Deputy talks about a next step to change the current exchange rate for the dollar

Deputy talks about a next step to change the current exchange rate for the dollar

TUESDAY, 29-12-2020, AM 9:26

10K Iraqi Dinar notesRepresentative Hussein Arab, spoke about the possibility of changing the current dollar exchange rate, while noting that the decision to change it is in the hands of the Finance Ministry.

Arab said in a televised interview, “We have not discussed the government yet about the basis on which the new exchange rate was built,” adding that “raising the exchange rate to 1450 dinars against the dollar is surprising because oil prices are on the rise and it is possible to reduce the size of the financial deficit, and thus not.” We should go towards changing the exchange rate under the pretext of reducing the deficit. ”

Regarding the current trend in covering government expenditures, the MP said that “raising the exchange rate solves a small part of the deficit problem, and there are alternatives and other better solutions,” noting, “We believe that the exchange rate will change once the 2021 budget is discussed in Parliament.”

He continued, “I tell the Minister of Finance that raising the exchange rate of the dollar is illogical, and will cause the market to collapse. What you did will not be merciful to you by history,” he said.

Arab confirmed that “the Ministry of Finance determines the exchange rate, and the Central Bank has nothing to do with that,” noting that “all parliamentarians agree not to allow any prejudice to the salaries of employees.”

The Minister of Finance, Ali Allawi, said Monday 21-12-2020 that changing the exchange rate of the dinar against the dollar was aimed at protecting the economy.

“We made a change in the exchange rate of the dollar to protect the economy,” Allawi said at a joint press conference in Baghdad.

He added, “The budget is the first step in the path of economic reform and the revenue difference by changing the exchange rate will be allocated to support vulnerable groups in society.”

In turn, Minister of Planning Khaled Battal confirmed that “the volume of investment spending will reach 8 trillion dinars in the 2021 budget.”

He added, “The budget included the suspension train project, the port of Faw, and a number of projects.”