Muhammad Sharif Abu Maysam
The basis for the existence of a speculative market at the exchange rate is the increased demand for the dollar to finance foreign trade due to the insufficient local production of goods to cover the minimum local need,
so that importing is the only way to meet the increasing demand due to the high rate of per capita income in light of an unprecedented consumption pattern.
In addition to what has resulted and is being produced by the stifling blockade imposed by the United States on neighboring Syria and Iran, of an increasing demand for the dollar in the Iraqi market by the merchants of these two countries,
in addition to what is resulting from the phase of adaptation to the introduction of technologies and automation of processes in financial and banking work, and the resulting confusions.
Pressured by the requirements of the US Federal Reserve and the US Treasury Department, which turned into practical obligations regarding the use of electronic platforms and systems in exchanges and trades, and
thus the requirement to leave traditional work methods, with the aim of establishing an investment environment that suits the movement of globalization capital, and in which the banking system is at the level of the global banking industry.
Accordingly, addressing the structural imbalances in the local market is a priority for any objective treatment with the aim of creating a balance between the local demand for goods and the ability of the productive sectors to respond,
which contributes to putting an end to imports and reliance on local production in order to preserve monetary stability and stop the bleeding of hard currency under the pretext of financing foreign trade.
On the one hand, on the other hand, confronting the illegal demand for hard currency in local markets and limiting its smuggling by merchants in some neighboring countries, in addition to the need for those who refuse to deal with electronic payment methods from local merchants, “as in cases of tax evasion and other things,” will gradually recede with the entry into force. Technologies and means of electronic payment in all cases of electronic exchanges and trades in the financial system,
starting with the applications and practices of the tax system and customs tariffs, passing through exchange methods, all the way to the existence of a parallel market for exchange rates capable of financing its exchanges without relying on a single source.
While the state of harmony and cooperation between local governments and the central government will contribute to putting an end to cases of currency smuggling whenever these authorities are able to address the weaknesses and imbalances resulting from the accumulations of previous years, which witnessed an extension of the open import policies and market chaos.