Central Bank: This is what caused the change of the dollar’s ​​exchange rate

Central Bank: This is what caused the change of the dollar’s ​​exchange rate
Sunday, 21 March 2021 5:54 PM


Baghdad / National News Center

The Governor of the Central Bank of Iraq, Mustafa Ghaleb Makheif, said today, Sunday, that changing the exchange rate of the dinar against the dollar contributed to enhancing financial sustainability, as a result of the high volume of foreign reserves, while revealing a "greater challenge."

The Central Bank media stated, in a statement received by the National News Center, that “the Governor of the Central Bank of Iraq, Mustafa Ghaleb is scary, in a symposium (The Impact of Covid 19 on Financial Institutions), organized by the Iraqi Private Banks Association, along with His Excellency the Governor of the Central Bank of Jordan. Ziad Fariz, head of the Bahrain Banks Association, Adnan Yousef, and the head of the Iraqi Private Banks Association, Wadih Al-Handal, which was attended by a number of Iraqi and Arab specialists and experts.

In his intervention, the governor affirmed that “the Central Bank of Iraq has taken a series of measures to confront the effects of the Corona virus on the economy,” noting that “the pandemic has led to an increase in bad debts by 18% during the year 2020, which requires taking treatments that simulate the data of the Iraqi reality, especially security and legal. “.

The governor explained that "changing the exchange rate of the dinar against the dollar contributed to enhancing financial sustainability as a result of the high volume of foreign reserves and strengthening public finances, which increases the reliability of investors, low production costs, increased competitiveness of local goods and the balance of payments balance through the decrease in the volume of foreign imports."

He pointed out that "the biggest challenge is to reinvest the revenues generated from the process of lowering the exchange rate, which should contribute to building a production base outside the oil sector to act as a financial lever for the Iraqi economy and rid it of the problem of a single financial resource."

On the other hand, the head of the Iraqi Private Banks Association, Wadih Al-Handal, said, “The Central Bank of Iraq has taken effective steps to confront the impact of the Corona virus, including donations to support the health sector, delay the collection of loan installments, reduce interest, and increase loans to move the economy to all small, medium and large enterprises in addition to To housing loans. ”

He stressed that "the Iraqi banking sector has taken a series of measures that alleviated the problems faced by those dealing with it, explaining that the Association of Private Banks is working with the Central Bank to develop the banking sector."

According to the Central Bank, "This symposium comes in light of the international and local endeavor to find effective solutions that can support the various sectors to contribute to sustainable development."

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