wall linked electronically to the government treasury, accompanied by the operation of factories and laboratories to produce local goods and services in accordance with international market standards.” For his part, economic researcher, Abdul Salam Hassan Hussein, says, “The dollar continues to rise because it has become a trade, not to mention it is smuggled openly to neighboring countries, and the events that took place in Palestine will also affect it.”

Hussein believes, while speaking to (Al Mada), that “the central bank is unable to address this problem, and its danger lies in the fact that money exchange offices are buying large amounts of dollars.” At the conclusion of his speech, he confirms that “the exchange rate can be reduced to 130 thousand dinars through a program to fight the dollar,” indicating that “the program includes a secret numbering to control the pumping of money and the distribution of the dollar,” expressing his readiness to “present it to the Prime Minister for fear of revealing it and he will benefit from it.” The powerful and the corrupt,” he said. LINK