Internal And External Factors...The Reasons For The Dollar's Decline In The Local Market

Buratha News Agency1092025-05-18   Economist Safwan Qusay confirmed on Sunday that the decline in the value of the dollar in the informal market is the result of a combination of several internal and external factors, most notably recent developments in Syria and the banking reforms initiated by the Iraqi government.

Qusay said in a press interview that "the value of the dollar in the informal market was affected by recent events in Syria, as Damascus was within the circle of prohibited transfers. However, the lifting of sanctions and the reversal of transactions towards Syrian markets contributed to reducing demand for the dollar in the informal market."

He added, "Lebanese markets, which had previously refrained from direct dealings with Iraqi banks, have recently begun dealing directly with them, which has also been reflected in a decline in demand for dollars on the parallel market."

Qusay explained that "the banking reforms initiated by the Iraqi government in cooperation with Oliver Wyman, which included opening windows for international correspondents and expanding the scope of investigation into entities requesting dollars from the informal market, helped to organize their affairs and shift them toward dealing with official banks and benefiting from the official exchange rate of 1,320 dinars to the dollar."

He pointed out that "most traders are hesitant about imports due to the ongoing trade war between Russia and the European Union on the one hand, and the United States and China on the other, in addition to the mutual tariffs, which in turn have contributed to a decline in demand for the dollar."

The economic expert noted that "the upcoming understandings regarding reciprocal taxes between the United States and China will positively impact the price of a barrel of oil, leading to a further decline in demand for the dollar in the informal market."

He emphasized that "these measures, which represent a combination of government reforms and international variables, have helped reduce the value of the dollar in the informal market, alongside the decline in the dollar's global price due to the US administration's desire to repay its $36 trillion foreign debt with a weak dollar. This also depends on the US Federal Reserve's renewal policy and interest rates."     https://burathanews.com/arabic/economic/460279