For the first time in years, dollarization is declining in 5 vital sectors in Iraq
For the first time in years, dollarization is declining in 5 vital sectors in Iraq
4-1-2023
Information / Diyala..
The head of the Chambers of Commerce in Diyala, Muhammad al-Tamimi, confirmed, on Saturday, that dollarization decreased in 5 vital sectors in Iraq for the first time in many years.
Al-Tamimi said in an interview with Al-Maalouma, that “the reliance on the dollar in the payment of dues for trade exchange inside Iraq emerged remarkably after 2007, and at the end of 2022 it formed a percentage of up to 70% of the payment mechanisms, which formed what is known as the phenomenon of dollarization, which has serious risks, especially as it is subject to procedures.” And challenges that could make the entire economy hostage to the outside.”
He added, “The procedures of the Central Bank and the government in reformulating the mechanisms of internal dealings in dinars in paying all dues away from the dollar created an atmosphere that contributed to reducing dollarization in 5 vital sectors, which are the car market and payment of dues between merchants, in addition to reducing transfers in dollars between governorates.”
He pointed out that “although the decline is slight, it is an indication of the possibility of abandoning dealing in dollars internally, and this is very important to distance the economy from any vibrations that lead to damage and raise prices.”
And the Iraqi markets have suffered in recent months from a remarkable rise in the exchange rate of the dollar against the dinar, which led to an increase in the prices of materials in the markets.
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