Parliamentary committee: The goal of devaluing the dinar has not been achieved

Parliamentary committee: The goal of devaluing the dinar has not been achieved

Monday, February 15, 2021 | 11:06 AM

Parliamentary committee - The goal of devaluing the dinar has not been achievedAnam Al-Khuzai, a member of the Parliamentary Government Program Monitoring Committee, promised Monday (February 15, 2021) that the allegations of revitalizing the national product by reducing the value of the dinar had not been fulfilled despite the passage of two months after the reduction of the national currency, while she warned that maintaining the reduced price would lead to waves Inflated “crushing low-income classes “.

Al-Khuzaie said in a statement, “After two months of devaluation of the Iraqi dinar for development reasons as announced by the government, the allegations of revitalizing the national product have not been realized. Rather, price levels have risen for all imported and national goods due to the latter’s dependence on mostly imported production inputs.” The draft budget law did not include a change in the exchange rate, despite it being mentioned in the text of the budget .

She added that “the initiation of the devaluation of the dinar for developmental reasons needs many introductions that Iraq is unable to achieve a small part of it in the short term.” Seriously, especially with the weak social protection programs needed to absorb the impact of the exchange rate shock on the vulnerable classes . ”

Al-Khuzai explained that “the goal of reducing the exchange rate of the dinar was double and with financial and monetary motives, as the financial motives were represented in the government’s desire to maximize oil revenues in dinars to reduce the size of the financial deficit.” This is currently achieved at the expense of high prices . ”

And it considered that “instead of reducing the value of the dinar, it would have been more effective to reduce current spending and reduce the sources of demand for the dollar to maintain price stability and limit the depletion of the dollar reserve at the central bank instead of reducing the value of the dinar in order to maintain the greed of current spending and sacrifice price stability in Iraq. Expressing its “grave concern over the failure of government performance to achieve its set and planned goals .”

And demanded, “to avoid the negative effects resulting from the reduction of the value of the dinar by adjusting the exchange rate in the federal budget 2021 and in a way that suits the living standards of the poor and low-income people,” calling for “adjusting the exchange rate policy, as was previously done in Article 50 of the 2015 budget when Parliament specified. Dollar sales ceiling of $ 75 million, with fairness in the sale. ”

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