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The Vinicial Times: The dollar crisis revealed the fragility of the Iraqi economy
Today 15:16 2 shares
Information/ translation ..
A report by the British Finchial Times confirmed on Monday that
Iraq is fighting to control the financial crisis that has been ravaged by the country for months,
which confirms the fragility of the Iraqi-based Iraqi economy after twenty years of the US invasion of the country.
The report, translated by the information agency, stated that
"the governor of the Central Bank on Mohsen Al-Alaq defended the measures taken to achieve stability in the monetary currency and
led to a severe shortage of the dollar and a
decrease in the value of the Iraqi currency." Al -Alaq said that
we "focused on solving the root of the problem and see some positive indicators," referring to the efforts of the Iraqi government and the central bank to calm the panic that prevailed since the outbreak of the crisis last November." The report added that
"the package of procedures has resulted from unintended repercussions,
including an unintended decrease in the supply of the dollar in an economy in which the American currency prefers strongly,
which led to high inflation and the creation of difficulties for Iraqis who do not trust their institutions or their currency." He continued,
"The weak Iraq economy is almost completely dependent on the transformations in global oil prices, and
the standard oil revenues have led to the inflation of the second largest producer in the Organization of Petroleum Exporting Countries (OPEC) to more than 100 billion dollars,
although Baghdad cannot Access to funds except through the American Federal Reserve that has retained Iraq's foreign exchange reserves since the invasion. He explained that
"according to this arrangement, the Central Bank of Iraq requests its dollars from the federal reserve and sells it to two commercial lenders and exchange companies for a dinar, a process known as the daily dollar auction.
But US and Iraqi officials have long complained that widespread fraud allowed large sums to withdraw large sums From the country. And that
"some banks and merchants are unwilling to reveal the details of the final recipients,
while others were slow to adapt to the bases.
With many requests for transferring from Iraq's accounts in the Federal Reserve, it reduced the supply of dollars in the market.
The size of these decreased. Transfers from the average daily value of $180 million in 2022 to between 65 million dollars to $75 million this year, according to the central bank data.
For his part, Al -Alaq said that
"there are signs of progress.
“We are witnessing a steady rise in the number of transactions on the digital platform and
we see more Iraqi merchants registering officially to participate.
"However, the experts warned that the matter may take several months before Iraqi banks fully adapt
And years until the economy completely moved away from the informal nature and the domination of criticism." End/ 25 z
https://almaalomah.me/news/translated/الفاينيشيال-تايمز:-ازمة-الدولار-كشفت-هشاشة-الاقتصاد-العراقي
Today 15:16 2 shares
Information/ translation ..
A report by the British Finchial Times confirmed on Monday that
Iraq is fighting to control the financial crisis that has been ravaged by the country for months,
which confirms the fragility of the Iraqi-based Iraqi economy after twenty years of the US invasion of the country.
The report, translated by the information agency, stated that
"the governor of the Central Bank on Mohsen Al-Alaq defended the measures taken to achieve stability in the monetary currency and
led to a severe shortage of the dollar and a
decrease in the value of the Iraqi currency." Al -Alaq said that
we "focused on solving the root of the problem and see some positive indicators," referring to the efforts of the Iraqi government and the central bank to calm the panic that prevailed since the outbreak of the crisis last November." The report added that
"the package of procedures has resulted from unintended repercussions,
including an unintended decrease in the supply of the dollar in an economy in which the American currency prefers strongly,
which led to high inflation and the creation of difficulties for Iraqis who do not trust their institutions or their currency." He continued,
"The weak Iraq economy is almost completely dependent on the transformations in global oil prices, and
the standard oil revenues have led to the inflation of the second largest producer in the Organization of Petroleum Exporting Countries (OPEC) to more than 100 billion dollars,
although Baghdad cannot Access to funds except through the American Federal Reserve that has retained Iraq's foreign exchange reserves since the invasion. He explained that
"according to this arrangement, the Central Bank of Iraq requests its dollars from the federal reserve and sells it to two commercial lenders and exchange companies for a dinar, a process known as the daily dollar auction.
But US and Iraqi officials have long complained that widespread fraud allowed large sums to withdraw large sums From the country. And that
"some banks and merchants are unwilling to reveal the details of the final recipients,
while others were slow to adapt to the bases.
With many requests for transferring from Iraq's accounts in the Federal Reserve, it reduced the supply of dollars in the market.
The size of these decreased. Transfers from the average daily value of $180 million in 2022 to between 65 million dollars to $75 million this year, according to the central bank data.
For his part, Al -Alaq said that
"there are signs of progress.
“We are witnessing a steady rise in the number of transactions on the digital platform and
we see more Iraqi merchants registering officially to participate.
"However, the experts warned that the matter may take several months before Iraqi banks fully adapt
And years until the economy completely moved away from the informal nature and the domination of criticism." End/ 25 z
https://almaalomah.me/news/translated/الفاينيشيال-تايمز:-ازمة-الدولار-كشفت-هشاشة-الاقتصاد-العراقي
