The Iraqi Dinar Overthrows The Dollar And Wins The Struggle To Control The Regular Market, 26 DEC

 The Iraqi Dinar Overthrows The Dollar And Wins The Struggle To Control The Regular Market, 26 DEC

USD-Iraqi dinarEarth News/ After months of unreasonable rise in dollar prices in local Iraqi markets, which caused great exhaustion for families, especially those with limited incomes, the Iraqi dinar was able to break the rise of the dollar, which sometimes reached about 170 thousand for every 100 dollars.

In conjunction with the rise of the dollar, the prices of foodstuffs also rose significantly as they are linked to the dollar, given that most of them are imported and are therefore purchased through the dollar, which caused great discontent in the Iraqi street, which demanded that the government must find solutions to address this unjustified rise.

Yesterday, Sunday, the US Ambassador to Iraq, Alina Romanowski, announced that her country is continuing to provide dollar services to Iraq.

Romanowski said in a tweet on X, “The US Treasury continues its cooperation with the Central Bank of Iraq, as many Iraqi banks have now formed relationships with international banks for the first time.”

She added that it “is considered a positive step in making progress in reforming the banking sector,” noting “the continuation of providing US dollar services to Iraq in the interest of economic stability.”

A government source had previously revealed that government and private banks had imported $255 million within two weeks.

The source told Earth News Agency, “According to the latest statistics provided by the Central Bank of Iraq, the amount of dollars imported into Iraq within two weeks through some government and private banks is estimated at approximately 255 million dollars.”

He added, “A number of other requests to import the dollar are on their way to being audited and implemented,” expecting that “other amounts will arrive within the next few days.”

In this context, the economic advisor to the Prime Minister, Mazhar Nimhammad Salih, told Earth News Agency, “The monetary policy of the Central Bank of Iraq, based on its Law No. 56 of 2004, has the central and primary goal of stabilizing the general level of prices and fighting inflation, and the largest source of stability of the general level of prices is the exchange rate.” .

Saleh stated that “the bank’s operational objectives are its signals and procedures regarding the banking market and the monetary system as a whole and to achieve its intermediate objectives, which are the stability of the exchange rate so that the exchange rate in the secondary market approaches the official central price in reality, and this approach achieves complete stability in the Iraqi economy.”

Saleh pointed out that “the monetary policy works in this direction, and the economic policy also supports it, meaning that the state is a large commercial arm and supplies the market with stable, imported goods and supplies on the basis of 1,320 dinars, and all of these factors are combined, whether the economic policy is with the monetary policy of the central bank, its goal is to bring market prices closer.” Parallel and noise in it, although this market constitutes only 10%, but it causes some noise until this noise is eliminated from that market and its prices approach the official price. The monetary policy of the Central Bank exercises its role accurately and positively and in accordance with short and medium-term plans to maintain overall stability in the national economy as a goal. Macroeconomics and monetary policy.

He pointed out, “The process of importing all types of currencies, including the US dollar, takes place in light of the Central Bank’s permission for all Iraqi banks to meet the foreign currency needs of those banks’ customers.”

Regarding this matter, the specialist in financial and banking affairs, Safwan Qusay, told Earth News Agency, “It is clear that the Central Bank’s policy is to comply with international requirements and cooperate with the US Federal Reserve by allowing the American banks Citibank and JPMorgan to manage international financial transfer operations in a direct relationship with five Iraqi banks at this stage.” The first is through the mediation of a section of Jordanian banks, and it is also possible that five other banks will be added early next year. All of this will lead to reducing the waiting period and dealing with the expansion of the knowledge of small and large Iraqi merchants, and the possibility of having dealings in different currencies.”

He added, “These tools helped restore confidence in the Iraqi dinar and consolidate the trade process with all types of countries and various types of goods. We also note that the reforms of the Sudanese government, which seem to have international acceptance at the level of the United Nations, are in removing Iraq from the circle of dependence on oil only to the circle of economic integration.” In all sectors and the search for sustainable revenues from the geographical location of the food industries and the stimulation of commercial activity in Iraq, all of these will also support the Iraqi dinar.”

Qusay pointed out that “the value of the dollar in the informal market will certainly continue to decline with the continuation of government measures to monitor the prices of imported goods at official prices and stabilize their sale process and not allow them to be sold at shadow market prices. The strong relationship with the Turkish side will allow for the resumption of Iraq’s oil exports and trade openness to the European system through Turkey.

The exchange rates of the dollar against the Iraqi dinar fell in the local markets today, Monday, to below 150,000 per 100 dollars, after it had recorded more than 155,000 per 100 dollars during the past days.

earthiq.news