Iraqi Dinar 123 News: – A banking adviser Dr. Essam Mahouelle said that the recent rise in the dollar against the Iraqi dinar exchange rate would be normal very soon after taking some major steps and alternative solutions. He also said that the increase in the dollar is temporary and it will return to its normal level very soon but it would take almost two to three months.
The Iraqi dinar exchange rate is fluctuating since past few days, due to the Article 50 in the Iraqi budget law 2015. This Article restricts the CBI, not to exceed from 75 million dollars in its daily sales auction. After this implication, a big drop in income was recorded and caused low commercial traffic in buying and selling in the daily general transactions. He also said that the Iraqi Central Bank has the power to manage such difficult situations that rose by restricting them to sell a specific amount of dollars in the local markets. He pointed that Iraq is a rich in oil production and we can manage such kind of conditions, although there is a downfall in the oil prices worldwide, but the oil prices will return to their normal level after passing a specific time period.
A number of banking companies have stopped dealing in buying or selling the U.S dollar in the fear of getting loss which caused the instability in the foreign currencies exchange rate. Senior economist Dr. Ali said that Iraqi internal security conditions and Article 50 in the budget created these disturbances in the currency exchange rate. But the major reason for the rise in the U.S dollar against the Iraqi dinar is Article 50 which bounds the Iraqi Central Bank for its daily auctions. This gap would be filled when the demand and supply level become to its normal size. The Iraqi Central Bank is responsible to stabilize the foreign currency exchange rates against the Iraqi dinar.