Information / special.
The official currency of the Republic of Iraq, and one of the historical manifestations and legacy that accompanied Mesopotamia for more than 90 years, proved its strength in the global economy, but in one way or another it began to decline and reached "unenviable" stages.
The dinar, which was previously compared to world currencies, reached the path of strength overnight and found itself ahead of many countries, as it began to be used in 1932, i.e. during Iraq's independence from Britain, and was replaced by the Indian rupee at a rate of 1 dinar = 13 rupees.
Later, he decided to link it to the US dollar without changing its value at a rate of 1 dinar = 2.8 dollars, and in 1971 Washington took a decision to devalue its currency by 7.9%, and in 1973 it decreased by 10% to become $3.3778, and it fell to 3.2169. $, which was the price that remained in circulation until the second Gulf War in 1991.
And after 2003, the local currency in Iraq began to decline day after day, which led to its reaching significantly low rates against the dollar, so the Central Bank's procedures did not help it, and America's policy towards the Iraqi economy "made matters worse."
The economic expert, Abd al-Rahman al-Mashhadani, explained the reasons for the instability of the Iraqi dinar in the local markets compared to other Arab currencies, while confirming the existence of a large discrepancy between import and export in the country's markets.
Al-Mashhadani said, in an interview with Al-Maalouma Agency, that
"the central banks of the Gulf countries, whether they are Jordan, Kuwait or even Saudi Arabia, have taken a decision to price their local currency, which depends on a basket of currencies, including Iraq, as bulletins previously appeared in the newspaper in the seventies." of the last century, measured on the basis of this basket.” And he adds,
"All world currencies are attributed to the dollar, but the economies of these countries are stable and there is no problem, and the difference is obtained at the prices of market materials, that is, inflation occurs and the rates of rise increase, which happened in the Emirates, Saudi Arabia and Kuwait as well." And the economist explains,
"These countries do not deal in dollars in the markets at all, given that all financial transfers are obtained in the local currency only, and this is one of the reasons for the stability of the market," noting that
"Iraq was unable to control this situation completely." Al-Mashhadani points out,
"The other matter is trade, that is, import and export, without relying on the government sector in particular. In Iraq's markets, as a result of the large discrepancy between import and export, it is natural that there will be a great demand for dollars." And he confirms,
"The Iraqi dinar is linked to the dollar before 2003, that is, from the Kuwaiti war in 1991, given that the market has always fed the import of the private sector, so there will be no stability."
The dinar is in the central recovery rooms.. and accusations against the Americans of creating crises
In turn, a former member of the House of Representatives, Jassem Al-Bayati, personified the reasons for the weakness of the dinar currency in the Iraqi markets, while
accusing America of playing an "inappropriate" game with Iraq.
Al-Bayati mentioned in an interview with Al-Maalouma Agency, that
"the weakness of the dinar and its instability in the Iraqi markets, especially in recent times, has many reasons behind it," noting that
"the first reason is the decision to re-exchange the dollar against the dinar from 1470 to 1320." Al-Bayati explains:
"There is no country that takes such a step and reduces the dollar by such a large percentage," adding:
"The reduction stages are supposed to be consecutive, starting from 1460 - 1420 - 1400, and so the decline is consistent." And he added,
"We are now in a state of confusion, as we cannot obtain dollars in the local markets, not even from bank accounts," noting that
"the dinar is going through a period of instability."
And the former member of the House of Representatives points out that,
"The other thing behind the instability of the dinar is the connection of the issue with America, which is playing an inappropriate game with Iraq." And Al-Bayati shows that
"the decision to reduce the dinar is governmental and it bears its responsibility," noting that
"the central bank's measures to restore the strength of the Iraqi dinar did not bear fruit, and things may be complicated after more." He continued his speech, saying:
“The decision to return the dollar to 1,320 dinars greatly affected the financial budget, and nearly 10 trillion dinars were sacrificed,” noting that
“price speculators and those close to America and neighboring countries supporting Washington are the ones who obtained these 10 trillion through Buying the dollar at 1320.
The sources of countries' strength in the economic field are determined by several factors, foremost of which is the national currency, which requires elaborate measures to maintain its strength internally and externally, and
the basis of these measures is to activate the private sector, expand the import sector and reduce exports.