Economist Abdul Rahman Al-Mashhadani said the recent rise in the dollar exchange rate in Iraq’s local markets is not justified by normal market conditions. He accused influential parties of creating the increase in order to generate large profits for certain banks that are not subject to sanctions.
Al-Mashhadani stated that the local market is experiencing significant instability and confusion because of the continued increase in exchange rates. He called on the Central Bank of Iraq to carry out an urgent and comprehensive review of its current monetary policy measures.
According to him, the Central Bank should intervene quickly by supplying sufficient amounts of U.S. dollars to the market in order to reduce pressure on exchange rates and limit speculative activity.
He warned that if no effective action is taken, the exchange rate could continue rising, leading to a deeper economic problem and greater pressure on the market.
Earlier, economist Dirgham Mohammed Ali said that one of the main reasons behind the recent increase in the dollar’s value was the withdrawal of Al-Taif Bank from its role in handling dollar inflows through the Western Union network.
He explained that Al-Taif Bank had been one of the major official channels for bringing dollars into Iraq, and its withdrawal affected the flow of foreign currency into the local market, contributing to the recent rise in exchange rates.
