Economist: Expanding bank transfers contributed to the decline in the dollar’s price.
Economist: Expanding bank transfers contributed to the decline in the dollar’s price.
6-5-2025
Al-Maalouma/Baghdad..
Abdul Rahman Al-Mashhadani, an expert in economic and financial affairs, confirmed on Thursday that the recent decline in the dollar exchange rate in the Iraqi market is due to purely internal reasons, ruling out that external developments or tensions, such as the possibility of an armed conflict between India and Pakistan, would have any direct impact on the financial situation in Iraq.
Al-Mashhadani explained in a statement to Al-Maalouma Agency, that “geopolitical tensions usually lead to an increase in global demand for the dollar, but the decline in the price we are witnessing in Iraq confirms that the drivers are internal and not external.”
He explained that “one of the most prominent of these factors are the recent instructions issued by the Central Bank regarding the regulation of real estate buying and selling operations. It has been customary for sellers to obtain the largest part of the property value in dollars, even if the prices are announced in dinars, which previously increased demand for hard currency. The new decision, however, has reduced this pressure.”
He added that “the increase in the number of banks authorized to conduct financial transfers through the balance enhancement mechanism contributed, in turn, to reducing the exchange rate, as the Central Bank’s daily dollar sales exceeded the $300 million barrier. However, a large portion of these amounts were not actually used in import operations, but remained deposited in external bank accounts, in what is known as the “return” phenomenon, which led to a decline in the real local demand for the dollar.”
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