Restoring the price of the dollar enters its difficult stages in Iraq .. An "extreme" stubbornness between two parties may stop the budget completely!

Restoring the price of the dollar enters its difficult stages in Iraq .. An "extreme" stubbornness between two parties may stop the budget completely!


2021-03-07

Yes Iraq: Baghdad



It seems that the movement to restore the dollar's exchange rate to its previous state or reduce it from the price fixed in the 2021 budget has begun to reach the stages of peak tension and attraction, which may complicate the issue and may lead to the creation of new problems and obstacles to the 2021 budget.



While the past few days witnessed vacillating parliamentary statements and calls about the need to restore the previous dollar exchange, the first Deputy Speaker of Parliament, Hassan Al Kaabi, called for a parliamentary stance to restore the exchange rate, triggering governmental reactions, on the basis of which a parliamentary “tightening” and escalation of positions were set in motion.



While Al-Kaabi demanded the need to find a serious stand by MPs to restore the exchange rate, Finance Minister Ali Allawi said that restoring the previous exchange rate is “difficult” and that it is not permissible to manipulate the price of the dollar and the value of the dinar daily, and that this decision was taken based on consultations with the Central Bank and the World Bank, as well as Political blocs in Parliament.





Hinting to amend the Central Bank Law

This clear rejection of the government position led to a parliamentary counter-escalation, as the representative of the National Approach bloc, Hussein Al-Oqabi, said in a statement that “we followed with great astonishment the minister's statements regarding the inability to change the dollar’s ​​exchange rate because it is a reasonable price and that the decision was taken in consultation with the Central Bank and the Fund. International criticism and political blocs, and that the markets accepted it, and the government will work to compensate contractors who are affected by it.

While Al-punabi described this decision as “ill-considered,” he emphasized that “it led to a crazy increase in the prices of consumer goods - even locally produced - by more than 30%, which added another burden on the shoulders of the Iraqi family, and constituted great pressure on the living situation of the simple citizen. And it caused obvious confusion in the market. ”

He continued by saying: “The Iraqi economy has been mortgaged by the IMF and the political blocs’ response to these dictates represents a dangerous turning point that affects the future of the country and puts its capabilities and wealth in the hands of foreign decisions that are the last thought of the interests of the country and its people. ”



He went on to say: “From here we demand and renew our previous demand to restore the dollar’s ​​exchange rate to what it was previously, and we affirm that the legislative authority is the final word on all issues related to matters of conducting financial matters through legal legislation inside the parliament,” indicating that “raising The exchange rate of the dollar came according to a decision from the Central Bank and with governmental and external influence, but it is possible to correct the decision by the legislative authority, even if it is necessary to amend the Central Bank Law.





The parliamentary movement is "serious" to restore the exchange rate ... and the budget may be affected

A member of the Parliamentary Economic and Investment Committee, Nada Shaker Jawdat, confirmed the "seriousness" of the parliamentary movement to restore the previous exchange rate, as she stated in press statements that “the talk about the lack of a parliamentary majority rejecting the amendment of the dollar exchange rate after it was raised by the Ministry of Finance and the Central Bank, is inaccurate. Far from reality, but on the contrary, the majority with adjusting the exchange rate and returning it to what it was or reducing it from what was stated in the 2021 budget bill.

She added that "adjusting the exchange rate of the dollar against the Iraqi dinar remains within the authority of the Iraqi government. As for Parliament, it cannot make any amendment except with the approval of the government," noting that "until the moment there is no government approval for this amendment, but rather there is insistence that the exchange rate remain Without any change, and this is what most deputies reject.

While the Parliamentary Finance Committee indicated that the political movement is still continuing within the House of Representatives, with the presence of parliamentary signatures submitted to the Parliament in order to restore the exchange rate of the dollar against the dinar or reduce the current price, noting that “the government is difficult to go in this direction, Because changing the exchange rate or returning it to its previous rate needs to reformulate the 2021 budget bill anew.



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