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The collapse of the Iranian currency casts a shadow on the Iraqi sectors economically, agriculturally and healthy
Reports and analyzes Iraq
2023-02-24t18: 25: 17.00000000z
Shafaq News/ The historical collapse of the Iranian currency raised 5 million per 100 dollars due to Western sanctions, questions about the impact of this collapse on the Iraqi market and economy.
Iraq is the first importer of Iranian goods and goods at about 17 billion dollars annually, according to specialists.
The Bonpest website data revealed the day before yesterday, Wednesday, that the Iranian currency fell to a record level against the US dollar and recorded 501,300 riyals.
The price of the US dollar in the Iranian free market is witnessing a record increase, with the continued turmoil and the increase in the country's isolation amid Western criticism of the strict security measures taken by Iran and its relations with Russia.
Increase export
"Iran is the first exporter of Iraq with a value of 17 billion dollars annually, and sometimes more, so
a decrease in its currency helps a lot to increase its export, and
a country like Iraq may increase its imports from Iran, and thus
this issue is in favor of the Iranian trade balance.".
"Some countries deliberately reduce their currency to increase their exports, and
Iraq imports many things from Iran, as they are nourishing the Iraqi market with food and plastic materials, building materials, and Samsik, and other daily basic consumables, and thus reducing the currency works in the interest of exporting the industry. And Iranian agriculture."
The Iranian Minister of Industry, Mines and Trade, Reda Fatmi Amin, announced on February 21 that the volume of his country's exports of goods and goods to Iraq increased by 23 percent during the first ten months of the Iranian year, which started on March 21, 2022.
Fatimi Amin said in a televised interview, that Iran's exports exceeded 50 billion dollars so far, explaining that
export is important for us for several reasons, the
first function of export is to provide the currency to meet the needs of import for the country and the
maximum export function is to achieve international ability.
Multiple economic effects
The impact of the collapse of the Iranian currency is not limited to the Iraqi economy in terms of industrial and agricultural aspect The value of the hard currency, which is a factor brought from abroad, as well as in Lebanon and other countries.
Eid continues to Shafaq News, that
"the financial market is also open towards Iran, as well as the entry of an Iraqi coin from Iran to Iraq and the withdrawal of hard currency and its purchase from banking stores in Baghdad and a number of provinces as well as in the Kurdistan region, which means that
the Iraqi financial market is invaded by networks Iranian to withdraw the hard currency from Iraq and smuggle it towards Iran illegally and legal.
The decline in the Iranian currency comes despite the recent steps taken by the regime, including the appointment of Muhammad Reda Farrazin as a new governor of the Central Bank on December 30, 2022, after the value of the local currency reached its lowest levels ever against the dollar, in the midst of constant mass protests and continuous Western sanctions.
After years of Western sanctions due to Iran's nuclear program, the riyal was circulated, at 315,000 riyals for the dollar when anti -government protests broke out in mid-September.
Tourism sector
The head of the Najaf Hotels Association, Saeb Radi, believes that the impact of the collapse of the Iranian currency on the Iranian tourist is greater than his Iraqi counterpart, and explains this by saying that
"the Iranian tourist when he comes to Iraq has to pay the costs of housing, travel and food in the Iraqi dinar or the US dollar, while the Iraqi tourist who travels To Iran, he faces the high cost of living despite the decrease in the currency." Radi explains to Shafaq News,
"The US sanctions on Iran affected all the joints of life, and caused prices to rise,
when the Iraqi tourist visits Iran and even Lebanon or Syria, because he feels high despite the decrease in their currency,
unlike the Iranian visitor when he comes to Iraq, it is It is true that he feels high, but compared to their currency, and for the dollar, it is low.
In turn, the owner of a store selling vegetables and fruits in Diwaniyah Governorate, Abu Ali, says that
"the collapse of the Iranian currency affects us by increasing its export of agricultural crops to Iraq, including tomatoes, potatoes and eggplant." Abu Ali notes during his talk to Shafaq News, that
"the citizen prefers the imported goods for the cheap price compared to the local crop, and
therefore Iran is the winner at the expense of our local merchandise,
so I demand - especially during this period - to limit the import rate from neighboring countries, especially From Iran, so that our local product is not harmed by this import."
https://shafaq.com/ar/تقارير-وتحليلات/انهيار-العملة-الايرانية-يلقي-بظلاله-على-القطاعات-العراقية-اقتصاديا-وزراعيا-وصحيا
