Expert downplays the impact of the Iraqi authorities' tactics to control the parallel forex market
Shafaq News/ Economic expert Basem Jamil Antoine on Monday warned about the challenges facing Iraq in stabilizing the US dollar's exchange rate, citing the complete stagnation of Iraq's production sectors.
In a statement to Shafaq News Agency, Antoine said, "Iraq's productive sectors, both agricultural and industrial, are utterly paralyzed. As long as Iraq remains dependent on imports, it will drain the dollar from the Iraqi markets."
"Neighboring countries stand to benefit the most, coupled with the difficulty in curbing smuggling mafias and speculative activities by concerned entities."
The expert expressed skepticism about the dollar returning to its normal exchange rates promptly, given the current economic indicators. He explained, "Addressing this crisis requires long-term solutions and an extended period focusing on revitalizing production and significantly reducing import operations."
The expert called for adopting "domestic solutions through effective economic plans and bolstering the agricultural and industrial sectors to shield the Iraqi market against concurrent dollar crises."
Over the past few months, the Iraqi central bank's attempts to control the parallel currency market and revert the exchange rate to the official rate of 1,320 dinars per dollar have proven unsuccessful.
