Iraq faces great difficulties in controlling the dollar.. What are the solutions?
Iraq faces great difficulties in controlling the dollar.. What are the solutions?
2024-11-27 | 05:07
Faces economy Iraq Major challenges due to its close association with the US dollar, as fluctuations in the exchange rate and the control of the Federal Reserve (the US central bank) over the financial system directly affect economic stability in Iraq.
This impact was directly reflected on the citizen’s life. Iraqi On the one hand, the rise in prices of goods and services, the erosion of the value of wages, and the decline in purchasing power.
A thorny file.
The head of the National Center for Monitoring and Evaluation in Iraq, Mohammed Al-Baghdadi, confirmed that the issue of…Dollar It is considered one of the thorny and complex issues in the Iraqi economy. Pointing This file is linked to two main axes, which are the control of the US Federal Reserve over dollar transactions, and supply and demand.
Al-Baghdadi said, “The economy Iraqi It depends entirely on the topic. Dollar And its exchange rate, indicating that the US currency is imported into Iraq By selling oil, but unfortunately, this money is in accounts controlled by the US government,”
he added .IraqHe faces great difficulties in controlling the issue of the dollar, and he said: “Iraq is a consumer country, and during the process of selling Dollar For exchange offices and banks, large quantities of it are withdrawn and sold in the form of external transfers to finance Iraqi imports.”
He added that the issue of the US Federal Reserve’s control over these financial transactions places significant restrictions on Iraq In these operations, noting that the exchange rate depends entirely on the amount of supply and demand.
Despite the passage of about 3 years since the start of the electronic platform to monitor the movement of the dollar, the exchange rates of the dinar against the US currency still witness a large disparity between the official price announced by the Central Bank, which is 1320 Iraqi dinars per dollar, and the black market price, or what is known as the parallel price, which ranges between 1490 and 1510 Iraqi dinars per dollar.
Neighboring countries
Al-Baghdadi stressed that the central government is trying to control the flow of capital from Iraq To neighboring countries to finance imports, but it is very difficult due to the smuggling of large amounts of cash.
For his part, economic expert Kazem Jaber confirmed that the sharp fluctuations in the exchange rate Dollar in Iraq Its causes are not limited to neighboring countries, but extend to include the effects of the international financial system, especially the SWIFT system (for financial transfers) and the monetary policies of the US Federal Reserve.
Jaber pointed out that this system imposes strict restrictions on the movement of funds to countries, which makes them vulnerable to external influences.
On September 4, the Central Bank announced Iraqi Terminating the electronic platform for foreign transfers, early next year.
The platform’s work, in its first phase, is based on reorganizing financial transfers in a way that ensures proactive control over them instead of subsequent control through the Federal Reserve’s audit of daily transfers.
*BRICS bloc
Jaber saw that the Iraqi government’s attempts to control the exchange rate face major challenges due to the heavy reliance on the SWIFT system. Pointing Until Iraq It is striving to achieve greater financial independence from the current global financial system by seeking to join the BRICS economic bloc, which aims to build an alternative financial system based on a basket of currencies, reducing the dominance of Dollar And grants Countries Members have wider options in international financial transactions.
He stressed that resorting to the parallel market may be inevitable to meet the needs of the private sector under these circumstances.
alsumaria.tv
