Last Wednesday, the Iraqi domestic currency markets raised motivation for buying and selling the U.S dollars equally.
It resulted as an increase in the exchange rate of U.S dollar against the Iraqi dinar in the local currency markets. It has shown a clear sign of involvement of speculators to spread disinformation in order to prejudgment the movement of the market especially the U.S dollar exchange rate. A large number of speculators indicated that Central Bank of Iraq has stopped the sales of U.S dollars. The Iraqi Central Bank randomly announced statements and declared multiple times that Iraqi Central Bank didn’t stop the sales of foreign currencies at the premises of Central Bank in its daily sales auction of foreign currencies.
The Iraqi Central Bank continuously declared that CBI is selling foreign currencies according to the needs of Iraqi domestic currency markets. It is important that exchange rate of the U.S dollar fluctuated between 1222 to 1285 Iraqi dinars per U.S dollar. Point to be noted that Iraqi domestic currency market is still not showing stability in the U.S dollar exchange rate. This situation is alarming and the Iraqi government should take some immediate steps to control the instability in the Iraqi local markets. The Iraqi government also announced couple of days ago that government of Iraq is looking to utilize the Iraqi reserves to overcome the financial issues and payment of salaries of government employees. This news also reflected negative impact on the Iraqi domestic currency markets.