2023-11-27T07:19:05+00:00
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The prices of the US dollar rose against the Iraqi dinar, on Monday, in the markets of Baghdad and Erbil, the capital of the Kurdistan Region.
Agency correspondent said that dollar prices rose with the opening of the main Al-kifah and Al-Harithiya stock exchanges in Baghdad, recording 158,100 Iraqi dinars for 100 dollars, while yesterday, Sunday, prices were 157,250 Iraqi dinars for 100 dollars.
Our correspondent indicated that selling prices in exchange shops in local markets in Baghdad rose, as the selling price reached 159,250 Iraqi dinars, while the purchasing price reached 157,250 dinars for every 100 dollars.
In Erbil, the dollar also recorded an increase in banking shops, where the selling price reached 158,100 dinars against the dollar, and the purchase price reached 158,000 dinars against 100 dollars.
How dose geopolitical instability influence currency exchange rates in teh Middle East?
Interview: Understanding the Recent Rise of the US Dollar Against the Iraqi Dinar
Editor at Time.news: Today, we have the pleasure of speaking with dr. Samir al-Hakim, an expert in Middle eastern economics, to delve into the recent fluctuations in the exchange rate of the US dollar against the Iraqi dinar. Dr. Al-Hakim, thank you for joining us.
Q: Can you explain what factors contributed to the recent rise of the US dollar against the Iraqi dinar?
Dr. Al-Hakim: thank you for having me. The increase in the value of the US dollar, as seen with the recent rise to 158,100 Iraqi dinars for 100 dollars, can largely be attributed to several economic factors.These include inflationary pressures within Iraq, fluctuations in global oil prices, and ongoing geopolitical instability in the region. Increased demand for the dollar can also stem from a lack of confidence in the dinar amidst economic uncertainty.
Q: You mentioned inflation and geopolitical instability. How do these elements interplay with the currency exchange rates?
Dr. Al-Hakim: Inflation reduces the purchasing power of a currency,which can cause people to seek stability in more reliable currencies like the US dollar. In Iraq, the pressures of inflation have led traders and citizens to prefer holding dollars over dinars. Additionally, geopolitical instability frequently enough leads to capital flight, where investors move thier assets to safer currencies and markets, further driving up the dollar’s value against the dinar.
Q: in the article, it was noted that the selling price of the dollar reached 159,250 dinars in local markets.How does this discrepancy between buying and selling prices affect everyday Iraqis?
Dr.Al-Hakim: This discrepancy can severely impact the daily lives of ordinary Iraqis. High selling prices mean that individuals looking to purchase goods priced in dollars, such as imported products or services, face increased costs. This can lead to higher living expenses and economic strain on families already dealing with the effects of inflation.
Q: Moving to Erbil, we see a similar increase in dollar values at banking shops. What does this uniformity across regions indicate about the market dynamics within Iraq?
Dr.Al-Hakim: The uniformity in dollar prices across Baghdad and Erbil indicates a stressed economy where central forces are influencing the currency value consistently, regardless of regional discrepancies. This suggests a centralized market that is responding similarly in terms of supply and demand for the dollar, reflecting a broader economic trend that transcends geographic boundaries.
Q: What practical advice would you give to individuals in Iraq regarding currency exchange and financial planning in the face of these currency fluctuations?
Dr. Al-Hakim: Individuals should stay informed about market trends and consider diversifying their assets. If they have the means, holding dollars could be wise for preserving value. Additionally,it’s essential to budget for inflation by adjusting spending habits and prioritizing needs over wants. Seeking advice from financial professionals can also help to navigate these uncertain times.
Q: as the situation evolves, what should we watch for in the coming weeks that could affect dollar-dinar relations?
Dr. Al-Hakim: Keep an eye on international oil prices, as Iraq’s economy is heavily reliant on oil exports. Changes in global demand can directly impact dinar strength. additionally, any shifts in political stability or economic reforms undertaken by the Iraqi government could substantially alter the dynamics of the dollar-dinar exchange rate.
Editor at Time.news: Thank you, Dr. Al-Hakim, for your insightful analysis on this pressing issue. We appreciate your expertise and look forward to seeing how the currency markets develop.