Clarification on the Central Bank's decisions to control the dollar exchange rate and the reasons for its recent jump
Tuesday, 08-12-2020, AM 11:49 Karrar Al Asadi 498
The economist and member of the board of directors at the Central Bank, Majed Al-Suri, spoke today, Tuesday, about the reasons for the high exchange rate of the dollar in local markets.
Al-Suri said, "speculation, political and economic confusion, and citizens’ lack of confidence in the future of the Iraqi dinar are among the main reasons for the high exchange rate of the dollar in the local markets."
Regarding the role of the central bank in dealing with concerns about the high exchange rate of the dollar, Al-Suri indicated that "the central bank sells dollars at an exchange rate (1190 dollars), and there is no change in the price."
He continued: "Knowing that up to now, there is no intention of the Central Bank to raise the exchange rate, and all that is being circulated of opinions issued by MPs and politicians about fears of an increase in the exchange rate represent means of pressure to achieve certain goals," according to the Baghdad website today.
He warned that "the central bank seeks to pump hard currency, for the purpose of controlling its exchange rate in the local markets."
He pointed out that "private banks and banking companies have been identified to buy 30 thousand dollars a week," explaining that
"this reduction in the infusion of hard currency came because of the lack of tourism travel, medical treatments, and the lack of liquidity from hard currency."
As the picture indicated, "the Central Bank decided to receive foreign transfers in the form of 75% for the dollar, and 25% for the Iraqi dinar."
The exchange rate of the dollar rose again in the local markets in Iraq, to touch the new high today, Tuesday, 128 thousand dinars for every 100 US dollars.
The selling price of the dollar was 127,500 Iraqi dinars, while the purchase price was 126,500, roughly. As for international foreign exchange rates, the euro reached 100 euros per $121.20.