Financial expert: “Economic uncertainty” behind the dollar’s decline in Iraq

Financial expert Mahmoud Dagher attributed the gradual decline in the US dollar exchange rate against the Iraqi dinar on Monday to “economic uncertainty,” weak government spending, and a stagnant market.

Dagher told Shafaq News Agency, “The reason behind the dollar’s decline against the Iraqi dinar is the state of uncertainty in the Iraqi economy, the recession resulting from the somewhat low price index, and the disproportion between the dinar and the volume of the dollar being transferred, as the volume of the dinar has begun to shrink in the face of a large supply of dollars.”

He added, “This is an issue with no clear economic variable or direct government decision, because the state is spending less, and when the pace of spending decreases, demand pressure decreases accordingly.”

Dagher pointed out that “the gap still exists, at approximately 8,000 dinars per note, which means we are still far from the target price, and speculation continues in the markets.”

The dollar exchange rate has been gradually declining since the beginning of this year, approaching the official rate adopted by the Central Bank of Iraq.

Ahafaq.com