Sudanese advisor: Colorful noise behind the dollar’s rise
Sudanese advisor: Colorful noise behind the dollar’s rise
2025-06-19 02:33
Shafaq News/ The Prime Minister’s financial advisor, Mazhar Mohammed Salih, explained on Thursday that the rise in the US dollar exchange rate against the Iraqi dinar in the parallel market is due to what he called “information noise” related to the Iran-Israel war, in expectations based on what is called “colored noise.”
Saleh told Shafaq News Agency, “The secondary exchange markets do not represent any economic value in stabilizing the national economy today, as long as the fixed exchange rate and external value of the Iraqi dinar are tied to foreign currency reserves that are the highest in the country’s monetary history, and the efficiency of those reserves exceeds fifteen months of trade coverage, compared to the global standard of three months.”
He explained that “exchange rates in this parallel market are usually affected by information noise, especially related to the Iran-Israel war. Because it is an information market, it conflicts with that information in favor of raising foreign currency prices in expectations based on what is called ‘colored noise’, in order to form a price trend in the dollar exchange rate and create an unstable price gap that achieves benefit and limited profits for speculators. This is a temporary situation that should disappear with the end of the war crisis and its current tensions.”
He pointed out that “the country’s major trade and transfers are conducted through the legal banking market, at an official exchange rate not exceeding 1,320 dinars per dollar, via the country’s banking system. Iraq’s commodity stocks extend for the majority of durable goods, extending between three and five years. At the same time, the state secures essential food and health commodities in its national strategic stockpile, which is subsidized to achieve living and real income stability.”
Baghdad and Erbil markets witnessed a decline in the US dollar exchange rate against the Iraqi dinar today. The exchange rate on the Al-Kifah and Al-Harithiya stock exchanges reached 143,250 dinars per $100, compared to 143,850 dinars the previous day. Meanwhile, buying and selling prices in exchange offices and the region’s governorates declined slightly.
Since the beginning of this week, the dollar exchange rate has increased against the local currency in Iraq due to the mutual military operations between Iran and Israel, and fears of escalating tensions in the Middle East, which could lead to the disruption of oil exports due to the closure of the Strait of Hormuz.
Last Sunday, Iraqi security authorities announced the arrest of more than 600 individuals accused of exploiting the ongoing conflict in the region to raise food prices and the exchange rate of the US dollar against the dinar in local markets across the country.
shafaq.com
