Member of Parliament Finance: The state has no authority to reduce the value of the dinar .. The decision is in the hands of a single party

Member of Parliament Finance: The state has no authority to reduce the value of the dinar .. The decision is in the hands of a single party

Posted, 03/13/2020 19:56

Member of Parliament Finance - The state has no authority to reduce the value of the dinar .. The decision is in the hands of a single partyBaghdad today – Baghdad

Member of Parliamentary Finance Committee MP Ahmad Hama Rashid, Thursday (12 March 2020), said that the demand for a move to change the Iraqi dinar exchange rate against the dollar, or what is known as (floating the dinar), to face the fears of the economic collapse should be the last economic solution In the event that all other attempts fail.

Rashid said, in an interview with (Baghdad today), that “the current or future government cannot change the exchange rate of the dollar against the Iraqi dinar because the monetary authority is independent and has no authority over it.”

Rashid said, “If things require and the monetary authority in the country (with the financial authority) decides to change the exchange rate, there are different views of the Finance Committee in terms of opposing some and supporting others, because changing the exchange rate will lead to an overall inflation of all components of Iraq.”

He continued, “But is this the economic solution, I believe that the last ironing-out medicine, and if necessary, I will be a supporter of such steps.”

And the former Minister of Transport, Amer Abdel-Jabbar, expected, on the day before yesterday, Tuesday, to reduce the salaries of employees and increase deductions and taxes, due to the decrease in oil prices in Iraq. In order to reduce the budget deficit.

In his speech to the program (A View), which is presented by Dr. Nabil Jassem on the screen of (Degla Satellite)), he pointed out that “the continuation of monetary policies and the current government in the same contexts with the sharp decline in oil prices will be disastrous, and the employee should expect to cut his salary, perhaps for half or exchange part From his salary every two months, “noting that” the next stage may witness a decrease in employee salaries and increase in deductions and taxes to reduce the budget deficit. ”

He added that “the Iraqi dinar is on its way to float (i.e. reduce its value), and the Iraqi government may have to increase the exchange rate of the dollar to 1250 dinars against the dollar in order to obtain additional funds estimated at 4 trillion dinars in the budget and this matter is positive because it will allow encouraging the national industry because it will raise the value Imported goods and makes domestic competitive. ”

And between “we fear a government decision to reduce the price of the dinar against the dollar to 1300 or 1350 in the event that the drop in oil prices is catastrophic, this float will cause the price of commodities to rise and burden the citizens, the state may use it to reduce the budget deficit.”

Abdul-Jabbar continued, “The government’s decision to place customs and other exemptions to remove visa amounts with some neighboring countries has harmed Iraq and contributed to preventing the entry of important revenues to the state,” noting that “since 2018, it warned of low oil prices in 2020.”

He pointed out that “the advisory base available to the Prime Minister is not qualified to deal with major crises, especially those related to low oil prices.” Because it will take the place of others. ”

Abdul-Jabbar said that “the recent appointments made by the Prime Minister killed the state and burdened its financial resources, and there is a 200-square-meter department with 270 employees.”

Earlier yesterday, the Finance Committee revealed the fact of discussing lowering salaries of employees and retirees after the drop in oil prices.

The committee confirmed, according to a book issued by it, “The news circulated regarding the reduction of the salaries of employees and retirees is incorrect, and it categorically denies the intention of the financial committee or the parliament, and the government delve into this issue as it is an acquired right.”