2023-05-20 14:26:21
Baghdad / Obelisk Al-Hadath: Dollar speculation in financial markets and its fluctuations directly affect the global economy and the standard of living of the individual, while there is fear of widening potential negative effects.
The economic analyst, Nabil Jabbar Al-Tamimi, said that “speculation represents the most prominent reason behind the rise in the dollar exchange rate,” stressing the possibility of the return of foreign exchange stability between 1340-1360 dinars within a week or a little more, in the event that the central bank takes measures related to providing greater facilities. For companies, small merchants, and financial transfer requests, to carry out transfers on (less severe) terms.
The sharp decrease in the value of the local currency (the Iraqi dinar) against the US dollar, which causes an increase in the cost of importing goods and products imported from abroad, which leads to an increase in the cost of living and the impact on the purchasing power of citizens.
Despite Al-Tamimi’s call for “less severe measures,” he “praised the Central Bank’s policies during the recent period,” stressing that those policies “did not lead to restrictions on access to the dollar, and that the rise resulted from speculations conducted by some currency traders taking advantage of the high price of gold.” exchange,” indicating at the same time, that “the currency selling window has maintained a moderate daily sales rate during the past two weeks between 180-200 million dollars per session, which may approach a little bit from the actual need of the Iraqi market for dollars.”
The depreciation of the local currency leads to an increase in inflation in the country, which happened in the past recent months, as prices are linked to the dollar, which increases the price of local goods and services based on exchange rate movements, and thus increases inflation and decreases the purchasing power of citizens.
Al-Tamimi called for the need to stop the “imaginary effect on exchange rates” represented by (mobile applications) that work to promote local exchange rates (black market exchange rates) because they are applications whose displayed data do not include their dependence on real demand in the market (such as a real electronic auction and stock exchange, but are Just an informational display).
The selling price of the dollar was 144,800 dinars per 100 dollars, while the buying price of the dollar was 145,250 dinars per 100 dollars.
The commercial markets witnessed a decline in the exchange rate in the past weeks, but it rose again, which indicates an economic problem that is still present in the country.
And the Central Bank of Iraq decided, earlier, to adjust the exchange rate of the dollar against the Iraqi dinar, as the price of buying a dollar from the Ministry of Finance reached 1300 dinars per dollar and sold it at (1310) dinars per dollar to banks through the electronic platform, and it is sold at (1320) dinars per dollar. dollars from banks and non-bank financial institutions to the final beneficiary.
Analyzes say that the decline in foreign direct investment due to fluctuation in the exchange rate will affect foreign direct investment in Iraq. And when there is instability in the value of the local currency, foreign investors may hesitate to inject their capital into the country or they may withdraw their current investments, and this can lead to reducing investment opportunities and economic growth in the future.
Obelisk – follow-up – agencies
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