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Next week...a new mechanism for selling travelers' dollars

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Next week...a new mechanism for selling travelers' dollars
Economical 07/11/2024
Baghdad: Al-Sabah
It is hoped that the mechanism for selling dollars at airports will begin next week in accordance with the new Central Bank instructions, which coincide with the rise witnessed by the dollar in the parallel market at the expense of the dinar.
Amid this, specialists call on the Central Bank to take measures to stabilize exchange rates in local markets.
According to an informed source,
government banks and some banking companies are preparing to implement the instructions of the Central Bank of Iraq to sell dollars to travelers at the official exchange rate at airports, indicating that
this step comes within the government’s efforts to find solutions to the current dollar crisis.  The source indicated that
the dollar will be delivered to travelers through the outlets of government banks located at airports.
He also pointed out that government banks are awaiting notification from the Central Bank of Iraq to obtain official approval to begin the process of selling the dollar and distributing it at airports.
Ahmed Barihi, a member of the Board of Directors of the Central Bank of Iraq, believes that
“the issue of the rise in the exchange rate of the dollar against the Iraqi dinar in the local market is not related to the measures taken by the bank, but rather due to the American restrictions imposed on the central bank and related to the electronic platform.”  He added,
 “Another reason related to the rise in the exchange rate of the dollar is the connection to the electronic platform that controls the floating of the currency in the market,
where it is less than the demand, and
therefore the price of the dollar will be raised,
and the platform is controlled by the US Federal Reserve, which causes a difference from the official price.”.
During the past few days, the exchange rates of the dollar against the dinar recorded a noticeable increase in the stock exchange and banking shops in the capital, Baghdad, and the governorates, as the price of $100 exceeded the barrier of 151,000.
As for the economic expert, Ahmed Al-Hathal, he explained that
“the problem with the high exchange rate of the dollar in Iraq is customs,”
stressing the importance of “controlling the northern and southern borders.”  He pointed out
 “the necessity of controlling fake invoices and facilitating the task of small merchants, and involving the Central Bank in auditing invoices from the border,” adding, adding:
Electronic payment and forcing people to use it and to deal in the dinar has nothing to do with the rise of the dollar.”  The economic expert stated that
electronic payment has become a tool that facilitates the process of reverse transfers and black transfers,” indicating that
“what is happening are hasty decisions due to escaping reality.”
In addition, economic researcher Jabbar Gorran believes that
“the issue of the rise in the exchange rate of the dollar against the Iraqi dinar is related to the financial measures taken by the Central Bank of Iraq.”  He added,
 “The Central Bank of Iraq took some good measures in the past,
but the increase that has occurred now is due to other measures that the Central Bank has not taken so far, including that the bank agreed that external dealing should not be limited to the US dollar only, but this measure has not been taken until now.”
Likewise, not linking all banks to the electronic platform and stopping work on it, with the exception of only seven banks, which do not accommodate the foreign trade exchange process, which annually amounts to about 50 billion dollars, and
I do not expect those seven banks to absorb this volume of exchange. Commercial.  He stated that
 “one of the other reasons that led to the rise in the exchange rate of the dollar against the dinar is the reduction in cash pumping by the Central Bank of Iraq, with the exception of today.”  He explained,
 “The demand for the dollar these days is abnormal, and
I do not see that opening the dollar exchange window for travelers at airports is a reason for the dollar exchange rate to rise, even though this time is the travel season.”  He pointed out
 “the large number of banking offices and companies in Iraq, and the inability of the Central Bank of Iraq to meet their needs for the US dollar, as there are about 1,200 banking companies in Iraq.”   

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