Dollar sinks in Iraq: MP cites market forces
Shafaq News/ Declines in the US dollar rate against the Iraqi dinar were not the result of government action, an Iraqi PM announced on Tuesday.
Speaking with Shafaq News, Jamal Kocher, a member of the Parliamentary Finance Committee, attributed the drop in the dollar’s value to multiple factors, most notably the slump in trade activity and the resulting decline in demand on the parallel market.
He warned that the government’s failure to disburse payments to contractors, coupled with a halt in project execution and growing public tension, has further reduced market demand for dollars.
Observers say global economic turmoil, rising trade restrictions, and declining commercial activity have spilled into Iraqi markets. The weakened global demand for imports has reduced the need for dollars, contributing directly to its lower value locally.
