Special Sunday Podcast: How is the exchange rate stable?

To see this article in FULL and MORE go to: My FX Buddies Blog How is the exchange rate stable? link The exchange rate of the dollar against the dinar stabilized at a price of 148 thousand dinars compared to the 100 dollars against the official price after raising it at the price of 145,000 dinars, and it is still slightly high. The question is what is the reason behind this stability? I see that the main reason behind this stability is due to the application of the theory of supply and demand for the first time in Iraq. The effects of the inflation that occurred due to the sudden change in the exchange rate became evident on the reality of the standard of living on all members of society without exception, even in varying proportions. And the poor segment was the most affected, and then followed by the middle class of retirees and employees, who are the vast majority in the country. One of the effects of inflation is the clear deflation, as the demand for most commodities decreased and cast a shadow on the market. Thus, there was a somewhat slowdown in the import process due to the weak demand, followed by a slight decrease in the demand for the dollar, so you find price stability evident these days. The objective of controlling the outlets and preventing the import of some commodities may have other partial effects on the stability of prices. This reality brings us back to the concept and role of consumer culture in the process of balancing prices in the market, how? If we have the ability to adopt a consumer culture that limits the apparent wastefulness in our consumer behavior, we will contribute to maintaining price stability. This means that government measures alone are unable to control the pace of prices unless accompanied by a balanced consumer culture by sacrificing some needs for a while, which will limit the The huge demand for hard currency with the aim of stabilizing the price and reducing it to less than the official rate.