Iraq Economic News and Points to Ponder Saturday Afternoon 2-28-25

An Analysis Explains In Detail The Reasons For The Fluctuations Of The Iraqi Dinar Exchange Rate Against The Dollar In 21 Years
 
Economy     Iraq     Breaking     Dollar     Fluctuations     Dinar prices  2025-02-28 01:04   Shafaq News/ The “Iraq Future” Foundation for Economic Studies and Consultations   attributed, on Friday, the reasons for the fluctuations of the dinar exchange rate against the US dollar in the parallel market over more than two decades in the country to internal and external factors.
 
This came according to an analysis issued by the Foundation in which these fluctuations explained from 2005 until 2024.

In its analysis, the Foundation stated that 
“the Iraqi dinar exchange rate against the US dollar in the parallel market witnessed noticeable fluctuations over the past 21 years, as it was affected by a group of factors that ranged between 

     politics, 
     legislative and 
     economic.” 

However, the analysis added that “the supply and demand were the most influential, as the 
patterns of changing the exchange rate differed according to the months of the year as a result of internal and external factors, such as the 

     timing of the public budget launch and 
     official holidays in major countries exporting goods to Iraq, such as China and Iran.”

He pointed out that  “by analyzing the exchange rate data in the parallel market from 2005 to the year 2024,  it appears almost a repeated format that reflects the impact of the value of the dinar in more months than others.” According to the Foundation,
 
“The month of December was the most frequent in the high value of the dinar, as it witnessed a decline in 13 years out of 21 years, followed by: August and June, with heights in the value of the dinar against the dollar in 11 years, then April 10 times, while the month of October and November had witnessed an increase in 9 times, and March 8 times.”
 
The month of May was the least repeated in the decline in the value of the dinar, as
 
its value increased only 4 times throughout the studied period, which gives almost the impression that the dinar prices against the dollar rise in February, Azar and Nissan, then the decrease against the dollar in May as a result of the return of the demand strongly in May.

In its analysis, the Foundation warned that
 
“despite this clear seasonal effect on the exchange rate, 

there are other factors that cannot be ignored, such as the levels of the dollar selling by the Central Bank of Iraq that directly affect the size of the cash supply in the market, as well as 

     political and financial factors such as the timing of the public budget funds, as well as the 

     geopolitical conditions that may cause sudden disturbances in the demand for foreign currency.” The analysis concluded that “the effect of the

 seasons of the year remains one of the main elements in determining the trends of the exchange rate in Iraq, where
 
a frequent pattern appears at the end of the year and the beginning of the fiscal year, in addition to its influence on the official holidays in the countries exporting goods to Iraq,
 
but other factors, such as 
     monetary policies and 
     political and economic developments, 

remain a direct impact on the parallel market,  which makes it necessary to monitor all these variables to understand the exchange rate changes with more accurately.” 
  
https://www.shafaq.com/ar/اقتصـاد/تحليل-يشرح-سباب-تقلبات-سعر-صرف-الدينار-العراقي-مام-الدولار-خلال-21-عاما 

Al-Alaq: Iraq Has Become One Of The Best Countries In The World In Controlling The Sale Of The Dollar

Banks  Economy News – Baghdad  The Governor of the Central Bank, Ali Al-Alaq, confirmed on Saturday that Iraq has become one of the best countries in the world in controlling the sale of the dollar.

Al-Alaq said in a statement reported by the official news agency, and reviewed by “Al-Eqtisad News”, that “Iraq has today become one of the best countries in the world in controlling the sale of the dollar, as this process is carried out with transparency and accuracy, and through it the citizen verifies his documents and his departure from the country,” explaining that “this mechanism is the most disciplined, transparent and controlled in the world, as indicated by international experts.”

Al-Alaq noted that “false news and media distortion may harm the interests of Iraq and the banking sector,” stressing the importance of being proud of the major developments that Iraq is witnessing.

He pointed out that “the government and the Central Bank are working hard to establish sound practices that are compatible with international standards,” calling for “the need to highlight these achievements in the media.”

He pointed out that “highlighting these transformations and developments helps enhance international confidence in the Iraqi banking sector, which is vital to the continued development of the financial system in Iraq.”   https://economy-news.net/content.php?id=53062

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