French report: Dollar restrictions confuse the lives of Iraqis due to “monetary sovereignty”, 17 DEC

 French report: Dollar restrictions confuse the lives of Iraqis due to “monetary sovereignty”

Shafaq News/ A French report shed light On the deficit occurring in the withdrawal of Iraqi citizens’ funds transferred to them from abroad The country, months ago, because it was sent to them in US dollars, after the authorities imposed restrictions New complications complicate the use of hard currencies, in its attempt to control the black market exchange rate, in A procedure considered paradoxical in an oil-rich country that has huge reserves of hard currency More than 100 billion.

According to a report published by Agence France-Presse Press”, and viewed by Shafaq News Agency, the emergence of a parallel market for exchange, and the imposition of the authorities Restrictions within the framework of strengthening banking supervision in compliance with international rules imposed by them Washington, has complicated the daily lives of residents.

The official exchange rate is 1,320 dinars For one dollar, but at money changers, the price of one dollar equals 1,500 dinars Up to 1,600, and currency exchange offices have begun to deal with customers with extreme caution Dozens of money changers accused of price manipulation were arrested, according to the report.

The Central Bank of Iraq announced in a statement Previously, he decided, as of January, “to restrict all commercial and other transactions.” In Iraqi dinar instead of dollar. in the country.

“Monetary Sovereignty”

While the dollar can be withdrawn in cash from… Deposits previously held in hard currency, naturally, will become mandatory as of this year 2024, withdrawing every money transfer from abroad exclusively in dinars, and according to the official exchange rate.

The Prime Minister’s Advisor for Affairs confirms Finance, Mazhar Saleh, said that “this is the rule that is part of monetary sovereignty, But there are exceptions, especially embassies.

He adds: “We strengthen what is called sovereignty “Cash…it is not possible to deal in two currencies within the national economy.” However, these restrictions apply It raises controversy and disrupts the daily life of Iraqis, according to Agence France-Presse.

Direct transfers have become outside the framework Banking is not possible with dollars, and is limited to dinars at the official rate, as the sector has adopted Banking in Iraq is an electronic platform, the aim of which is to monitor the uses of the dollar and tighten Control of a booming informal economy, while tax evasion attracts some Importers and traders.

The Prime Minister, Muhammad Shiaa, approved this Sudanese, that with the new procedures, the cash supply in hard currency is available The market declined from “200 to $300 million” per day to “30.” And 40 and 50 million dollars.”

Last September, he said Al-Sudani said that merchants who deal with Iran are forced to turn to the market Parallel to obtaining currency, given that Iran is a country “that has sanctions, and is not allowed Conducting financial transfers.

At the same time, he confirmed that the two banks The central authorities in Iraq and Iran discuss a “mechanism” In order to “organize.” Trade”, which would “split the back of the parallel market”.

“Suspicious trade”

The government announced in late November Last second, for facilities to pay importers of cigarettes, cars, gold and telephones Portable, to obtain foreign currency through official channels.

As for bilateral exchanges, Authorities encourage banks and importers to use currencies other than the dollar, such as the euro Or the UAE dirham or the Chinese yuan.

The prime minister’s advisor, Mazhar, defended Saleh, about banking restrictions aimed at “verifying these transfers,” With the aim of reassuring the “international financial community, and also for reasons related to Iraqi society: Is it… These transfers actually go to finance Iraq’s trade?

Saleh added: “What is happening is irrelevant With a strong Iraqi economy, Iraq today has the highest levels of foreign reserves in “His financial history,” but “structural changes occurred in matters of dealing with the currency Foreign”.

He also stated that it was to protect the country With a population of 43 million people of inflation, importers have access to Dollar, and buy it at the official rate, which is more beneficial.

This is especially true of materials Food, medicines and building materials. Saleh believes that this “creates an atmosphere of stability. “This is against the parallel market.”

shafaq.com