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"Recession and rising prices" ... the first signs of danger began after the dollar rose against the dinar

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"Recession and rising prices" ... the first signs of danger began after the dollar rose against the dinar

Pratha News Agency  54  2020-12-15

Gradually, the effect of the rise in the exchange rate of the dollar against the Iraqi dinar began to appear in the Iraqi market, in light of fears, which experts say are "serious and will soon appear", from the rise in the prices of daily consumer goods, the first of which is food.

According to the Iraqi Political Economic Center, the dollar prices fell today, Tuesday, to 128,250 dinars against $100, but he made it clear that the price is approximate and unstable.

'Car dealers are first affected'

"The rise in the dollar exchange rate will affect our sales level, and the appetite for buying has started to decrease," Ali Suhail, director of sales and marketing for the Iraqi International Group Company and agent of Kia Motors in Iraq, told IQNEWS.

Suhail added, "Car prices will not rise and remain the same in dollars, but the graphic level of sale will be affected and the ability to purchase will decrease due to the high price of the dollar and citizens' fear of the economic crisis, which affects sales in general."

For his part, Nural Saeed, an Iraqi businesswoman who imports from abroad, says that she will resort to dealing in US dollars instead of dinars in her work in general, stating, “There will be no difference with the customer, I do not have a big problem, and we will try to control the matter as much as possible without our customers noticing".

Until now, there are conflicting explanations for the rise in the exchange rates of the dollar against the dinar.

Some say that the currency auction agents "who are in the majority of banks affiliated with political parties and parties" buy the dollar at a fixed price from the central bank and sell it at an increase in order to win billions of dinars per day, and by that "the parties finance their campaigns."

Propaganda in the upcoming elections, "while others hold the government responsible for the rise in the dollar’s exchange rate and link the matter to the salary crisis and the delay in approving the state’s public budget.

In this context, economist Abdul Rahman al-Mashhadani said in his interview with IQ NEWS, "The Central Bank and the Ministry of Finance did not justify the high exchange rate of the dollar against the dinar," expressing his belief that

"this matter came mainly because of the delay in approving the financial budget mainly", saying that

"The statements of officials in the Ministry of Finance indicate that the government is seeking to change the exchange rate, which means that the issue is financial and not monetary."

'Recession is coming'

Al-Mashhadani points out, "The Central Bank is trying to control the exchange rate, as yesterday it sold 230 million dollars through the currency auction, which is 50 million more than the normal rate as prices continue to rise," noting that

"there has always been silence in not announcing the exchange rate." We expect the price to increase," noting that "most financial exchange offices buy the $100 for 127 thousand dinars, now, and sell it for 130 thousand."

This economic expert cites the high prices of food commodities in the markets, such as oil whose price rose three days ago to 1750 dinars after it was sold for 1,250, to conclude that "the local market will witness a recession ... if it does not appear this week, then definitely, prices will be next week." Based on the new dollar rate."

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