Baghdad trade counts the benefits of the high dollar on the Iraqi economy

by **claud39** on Thu Oct 29, 2020 1:43 pm

Baghdad trade counts the benefits of the high dollar on the Iraqi economy

2020-10-28

Baghdad trade counts the benefits of the high dollar on the Iraqi economy 1601979749664

Shafaq News / The head of the Baghdad Chamber of Commerce, Firas Al-Hamdani, on Wednesday, considered the rise in the price of the dollar positive for the country's economy, indicating that this would withdraw cash from people's homes.

Al-Hamdani said in an interview with Shafaq News, that "the high price of the dollar does not affect the country's economy," indicating that "the rise of the dollar by 10 to 20% will strengthen the Iraqi state budget by withdrawing surplus cash from people's homes and thereby strengthening the economy."

He added, "We are not looking for the economy of some merchants, but rather we are looking for the nation’s economy. If there is a deliberate withdrawal or a deliberate rise in the price of the dollar against the Iraqi dinar, then it is positive for the country's economy."

[size=20]The former governor of the Central Bank of Iraq, Ali Al-Alaq, revealed in December 2015 that 77% of the Iraqi currency in circulation in the market is hoarded in residential homes, indicating that the bank will develop a plan to attract these funds for investment.[/size]

Al-Hamdani added, "The rise in the price of the dollar will benefit the local product as well, as the local product is expensive considering that there is no real infrastructure for the Iraqi factory, and since foreign goods are competitive despite their poor quality, the rise in the dollar will lead to raising the imported goods and the local product will be able to compete for the price of the goods Foreign. "

It is noteworthy that the term "hoarding" means holding money and keeping it from circulation. Hoarding may be by burying money or keeping it in funds inside homes and not taking it out for circulation in the money and capital markets.

A member of the Parliamentary Economic and Investment Committee, Mahmoud Al-Zajrawi, had confirmed in an interview with Shafaq News that there are attempts to raise the exchange rate of the dollar in the Iraqi markets, so that every 100 dollars has 150 thousand Iraqi dinars, noting that “manipulating exchange rates will mainly affect the simple citizen.

The Iraqi markets are witnessing a gradual rise in the exchange rates of the dollar against the Iraqi dinar. The exchange rate of the dollar today on the Kifah Stock Exchange recorded 125200 dinars per hundred dollars

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