Economists Determine The Reasons For The Rise In The Dollar In Iraq And Expect It To Exceed 160,000

Economy     Iraq     Dollar prices     Dinar to rise    2024-10-03 01:23  Shafaq News/ The “Future Iraq” Foundation for Economic Studies and Consultations, on Thursday, attributed the reasons for the rise in the price of the dollar against the dinar in Iraq to the  decline in transfers of other currencies and the  inability to cover the demand for foreign currency for the purpose of import,  expecting the rise to continue, bringing the price of one dollar to 1,600. dinar in the coming period.
 
The head of the institution, Manar Al-Obaidi, said in a statement received by Shafaq News Agency, that the prices of the dollar against the dinar during the past days reached the range of 1,550 dinars per US dollar.

Al-Obaidi attributed  the reason for the rise to the decline in transfers of other currencies, specifically the UAE dirham and the Chinese yuan, as a result of the large restrictions set by correspondent banks that are in the process of enhancing the balances of these currencies,  
in addition to the reservation of the banks under the Citi-Pilot project in opening accounts for operating companies and limiting them to working with companies. She had previously been treated differently than others.

Among the reasons that the head of the institution spoke about is “the inability of all transfer mechanisms to cover the demand for external currency for the purpose of importing some goods, specifically mobile phones and gold, which are considered the highest value goods for import, which prompts importers to resort to the parallel market for the purpose of importing.”.

He added,  "It is expected that the dinar will continue to decline against the dollar, and it may reach rates of 1,600 dinars per dollar in the coming months if the problems are not addressed through practical solutions."
 
1- Increasing the network of correspondent banks around the world, especially in the UAE and China.
 
2- Controlling financial policy by limiting the entry of some types of goods in order to reduce demand for them versus supply.
 
3- Pressure on the banks under the Citi-Pilot project to be more open to accepting a wide range of clients.
 
4- It may be necessary to temporarily prevent the import of some goods to reduce the demand for foreign currencies until more organized and smooth solutions are found for the external transfer process. Al-Obaidi said,
 
 “Without adopting these solutions, the dinar will continue to decline against the dollar and may exceed the 1,600 barrier soon.”
 In turn, economic and financial expert Abdul Rahman Al-Mashhadani attributed the rise in the dollar exchange rates in Iraq to political rather than economic reasons..

Al-Mashhadani said in a statement to Shafaq News Agency,   “The dollar has stabilized for a long period in the past few days at 149 to 150 thousand Iraqi dinars for a $100 bill, especially after transferring the dollars of real travelers to the airport, organizing the sales process in a smooth manner, and resolving the crisis of bottlenecks on exchange companies and payment companies available inside.”

"Airport." He added,  "There are no economic reasons or justifications behind the rise because the central bank is still financing large amounts of foreign trade, and this is the important element that covers the volume of orders for merchants."

The expert expected that  "the rise in exchange rates is due to the  
     unrest witnessed in the region and the
     fear that Iraq is one of the stations that could be targeted,
 
which prompted merchants to liquidate the accounts of debtors and creditors, especially those who have obligations to merchants abroad.
 
Fear of instability may cause a rise and thus will be affected."
 
The merchant must pay what he owes. He noted that the second matter “is the fear and panic that afflicts people in such crises.
 
They turn to converting dollars for fear that things will get worse and they will be forced to travel or emigrate, even if they are inside Iraq,” adding that “the dollar is the safest means at hand because it is needed in "Markets."
 
The price of the dollar rose in local markets to reach approximately 155 thousand dinars compared to 100 dollars after the events that the region witnessed, including military operations in Lebanon and Iran on the one hand and Israel on the other hand.   
 https://shafaq.com/ar/اقتصـاد/م-سسة-اقتصادية-تحدد-اسباب-ارتفاع-اسعار-الدولار-بالعراق-وتتوقع-وصوله-لـ1600-دينار   

Government Advisor: There Is No Concern About Iraq’s Financial Situation And Our Foreign Reserves Are Diverse
 
Time: 10/02/2024 14:02:16 Read: 2,834 times  {Economic: Al-Furat News} The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, reassured about the country’s financial and economic situation.

Saleh told {Al-Furat News} agency:  “We should not worry about the ongoing fluctuations, whether in monetary gold or the various foreign currencies that make up the country’s foreign reserve portfolio, which varies from major foreign currencies and monetary gold and in accordance with the international standard investment guides that it adopts.”

The monetary authority has high-level technical cooperation with multilateral international financial organizations, specifically the International Monetary Fund and the World Bank.”’

 He stated,  “Usually, the Central Bank of Iraq hedges in managing its sovereign investment portfolio with a well-studied and highly sensitive diversification, with standard ratios and precise weights for each foreign currency, in addition to the cash gold from which the foreign reserves are composed.
 
This is within the scope of what is called hedging against the risks of fluctuations in currency and gold exchange rates, which is a policy that expresses efficiency.” Managing the country's investment portfolio according to diversification in various foreign currencies and gold. Saleh explained,
 
“A fall in the market value of gold, for example, must be offset by a rise in the value of the dollar or other foreign currencies through managing the components of the foreign reserves portfolio itself, as
 
diversification is an important pillar of the hedging policy in managing investments in foreign assets from currency exchange rate fluctuations.” foreign currencies and gold by diversifying the country’s sovereign investment portfolio.” ‘

He pointed out that  "the sovereign investment portfolio avoids what is called in the literature of the accounting policy of central banks (unrealized losses), by immediately realizing (unrealized profits), 

which are the same unrealized profits that correspond to the unrealized losses resulting from the fluctuation of gold or foreign exchange prices at the time." same". 

 He pointed out that  "a good diversification policy, in the assets or holdings of the investment portfolio,
provides sufficient neutrality in      preserving the total market value of the country's foreign asset reserves and     always stabilizing their value."    https://alforatnews.iq/news/مستشار-حكومي-لا-قلق-في-الوضع-المالي-للعراق-واحتياطنا-الأجنبي-متنوع   

Banking Advisor: The Government Is Committed To Opening New Horizons For Partnership With Investors
 
Economy     1-10-2024, 17:39  Baghdad - IA - Wissam Al-Mulla  Today, Tuesday, the representative of the Prime Minister and his advisor for banking affairs, Saleh Mahood, affirmed the government’s commitment to supporting the Securities Commission and opening new horizons for partnership with investors,
 
calling on the legislative authority to accelerate the issuance of the necessary legislation to meet the requirements of the modern market and enhance the investment environment in Iraq.

Mahood said at the World Investor Day Conference - attended by the Iraqi News Agency (INA) correspondent:
 
“It is a great honor to represent Prime Minister Muhammad Shiaa Al-Sudani in this event organized by the Securities Commission,” indicating that
 
“this conference represents a vital platform for strengthening ties.” between the government and investors and highlights the investment opportunities available in Iraq.” 

He added,  "The world lives today in an era characterized by rapid economic changes, which requires activating the role of the securities sector as a main tool for stimulating economic growth," adding,
 
"The Iraqi government headed by Muhammad Shiaa Al-Sudani is fully aware of the importance of this sector as a lever for growth and attracting local and international investments."". 

 He pointed out that “global experiences have proven that investments are not only an engine for growth, but rather a
 
 means of developing infrastructure,
 creating job opportunities, and
 enhancing transparency and
 efficiency in resource management,” considering that
 
“the Securities Commission is a vital partner in achieving these goals, as it works to regulate markets and enhancing their protection. 

Mahood emphasized "the importance of cooperation between the public and private sectors," stressing that  "the success of investments depends on investment partnerships that contribute to mitigating risks and increasing confidence." 

 He explained, "There is an urgent need to accelerate the issuance of the necessary legislation to modernize the legal system to suit the requirements of the modern market, as
 
there must be clear mechanisms to protect investors and facilitate investment procedures, which contributes to improving the business climate in the country." 

He pointed out, "The importance of strengthening corporate governance, as building a strong governance system is vital to ensuring transparency," stressing: "Investors must feel that their money is protected and that there are effective mechanisms to monitor performance." 

 Mahood called for "focusing on education and awareness, as building human capabilities and developing skills in the financial sector contribute to creating an attractive investment environment," stressing "the importance of establishing training programs and workshops targeting investors, bankers, and government agencies." 

He stressed, "The commitment of the Iraqi government and Prime Minister Muhammad Shiaa Al-Sudani to provide support to the Securities Commission and open new horizons for cooperation and partnership with investors," considering, "This conference is an important step towards building a prosperous and sustainable Iraqi economy."    https://www.ina.iq/218206--.html   

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