On Wednesday, the Diyala Chamber of Commerce stated that the dollar will lose 20% of its importance in Iraqi markets by 2024.
In an interview with Al-Maalouma, Muhammad Al-Tamimi, the head of the Diyala Chamber of Commerce, said, “Washington used the dollar four times during 2023 to pressure Baghdad to achieve a political agenda, which led to provoking crises and raising prices at rates of up to 10%, especially for basic materials, due to the influence of the dollar’s liquidity and control.” Approximately 90% of transactions are completed immediately.
He went on to say, “The openness of the Sudanese government and its adoption of a basket of other currencies to cover foreign exchanges is a step in the right direction,” and pointed out that “the dollar will lose 20% of its influence in the markets during 2024 due to companies and traders resorting to a basket of currencies, including the Chinese yuan, the euro, and others.”
He went on to say that “Baghdad’s pressure to end the dollarization of Iraqi markets and adopt electronic trading will have a positive impact in reducing the demand for the dollar, which will give flexibility and stability to the exchange rate.”
The Iraqi markets have suffered in recent months as a result of dollar exchange rate volatility and its direct influence on the markets.