On Saturday, financial expert Saleh Al-Bankari identified three factors behind fluctuations in the dollar exchange rate in the Iraqi market.
During an interview, the banker mentioned that the dollar exchange rate in the parallel market has fluctuated significantly over the past few weeks. He explained that this is due to three main factors, including the current regional conditions and their impact on the Iraqi scene, as well as the issues of smuggling and speculation. Additionally, he pointed out that influential parties behind these factors are working to either raise or lower the exchange rate.
“He stated that during the first quarter of 2024, a significant number of projects would be launched, resulting in the distribution of cash in the market. This would lead to an increase in demand for the dollar to secure the import of goods and raw materials, ultimately creating more pressure on the parallel market. As a result, exchange rates may rise to higher levels.”
He mentioned that the Central Bank’s measures, along with the government’s efforts to promote electronic trading and put an end to the use of the US dollar, are necessary steps to control the parallel market and prevent manipulations by speculators. However, controlling it requires time and special efforts, especially considering the presence of uncontrolled border crossings.
The fluctuating dollar exchange rates in the parallel market have raised concerns about its instability.
