Iraq: a new rise in the dollar exchange rate and warnings of exacerbating poverty rates

Arab economy اقتصادBaghdadfair deputiesJune 04, 2021FacebookTwitterWhatsAppShareImage

Concern prevails among Iraqis for fear of the deterioration of the purchasing value of the dinar (AFP)null+Line

The Iraqi local markets witnessed a new rise in the exchange rate of the dollar against the Iraqi dinar, as the value of one dollar reached 1500 Iraqi dinars, a clear difference from the rate set by the Central Bank, which is 1450 dinars to the dollar.

The value of the new rise was recorded in the Baghdad Stock Exchange for hard currencies and exchange companies in the Al-Kifah and Al-Harithiya areas in Baghdad, as well as Erbil, and if the rise continues until the end of the day, this means that the price will remain unchanged until next Sunday, which is the date for the resumption of official working hours and the Central Bank offering new amounts of hard currency Within the policy of preserving the value of the dinar.

So far, the competent authorities have not provided any explanations for this rise, but experts and specialists attribute this to speculation within the market, which is made by traders, businessmen and private banks.

The rise is not the first of its kind, but it is the highest, as the past days recorded a slight increase at 1460 and 1470 dinars to the dollar.

The reason for the rise in the exchange rate of the dollar in Iraq during the last period is a rise in the prices of goods, especially foodstuffs, and the markets and commercial centers in Iraq have been almost devoid of shoppers, for several days, due to the economic confusion from the high exchange rate of the dollar and the new rise in food prices and others.Arab economy اقتصاد

And the Iraqi Ministry of Planning confirmed, earlier, that poverty indicators in the country had risen to 27%, due to the increase in prices, against the background of several government measures to overcome the financial crisis, including raising the dollar exchange rate, as the Al-Kazemi government raised the exchange rate from 1200 dinars to 1450, per dollar.

A member of the Economy and Investment Committee in the Iraqi parliament, Salem Al-Tufaili, said, in a telephone conversation with Al-Araby Al-Jadeed, that “the main reason for the continued rise in the dollar exchange rate is the lack of real government control over the Iraqi market, as well as the work of private banks and exchanges, which manipulate prices according to their interest without No oversight or accountability.

Al-Tufaili indicated that “the rise in the exchange rate of the dollar, as well as foodstuffs and other materials, is behind some greedy traders, bank owners and money transfer companies, among the influential figures, who have relations with some parties and political figures, who control the market as they wish according to government silence.”

He added that “the Iraqi market has been witnessing great confusion for days due to the instability of the dollar exchange rate and the increase in the prices of materials again, and this requires the intervention of the competent government agencies, to control the situation. Otherwise, the Iraqi street will explode again in the face of the government and all the political class, because of It is going through difficult economic conditions.”

A member of the Finance Committee in the Iraqi parliament, Muhammad Al-Shabki, said, in an interview with Al-Araby Al-Jadeed, that “the next few days will witness hosting the competent authorities in the Ministry of Finance and the Central Bank, to discuss the repercussions of the rise in the dollar exchange rate, above the amount decided in the 2021 budget.”

Al-Shabki indicated that “the Finance Committee in the Iraqi parliament will present many proposals for the control of the competent government agencies over the exchange rate of the dollar, as well as to prevent traders from manipulating the prices of foodstuffs and others, this matter will lead to humanitarian disasters in Iraqi society, especially with the high rate of poverty and the rate of The unemployed are largely unemployed.people’s economy

The Iraqi MP warned that “the economic situation in Iraq does not allow the continued rise in the exchange rate of the dollar and foodstuffs, as this matter will have major and dangerous repercussions, including the explosion of popular demonstrations as well as the increase in crime rates in Iraqi society, especially the lack of job opportunities in the government and private sectors, and the continuation of The unemployment rate among young people is high.

On the other hand, economic expert Younis Al-Kaabi said, in press statements, that “the currency auction did not decrease in its sales, nor did the poor class improve its living conditions, and most importantly, it left an important segment of society under the burden of poverty, namely the employees and retirees.”

Al-Kaabi explained that “the monthly income of employees and retirees has declined as a result of the exchange rate change on the one hand, and on the other hand, the increase in the prices of goods, medicines and basic commodities in the local markets.”

The Iraqi expert revealed that “the data of the Ministry of Planning indicate that the poverty rate in Iraq has risen from 25% to 28%, and this is the biggest indication of the failure of fiscal and monetary policy in Iraq.”

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