Mudar Al-Karawi, a member of the Parliamentary Finance Committee, stated on Sunday that the Central Bank of Iraq has begun implementing five techniques to curb the increase in the parallel market.
According to Al-Karawi, in an interview with Al- “The difference between the dollar exchange rate determined by the Central Bank and the parallel market reaches 20%, which is a high percentage that reflects a serious state of concern because it is unstable.”
“The possibility of the dollar rising is great with the demand for the parallel market in order to finance deals and travel trips for thousands of citizens,” he added, noting that “the most recent meeting with the management of the Central Bank revealed negative indicators and cases in some aspects in terms of securing liquidity.”
He went on to say that “reducing the dollar exchange rate is very important, especially since any rise leads to great pressure on the markets and pushes prices higher, with speculators exploiting any opportunity to profit.”
The dollar exchange market in Iraq is in an unstable state as it has broken the 160 thousand dinars per $100 threshold.