An economist explains the reason for the fluctuations in the dollar exchange rate.
An economist explains the reason for the fluctuations in the dollar exchange rate.
9-14-2025
Al-Maalouma/Exclusive…
Economic researcher Ali Karim Idhib confirmed on Sunday that the fluctuations in the exchange rate of the dinar against the dollar are linked to a number of internal and external factors, most notably the local market’s almost complete dependence on imports.
Idhib said in a statement to Al-Maalouma Agency that “the improvement or decline in global oil prices, which represent the main source of state revenues, is directly reflected in the volume of dollar flows into the local market,” noting that “the restrictions imposed on the sale and transfer of dollars by the Central Bank, and external interventions related to combating money laundering, have also contributed to increasing the severity of the fluctuations.”
He pointed out that “the political and economic instability in the country plays a pivotal role in the increased demand for foreign currency, in addition to the continued smuggling of dollars out of Iraq,” indicating that “these factors combined are putting increasing pressure on the exchange rate.”
He pointed out that “the Central Bank is trying to intervene through currency auctions and regulatory measures to limit speculation, but these solutions remain temporary unless dollar revenues are sustainably increased.”
He stressed that “the stability of the political and economic situation and the increase in the state’s hard currency resources are the decisive factor in alleviating pressure on the dinar and stabilizing the exchange rate.”
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