The dollar exchange rate from the reduction promises to record highs and citizen fatigue
November 22, 2022
At a time when the citizen is waiting for the dollar exchange rate to be reduced, which was promised by the current government and the political forces supporting it,
exchange rates rose today to record highs due to speculation and statements, according to the government's economic adviser, Mazhar Mohammed Saleh.
Economist Safwan Qusay said “"the promotion of false news and the exchange of inaccurate information are behind the rise in the dollar exchange rate to 149,000 Iraqi dinars per 100 US dollars”.
Safwan stressed in an interview with the Journal,
”it does not become speculation and false news in which some are trying to bet on returning the exchange rate to what it was and spreading information in this direction, which caused the rise,” noting that
”whoever owns the dollar outside the banking system is affected by this news and makes the decision to sell or buy back.
”The demand rates for the dollar vary according to this news,” he said, adding that
”when the vision of the Ministry of Finance and the central bank about tightening the exchange rate stabilized, these traders increased demand, including non-bank demand from the parallel market to compensate for the shortage of imports during previous periods and thus the sales of the central bank until the dollar rises.
In the same context, the financial and economic adviser to the Iraqi government, Mazhar Mohammed Saleh, commented on Tuesday on the high exchange rate of the dollar against the Iraqi dinar in the local market.
Saleh said, in a statement to the official agency and followed by the ”Journal“, that
”the temporary rises witnessed by the exchange market in favor of the dollar against the dinar are not caused by an economic factor or a restrictive measure in monetary policy,
but come because of the colorful information leaked to the ocean of currency use, especially rumors and exaggerated news. He pointed out that
”the exchange market is an information market and its decisions are based on the news,
if there is a colorful news or a confused rumor launched by a number of speculators in the secondary exchange market,
this leads to generating opportunities to seize emergency profit from buying and selling transactions in order to collect estimated or emergency profits in short and usually limited periods". The financial and economic adviser to the Iraqi government added that
"if it is noticed that there are colored or confused News has accumulated recently about the performance of some local banks and their foreign transactions in order to build an incorrect rumor for the purpose of speculation and quick profit in the secondary exchange market”.