Experts: The Dollar Price Will Remain Volatile As Long As The Economy Is Not Stimulated, 30 JAN

 Experts: The Dollar Price Will Remain Volatile As Long As The Economy Is Not Stimulated

January 30, 2024 Last updated: January 30, 2024  The Independent/- Volatility has returned once again to dominate the dollar exchange rates on local stock exchanges in Iraq, after a period of “semi-stability” that dominated the market during the recent period.

The market witnessed a “limited” increase yesterday, Monday, as the exchange rate of the US dollar reached 154 Iraqi dinars compared to 100 dollars in Baghdad, and 153 dinars in Erbil in the Kurdistan Region.

Experts and specialists believe that what is happening is a temporary exploitation by some speculators who took advantage of the regional tensions in the region to benefit from buying and selling in the parallel market.

The Prime Minister’s Advisor for Financial and Economic Affairs, Dr. Mazhar Muhammad Saleh, said in an interview with Al-Sabah newspaper, which is affiliated with the Independent:

“The issue is related to regional security tensions, which give colorful or ambiguous information that affects the decisions of speculators in the secondary exchange market when buying and selling, which prompts them to hedge.” One or two points above the current market trading prices or trading prices in such cases that people are accustomed to.” He added: “

A behavior practiced by speculative forces to achieve emergency or fateful profits under the pretext of misfortune and fear,

because the decisions of this market are based on various information as inputs that influence the decisions of those dealing in it.

Therefore, these markets are considered among the most sensitive financial markets and live in their daily speculation on news, rumors, and conflicting information.” To determine prices, which is a cost that disappears when the influencer disappears.”

For his part, the rapporteur of the Parliamentary Finance Committee for the fourth session, Dr. Ahmed Al-Saffar, stated that

“the exchange rate of the dollar against the dinar will not stabilize as long as Iraq remains a country that does not have a productive apparatus, as the country depends for most of its needs on imports, which in turn depends mainly on the dollar.”. He stressed that

 “this price will remain fluctuating and changing according to political events and the forces of supply and demand.” He pointed out that

 “this small change during these two days may be due to the attack on the American base in Jordan and the threat of the American side to carry out a military operation,” and added:

“Therefore, the central bank and the government cannot control the stability of the exchange rate if they do not resort to revitalizing the Iraqi economy and moving the apparatus.” “Productive.”

For his part, economic affairs expert, Nabil Jabbar Al-Ali, pointed out that “there are now no major changes in exchange rates that could affect the market and its desires.” He pointed out that

 “what is happening now in the local market falls within the framework of the natural fluctuation of prices, and  there is not a large percentage of rise and fall that can be pointed out,  so I believe that the issue has not departed from the normal situation.”

Experts believe that stabilizing the dollar exchange rate in Iraq requires

     revitalizing the Iraqi economy,

     increasing production, and

     reducing dependence on imports.

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