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After the electronic platform stopped...an answer to questions from Iraqi circles about the new dollar mechanism
economy 2025-01-02 | 11:27
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citizens asked Many Iraqi questions about the new mechanism for trading the dollar in Iraq and the method of withdrawing or buying it after the official cessation of the electronic platform.
Governor of the Central Bank, Ammar Khalaf, said Deputy yesterday,
“The working mechanism of the electronic platform related to foreign transfers has stopped working on it, but
financing foreign trade continues through correspondent banks according to various mechanisms that are equivalent to what is done in countries of the world.”
Many citizens asked about the platform’s news, which Alsumaria News published on Facebook, about the
electronic platform and its work,
what will happen to the dollar, and
whether Iraq will witness a new rise in currency exchange rates.
One of the citizens said through the comment feature:
“What is the purpose of the electronic platform? Can someone explain,” while another responded by saying, “The siege will return to Iraq and the exchange rate will be at least 250 thousand Iraqi dinars for 100 dollars.”
Another wondered about "the continued arrival of foreign remittances to Iraq and the giving of currency to travelers," while another pointed out that "unemployment will return, food prices will double 4 times above normal, and famine will return to Iraq."
Others praised the decision to stop the electronic platform, considering it “an effective government achievement that will benefit one after another and a transformation process that enhances the economic role and prepares for investment opportunities with full confidence, and that the
government is playing a supervisory role over markets and money exchanges, and
the dinar is dealt with only to raise the value of the Iraqi dinar.”
Another pointed out that “the platform was a front for stealing the dollar, and
therefore imposing censorship through the financial transfer through the bank will contribute to balancing the market and controlling the rise of the dollar,” and another supported him by saying that “this step may have several reasons, such as:
1- Controlling the dollar exchange rate: An attempt to stabilize the price of the dollar against the Iraqi dinar by limiting the flow of the dollar. uncontrolled
2- Preventing dollar smuggling: If there are indications that the dollar is being used in smuggling operations or that there is an inflation in demand for it due to illegal purposes.
3- Strengthening the local economy: Reducing dependence on the dollar and supporting the local currency by reducing the circulation of the dollar in the markets.
Possible outcomes:
Dollar prices rise on the black market if there are no alternatives to meet demand.
Impact on merchants and companies that depend on the dollar for imports, which may lead to higher prices for imported goods.
Tightening financial oversight to try to prevent fraud and circumvention of policies. Therefore, the effects will depend on the way this decision is implemented and the extent to which there are alternative plans to provide dollars to the commercial and service sector.” It should be noted that
"Travelers' dollar"
“the Central Bank clarified that granting dollars to travelers continues at airports according to the approved mechanism, which is considered the best in restricting the traveler’s access to dollars,” noting that
“this decision is part of a series of reforms aimed at facilitating financial procedures and stimulating the economy.”
What is the “electronic platform”
The electronic platform for money transfers is a mechanism that has been adopted to
ensure the regulation of foreign cash transfers and
limit manipulation of exchange rates.
It works to document
commercial operations and the
transfer of funds by banks and financial companies,
ensuring more effective control over hard currency flows inside and outside the country.
Will canceling the platform affect the price of the dollar?
The impact of canceling the platform on the price of the dollar will be reflected in the prices as follows:
1- Increased demand for the dollar on the black market.
With the absence of an electronic platform, the demand for the dollar on the black market may increase as a result of the absence of control mechanisms, which leads to an increase in exchange rates outside official channels.
2- Weak confidence in the dinar, as canceling the platform may weaken confidence in the Iraqi dinar, especially if effective alternatives are not put in place to ensure market stability.
Weak confidence means that citizens and investors may withdraw their money in dinars and convert them to the dollar as a safe haven.
3- The impact of smuggling and money laundering, as canceling the platform may eliminate strict control over dollar smuggling operations, and smuggling and money laundering practices may expand, which will increase the demand for the dollar and affect the reserves of the Central Bank. greatly
4- The market’s dependence on supply and demand.
With the cancellation of the platform, the currency market may become more affected by direct supply and demand.
This may lead to severe fluctuations in the exchange rate, especially under unstable economic and political conditions.
Will the dollar rise?
The government and the central bank can rely on other supervisory tools, such as strengthening the role of local banks, placing strict restrictions on foreign transfers, activating alternative supervisory tools, or pumping more dollars into the market to meet demand and maintain price stability.
Investment can also be encouraged and
dependence on foreign currencies reduced, to
relieve pressure on the dollar and
enhance the strength of the dinar, and
all of these measures can maintain dollar prices.
https://www.alsumaria.tv/news/economy/511638/بعد-توقف-المنصة-الالكترونية-إجابة-لأسئلة-الأوساط-العراقية-عن-الالية-ال
