After the electronic platform stopped…Answering questions from Iraqi circles about the new dollar mechanism

After the electronic platform stopped…Answering questions from Iraqi circles about the new dollar mechanism

2025-01-03

Many citizens have raised Iraqis Questions about the new trading mechanism Dollar in Iraq How to withdraw or buy it after stopping Official To create an electronic platform.

He said Deputy The Governor of the Central Bank, Ammar Khalaf, said yesterday that “the mechanism of work on the electronic platform related to foreign transfers has stopped working, but financing foreign trade continues through correspondent banks according to different mechanisms that are parallel to what is in effect in countries around the world.”

Many citizens wondered about the news of the platform that was established. SumerianNews published on the social networking site “Facebook”, about the electronic platform and its work, and what will happen to the dollar, and whether it will witness Iraq A new rise in currency exchange rates.

One citizen said via the comment feature: “What is meant by the electronic platform? Can someone explain?”, while another replied that “the blockade will return to Iraq and the exchange rate will be at least 250 thousand dinars Iraqi For $100.”

Another asked about “the continued arrival of foreign remittances to Iraq And giving the currency to travelers,” while another pointed out that “unemployment will return and food prices will quadruple from their normal levels and famine will return to Iraq.”

Others praised the decision to stop the electronic platform, considering it “an effective government achievement that will be beneficial in succession and a transformation process that enhances the economic role and prepares for investment opportunities with complete confidence, and that the government is activating the supervisory role over the markets and exchanges and dealing in the dinar only to raise the value of the Iraqi dinar.”

Another pointed out that “the platform was a front for theft Dollar Thus, imposing control through financial transfer by the bank will contribute to balancing the market and controlling the rise of the dollar,” and another supported him by saying that “this step may have several reasons, such as:

1- Controlling the dollar exchange rate: trying to stabilize the price Dollar In front of the dinar Iraqi By reducing the flow Dollar2-
Preventing dollar smuggling: If there are indications that Dollar It is used in smuggling operations or there is an inflation in demand for it due to illegal purposes.
3-Strengthening the local economy: reducing dependence on Dollar Supporting the local currency by reducing trading Dollar In the markets.
Possible outcomes: higher prices. Dollar On the black market if there are no alternatives to meet demand. Impact on traders and businesses who depend on Dollar In imports, which may lead to higher prices for imported goods.

Tightening financial controls to try to prevent fraud and circumvention of policies. Therefore, the effects will depend on how this decision is implemented and the extent of alternative plans to provide Dollar For the commercial and service sector.

“Travelers’ Dollar”
It is worth noting that “the Central Bank explained that granting Dollar For travelers, it continues at airports according to the approved mechanism, which is the best in limiting the occurrence of Dollar For the traveler, noting that “this decision is part of a series of reforms aimed at facilitating financial procedures and stimulating the economy.”

What is the “electronic platform”
? The electronic platform for money transfers is a mechanism adopted to ensure the regulation of foreign money transfers and limit manipulation of exchange rates. It works to document commercial operations and transfer funds by banks and financial companies, ensuring more effective control over hard currency flows in and out of the country.

Will the cancellation of the platform affect the dollar price?
The impact of the cancellation of the platform on the price Dollar It will be reflected in prices as follows:

1- Increased demand for Dollar In the black market, in the absence of an electronic platform, demand may increase. Dollar In the black market due to the absence of control mechanisms, which leads to high exchange rates outside official channels.

2- Weak confidence in the dinar, as canceling the platform may weaken confidence in the Iraqi dinar, especially if effective alternatives are not put in place to ensure market stability. Weak confidence means that citizens and investors may withdraw their money in dinars and transfer it to Dollar As a safe haven.

3- The impact of smuggling and money laundering, as canceling the platform may cancel strict control over dollar smuggling operations, and smuggling and money laundering practices may expand, which increases the demand for Dollar Significantly and affects the central bank’s reserves.

4- The market depends on supply and demand. With the cancellation of the platform, the currency market may become more affected by direct supply and demand. This may lead to severe fluctuations in the exchange rate, especially in light of unstable economic and political conditions.

Will the dollar rise?

The government and the central bank can rely on other control tools such as strengthening the role of local banks, imposing strict restrictions on foreign transfers, activating alternative control tools, or pumping more dollars into the market to meet demand and maintain price stability. Investment can also be encouraged and reliance on foreign currencies reduced, to relieve pressure on Dollar And strengthening the dinar, all these measures can maintain prices Dollar.

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