STATUS OF THE RV , PART. 3
😊So, here is yet another article titled “WHAT ARE THE REASONS FOR THE DECLINE IN THE DOLLAR EXCHANGE RATE AGAINST THE IRAQI DINAR?”.
On Thursday, April 24, 2025, Professor of International Economics Nawar Al-Saadi revealed the reasons for the decline in the exchange rate of the US dollar against the Iraqi dinar in local markets.
😊Here is yet another recent article on this subject matter. It is titled “PM ECONOMIC ADVISOR: TRAVELERS’ E-PAYMENTS FUEL IRAQI DINAR RISE”. It reviews some of the same reasons for the sudden rise in the dinar.
To sum it all up, we hear that that the improvement in the Iraqi dinar’s exchange rate against the dollar in local markets is due to the central bank’s recent policies in six areas of concern. I keep telling everyone there is not any one event that is going to get us the RV but the efforts of many reforms. Get it? It is the cumulative effect of many reforms that will finally break the suppression of the rate and force it to go global. This is important to understand.
There are factors that the articles identify in today’s news including: financial reserves, dollar flow, stabilization, productive sectors, global pressure and electronic cards. We have read many articles about the reform efforts in each of these areas. Here is a short summary of each from the news:
- financial reserves
He added that the country’s massive financial reserves are one of the main reasons behind the improvement in the value of the dinar against the dollar, and we expect the dinar’s value to continue to improve in the coming period. He pointed out that the Central Bank of Iraq is working to consolidate the national currency by adopting policies that are consistent with Iraq’s financial capabilities and the requirements of the national economy.
- dollar flow
On the monetary policy side, the Central Bank has taken strict measures, including restricting the flow of dollars through auction platforms and imposing strict oversight on banks.
- stabilization
While effective in achieving short-term stability, remain subject to several risks. The Iraqi economy’s dependence on oil revenues makes it hostage to global market fluctuations.
- productive sectors
Sustainability of this improvement requires structural reforms, starting with diversifying the economic base and reducing dependence on oil)
- global pressure
The opening up between the United States and the Islamic Republic has eased global pressure on remittances to Iran, reducing demand for the dollar in local markets and strengthening the value of the national currency.
- electronic cards
The importance of the Central Bank of Iraq taking action to reach an agreement with the United States and establish an official platform for transactions by creating an electronic payment card for use in Iran, Russia, and other sanctioned countries. This would reduce demand for dollars.
- Trump’s policies
The economic policies (politics) recently adopted by the US administration, most notably the imposition of tariffs on a number of goods and its relations with Iran.
