January 12, 2021 | banking

Economist: This Is The Reason For The Variation In The Exchange Rate Of Dollar Against Dinar


Baghdad / NINA / -The specialist in economic affairs, Hussein Shaker Tahelo, attributed the difference in the exchange rates of the dollar against the dinar in the Iraqi market to the presence of a huge cash block of dollars in the trading market and the lack of demand for the dollar.

In a statement to the National Iraqi News Agency (NINA), Tahelo said, 'Each country has its own monetary system and its own currency. This currency performs its functions at home and is unable to perform these functions outside the state’s borders, and then the foreign exchange market interferes to enable these currencies to perform their function abroad through the settlement of international payments and bank transfers as well as bank credits and others. '

He added: 'After the central bank approved the exchange rate of the dollar to 1460 dinars, this price confused the Iraqi market, and we find that there is a disparity in the exchange rate in the parallel market of 1440 and sometimes reached 1390 dinars. All this disparity has helped the speculative operations in the market and a very large increase in the profits of banking companies, due to the presence of a huge block of the dollar in the trading market and the lack of demand for the dollar.'

He pointed out: 'The central bank's sales amounted to 200 million dollars per day, during the previous days, and we notice that in these days it has decreased dramatically and its sale reached 15.5 million dollars and in some days less than this amount, and this is an indication of weak capacity of the purchasing power of the Iraqi citizen, so this rise and disparity has also led to the disclosure that bank transfers are tainted by suspicion and bank credits by importers are mostly forged and through which hard currency is smuggled abroad. '

He continued, 'The only affected person is the Iraqi citizen as a result of the wrong central bank policy and the government's failure to manage the country.'

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