Iraqi Financial Expert Predicts Further Decline in Dollar Exchange Rate

Shafaq News/ Financial and economic expert Abdul Rahman Al-Mashhadani has predicted a new decline in the dollar exchange rate in Iraq, reaching 145,000 Iraqi dinars against 100 dollars.

He attributes this forecast to measures the Central Bank of Iraq took in collaboration with the Federal Reserve Bank.

Speaking to Shafaq News Agency, Al-Mashhadani highlights the recent meeting in Abu Dhabi, where ten banks were authorized to carry out transfer operations directly through correspondent banks, including American banks JP Morgan and Citibank. He explains that this move aims to expedite transfer processes, bypassing the electronic platform of the Central Bank and avoiding scrutiny from the Federal Reserve Bank.

Additionally, Al-Mashhadani notes that the Central Bank has allowed banks to import remittances belonging to foreign companies, international organizations, and diplomatic missions operating in Iraq through Iraqi banks. This move is expected to facilitate the payment of salaries and contracts, with the first shipment worth $100 million entering the local parallel market. The funds will be used to pay workers in these companies and cover contracts with Iraqi suppliers, contributing to increased spending in Iraqi dinars.