Economic: For these reasons, dollar prices are gradually declining

Economic: For these reasons, dollar prices are gradually declining


Economic - For these reasons dollar prices are gradually decliningOn Saturday, the economic expert, Safwan Qusay, suggested that control over the exchange rate would continue and that it would gradually decline, attributing this to the fact that Iran and the sanctioned countries now have common financial systems that reduce the demand for the dollar from the Iraqi market or other markets.

Qusay told “ Jarida ”, “The policy of diversifying currencies at the level of Iraqi banks and the desire of merchants to obtain goods immediately away from the electronic platform by dealing in the Emirati dirham, the Turkish lira, the Indian rupee and other currencies, which can reduce the waiting period for these merchants.” Thus, part of the demand that was fed through the parallel market, especially for small merchants, withdraws into the banking system, and thus the demand for the dollar in the informal market gradually decreases.”

Qusay expressed his hope that “the Central Bank’s measures will succeed in finding an appropriate mechanism to deal with imports from the sanctioned countries, through the joint account window with Oman or Qatar, to feed the private sector, especially the Iranian one, with a portion of the funds supervised by the US Federal Reserve, so that the dollar will decline in the informal market.”

It is clear, according to Qusay, that “Iran has gradually found alternatives to the local market. It is dealing with Russia directly and with China, and part of the reason for the gradual decline, which may be below 1,500 during the coming period, is that the Iranians and the sanctioned countries have joint financial systems that reduce… “Demand for the dollar from the Iraqi market or other markets.”

He explained, “The volume of trade exchange with the Iranian side for the year 2023 decreased to 6 billion, while it had reached 10 billion dollars annually or more. This indicates that Iranian merchants have begun to deal with other countries such as China, India, and Russia, and thus the demand for those who trade has decreased.” By exporting goods and recovering their money from the informal market.”

At the conclusion of his speech, Qusay suggested that “control of the exchange rate will continue and it will gradually decline until it returns to the regular price, even after a while.”