THE GOVERNMENT IS HELPLESS.. THE DOLLAR CONTINUES TO DESTABILIZE THE ECONOMY IN IRAQ, 6 NOV

 THE GOVERNMENT IS HELPLESS.. THE DOLLAR CONTINUES TO DESTABILIZE THE ECONOMY IN IRAQ

The dinar exchange rate crisis against the dollar has been ongoing in Iraq since late last year, and has been witnessing fluctuations despite measures taken by the country’s central bank to stabilize the currency.

It is worth noting that the fluctuation of the dollar exchange rate negatively affects the economic reality of Iraq in the first place, but there are those who exploit this issue for personal interests, such as currency smuggling traders and price speculators.

Regarding this matter, the economic expert Qasim Balshan says that the discrepancy in the dollar exchange rates is a door to corruption, given that there are private banks and companies that deal with the Central Bank of Iraq, and not everyone has the right to buy the currency auction.

Balshan said in an interview with Al-Maalouma Agency, “The state did not take real, actual measures to protect the Iraqi dinar, and all that was circulated were media statements that have no benefit on the ground.”

He pointed out that “there are influential political figures and blocs behind the rise in the dollar exchange rate.” Over the past years, the United States of America has prevented Iraq from achieving economic stability to achieve its strategic interests through its foreign policy and imposing sanctions and restrictions on financial transactions. 

In this context, State of Law MP Firas Al-Maslamawi says that the US Federal Reserve is besieging Iraqi liquidity through the dollar. 

Al-Maslamawi said in an interview with Al-Maalouma Agency, “The means of delivering the dollar and its restriction by the Federal Bank cast a shadow over the creation of liquidity in the Ministry of Finance,” noting that “the external liquidity file requires a high-level government effort in order to solve this issue and increase the quantities of dollars flowing into Iraq.”

Due to global sanctions, Iraq is forced to rely on the dollar for global trade, making its economy vulnerable to exchange rate fluctuations and US policy measures.