Expert warns against changing the exchange rate: A bigger mistake than the last adjustment
Expert warns against changing the exchange rate: A bigger mistake than the last adjustment
2025/01/29
Economic expert, Abdul Rahman Al Mashhadani, warned against changing the official exchange rate and returning it to 145 thousand dinars for every 100 dollars.
Al-Mashhadani told {Euphrates News}: “There is talk about the idea of changing the official exchange rate and returning it to 145,000 dinars per 100 dollars,” warning that “this measure will be a bigger mistake than the last amendment.”
He stressed that “the dollar exchange rates in the parallel market have stabilized for a long time at the threshold of 151,000 dinars per 100 dollars,” noting that “this difference has nothing to do with the 2025 budget schedules, as it will not differ much from the 2024 budget.”
Al-Mashhadani pointed to “a desire to stabilize the price of a barrel of oil at $60 with a move to reduce investment expenditures, due to the large and ongoing financial deficit in the budget,” adding that “the gap between the dollar in the parallel market and the official rate will remain as it is.”
He explained that “the dollar exchange rates will not stabilize due to a gap in demand, as Iranian goods constitute a large part of the market, and imports continue at a rate ranging between $25 and $35 million per month, with these funds being financed from the parallel market instead of Central Bank transfers.”
The economic expert concluded by stressing that “the exchange rate between the parallel and official market will remain the same unless trade is regulated and included in the Central Bank’s transfers.”
alforatnews.iq
