The Iraqi Parliamentary Finance Committee issued a warning regarding the expected rise in the exchange rate of the U.S dollar during the coming period and it is expected a rise up to 1500 Iraqi dinars per U.S dollar.
The Finance Committee stressed that Iraqi Central Bank should take some immediate steps to secure the Iraqi dinar currency. It is also said that the expected rise in the U.S dollars is due to the shortage of selling foreign currency by the Central Bank of Iraq and the involvement of international mafias. A member of the Finance Committee MP Serhan Ahmed said in a press interview that the major reason behind the expected rise in the exchange rate of U.S dollars against Iraqi dinar in the Iraqi domestic market is due to the presence of international and local mafias with collaboration of neighboring countries.
He further added that international mafias are buying a large amount of U.S dollars that were sold by the Iraqi Central Bank and smuggling to our neighboring countries. This operation has affected badly to the foreign currency reserves, as Iraqi reserves have been decreased significantly. One of the main reasons is considered the lack of selling foreign currency at CBI sales auction which is less than 75 million U.S dollars. He added that Iraqi Central Bank is not focusing in maintaining and stabilizing the Iraqi dinar exchange rate against the U.S dollar in the Iraqi domestic currency markets. He predicted that the U.S dollar exchange rate against Iraqi dinar currency to be reached at 1500 Iraqi dinars per U.S dollar in the coming period. Most of the Iraqi dinar investors are looking to Sell Iraqi Dinar due to expected rise in the U.S dollars price and suggested that not to Buy Iraqi Dinar because of instability of Iraqi dinar exchange rate against most of the major foreign currencies.