Member of the Representative Economy: The reduction of the exchange rate is possible in one case after approving the budget

Member of the Representative Economy: The reduction of the exchange rate is possible in one case after approving the budget


Baghdad today - Diyala

A member of the Parliamentary Economic Committee, Representative Ali Al-Lami, said today, Saturday (March 20, 2021), that the Iraqi government is able to adjust the exchange rate of the dollar at any time it wants, even if it is fixed according to its current price above the 1450 dinars in the 2021 budget.

Al-Lami said in an interview with (Baghdad Today), that “the change of the exchange rate of the dollar is the prerogative of the government and the central bank, because the monetary policy takes place through the Central Bank in consultation with the Ministry of Finance.”

And he added, "If the parliament voted on the new exchange rate included in the budget, the government is able to amend it, whether lowering it or raising it at any time it wants, because this decision is one of its constitutional powers."

Al-Lami added, "Years ago, he recorded a similar position in asking the House of Representatives to raise the exchange rate, and an official letter was sent to the Federal Court to resolve the situation at the time, and its answer was to veto the decision of the House of Representatives and support the government's position considering that the monetary and financial policy is its prerogative."

Earlier, the head of the Parliamentary Bloc, Muhammad Othman Al-Khaldi, confirmed that the majority of parliamentarians have come with a change in the dollar exchange rate in the 2021 budget, a few hours before the supposed date for the delayed budget of about 3 months to be passed.

Al-Khalidi said in an interview with (Baghdad Today) earlier today, that “most of the members of Parliament have changed the current exchange rate of the dollar, especially with the recovery of oil markets and the increase in selling prices per barrel in the last three months, which reduced the financial gap that was behind the decision. Raising the exchange rate of the dollar a few weeks ago to 1,450 dinars, and thus high prices, including food.

Al-Khalidi added, “According to the law, determining the exchange rate of the dollar is subject to the powers of the Central Bank as it is an independent institution that has a general framework in drawing the country's financial policy. With the economic situation and the reduction of its effects on large segments, especially as the country has a poverty rate of up to 30%, which calls for high flexibility in dealing with the file of the dollar price.

It is expected that the House of Representatives will hold a special session today to pass the budget.

A member of the House of Representatives, Amer Al-Fayez confirmed, last week, that the return of the dollar exchange rate against the Iraqi dinar to what it was before it was raised, or reduced to 1300 instead of the current price that was allocated in the draft federal budget for the year 2021, is possible through the supplementary budget, which It will include the additional funds entered into the budget as a result of the rise in international oil prices.

Al-Fayez said in an interview with (Baghdad Today), "More than 130 deputies have threatened to boycott the voting session on the draft budget law, unless the current exchange rate of the dollar changes, given the extent of the damage to the citizen as a result of this change and the fluctuations in the market."



https://iraqakhbar.com/2980124