"IRAQ NEWS ANALYSIS" BY MNT GOAT, 14 NOV

ECONOMIST: THE DOLLAR EXCHANGE RATE WILL BE EQUAL TO THE GOVERNMENT PRICE EARLY NEXT YEAR

Academic and economic expert Khaled Haider expected, on Tuesday, that the exchange rate of the US dollar against the Iraqi dinar on the black market would stabilize in parallel with the government pricing, starting next year.

Haider said in a statement to Shafaq News Agency, “The global political situation is directly linked to the financial and economic situation of the region, and the recent events in Gaza and the accusations directed at Iran of supporting the Hamas movement, are all reasons that make us expect that the rise in the price of the dollar is to restrict Tehran because Iraq is an important economic region for the neighbor.” Eastern Province and most of the foreign currency goes there.”

He pointed out that “administrative and financial corruption in Iraq plays a major role in the exchange rate difference, especially those who benefit from this difference, which prompts the Central Bank of Iraq to pump large amounts of dollars into the currency auction, ranging from 200 to 250 million dollars daily to cover the market’s need for currency, in while the actual daily need ranges between $190 to $200 million, the bank is pumping more than that in an attempt to control the exchange rate.”

(The CBI told us in a prior articles the need range to support the economy was $150 – 180 million. So, I don’t think this article is very accurate.)

Haider stated, “Near-term expectations may be inaccurate, but it is expected, and according to a scientific economic reading, that the price of the dollar in the markets will approach the government pricing at the beginning of next year after the implementation of the Central Bank of Iraq’s decision to ban financial transactions in anything other than the Iraqi dinar, and this will make the Iraqi dinar more powerful in local markets.

(and also raise the rate. Can they then do the project to delete the zeros?)

Regarding the impact of the fluctuation of the dollar exchange rate on the citizen, the economic expert confirmed that this “reflected negatively on the citizen, as today the exchange rate of 100 dollars reached more than 164 Iraqi dinars, especially if we take into account that until the year 2020 the official exchange rate was 118 thousand dinars compared to 100 One dollar, while it currently ranges above 160 thousand dinars. Certainly, this disparity is reflected in the prices of consumer goods, since Iraq is a consuming country.”

Earlier today, Shafaq News Agency correspondent said that dollar prices fell with the closure of the main Al-Kifah and Al-Harithiya stock exchanges in Baghdad, recording 165,250 dinars against 100 dollars, while prices this morning were 166,000 dinars against 100 dollars.

https://mntgoatnewsusa.com/latest-mnt-goat-newsletter/