Economic expert Saber Al-Wahsh exclusively told our source that the exchange rate is a product of interaction rather than a decision.
He explained: “Although adjusting the exchange rate is issued by the Central Bank, its execution relies on the government and the National Oil Corporation. The Central Bank’s role is limited to addressing emergency circumstances using available reserves. Over the past year, the Central Bank utilized $8 billion in reserves to maintain the current exchange rate.”
He added: “But how long can the Central Bank defend this rate amidst clear declines in foreign currency revenues and expanded deficit spending? The answer lies with the National Oil Corporation through the revenues it generates and with the governments through their expenditures. Essentially, the Corporation and the governments are the ones determining the currency exchange rate.”
Al-Wahsh further stated: “If the issues related to barter trade are resolved, fuel imports are organized, and spending is rationalized, we may witness some stability in the exchange rate. However, if the current situation persists, an exchange rate adjustment will not be far off, which is something we hope to avoid.”
