The dollar is falling in Iraq, and the battle to tame it is nearing an end, 27 DEC

 The dollar is falling in Iraq, and the battle to tame it is nearing an end, 27 DEC

The local market has witnessed a gradual decline in the dollar exchange rate recently in a way that observers described as a rapid decline, suggesting that it will reach a level close to the official rate in light of the central bank and government measures with an American green light to release payments of savings at the Federal Reserve.

At the beginning of this week, the US Ambassador to Iraq, Alenia Romanski, announced that her country would continue to provide US dollar services to Iraq, as she told me in her tweet that “the executive agency responsible for promoting economic prosperity and ensuring the financial security of the United States continues its cooperation with the Central Bank of Iraq, and many banks Iraq has formed relationships with international banks for the first time, which is a positive step in making progress in reforming the banking sector, and we will continue to provide US dollar services to Iraq in the interest of economic stability.”

In conjunction with the statement of the US Ambassador, media reports circulated that the Iraqi government and the US Treasury had reached an agreement to launch further payments for oil revenues saved in the Federal Bank after Washington refused to request from Baghdad to provide it with two billion dollars in imports from the sale of oil, which caused a rise in the price of the dollar in the local market during The past months.

Representative in Parliament and member of the Finance Committee, Moeen Al-Kazemi, says that the dollar crisis in the Iraqi market is artificial, and the American side has a major role in causing it.

Al-Kadhimi confirmed in a statement to Al-Mutala’ Agency that “many government measures have been taken to stabilize the dollar exchange rate and pursue speculators in the parallel market, which contributed to its decline to lower levels than it was previously. However, the measures being taken by the US Federal Reserve are causing turmoil and affecting the dollar crisis.” in the country”.

He explained, “With the many measures of the government and concerned authorities, including the Central Bank, the dollar exchange rate will continue to fall to a level close to the official price of 132, but this requires stages or time periods in order to maintain market stability and avoid disturbances, so that it will be gradual.”

In turn, the economist Bassem Antoine attributed the reason for the turmoil and instability of the exchange rate despite government measures to speculators who work against the state’s policy.

Antoine says in a statement to Al-Mutala’ Agency, “To achieve stability in the dollar exchange rate, the economy needs to be sound by building a correct foundation and reforming the various economic sectors in the country. Otherwise, there will be no stability, especially with the presence of speculators working against the state’s policy.” “.

The economic expert confirmed, “This fluctuation in the dollar exchange rate means that there is no correct basis for building a strong economy, and there is no better option than building the economy on its correct foundations,” suggesting that “the dollar will rise again in the Iraqi market.”

For their part, observers and those interested in economic affairs expressed their interest in the rapid decline in the dollar exchange rate recently, highlighting the impact of the relationship between Iraq and the United States in controlling the price of the dollar as a pressure card used to achieve its policies towards the country.

In addition, Jamal Cougar, a member of the Finance Committee, said that the measures taken by the government are still insufficient to solve the dollar crisis, and quick solutions must be found regarding the foreign financing that Iraq conducts with a number of countries, anticipating the continuation of the dollar crisis, which requires a long time to be resolved. According to his opinion

In conjunction with the first signs of a decline in the dollar exchange rate, the media advisor to Prime Minister Hisham Al-Rikabi stated that the battle with the dollar is nearing its end.

In his tweet on the (X) website, Al-Rikabi said, “The will of the Sudanese government to carry out reform within the financial institutions in Iraq and the insistence on correction were important factors in strengthening confidence between Baghdad and Washington and constituted a positive step in achieving success within the banking sector. We said it previously and we confirm it today.” Our battle with the dollar is almost over.

On December 14, the Central Bank of Iraq announced that it had reached an agreement with the US Federal Reserve and the US Treasury regarding meeting Iraq’s needs for cash dollar payments for the next year.

The parallel market in Baghdad and the governorates is witnessing a noticeable decline in the exchange rate of the dollar against the dinar, and the selling price in banking offices in the capital today reached 152,750 dinars for every hundred dollars, while the purchase prices reached 150,750 dinars for every 100 US dollars.

almutalee.com