Iraq to sell dollars to travelers as parallel market disparity grows

Iraq to sell dollars to travelers as parallel market disparity grows

Shafaq News/ On Wednesday, Iraqi state banks will begin selling US dollars to travelers starting next week, according to procedures approved by the Central Bank of Iraq, a knowledgeable source revealed.

The source told Shafaq News Agency that "state banks are preparing to implement the Central Bank of Iraq's instructions to sell dollars to travelers at the official exchange rate in airports." The move is part of the government's efforts to address the ongoing dollar crisis.

The source added that "dollars will be delivered to travelers through designated counters of state banks located in airports," noting that "state banks are awaiting notification from the Central Bank of Iraq to receive official approval to commence the process of selling and distributing dollars in airports."

The Central Bank of Iraq decided on July 4, 2024, to begin selling dollars to travelers exclusively through counters of companies and banks at international airports.

Earlier today, economic expert Nabil Al-Marsoumi warned of the increasing disparity between the parallel market exchange rate of the US dollar and the official rate set by the Central Bank of Iraq (CBI), highlighting its potential impact on the Iraqi market.

"If traveler dollars actually reach travelers, the parallel dollar will soar, widening the gap between it and the official dollar," Al-Marsoumi stated. He explained, "Travelers will hoard a significant portion of the cash dollars."

The exchange rate of the US dollar against the Iraqi dinar has risen following the CBI's decision to allocate dollars to travelers exclusively at airports and issue instructions to currency exchange companies accordingly.

Notably, our correspondent reported today that Al-Kifah and Al-Harithiya central exchanges in Baghdad registered an exchange rate of 150,150 IQD per $100.

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