Iraqi anticipation for a new manipulation of the dollar: an escalating movement to restore the previous quote ... and an alternative solution "that satisfies all parties."

Iraqi anticipation for a new manipulation of the dollar: an escalating movement to restore the previous quote ... and an alternative solution "that satisfies all parties."
2021-02-26

Yes Iraq: Baghdad

The wave of talk and the tendency to re-price the dollar against the dinar to its previous era began to escalate sharply at various levels, especially the parliamentary and popular, while proposals began to escalate to get out of the issue of raising the price of the dollar and its harm to citizens and the prices of goods.



Representative and popular voices began to focus on the rise in oil prices, which means that the government will obtain more profits, which reduces the deficit, which means that the need for the dollar price to remain unchanged, amounting to 1450 dinars, and the need to return it to the old pricing due to the economic shock it caused to the market and to citizens.

Initial proposal

A member of the Committee to Monitor the Implementation of the Governmental Program and Strategic Planning, Inaam Al-Khuzaie, suggested reducing the dollar’s ​​exchange rate and returning it to 1,200 dinars per dollar, without affecting the next year's budget.

"Prime Minister Mustafa Al-Kazemi says that raising the exchange rate to 1450 dinars will save 10 trillion dinars for the budget," Khuzai wrote in a tweet.

And she added, "Raising the price of oil in the budget to a conservative price of $ 52 instead of $ 45 will save 10 trillion dinars also without prejudice to the exchange rate and without prejudice to the real incomes of the poor and middle classes."







A firm parliamentary position!

On the other hand, parliamentary assurances reached a refusal to pass the budget without adjusting the exchange rate, as Muhammad al-Shabki revealed, a member of the Parliamentary Finance Committee.

"There are political forces and MPs from different political blocs that are working to adjust the exchange rate of the dollar against the Iraqi dinar in the 2021 budget, and these forces and MPs refuse to pass the budget without this amendment," Al-Shbaki said in press statements.

And that "there is a parliamentary proposal that the exchange rate of the dollar against the Iraqi dinar be (13000) Iraqi dinars in front of every $ 100, but the validity of the amendment remains in the hands of the Iraqi government, and there are contacts between parliamentary and governmental parties to discuss the possibility of such an amendment, before voting on the budget."





An alternative proposal

For his part, the economist Rasem Al-Akidi presented a compromise solution to the issue of the dollar exchange and the impact of the new pricing on economic movement and the prices of goods and materials, in a way that makes all governmental and popular parties and merchants benefit, and prevents the return of the currency sale window and the huge sale of hard currency in it due to its cheap price.



Al-Aqidi said, in a press statement followed by Yass Iraq, that “raising the value of the dollar against the Iraqi dinar and making the exchange rate of 1450 dinars per dollar came with a proposal from the International Monetary Fund and experts in the financial world of the Iraqi government, in order to cut off the road to smuggling hard currency that continued For many years ”.

Al-Aqidi added, "Restoring the price to its previous era with the rise in oil prices, the mechanisms of smuggling will also return to the outside, by legitimate means through the same window, and sales of dollars will be doubled to high numbers."

The economist pointed out, "Despite the advantages of raising the dollar’s ​​exchange rate, including doubling the state’s revenues from the dinar to cover all financial activities, including the payment of salaries, but in return it raised prices in the markets, and caused damage to many segments, including the poor and the middle class."

Rasim al-Aqidi explained, “The damages resulting from the raising of the exchange rate can be overcome by adopting what we call the dollar as food, which is the process of selling the dollar to traders at the old price, while placing the difference between the old and new price in the trusts, and when the merchant comes and presents his papers that prove that he has actually imported The goods and the payment of customs according to the automated mechanisms, the trusts will be returned to him, and thus we limit the process of selling the dollar to finance materials and goods that are not produced in the markets.

The economic expert confirmed, "The proposal will protect hard currency from smuggling and secure basic materials at low prices in the Iraqi market."


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