Clare » November 19th, 2023
The Ongoing Dollar Crisis
Written by: Baqir Jabr Al-Zubaidi – former Minister of Finance
The dollar continues to rise, causing prices to rise and further loss of the value of the dinar, without real solutions.
The dollar crisis is a policy crisis of the continued American threat of sanctions, accompanied by the continued bleeding of the currency by private banks that are protected by some influential people, and this conflict is paid for by the citizen.
A change must be made in the Central Bank of Iraq system because all the solutions developed by the Central Bank during the last period did not achieve any results, which means that there is a deficiency in vision, a lack of understanding of the nature of the problem, and a lack of experience.
Monetary and financial policies are confused and unclear, and a balanced policy must be followed and close cooperation and coordination between the financial and monetary policies must be restored, away from uncalculated interventions and political influences, which will contribute to maintaining the stability of the Iraqi currency exchange rate, controlling inflation, and stabilizing price rates to maintain a stable standard of living for the citizen.
The external or internal investor will not risk any project in light of the fluctuation of currency exchange rates. All monetary, financial and economic tools must be used to control the money supply in the Iraqi market and direct the monetary mass towards financing investment projects and keeping it away from speculation.
Solutions exist, and during our tenure at the Ministry of Finance (2006-2010), we succeeded in increasing the value of the dinar from (1,500 dinars to the dollar to 1,170 dinars to the dollar).
We were planning to reach (1,000 dinars to the dollar) and then raise the zeros so that the dinar was equal to the dollar.
The greatest fear is the rise in the inflation rate, which was our main concern and we succeeded in reducing it from 67% to about 4% in 2010, a rate that has not been achieved throughout Iraq’s financial history. LINK
Source: Iraqi banks will begin strengthening their accounts in the UAE dirham next week
The Central Bank of Iraq has completed the final arrangements for the agreement with the UAE’s First Abu Dhabi Bank, according to what a banking source said today, Saturday.
The source told Shafaq News Agency that it is hoped that the actual implementation of the enhancement operations for Iraqi bank accounts in the UAE dirham will begin during the next week, indicating that the first phase of the enhancement will include five Iraqi private banks.
According to the source, the number of banks is expected to double after evaluating the first phase of implementation, which may last for a few weeks.
On Saturday, November 11, Iraqi official sources revealed extensive meetings held by the Central Bank with the American side in the Emirates, which resulted in important decisions regarding foreign transfers and strengthening bank balances in dollars. LINK
Source: Dinar Recaps
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