A number of financial experts warned about the continuous rise in the U.S dollars exchange rate against Iraqi dinar because it would significantly harmful for Iraqi local currency. They stressed that Iraqi Central Bank should adopt perfect mechanisms to control the expected critical situation. During the days of Eid Ul-Azha, the U.S dollar exchange rate reached at 1,300 Iraqi dinars per U.S dollar. A member of Iraqi Parliamentary Finance Committee MP Ahmed Rashid issued a statement that a significant balance between demand & supply of U.S dollar can control the situation. We have experienced a significant increase in buying the U.S dollars in last couple of days; it caused a rise in the price of U.S dollar in the market. He further added that travel and tourism events during the holiday seasons had increased, which caused a significant amount of increase in the demand of the U.S dollars.
But, the Iraqi Central Bank decreased sales of the U.S dollar in its daily auction sales of foreign currency. He also pointed out that Iraqi Central Bank should control the rise of U.S dollar by adopting perfect mechanisms in order to bring the price of U.S dollar at its previous level of real price. Another member of Finance Committee Sirhan Ahmed said that Iraqi Central Bank doesn’t have any plan to boost up the value of Iraqi dinar against the U.S dollar. He also pointed out that increase in the Iraqi dinar exchange rate depends on the reserves of hard currency, oil & non-oil revenues at Iraqi Central Bank. He added that legislative track and some other issues are affecting the Iraqi dinar exchange rate against the U.S dollar. He said that hard currency reserves should be maintained to control the exchange rate of Iraqi dinar against the U.S dollar.