Two reasons for the rise in the dollar .. Advisor Al-Kazemi: temporary bubbles affected by speculative rumors
Two reasons for the rise in the dollar .. Advisor Al-Kazemi: temporary bubbles affected by speculative rumors
9/12/2020 11:20
[Baghdad-Where]
The financial advisor to the prime minister, Mazhar Muhammad Saleh, identified, on Wednesday, two reasons for the high exchange rate of the dollar, stressing that they are temporary bubbles affected by speculative rumors to reap profits.
According to the official agency, Saleh said, “The exchange market, as it is known, is one of the markets most affected by information. Rather, all its decisions depend on the available information and its level of credibility, but there are two reasons for the price fluctuating slightly above its usual rates of stability in the parallel market.”
He added, “The first reason is that the budget bill is close to being approved, and the conflicting, colored and confused information was raised about correcting the exchange rate, which generated vague signals that the market adopted for speculation and hedging in a short period.”
He continued, “As for the second reason, it is the approaching date of the legislative elections, the political strife, and the signals and information they generate regarding political gains, or the reasons for preparing for the elections, which give a high state of uncertainty among market makers regarding the political and economic situation of the country.”
He pointed out that “all these factors lead to anxiety in the decisions of buying and selling in foreign currency, and maintaining a price slightly higher than the market’s balance and levels of stability.”
He stressed that they are “temporary bubbles affected by speculative rumors, to reap emergency profits from price differences,” indicating that “correcting the exchange rate will remain a monetary policy action for the Central Bank of Iraq, which is the only source of information.”
alliraqnews.com
