A new step may fluctuate the dollar exchange rates.. What do economists think?
A new step may fluctuate the dollar exchange rates.. What do economists think?
11-12-2023
Information/private..
Today, Sunday, the economic expert, Abdul Rahman Al-Mashhadani, explained the impact of the approval to enhance the dollar balance of 10 banks on exchange rates in local Iraqi markets, while explaining the repercussions of the decision.
Al-Mashhadani said, in an interview with the “Al-Ma’louma” agency, that “visiting the dollar balance of ten banks will be one of the factors that will reduce the pressure on the dinar, because a portion of the financial transfers that pass through the electronic platform are rejected for some reason or not,” indicating that “the past few days It witnessed the rejection of 80% of foreign remittances.”
He added, “The pressure will also be eased on the dinar, because the transfer transactions, or the parties to whom they are transferred, instead of being audited by the US Federal Bank, will be audited by JP Morgan,” pointing out that “the latter’s scrutiny is more severe than the Federal Reserve Bank.”
The economic expert explained, “These banks have relationships, as partners, with international banks such as Al-Qantar National Bank, Capital Bank, and Kuwait Finance Bank, in addition to the Kuwait National Bank,” noting that “it is true that these banks are Iraqi, but the entry of the founding partners of these international banks organized “To them.”
Al-Mashhadani stated, “The transfer mechanism will pass without the Central Bank of Iraq, especially after transfers were delayed by 8-20 days. However, using this method, it is possible to pass financial transfers within a day or two.”
Earlier today, a government source revealed an Iraqi-American agreement to enhance the balance of 10 banks in dollars in light of the recent meetings of the Central Bank with the American side, five of which were through Citibank, and the other five through JP Morgan.
During the current period, the exchange rates of the dollar in the local markets are witnessing a significant increase, as the exchange rate of 100 dollars reached more than 164 thousand dinars, in light of large sales to the Central Bank of Iraq, on a daily basis.
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