2024-08-20 21:03:53
Baghdad/Al-Masala: Iraqi markets are experiencing continuous fluctuations in the dollar exchange rate, which is seriously affecting the local economy.
This is due to several factors, including being heavily dependent on imports, and the extortion and bribery operations that force some to deal with the black market.
These challenges increase the pressure on the exchange rate and worsen the economic crisis that the Iraqi citizen is suffering from.
A comprehensive re-evaluation of current policies is needed to address the real roots of the problem and to achieve sustainable economic stability.
Given the constant fluctuations in the dollar exchange rate in Iraqi markets, it is possible to identify a group of fundamental reasons that contribute to this phenomenon.
Extortion, bribery and smuggling are among the main factors that lead to exchange rate fluctuations, and people who get their money through illegal means, such as illegal trade or other activities they cannot disclose, avoid using official channels to deal with dollars and instead make a choice. that… The black market, which increases the demand for the dollar and increases its price against the Iraqi dinar.
Economic affairs researcher Diaa Al-Mohsen says that the extortion, bribery and smuggling operations carried out by dollar dealers who cannot reveal the sources of their money are the first reasons for the fluctuation of the dollar exchange rate in local markets.
Despite the efforts made by the government and the central bank to control the exchange rate, these measures did not touch the heart of the problem.
The Iraqi market is highly dependent on imports, as most of the oil revenue is spent on ensuring the needs of the local market for goods and services.
This heavy reliance on imports makes the Iraqi economy vulnerable to exchange rate fluctuations, as any disruption to the flow of the dollar leads to an increase in demand on the black market, compounding the problem.
To overcome these challenges, financial experts believe that economic authorities must rethink their policies related to the exchange rate, focusing on diversifying sources of income and reducing dependence on the dollar.
This can be achieved by encouraging local economic sectors, especially in the fields of agriculture and industry.
The Central Bank’s reserves, which exceed $115 billion, offer a great opportunity to finance local development projects by providing soft loans to owners of economically viable projects.
In addition, there is a need to adopt modern technology in agricultural and industrial production to reduce dependence on imports and close the gap between domestic supply and demand. In this way, pressure on the dollar can be reduced and the exchange rate can achieve greater stability.
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