The gap between supply and demand ‘strills’ the Iraqi dinar. Two paths of low dollar prices, 8 JAN
The former Director of the Bureau of Financial Supervision, Salah Nouri, today, Sunday, identified two paths through which the exchange rate of the US dollar against the Iraqi dinar can be reviewed.
Nouri told {Euphrates News}, “the exchange rate is determined between supply and demand,” noting that “the demand for dollars from traders for the purpose of import, which is very diverse due to the disruption of industry and agriculture, while the supply is sourced by the Central Bank through banks, banking offices and foreign transfers.”
He added, “The central bank has taken many measures in accordance with the agreement with the US Federal Bureau to legalize foreign transfers and eliminate dollar smuggling outside the controls and procedures of the Central Bank.”
However, “in any case, a gap between supply and demand remains, and demand is met by banks with their dollar balances, and this remains fluctuating up and down,” Nouri said.
The former director of the Bureau of Financial Supervision continued, “If the situation of traders adapts to the procedures of the Central Bank, the difference between the official exchange rate and the parallel market price will be small, but some traders complain about the complexity and slowness of the central bank’s procedures, which pushes them to demand from the parallel market.”
He pointed out that “the exchange rate is falling as a result of the central bank’s dealing with several import currencies with foreign and Arab banks.”
On February 7, the Council of Ministers announced the approval of the amendment of the dollar exchange rate to 1320 dinars per dollar.
About a year ago, specifically since the Central Bank began working on the electronic platform and the international financial transfer system “SWIFT” (SWIFT), dollar exchange rates in Iraq have not stabilized despite the government and the central bank’s attempts to control the exchange rate in parallel markets.
From.. Raghad Daham
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