Al-Nasr: raising the dollar exchange rate is a war on the poor and threatens economic collapse

Al-Nasr: raising the dollar exchange rate is a war on the poor and threatens economic collapse

12/20/2020 12:14:09

Al-Nasr - raising the dollar exchange rate is a war on the poor and threatens economic collapse{Baghdad: Al Furat News} The victory coalition headed by Haider Al-Abadi announced today, Sunday, its refusal to conduct a devaluation of the Iraqi dinar in exchange for raising the dollar exchange rate and reducing the citizen’s income.
The media office of the coalition stated in a statement that Al Furat News received a copy of: “We refuse to reduce the value of the Iraqi dinar in exchange for raising the dollar exchange rate and reducing the citizen’s income, which will not address the crisis at the foreseeable level. Inflation, and the currency may not be stable. ”

He held the government and the political forces supporting this step “responsible for the societal economic collapses that will affect the social and living structure of the citizens.”

The statement added, “These measures and the continuation of irresponsible spending in a corrupt, flabby and chaotic bureaucratic environment, and amid modest infrastructure and services that are the mainstay of economic, industrial and agricultural activities will lead to undesirable results. We fear the inability to control the exchange rate of the dinar amid these circumstances, as it is.” It is known that the exchange rate policy is a policy that works alongside a successful monetary policy, and the existence of an effective financial market arena, and this is not currently available, which forces the central bank to use foreign currency to control liquidity and the levels of money supply instead of relying on effective government policy in controlling spending and stimulating the economy. .

He pointed out that “the government could have taken better and less expensive measures to overcome the financial crisis, including: stimulating the economy, encouraging investment and creating job opportunities, instead of what is happening now, and presenting a budget in which to pressure unnecessary spending, such as the one provided by Dr. Al-Abadi’s government for the years 2015-2018, which was based on Setting priorities, reducing expenditures and preventing waste. ”

She pointed out that, “Al-Abadi’s government was able at that time, despite the war conditions and the collapse of oil prices for more than three consecutive years, to overcome the crisis with the least losses, and proved the policy of structuring priorities, spending pressure, preventing unnecessary spending, controlling the window for currency sale, controlling speculation, and maximizing the country’s internal imports.” And reducing the salaries and privileges of officials, it has proven its success in overcoming the crisis, and it has maintained the exchange rate of the dinar, secured salaries, protected the poor and low-income classes, maintained basic and necessary spending and accomplished its tasks with liberation, and began to work to restore stability and construction, and the government that followed it handed over about 14 billion dollars As a surplus, it raised the credit rating of Iraq globally, despite the stifling financial crisis that lasted for more than three consecutive years, and the barrel price rates were lower than the current price.
He called “to re-apply the procedures of the Al-Abadi government to avoid the current financial crisis, as it is a successful, possible and employable experience, instead of adopting a wasteful spending policy and reducing the exchange rate or resorting to the policy of open borrowing or reducing salaries and raising the protection cover for the poor and low-income classes.”

The statement added that “establishing reform and overcoming the current crisis can only be achieved by effective governance free from conciliatory political clashes, economy as well as services, security and sovereignty. It will not rise in light of the fragmentation of governance, the conflict of decision-making centers and the dominance of the parties over the center, and in light of the power of all over the state, unity and compulsion.” Its policies and decisions, and reform will not breathe a sigh of relief in light of political fiefdoms and the partisan swallowing of the state under the headlines of quotas.

The victory coalition called for “all national solidarity to overcome the crisis, and to pursue the most effective solutions to protect the economy and the interests of citizens.”