The Iraqi Central Bank Explains the Rise in Dollar Exchange Rate

The Governor of the Central Bank of Iraq, Ali Al-Alaq, stated in an interview with the Iraqi News Agency today, Wednesday, that "the rise in the dollar exchange rate against the Iraqi dinar is due to merchants not accessing the central bank's electronic platform." He added, "Some who want to buy dollars do not rely on the correct methods through visiting the electronic platform," and pointed to "the phenomenon of speculators in the market who spread rumors and create a crisis that leads to a price increase." The dinar was trading at 1580 against the dollar today, compared to 1470 to the dollar about a week ago. The official exchange rate is set at 1300 dinars per dollar. Under stricter U.S. regulatory rules that went into effect last year to control the mechanism by which Iraq obtains dollars, all requests for financial transfers must go through an electronic system that includes detailed information about the ultimate recipient of the dollars.