Member of the Parliamentary Finance Committee, Mudar Al-Karawi, confirmed on Sunday that the Central Bank of Iraq has begun adopting five mechanisms to contain the rise in the parallel market.
In an interview, Al-Karawi expressed his concern about the instability caused by the difference in the dollar exchange rates between the Central Bank and the parallel market, which is as much as 20%. This high percentage reflects a severe state of concern.
During an interview, he mentioned that the demand for the parallel market is increasing, which might lead to a rise in the dollar’s value. He also highlighted the negative indicators and issues during his last meeting with the Central Bank’s management. These issues include challenges in securing liquidity for the dollar to meet all its requests. The bank has implemented five mechanisms to contain the increase in the parallel market, including reducing the use of dollars in transactions for specific contexts.
He pointed out that “reducing the dollar exchange rate is very important, especially since any rise leads to great pressure on the markets and pushes prices higher, with speculators exploiting any opportunity to profit.”
The exchange rate for the dollar in Iraq has become unstable, breaking the 160,000 dinars per $100 barrier.
