On Monday, Mazhar Mohammed Salih, the Iraqi Prime Minister’s financial and economic advisor, offered his thoughts regarding the resumption of the rise in the exchange rate between the Iraqi dinar and the US dollar in local markets.
Saleh made sense of to , “The decent conversion scale framework in Iraq depends on a global stores base that is the most elevated throughout the entire existence of Iraq and its money related approach, as unfamiliar cash covers over 100 percent of the all out cash right now given.”
He continued, “given the strength of the official central exchange market, the exchange rate of the dollar to the dinar in the parallel market today in the country does not constitute any relative importance in influencing the stability of the general price level, which has become stable in its components and trends due to the influence of the official exchange rate factor currently dominating the financing of foreign trade (imports) amounting to 1320 dinars per dollar, which is a stable trend for the exchange rate and around which the stable external value of the din
According to Saleh, the official exchange market will continue to dominate in containing any colored noise or ambiguous information that affects the parallel exchange market in short periods due to urgent international or regional political events or in adapting some instructions regulating the monetary market. This is based on the preceding and the strength of the foreign reserves supporting the Iraqi dinar, whose value as liquid foreign assets exceeds $100 billion.
According to Al-Sudani’s financial advisor, the parallel exchange market has evolved to the point where its general effects now only form a narrow economic scope of prohibited transactions practiced by informal markets and at a rate of 10% of the total supply and demand for the currency. This is because of the decline of the dollarization phenomenon in domestic transactions, particularly in contracts, obligations, and payments within the country, since the previous year and its legal prohibition.
Saleh focused on that “the security of the swapping scale of the dinar to the dollar that the nation is seeing, even in the optional business sectors above, is a genuine and strong dependability. Rather, it is gotten from the strength of the effect of the cost and amount elements of the money related and monetary approaches and their mix in monumental in general cost dependability in the nation and containing the inflationary assumptions that were brought about by the powers of the equal trade market during the previous years.”
“The secondary (irregular) market, due to the freedom of external transfer, is under the influence of the official exchange market rate, whose operations are constantly expanding in favor of dealing at the fixed official exchange rate,” the financial advisor stated at the speech’s conclusion.
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