Specialists reveal: These are the reasons for the rapid rise of the dollar against the dinar

by **claud39** on Sat Oct 03, 2020 12:41 pm

Specialists reveal: These are the reasons for the rapid rise of the dollar against the dinar

2020-10-03

Specialists reveal: These are the reasons for the rapid rise of the dollar against the dinar 1596640122259

Shafaq News / The exchange rate of the dollar against the Iraqi dinar increased rapidly and rapidly over the past three days, reaching 124,500 thousand dinars in the local markets, after it was about 120,000 dinars per 100 dollars.

He attributed some exchange offices to the high exchange rate of the dollar due to the unstable security situation in recent times and America's threat to close its embassy as a result of firing some missiles at the embassy building.

Financial analyst Majed Al-Suri said in an interview with Shafaq News that "the price of the dollar is very sensitive and is affected by several matters, including political, social, financial and security," indicating that "the decline in oil prices, the presence of Corona and the existence of the financial crisis of the Iraqi government are certainly being exploited by speculators in order to raise prices." ".

Al-Suri, who is also a member of the Board of Directors of the Central Bank, added that "what is being raised about the closure of the US embassy, which has not been implemented, has also been exploited to raise the price of the dollar," noting that "the central bank has tools and procedures to ensure that the dollar has not risen significantly."

He pointed out that "the rise that happened recently will not be great and did not exceed 3%, and therefore it remains within the internationally permitted limits."

For his part, a specialist in economic affairs, Dergham Muhammad Ali, considered that a banking alliance would lead the rise in the exchange rate of the dollar by creating a black market for it, despite selling it at a fixed price by the Central Bank.

Ali said an interview with Shafaq News, "If we had a banking system that works with true ethics, there would be no black market for dollars, and it would have been sold at a price close to the central bank's price to the public."

He added that "the number of private banks, which exceeds 80 banks, without economic or credit impact, indicates that they live on the differences in the auction price of the Central Bank of Iraq.

He pointed out that "any increase in the exchange rate in light of the stability of the central bank rate reflects two cases. The first is the increase in demand, locally for the dollar, and the second is the increase in the profitability of private banks by raising the exchange rate difference between the official and the market, which is caused by the coalition of corruption in the banks that are responsible for pumping the currency." Foreign market after receiving it from the central bank. "

For his part, the merchant selling clothes in the Shorja area, Muhammad al-Hasani, said in an interview with Shafaq News that "there is a remarkable demand for the dollar recently as a result of the unstable conditions in Iraq and therefore most traders and citizens resorted to converting his Iraqi currency into the dollar as it is one of the fixed currencies in the market. ".

Al-Hassani pointed out that "the price of the dollar is not currently affected by supply and demand in the market," indicating that "there is a weakness in the demand for purchases, but there is a demand to buy the dollar."

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