The chairman of Iraq Securities Commission, Faisal Al-Haimus, ruled out a rise in the exchange rate of the dollar to 2,000 dinars, noting that the exchange rate of the dollar will begin to decline after fluctuation for a short period.

The chairman of the Iraqi Securities Commission, Faisal Al-Haimus, told Rudaw Media Network, in an interview conducted by Muhammad Sheikh Fatih, today, Monday (August 7, 2023), that the issue of the exchange rate of the dollar “relates exclusively to the Central Bank of Iraq,” adding that preventing the fourteen banks from entering the purchase platform dollars has an impact on the nature of the exchange rate against the dinar.

He stated that there are "governmental efforts by the Central Bank and the Prime Minister to consolidate the banking sector," noting that it was represented by launching a campaign to arrest price speculators. Faisal Al-Haimus, explained that 18 Iraqi banks have been restricted and banned from entering the dollar purchase platform out of about 71 banks in the country, indicating that the procedure is not a punishment, but rather a consolidation of the banking process in Iraq.

He pointed out that the US measure is a "temporary ban," hoping that the included banks would "solidify their business and comply with dollar purchases for legitimate purposes and engage in legitimate trade, and review their procedures in order to resume their activity in the future." The head of the Iraqi Securities Commission confirmed the presence of people who "benefit from creating panic among people with the rise in the price of the dollar against the dinar in the coming period," describing the rumors that the price of one dollar has reached 2,000 dinars as "an exaggeration."

Regarding the smuggling of funds to neighboring countries, he considered this operation "one of the reasons that led to distorting the image of the Iraqi banking sector, and as a result, the 14 banks were restricted.

Al-Haimus pointed out that the recent measures are "required," attributing this to "reducing the emergence of illegal activity through smugglers." He continued, "The recent package launched by the Central Bank regarding the entry of small merchants and others, measures that will help reduce the gap between the official exchange rate and the black market." The head of the Iraqi Securities Commission, stated that there is an initiative from the Iraqi Trade Bank to "enable small merchants to obtain dollars by submitting official documents," ruling out the possibility of breaches.

Securing the process for legitimate merchants to obtain foreign currency to import their requirements of goods, and the presence of a foreign company contracted by the Central Bank to audit invoices, will lead to “providing correct and grounded financing,” according to Faisal Al-Haimus.

He added that he does not agree with saying that “the number of merchants who benefis from the platform from Kurdistan Region are few merchants, because all the operating banks entering the platform are located in the Kurdistan Region and the rest of the governorates of Iraq, and all this indicates that there are a large number of merchants entering the platform daily.

He pointed out that the central bank “sells between 200 and 220 million dollars a day, and it is a large number, which shows that the (bank) is the legitimate outlet that is used to meet the needs of merchants to buy products from abroad and import them into Iraq.

Regarding the repercussions of preventing 14 banks from dealing in dollars, he said that it "led to an increase in the exchange rate of the dollar against the dinar, and this is the result of the surprise that occurred and the rumors that were previously reported," referring to "the drop in the dollar exchange rate in the last two days against the Iraqi dinar."

Faisal Al-Haimus expressed his belief that "there is great cooperation between the Central Bank, the US government, the US Treasury and the Federal Bank to control this situation."

He also expressed his optimism about the decline in the exchange rate of the dollar, saying that "the rise (exchange rate of 100) dollars to 200 thousand dinars is unlikely." And he added, "There will be fluctuation for a short period of time," stressing that "the measures taken by the Central Bank will contribute to reducing the gap, and I believe that we will start a gradual decline, not an upward" in the dollar exchange rate.

Regarding the role of the Securities Commission, he indicated that "its supervisory role is on the Iraqi Stock Exchange, and we supervise it and its trading on a daily basis and try to advance it, and there are efforts to open branches of the Iraqi Stock Exchange in all governorates, including in Kurdistan Region." In this context, he referred to the visit of a joint delegation from the Securities Commission and the Iraq Stock Exchange to Sulaymaniyah to "arrange the establishment of a trading hall in Sulaymaniyah, and we will follow up these efforts in order to be present" in Kurdistan Region and serve its citizens in the field of trading in "stocks and bonds."

Regarding Erbil branch, he said: "We granted the license to the Erbil Stock Exchange in 2014, and the concerned authorities in the Kurdistan Region took the initiative to establish the Erbil Stock Exchange Company," noting that the events in Mosul and ISIS "delayed the establishment of this market, and we are still in contact with the brothers in Erbil, and the place needs to be worked with by the Kurdistan Regional Government.