Last week, the Iraqi local markets experienced low U.S dollar exchange rate against Iraqi dinar currency.
A number of financial economists said that it belongs to weakness of international trade and the specific mechanisms adopted by the Iraqi Central Bank. Last week lowest record price of the U.S dollar in the Iraqi domestic market was recorded at 1285 Iraqi dinars per U.S dollar. It was dropped from 1305 Iraqi dinars per U.S dollar. Most economic experts indicated several reasons behind a significant amount of decline in the U.S dollars exchange rate against Iraqi dinar currency. A famous expert Antoine said in a statement that this scenario has various benefits and it would lead to the reduction of imported good. But, it was amazing that how original traders have reduced the actual goods in order to support the local market at one hand and the subsidy citizen at the other side. He also pointed out that the market sluggishness in the overall situation and decreased demand of goods due to fear of citizens from buying in large quantities led them to keep the currency.
It is important that the statements of new U.S administration has increase confusions in general situation in the country and it has been considered another reason in a significant decline of the U.S dollar against Iraqi dinar currency. A financial expert Dr. Hilal Taan also indicated about the speculation from some banks regarding banking sector. He said that currency monopoly has been considered one of the major reasons in the fluctuation of exchange rate in the Iraqi local markets. The specific methods had been implemented by the Iraqi Central Bank regarding the foreign currency, especially selling of foreign currency for travelers. It supposedly caused a decline in the exchange rate of the U.S dollar. He further indicated that current trade level showed a significant decline over the same period last year. He confirmed that decline in the U.S dollar exchange rate contributed by the decrease in the prices of imported goods. It provided a handsome amount of power to Iraqi dinar lead to the restoration in the domestic market activity.