The Financial Committee clarifies about restoring the exchange rate to its previous position

The Financial Committee clarifies about restoring the exchange rate to its previous position

The Parliamentary Finance Committee denied, on Tuesday, the devaluation of the currency at the present time despite the increase in oil prices in the global markets, attributing the reasons to the fact that this increase is not real, but imaginary, as a result of Saudi Arabia reducing its exports that can be returned at any time that affects oil prices globally.

In an interview with NRT Arabia, (March 7, 2021), Cougar said, “It is not possible to manipulate the exchange rate or reduce it at the present time, as this will cause great confusion in the market movement in a way that makes the citizen lose confidence in the street, losing confidence in the country's economic policy and making it shaky as a result of low oil prices. Once again, the citizen is the first to endure obstacles such as those hasty decisions that may negatively affect the economy in the future.

He added that “Iraq is a rentier country that depends mainly on oil to finance its economy, which requires the government of Prime Minister Mustafa Al-Kazemi to move quickly and exploit the increase in order to maximize the bank’s treasury that has fallen to a bad extent, and to pay off owed loans such as Iranian and other loans, as well as fill the budget deficit. It can also be used to provide a supplementary budget.

"The markets have now stabilized at the new price, as goods are traded at the new prices of the dollar, and any change at the present time is unthinkable that would harm the merchant and the citizen alike," Cougar pointed out.



For its part, NRT Arabia surveyed the effect of the currency devaluation on traders and the movement of the markets at the present time, as traders emphasized that “the high price of the dollar caused great losses for them, which forced some of them to merge their stores in order to maintain their livelihoods, while some of them were forced to liquidate their stores as a result of losses because of the lack of Enable them to pay the workers' wages and the rent for their sites.

They explained that “the Chamber of Commerce organized several times a protest pause as a result of the damage that befell merchants because they import goods at a high price because there is no discreet local product, while they sell goods in Iraqi dinars, whose value has become low and is not sufficient to pay the financial obligations of traders, without the government moving any inhabitant or turning to their suffering. “.

Traders explained that "returning the price of the dollar to what it is will lead to the recovery of economic movement in the Iraqi market again as a result of the high purchasing power of the citizen and his economic stability."


https://iraqakhbar.com/2953630