Is a return from the current exchange rate possible and is it a risk, and why do experts warn the danger of this step?

Is a return from the current exchange rate possible and is it a risk, and why do experts warn the danger of this step?

Economy  ,   2021/03/30 19:58  

 


Baghdad - Iraq today:

Prime Minister Mustafa Al-Kazemi today appeared firm and categorical regarding the file of changing the exchange rate of the dinar against the dollar, stressing that the country has not overcome its economic crisis and has much work ahead of it, and that the step to retreat from this procedure will be very expensive and unpredictable.

While the Central Bank of Iraq (the largest national monetary body with administrative independence) said the final word on the subject, and ended the continuous tug of war, so changing the exchange rate or returning it to its previous price is economic suicide in any case.

The Director General of Accounting and Deputy Governor of the Bank, Ihssan Shamran Al-Yasiri, said in a press statement followed by (Iraq Today) that the current price of the dollar is very reasonable, and therefore the bank has settled on it and that any decision to reduce it means that we are heading towards an economic massacre and reducing it is a major sin that the Central Bank will not commit to.

The Central Bank called for an end to the polemics and shouts calling for the return of the previous price, and this matter is not based on any economic science other than favoritism to obtain electoral gains from citizens, considering that these statements contribute to the instability of the price, since the news and its differences contribute to a lack of confidence in the exchange market and its stability.

Shamran, who is an advisor to the bank’s governor, considered that the process of raising the dollar against the dinar was much delayed because this matter contributed to protecting the local product, in addition to that the lifting process increased the financial costs of exporting countries to Iraq by 22%, which contributes to increasing competition between the imported product and the local product.

And Shamran indicated that the money laundering process also ended with the raising of the dollar, and this is one of the most important benefits that Iraq obtained as a result of the process of changing the exchange process.

The Director General of Accounting at the Central Bank revealed that the Ministry of Finance obtained an amount of 10 trillion as a result of the process of raising the dollar against the dinar, and therefore it is now assumed that this ministry will transfer an amount from 2 to 3 trillion of the collected amount (10 trillion) for the purpose of distribution to citizens who are within the poverty line and today They went under this line, amounting to ten million citizens, as financial grants, and this is within the bank’s conditions for the ministry to agree to the process of changing the currency exchange rate.

Economists who spoke to (Iraq Today) warned against the consequences of manipulating the exchange rate of the dollar again, stressing that the Central Bank's action was vital and important, especially with the high salary bill and payments that the government is obligated to pay monthly, which requires the presence of sufficient foreign cash to cover the volume These payments, but it seems impossible in light of the decline in crude oil prices, volatility in the markets and the state of closure and the economic paralysis that the whole world is experiencing.








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