Financial expert: Expectations of a dinar devaluation are driving increased demand for the dollar and fueling speculation.
Financial expert and former Director General of the Central Bank of Iraq, Mahmoud Dagher, revealed on Wednesday that expectations of a reduction in the value of the Iraqi dinar in light of the economic situation and existing debts are driving an increase in demand for the dollar and a rise in its price in the local market.
Dagher added, in an interview with Shafaq News Agency, that statements and leaks related to the work of the Central Bank or the possibility of changing the exchange rate contribute to strengthening waves of speculation, noting that the market usually enters a cycle of anticipation that pushes towards strengthening dollar holdings among various economic actors, which is directly reflected in prices.
He explained that such expectations often lead to a collective behavior among individuals and companies towards converting savings into foreign currency, which increases the demand for it in the free market.
The local markets witnessed a rise in the exchange rate of the dollar against the Iraqi dinar during the past few days; as it recorded on Wednesday in the Al-Kifah exchange 156,000 dinars for every 100 dollars, while the official rate adopted by the Central Bank is 132,000 dinars.
Shafaq.com