Iraqi Dinar 123 News: – On Saturday, an official of the Iraqi Central Bank has requested for the supervision on the U.S dollar exchange activities and get controls on the foreign exchange companies in the way of transferring money. He said that the dollar import process considered as a major cause in the declining of Iraqi dinar exchange rate against the U.S dollar.
Another source said that the Iraqi economy was not only affected due to the rise in the U.S dollar exchange rate against the Iraqi dinar, but there are many other circumstances like administrative corruption and poor security conditions in Iraq. He further said that this current high exchange rate of the U.S dollar against Iraqi dinar affected most of the import items.
Implementing the laws would protect the products and goods because Iraqi government needs to promote the local made products to stabilize the Iraqi economy. Another major factor in the declining of Iraqi dinar is the 2015 budget law which restricted the Central Bank of Iraq not to exceed from 75 million dollars per day auction. So, increasing demand of the U.S dollar caused the continuous decline in the Iraqi dinar. Money laundering also considered an important reason in the downfall of the Iraqi dinar.