Baghdad – The exchange rate of the Iraqi dinar against the dollar increased in a relative manner in the parallel market with stability in the price in the official market, with the closure of the currency exchange market activity in the capital, Baghdad and the rest of the provinces.
The exchange rate of the Iraqi dinar in the parallel market
- The price of the dollar in Baghdad was 1425 dinars when selling and 1415 dinars when purchasing, and the price was on Wednesday for sale 1437.5 dinars, while the purchase price was 1427.5 dinars.
- In Erbil, the sale price reached 1425 dinars, and the purchase price was 1415 dinars, after yesterday evening 1430 dinars for sale, while the purchase price was 1425 dinars.
- The exchange rate in Basra reached 1425 dinars for sale and 1415 dinars for purchase in dealing today, Thursday, after he registered yesterday evening for sale 1430 dinars. As for the purchase, it was 1425 dinars.
Factors decline in demand for the dollar
The Economic Adviser to the Prime Minister, Mazhar Muhammad Saleh, told Al -Jazeera Net that the demand for the dollar fell to 3 main reasons:
- The Central Bank succeeds in financing foreign trade in the private sector in dollars and other currencies through global classified correspondents.
- Encourage small trading financing immediately after lifting restrictions.
- Facilitating passengers to obtain the dollar via cards and airports at the official exchange rate.
The exchange rate in official transactions
- The sale price for transfers, documentary credits, and international electronic cards: 1310 dinars for the dollar.
- selling price: 1305 dinars per dollar.
- Selling price in banks: 1310 dinars per dollar.
It is noteworthy that the central bank does not buy the dollar but only sells it through the dollar sale platform, because it is the main source of the dollar in Iraq, and it gets it in exchange for selling oil globally.
It is worth noting that the decision to sell in banks is fixed and binding on it from the central bank in its capacity as remarkable decisions, not a consultant, and the price is not related to the fluctuation of prices in the parallel market, and the sale is at this price for the categories specified by the central bank, which is the category of travelers exclusively.
Factors affecting the dinar exchange rate
- Currency sale auction: The volume of daily sales in the currency sale auction significantly affects the exchange rate.
- Central Bank proceduresThe measures taken by the central bank in addressing external transfers play an important role in stabilizing the exchange rate.
- The need for the dollar: Traders need the dollar to import goods from countries that suffer from economic sanctions from the American Federal Bank (the US Central) and it is prohibited to transfer the dollar through the official platform directly on the dollar exchange rate against the dinar, especially with what is related to Iran for the need of traders to withdraw the dollar significantly from the parallel market to pay the bills of those imported goods, which leads to the high demand against supply and the high prices.
- Withdrawing the dollar from entities dealing with the Iranian sideSometimes some merchants and brokers deal with the Iranian side the dollar from the Iraqi market in large quantities to send to Iran, which needs the dollar for its international commercial dealings because of the US sanctions prohibited from obtaining the American currency.
Iran’s obtaining the Iraqi dinar by paying Iraq to the gas bills imported from Iran to operate the electric power plants in the Iraqi dinar because there is no mechanism for payment in dollars due to these sanctions; This purchase of the dollar from the parallel market leads to excessively high prices due to the imbalance of supply and demand. - The smuggling of the dinar to other countries: Some traders work by smuggling the dinar to other countries to benefit from the exchange rate teams between the official and the parallel, which effectively affects the dollar exchange rate.
- Merchants of merchants through leaked information or rumors: Some merchants get leaked information from banks or from the central bank about a possible procedure related to changes in the mechanism of dealing with dollars, so these exchanges take precautionary measures to raise or reduce the price, purchase or sale only to anticipate the repercussions of the potential decision, and sometimes these leaks are just rumors that appear to be lied in the future, and their purpose is to either pump the currency significantly to the market to withdraw the dinar and buy the future or the opposite by buying the dollar And withdraw it from the market to sell it in the future.
