Dollar Exchange Rates Expected to Stabilize, Parallel Market Struggles to Meet Demand

Shafaq News/ Financial expert Hilal Al-Ta'an on Sunday said that the dollar exchange rate is set to stabilize at its current level in the parallel market as cash sales from the Central Bank of Iraq (CBI) are insufficient to meet domestic market demands.

Al-Ta'an, in a statement to Shafaq News Agency, said that the US dollar exchange rates might "settle at 1500 dinars in the parallel market after a slight decline."

He said that demand for the dollar remains high in the parallel market, notwithstanding the measures implemented by the Central Bank.

Al-T'an said that the international banks' auditing procedures delayed the transfers, prompting the traders to buy green banknotes from the parallel market.

"The CBI's cash sales have been low recently and, indeed, do not meet what the domestic market needs," he continued.

The exchange rate of the dollar against the Iraqi dinar dropped, hitting the threshold of 1500 dinars to one on Sunday.