An “important” statement from the Central Bank regarding the exchange rate in the Iraqi market
On Sunday, the Central Bank of Iraq made the first comment in the midst of fluctuations in the exchange rates of the dollar in the local market in Baghdad and the provinces.
An authorized source in the Central Bank stated, through a statement that “Nass” received, a copy of it (February 20, 2022), that “the current exchange rate has achieved many positive results, the most prominent of which was reducing the state’s general budget deficit to achieving a surplus at the end of 2021, and granting producers And local investors have an important competitive advantage with imported goods.”
The source said, “The repetition of changing the exchange rate within short times without a study from the concerned authorities, leads to an economic recession, confuses the work of local markets, increases speculation on foreign currency, and squanders the gains made by the current exchange rate.”
He added, “Despite the rise in global oil prices of an unstable nature, there is no connection between this rise and the objectives and results of changing the exchange rate, and that the current rise in oil prices will enable the Iraqi government to rebuild the Iraqi economy properly, and build sufficient financial buffers to face any future fluctuations in international oil prices. link
An invitation to the government and the Central Bank after the instability of the dollar in Iraq – urgent
Today, Sunday, the Kurdistan Democratic Party called on the federal government and the Central Bank of Iraq to take quick measures to stem .the instability of dollar prices in Iraqi stock exchanges
Representative of the Democrat Mahma Khalil said in an interview with (Baghdad Today), that “quick measures must be taken by the Central Bank to end the state of .” confusion in the Iraqi markets
He added that “most businesses are suspended, especially those that depend on the dollar in buying and selling,” noting that “a solution must be found quickly, to the “.state of instability caused by the recent crisis
Iraq is witnessing a state of instability in the exchange rates of the dollar after the proposals made by the leader of the Sadrist movement Muqtada al-Sadr regarding .the reduction of the exchange rate
A new rise in the value of the Iraqi dinar baffles the markets (2/21)
This comes amid the continuing political controversy in the country regarding the file of restoring the value of the dinar to what it was before the financial crisis that afflicted the country in 2020, which forced the government to reduce the value of the dinar from 1200 to 1450 dinars to the dollar, as part of solutions to confront the deficit in paying the monthly salaries of employees, which exceeds About 5 billion dollars a month.
Yesterday, the Kifah and Al-Harithiya Stock Exchange recorded a decline in the US currency against its local counterpart by 1450 dinars to the dollar, and in Erbil 1452 dinars to the dollar, after a day of trading that closed at 1460 dinars to the dollar in Baghdad and Erbil. Before that, the dollar exchange rate was almost fixed at 1480 Iraqi dinars to the dollar.
A trader in the Baghdad Stock Exchange, Abdul Rahman Al-Fadhli, told Al-Araby Al-Jadeed that “Parliament’s attempts to raise the value of the dinar against the dollar affected the price of the dollar on the stock exchange.
The owner of a money transfer and exchange office in Baghdad, Muhammad Nahj al-Jubouri, attributed the decline to the confusion that occurred among traders and owners of financial companies about the future of the political debate about maintaining the current exchange rate or returning it to the threshold of 1200 dinars to the dollar.
Al-Jubouri told Al-Araby Al-Jadeed that “everyone fears a great loss if a decision is made to change, and there is a clear demand from citizens to buy gold to get rid of this confusion,” according to his expression.
On the other hand, a trader in the Baghdad Stock Exchange, Abdul Rahman Al-Fadhli, told Al-Araby Al-Jadeed that “Parliament’s attempts to raise the value of the dinar against the dollar affected the price of the dollar on the stock exchange, which declined by a small percentage.”
He explained, “The decline is expected due to political tensions, but it is not permanent, as there were no practical steps by the Central Bank in this direction, which means that in the event that an official decision is not taken to restore the value of the dinar as it was before it was reduced, the dollar price It will rise again, and it may rise even more than it was before.”
He pointed out that “there is a clear stagnation in dollar transactions, and many are hesitant and afraid of the instability of the exchange rate, so the market seemed confused.”
And the day before yesterday, a political controversy arose after a tweet by the leader of the Sadrist movement, Muqtada al-Sadr, in which he presented 5 proposals regarding the file “decreasing the value of the dinar against the dollar”, including summoning the Minister of Finance and the Governor of the Central Bank to Parliament, and the minister refused to attend. Politicians warn of the negative effects of lowering the dollar price on the country’s budget. link
Source: Dinar Recaps
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