The dinar is recovering and the dollar is declining. A government advisor reveals the reasons.
The dinar is recovering and the dollar is declining. A government advisor reveals the reasons.
2025-04-26 04:37
Shafaq News/ The Iraqi Prime Minister’s financial advisor, Mazhar Mohammed Salih, attributed the local currency’s recovery against the US dollar to several factors, including the use of electronic payment cards and foreign trade financing, on Saturday.
Saleh told Shafaq News Agency, “Any true economic system is governed by the law of supply and demand, including, of course, the money markets.” He explained that “the decline in demand for cash dollars is due to the increased use of electronic payment cards and the heavy reliance of the traveler sector on them, which is part of society’s fast-paced culture.”
Among the reasons for the local currency’s improvement, Saleh pointed to “the discipline with which most travelers obtain their dollar quotas upon departure, legally and regularly receiving them at airports, as well as the flexibility of financing foreign trade for the private sector through correspondent banks at the official exchange rate of 1,320 dinars per dollar.”
Among the reasons, Saleh pointed to “the regular availability of dollars and foreign currencies after the removal of the previous payment platform and the end of its operations, and the subsequent success of adopting the Central Bank’s new mechanisms in this regard, including high levels of compliance and banking governance.”
The government advisor emphasized that “these factors combined have helped reduce demand for cash dollars from the secondary or parallel market, in favor of less expensive and more flexible official payment alternatives.” He considered this “a remarkable success for the Central Bank of Iraq’s foreign and domestic monetary policy in achieving its goals of monetary stability and regular economic life.”
The dollar has been gradually declining against the Iraqi dinar over the past few days, reaching 144,350 dinars in Baghdad today, Saturday, after trading at 150,000 dinars last month.
shafaq.com
