Optimistic expectations drive decline in USD against Iraqi dinar

Shafaq News/ Economic expert Nabil Al-Marsoumi attributed the decrease in the US dollar price against the Iraqi dinar to what he described as "good market sentiment and optimistic expectations."

In an interview with Shafaq News Agency, Al-Marsoumi stated, "The recent rise in the dinar's exchange rate against the dollar, reaching 1,560 dinars, is a result of good market sentiment and optimistic expectations associated with the agreement between the US Federal Bank and the Central Bank of Iraq on a combination of policies and procedures."

He noted that while these measures have not been tested to determine their effectiveness in narrowing the gap between official and parallel prices, the dollar price will continue declining for some time before stabilizing, possibly near 1,500 dinars.

However, Al-Marsoumi anticipated a future rise in the dollar's price due to unresolved issues, particularly related to trade with Iran and Syria. He highlighted the problem faced by Iraqi travelers to these countries who are deprived of obtaining the dollar at the official rate.

Additionally, he pointed to other factors contributing to the rise, such as the dual tax and customs tariff systems in Iraq, the presence of illegal ports, weak control over official border ports, and the circulation of goods outside the electronic platform, including alcoholic beverages, cigarettes, and drugs.