monetary researcher Mustafa Akram Hantoush emphasised that addressing the exchange rate difficulty in Iraq calls for working on important aspects: reforming the banking system and dismantling the parallel marketplace. He stated that any partial solutions will now not be enough to achieve the preferred balance.
In an interview with dinaropinions.com, Hantoush explained that “the Iraqi banking device suffers from vulnerable competition because of the limited sale of dollars to a constrained quantity of banks, in addition to the truth that maximum of them face international sanctions.” He indicated that “the current cooperation with Oliver Wyman goals to locate sensible solutions and growth the banks’ capital.”
He pointed out that “decreasing regulations at the banking gadget and commencing up competition in overseas remittances will make contributions to marketplace stability,” noting that “the other side of the answer is dismantling the parallel market linked to alternate with Iran, where small traders and tourists to sanctioned international locations function.”
Hantoush defined that “possible answers consist of agreeing with america Treasury department on mechanisms for shifting price range, setting up three-manner accounts for imported goods, and growing criminal formulation for shifting price range to sanctioned international locations through price cards in their local currencies.”
He concluded with the aid of pronouncing, “Controlling the parallel marketplace should repair the dollar exchange fee to 135,000 dinars in line with $a hundred, if these steps are implemented comprehensively.”
