EXPERT COMMENTS ON THE RETURN OF THE DOLLAR EXCHANGE RATE IN BAGHDAD, 2 oct

EXPERT COMMENTS ON THE RETURN OF THE DOLLAR EXCHANGE RATE IN BAGHDAD

Today, Thursday (September 26, 2024), Mustafa Hantoush, a researcher and specialist in financial and banking affairs, commented on the return of the dollar exchange rate to rise in Baghdad.

Hantoush said in an interview with Baghdad Today, “The dollar exchange rate in the local market is neither constantly rising nor constantly falling, but rather fluctuating, which means that solutions are possible to control this price, and the government has begun working on some solutions, including the directives of Prime Minister Mohammed Shia al-Sudani to return banking competition and not monopolize dollar transfers and others on some banks, as this competition will lead to greater stability in the exchange rate of the Iraqi dinar against the dollar.”

He explained that “there is a government trend to support the Iraqi banking system so that there are no specific banks controlling foreign transfers, and this is a good and important step,  in addition to developing international financial and banking relations, especially with the American side through the Prime Minister’s meeting with the US Deputy Secretary of the Treasury and discussing the status of the banking system and the dollar, and the meeting of the Central Bank of Iraq less than a month ago with the Treasury and the agreement to contract with the consulting company (Olver Wyman) to review the status of the Iraqi system (restricted by the dollar), which is supposed to sign a contract with it soon, which will have a positive impact on the dollar exchange rate file, and this matter reassures the street and reassures the market.”

He added, “The Iraqi government can work to create an official platform for the issue of trade with Iran and Syria using remittances or gold, in order for imports to be legal, and this reduces the great demand for the dollar through the parallel market, which is the main reason for the dollar’s rise above its official price.”

The US dollar exchange rate witnessed a significant increase in the past few days, reaching 152 thousand Iraqi dinars for every 100 US dollars in the main stock exchanges in the capital, Baghdad, as well as in the local markets, after it had recently witnessed a decline of 147 thousand dinars.