Financial analyst Abdul Hakim Amer Ghayth believes the Central Bank’s decision to apply new taxes on imported goods will increase market sensitivity. This timing coincides with a decline in the dinar’s value. It also aligns with rising inflation expectations. This situation may prompt traders to pre-price goods. They would do this in anticipation of higher import costs. Ghayth made these remarks in special statements to the Qatari “Al-Araby Al-Jadeed” website.
He stated that imposing taxes on imports in an import-dependent economy could practically lead to accelerated inflation. It could also reduce purchasing power. Additionally, private sector activity might slow down. He added that this step could contribute to increased demand for the dollar in the parallel market. He believes it would do this instead of curbing the demand.