The dollar to 160 thousand?.. pessimistic expectations about the exchange rate in Iraq
The dollar to 160 thousand?.. pessimistic expectations about the exchange rate in Iraq
2023-09-15 23:30
Shafaq News/ Experts in Iraqi economic affairs expected, on Friday, that the gap between the official and parallel prices will widen in the coming days or weeks, amid expectations that the dollar exchange rate will reach 160 thousand dinars during this period.
Economist Nabil Al-Marsoumi told Shafaq News Agency, “The gap between the official and parallel prices is expected to increase in the coming days or weeks, especially after the release of funds in the 2023 budget and the increase in consumer and investment spending.”
Al-Marsoumi explained, “The previous conditions are still the same, meaning as long as there are American sanctions on Iran that prevent official financial transfers through bank transfers to pay dues to Iranian trade, the gap will remain large and expand over time.”
He continued: “The volume of Iranian exports to Iraq exceeds 10 billion dollars annually, and these are currently being financed from the parallel market, by collecting travelers’ dollars and transferring them to Iran.”
The economic expert added, “Iraqi travelers abroad spend 3 billion and 410 million dollars annually, and they are prevented from obtaining the dollar at the official rate, so they resort to the parallel market.”
Al-Marsoumi pointed out, “The factors currently existing in Iraq indicate that the gap will increase, and no one will be surprised when the dollar exchange rate reaches 160 thousand dinars during the coming weeks or months.”
He added: “The more the central bank is able to arbitrate the electronic platform with the US Federal Reserve, the more the dollar will become scarce in the Iraqi market, and thus its price will rise.”
Al-Marsoumi pointed out that “relying on the actions of the Central Bank or the Iraqi government to reduce the gap is difficult to implement, because the issue relates to capabilities that neither the Iraqi government nor the Central Bank possess.”
He concluded by saying: “The only solution to reduce the gap between the two prices is to cancel the US sanctions on Iran and return official transfers to it, or to cut off foreign trade and prevent Iraqi travelers from traveling to Iran. Otherwise, the gap will continue to widen in the near and medium time.”
With the closure of the Central Stock Exchange in Baghdad yesterday, Thursday, the exchange rate of the Iraqi dollar against the US dollar touched the barrier of 156 thousand dinars for every 100 dollars.
shafaq.com
