Iraqi Dinar struggles amidst Gaza conflict and economic uncertainty
Shafaq News/ The Iraqi dinar continues its turbulent journey against the US dollar, with economic specialists pointing to the ongoing war in Gaza and a conducive economic and political environment contributing to the dinar's instability. Additionally, recent agreements between the Central Bank of Iraq and its Iranian counterpart to conduct transactions in local currencies have raised hopes of stabilizing the exchange rate.
In Baghdad, dollar prices dropped slightly, reaching 161,000 dinars against 100 dollars, down from 162,200 dinars earlier in the day. Local market exchange shops also experienced a decrease, with selling prices reaching 162,000 dinars for 100 dollars and purchase prices at 160,000 dinars for the same amount.
Economic expert Mahmoud Dagher highlighted new variables, such as the Gaza conflict and actions by Islamic resistance factions, as potential sources of instability for the dollar.
Dagher emphasized the conducive economic and political environment, citing it as a catalyst for the dinar's decline and a potential increase in the dollar's valuation, driven by the need to cover imports for sanctioned countries and internal speculation.
Halim Salman, a prominent researcher and writer, underlined uncontrolled trade with sanctioned countries and entities, which the US Federal Reserve barred from transferring dollars, as a significant contributor to the lack of exchange rate control. Salman emphasized the necessity for the Central Bank of Iraq to establish legitimate channels for merchants and tighten control over large banks and exchange houses dealing in dollars.
Salman also highlighted the challenges posed by currency market speculators, indicating expectations of stricter measures against those undermining the country's economic security. He anticipated a potential decline in the exchange rate following the recent agreement between the Central Bank of Iraq and its Iranian counterpart, allowing commercial payments in dinars and tomans eliminating the dollar from these transactions.
Parliamentary representative Nayef Al-Shammari expressed concerns about the impact of the rising dollar exchange rate on ordinary citizens. He told Shafaq News Agency that the House of Representatives would address these concerns by hosting financial experts during upcoming sessions. Discussions will focus on the reasons behind the increase and explore measures to mitigate its effects. Al-Shammari stressed that the dollar's decline depended on the strategies and implementation of Iraqi monetary policy.
