Since the end of last year, Iraq has been experiencing fluctuations in the dinar’s exchange rate with the dollar, despite the central bank’s efforts to stabilize the currency.
It is important to note that the fluctuation of the dollar exchange rate has a negative impact on Iraq’s economic reality in the first place. However, there are individuals who take advantage of this issue for their own personal gain, such as currency smugglers and price speculators.
In light of the fact that private banks and businesses deal with the Central Bank of Iraq and that not everyone has the right to buy the currency auction, economic expert Qasim Balshan claims that the difference in the dollar exchange rates opens the door to corruption.
“The state did not take real, actual measures to protect the Iraqi dinar, and all that was circulated were media statements that have no benefit on the ground,” Balshan stated in an interview with dinaropinions.com.
“There are influential political figures and blocs behind the rise in the dollar exchange rate,” he remarked.
Through its foreign policy, sanctions, and restrictions on financial transactions, the United States of America has prevented Iraq from achieving economic stability over the past few years to further its strategic interests.
Firas Al-Maslamawi, a member of the State of Law, claims that the US Federal Reserve is using the dollar to control Iraqi liquidity in this setting.
In an interview with dinaropinions.com, Al-Maslamawi stated that “the means of delivering the dollar and its restriction by the Federal Bank cast a shadow over the creation of liquidity in the Ministry of Finance.” Additionally, he mentioned that “the external liquidity file requires a high-level government effort in order to solve this issue and increase the quantities of dollars flowing into Iraq.”
Iraq’s economy is vulnerable to exchange rate fluctuations and US policy measures as a result of global sanctions, which force it to rely on the dollar for international trade.
