French Press: The Iraqi currency is fluctuating due to US policies

French Press: The Iraqi currency is fluctuating due to US policies

1-15-2023

French Press - The Iraqi currency is fluctuating due to US policiesInformation / translation…
A report by Agence France-Presse confirmed, on Sunday, that the Iraqi currency has been in a state of fluctuation and instability for more than two months due to the tightening of international financial transfer procedures, while some blamed Washington for the problems of the Iraqi dinar.

The report, which was translated by the agency / information /, stated that “at a time when the exchange rate of the Iraqi dinar was fixed at 1470 dinars per dollar, the currency circulation rose to reach 1600 dinars per dollar in the local markets since mid-November last before it re-stabilized at 1570.” dinars, according to Iraqi government sources.

He added, “Although the depreciation of the Iraqi currency does not seem dramatic compared to other countries in the region, it has caused panic among the Iraqi population, who fear the high prices of imported commodities such as gas and flour.”

And he continued, “A number of Iraqi officials blamed Washington, while the financial advisor to the Prime Minister, Mazhar Muhammad Salih, said that” the main reason for the depreciation of the “currency value” is due to external restrictions.

“Since mid-November, Iraqi banks have been forced to comply with certain standards in the international transfer system in order to access Iraq’s $100 billion foreign reserves deposited with the US Federal Reserve,” the report said.

Economic expert Ahmed Tabaqjali said, “Participation in international cross-border money transfers requires compliance with global anti-money laundering provisions, anti-terrorist financing provisions, and sanctions provisions,” noting that “the new regulations require high levels of disclosure and transparency, which shocked many of our banks.” not used to it.”

According to the financial advisor to the Prime Minister, Mazhar Muhammad Salih, Iraqi banks must now register their dollar transfers on an electronic platform to review transfer requests, saying that “the US Federal Reserve examines the requests and if there are doubts, it stops the transfer.”

Saleh pointed out that “since the adoption of the new mechanism last November, the US Federal Reserve has stopped about 80 percent of transfer requests to Iraqi banks due to allegations of doubts about the final destination of these transfers.”

The report indicated that “this led to a shortage of the dollar in the Iraqi market and consequently a decrease in the value of the dinar against the dollar, which raises fears of a decline in purchasing power among the Iraqis.”

almaalomah.me