Expectations of a decline in exchange rates as a “fait accompli.”
Yes Iraq: Baghdad… It seems that the dollar prices in the Iraqi market have begun to sing away from the central bank’s pricing, and have already begun to decline with the mounting calls to return the old pricing, following the rise in oil prices and the trend towards lack of financial deficit, which negates the need for the continuation of the new dollar pricing.
And the exchange rates of the dollar against the dinar began during the past few days in the Iraqi markets, which fall within the circle of 145 thousand, as the selling prices for today, Monday, 145.750 dinars per hundred dollars, compared to 144750 for purchase.
For his part, the expert in economic affairs, Raad Twig, suggested that the dollar exchange rate against the dinar would decrease as a result of the revival of the local market and the rise in oil prices.
Twig said in a press statement, that the average price of the dollar recorded a decrease from 1460 dollars, which is the official price of the Central Bank of Iraq, 1447.5 dinars for purchase and 1457.5 for sale, as a result of the recovery of sales of the Central Bank through the currency window last Thursday, to 155.984 million dollars at the official price.
He pointed out that “this move in the cash demand comes after it was met by stagnation in the Central Bank of Iraq’s dollar sales since the Iraqi dinar price was reduced as a result of the presence of excessive real domestic demand for imported goods for fear of extending urban periods as a result of the epidemic, as well as the merchants’ reliance on contentment with a steadfast decision. The Central Bank reduced the exchange rate of the Iraqi dinar and the Ministry of Finance pledged to compensate traders and contractors for their losses due to the decrease in the price of the dinar.
He explained that the decisive matter in the decrease in the price of the dinar is the increase in the reserves of the Central Bank of Iraq from 15 billion dollars to 55 billion dollars as a result of the increase in oil prices to 67 dollars per barrel and the decrease in the domestic demand for the dollar. No increase in oil prices and the arrival of vaccines in Iraq.
The economist expected more oil gains, which amount to 20% per month, and that the sale of oil would reach $ 70 a barrel.
For his part, the specialist in economic affairs, Dergham Muhammad Ali, stressed that the recovery of oil prices and the injection of the Corona vaccine around the world will increase economic recovery and reduce the need to change the exchange rate.
Muhammad Ali said that “the pretexts for reducing the exchange rate of the dinar and its wages on the Iraqi market from the burdens of inflation, stagnation and an increase in poverty rates were negated by the recovery of oil prices, which creates growth in budget revenues.”
He added, “The costs of eliminating the effects of the change in the exchange rate are severe and ineffective and do not effectively target the most affected groups, noting that” the closure caused by the second wave of Corona virus has exacerbated the already deteriorating economic situation from the government’s unmetered economic behaviors that affected the lower income groups.