Al-Saffar reveals to {Al-Furat News} the reasons for the high dollar and the possibility of “floating”
Al-Saffar reveals to {Al-Furat News} the reasons for the high dollar and the possibility of “floating”
12/08/2020 18:54:03
{Baghdad: Al Furat News} The reporter of the Parliamentary Finance Committee, Ahmed Al-Saffar, revealed, on Tuesday, the reasons for the high exchange rate of the dollar in Iraq and the possibility of its floatation.
Al-Saffar told {Al-Furat News} that “there is nothing official about changing the exchange rate of the dollar, and all that is rumored is talk and speculation that the people of exchange make to achieve profits and gains.”
And that “I stand against any manipulation in the dollar exchange rate, because it will lead to high inflation and increase in prices, and those with limited income are affected by the change and fall in the value of salaries.”
He added, “It is not possible for the government to float the dollar, because the central bank’s policy of fixing prices is stable and the matter is not easy, and the market will be greatly affected, and that this is an idea within the white paper proposed by some MPs, and it is not possible that a decision be made according to presenting an opinion and these are rumors. To achieve gains. ”
It is noteworthy that what is meant by floating the currency (the dollar or other) is to make the exchange rate of this currency fully liberalized, so that the government or the central bank does not interfere in determining it directly, but rather it is automatically secreted into the currency market through the supply and demand mechanism that allows setting a price Exchange of the national currency against foreign currencies.
Floating currency exchange rates fluctuate constantly with every change in the supply and demand for foreign currencies, and they can even change several times per day.
The owners of banking offices attributed the high exchange rate of the dollar in Iraq recently to the increase in demand for it by citizens and merchants alike, with news of the Ministry of Finance’s intention to raise the exchange rate of the dollar to 1300 dinars.
It is noteworthy that the reporter of the Finance Committee, Ahmed Al-Saffar, revealed to {Al-Furat News} the day before yesterday, Sunday, that “one of the reasons for the government’s delay in sending the draft fiscal budget for 2021 is the existence of understandings between the Ministry of Finance and the International Monetary Fund to update the exchange rate of the Iraqi dinar” usually it “a sensitive issue It must be updated in a way that does not cause inflation. ”
alforatnews.com
