THE DOLLAR’S DECLINE IS IN THE INTEREST OF CITIZENS AND STRENGTHENS THE PURCHASING POWER OF THE DINAR

THE DOLLAR’S DECLINE IS IN THE INTEREST OF CITIZENS AND STRENGTHENS THE PURCHASING POWER OF THE DINAR

The US dollar exchange rate against the Iraqi dinar continues to fluctuate and experience instability in the local market. Money exchange business owners and shop owners see this as a natural development, given the stability the country is experiencing across the board and the fruits of the government’s reform measures to eliminate smuggling and currency speculation in the markets.

STABILIZATION OF THE SITUATION

Hamid Abu Firas, owner of a money exchange company, explained to Al-Masry that “this fluctuation in the exchange rate cannot be called a fall in the dollar price, but rather an increase in the value of the Iraqi dinar against other currencies.

Perhaps this decline in the dollar price is a result of the stability of the political, security and social situations in the country, and without a doubt all of this has a positive impact on the exchange rate.” He indicated that “the prices of treasury are now stable and the fluctuation is slight, and this in itself is considered a commendable advantage for the stability of the exchange rate, and in turn is reflected in the prices of goods and commodities in the markets and trade, so we see it as a positive phenomenon in Iraq.”

I AM AFRAID OF FLUCTUATIONS

“Today we see a decline in the demand for the dollar in the exchange markets and commercial activity, which has created a state of fear among citizens, as the price of the dollar is declining and, on the other hand, gold prices are constantly rising, which has led to a state of confusion among citizens,” said legal affairs specialist Amer Mahdi to Al-Masry. He expressed his hope for a stable exchange rate in which the national currency, the dinar, is at its highest exchange rate compared to other foreign currencies.

A GOOD STEP

In contrast, citizen Mahdi Al-Maliki told Al-Masry that “any stability in the country, whether political, security, social or economic, is important for the country and eliminates speculation and manipulation in all its forms. This rise in the price of the dinar against the dollar is a great service and benefit to the country and the citizen.” He pointed out that “the government’s reform steps in this area have cut off the path of smugglers and corrupt people in smuggling currencies out of the country, and as a result, all these reforms have had their effects reflected on the ordinary citizen with limited income.” He called on those concerned from the Ministry of Finance and the Central Bank of Iraq to continue their steps to achieve more stability in the market movement and exchange rates.

GOVERNMENT PLANS

Government agencies previously indicated that the sustained improvement in the dinar’s exchange rate against the dollar depended on two key factors:

1.the Central Bank’s ability to utilize its foreign reserves as part of its defensive tools, and

2.the Central Bank’s success in narrowing the gap between the official and parallel rates.