The fluctuation of dollar prices raises the concern of traders and citizens, and experts expect what will happen

The fluctuation of dollar prices raises the concern of traders and citizens, and experts expect what will happen

2023-04-13 02:15

The fluctuation of dollar prices raises the concern of traders and citizens and experts expect what will happenShafaq News/ The exchange rates of the US dollar against the Iraqi dinar have been fluctuating up and down for about a month and a half, until it initially reached 157 thousand dinars, while it is currently declining to a level less than 145 thousand dinars, which negatively affected the Iraqi market and the Iraqi economic reality. in general.

Economists attribute the occurrence of these daily fluctuations to the delay in the external transfer due to slow and opaque procedures by the banks, which may not know the transfer mechanism, or may be deliberate in order to obtain gains by selling in the parallel way on the black market to obtain gains from the official price difference that is set. You receive it from the central bank, which led to the current fluctuation.

Specialists call for the necessity of the central bank facilitating the transfer process via the electronic platform and shortening its time in order to reduce the price of the dollar in the parallel market and return the official price and thus stabilize the markets, while others indicate that the current fluctuations are short-term and are on the path of improving the value of the Iraqi dinar.

The dollar is in decline and the dinar is on the rise

In this context, the advisor to the prime minister for financial affairs, Mazhar Muhammad Salih, says, “The Iraqi markets are witnessing an improvement in the exchange rate of the dinar, as the US dollar is declining and the Iraqi dinar is on the rise.”

Regarding the daily fluctuations, Salih explained to Shafaq News agency, “These fluctuations are on the path of improving the value, price and strength of buying the Iraqi dinar, and in the coming days it will be gradually better.”

The financial advisor attributes the reason behind these fluctuations, to the fact that “transfers that comply with international compliance rules have increased the value of Iraqi banks, as the Central Bank’s window sales of foreign currency exceed 200 million dollars, which means that there is interference and control over liquidity levels, and this is the work of Monetary policy to stabilize and reduce exchange rate stability.

And he adds, “These fluctuations are short-term, and they occur on the path of convergence of the parallel market exchange rate from the official market, and this is what we expect in the coming days, due to the flexible packages and large facilities provided by the Central Bank and the government,” stressing that “the government’s collaboration with the Central Bank was born A climate of high stability for the exchange rate, and an improvement in the value of the dinar in light of the large reserves that support this stability.

“game of banks”

In turn, the head of the Babylon Chamber of Commerce, Sadiq Al-Faihan, points out that “the process of delaying the sending of remittances by banks about a month and a half ago led to a delay in the work of merchants, so they were forced to buy dollars from the local market called (the parallel market), so the withdrawal on it increased even more.” from the official transfer.

Al-Faihan revealed to Shafaq News agency, “There are slow and vague banking procedures. Banks may not know the transfer mechanism, or they may deliberately in order to obtain gains by selling in the parallel way on the black market, and this led to a fluctuation in the local exchange rate, up and down, until it reached The beginning was 157,000 dinars, and now it has fallen to 145,000 dinars, which harmed the market and the citizen, because it led to a delay in the external transfer.

Al-Faihan considered, what is happening is “a game played by banks and behind it, perhaps political or influential parties, to obtain large gains, as it is received from the Central Bank at the official price, as it is sold daily at around $200 million to banks, and there is no transfer, and therefore these banks sell it in the market.” The parallel difference between 20 and 25 thousand dinars.

Al-Faihan does not rule out, during his speech, that “the central bank is complicit with local banks in delaying financial transfers to merchants in order to encourage the parallel market or sell currency outside the official framework,” calling on “the central bank to facilitate transformational procedures through the electronic platform and shorten them instead of taking them 30 to 35 days.” To a week as a maximum, as in the rest of the world, for the official price to return, and thus the markets will stabilize.

negative reflections

For his part, the head of the Basra Chamber of Commerce, Sabih Al-Hashemi, says, “The instability of the dollar price has negative repercussions on the Iraqi economic reality in general, and is directly affected by businessmen, merchants, contractors, and even citizens, as well as creating an unattractive environment for local and international companies to enter into projects.” strategic investment.

Al-Hashemi explains to Shafaq News agency, “When the price of a contracting or the purchase of a material supply is regulated at a certain price in dollars, and then there is a rise in prices, this change causes harm to the businessman, contractor or trader, and the citizen is not isolated from this harm, when he sees the prices of foodstuffs Consumer consumption is on the rise due to the rise in dollar prices.

As for the businessman, Ahmed Fadi, he believes that “the fluctuation of exchange rates in dollars at the current stage does not affect the prices of goods and products offered in the markets, but the greed of imported merchants, as well as those who manipulate the prices of products, foodstuffs, and durable goods that are currently in the market, is the reason for the rise and fall in prices.” As well as increasing the prices of products without any supervision or accountability.

During his speech to Shafaq News agency, Fadi calls on the government to “activate a number of laws, including the laws of monopoly and manipulation of market prices, in addition to limiting the control and manipulation of some merchants and companies over the prices of products and materials, which leads to high prices for the consumer, as well as for The government monitors the market and understands the mechanism for the importer and the final supplier for citizens.

For his part, the citizen Abu Hussein from Najaf governorate complains about the high prices in the markets for reasons that the shopkeepers attribute to him to the dollar, as he says that “the exchange rate affected the simple citizen with limited income more than the merchants and those with high salaries.”

Abu Hussein, who works as a construction worker and has 4 children, added to Shafaq News agency, “The children want to buy new clothes for Eid al-Fitr, but the price of one piece for a child ranges from 10 to 30 thousand dinars in the Najaf markets, and in return my daily wage does not exceed 25 thousand dinars. What might compel me to cancel the idea of ​​new clothes and resort to second-hand (unemployment).”