Closing the Dollar Selling Platform.. US Directive Raises Concerns About Market Stability and Rising Prices
Closing the Dollar Selling Platform.. US Directive Raises Concerns About Market Stability and Rising Prices
1-2-2025
Information / Baghdad..
The Central Bank announced the closure of the dollar selling platform at the end of the fiscal year, a measure that comes within the ongoing directives of the US Treasury to tamper with the Iraqi economy.
However, this decision raises growing concerns about its potential impact on demand and dollar prices in the local market, especially in light of the current economic conditions.
The closure of the platform is expected to lead to an increase in demand for dollars in the parallel market, as many importers and traders rely on buying hard currency to meet their needs.
In the absence of the usual supply through the official platform, these people may resort to alternative markets to obtain dollars, which will lead to increased pressure on prices.
Economic observers point out that the increase in demand accompanied by a decrease in supply will inevitably lead to an increase in the price of the dollar against the dinar, and this increase may be directly reflected in the prices of goods and services, which adds an additional burden on citizens, especially with the decline in purchasing power as a result of the rise in inflation rates.
Regarding the subject, economic expert Safwan Qusay said in an interview with Al-Maalouma Agency, “The Central Bank of Iraq announced the termination of the electronic platform for banking transactions starting from the beginning of the new year, after notifying all Iraqi banks of the cancellation decision early on.”
He added that “13 Iraqi banks were able to adapt to this change, as they expanded their dealings with real merchants, so that the percentage of transfers and credits that take place through direct relations between Iraqi banks and supplier banks reached more than 95%.”
He explained that “these operations are carried out in accordance with strict compliance standards that ensure knowledge of suppliers and payment mechanisms.”
He continued, “As for the 5% of transfers that were made through the electronic platform, traders who wish to continue import operations at the official price can open bank accounts within these banks.”
He pointed out that “the Central Bank issued a circular on September 30th allowing traders to import directly after opening bank accounts, without the need for a waiting period that previously extended to six months.”
He explained that “the market may witness some fluctuations, but he ruled out the possibility of achieving large profits from importing irregular goods, in light of the Iraqi economy, which relies heavily on the dollar and its high value globally.”
He pointed out that “the Iraqi economy will not face major concerns as a result of this change, stressing the importance of adhering to banking procedures to ensure market stability and facilitate import operations.”
Closing the dollar selling platform may be a technical measure related to the end of the fiscal year, but it raises economic and social challenges that must be dealt with carefully.
Maintaining market stability and the exchange rate requires effective coordination between the Central Bank and the government, with proactive plans to avoid a worsening of the economic crisis.
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