Uncontrolled access to cash dollars threatens monetary stability. It also expands the parallel market. Economic analyst Ahmed Al-Khamisi stated this. He clarified that such access transforms foreign currency. It becomes a store of value outside the banking sector. This leads to reduced confidence in the Dinar. It also increases parallel market activity. This accelerates dollarization. Al-Khamisi believes this directly threatens monetary stability.
Al-Khamisi elaborated in exclusive statements to the “Ab’aad” platform. He said allowing cash dollar circulation without effective controls deepens market imbalances. This prompts more individuals to hold foreign currency outside the banking system.
He noted the ongoing near-total reliance on oil revenues. These are the sole source of economic funding. This reflects a deep structural flaw. The monetary base is eroding. Effective adjustment tools are also absent from the market.
Al-Khamisi highlighted weak monetary oversight. A lack of institutional reforms also exacerbates financial imbalances. This limits economic policies’ ability to absorb shocks. It also hinders sustainable stability.
Al-Khamisi believes the economic situation will remain fragile. It is prone to collapse with any internal or external change. This will continue unless radical reforms are adopted. These reforms must address existing distortions in the economic structure. They must also fix monetary policies.