Special |..
Economic researcher Manar Al-Obaidi confirmed today, Saturday, that while the prices of other goods imported from countries where banking transactions are permitted, such as meat, electrical appliances, and furniture, have increased, the prices of goods imported from countries where banking transactions are prohibited, such as Syria and Iran, have decreased. These goods include vegetables, fruits, dairy products, and eggs.
In a statement to the “Jarida” platform, Al-Abidi stated:
The Central Bureau of Statistics reported that the annual rate of inflation for May 2024 was 3.4%, which is considered to be one of the lowest rates among the countries in the region. The majority of traders participate in bank transfer operations, which rely on a fixed exchange rate of 1320. As a result, the parallel market’s exchange rates have become a major contributor to inflation, particularly for goods imported from Central Bank-approved nations.
When looking at the inflation data, it becomes clear that, in comparison to the rise in the prices of other goods imported from countries where banking transactions are permitted, such as meat, electrical appliances, and furniture, the prices of goods imported from countries where the banking sector is prohibited for commercial transactions, namely Syria and Iran, have decreased. These goods include vegetables, fruits, dairy products, and eggs.
According to this information, inflation rates in Iraq are more influenced by external factors than by parallel market exchange rates. As a result, it is anticipated that inflation rates will remain at these low levels as long as the Central Bank maintains a fixed exchange rate for financial transfers to purchase various goods, and there will be no significant impact on inflation in the coming period from the rise or fall of exchange rates in the parallel market.
