A deputy sets an expected date for returning the exchange rate up to 1200 dinars and sets a single condition

A deputy sets an expected date for returning the exchange rate up to 1200 dinars and sets a single condition

THURSDAY, 18-03-2021, PM 4:56

USD-Iraqi dinarOn Thursday, a member of the Parliamentary Finance Committee, Jamal Cougar, identified 3 reasons preventing the return of the dollar’s exchange rate to its previous value of about 1200 Iraqi dinars against the US dollar, while noting that the International Monetary Fund did not impose the exchange rate.

Cougar said in a televised interview, “The International Monetary Fund did not impose the exchange rate of the dollar, but it supported this step because it is fully informed of the Iraqi monetary policy.”

He added, “Many segments of citizens were affected by the raising of the dollar’s ​​exchange rate, but if we had not done so, the damage would have been greater and for everyone. We cannot return the exchange rate to the previous one because it is within the authority of the Central Bank.

Cougar added, “If the exchange rate was returned to its previous state, the budget deficit would increase by 22 trillion dinars, and this cannot be compensated despite the high price of a barrel of oil. The budget must also be completely redrawn because its figures came based on the current price of the dollar.”

He pointed out that “if oil prices stabilized at what it is now for a period of more than 6 months after covering the deficit, we would be able at that time to return the exchange rate to the previous one.”

The Minister of Finance, Ali Allawi, said in a press statement that changing the exchange rate or returning it to its previous era is not possible, because it is a government decision that cannot be changed daily as desired, indicating that “the markets have accepted the current exchange rate and will give incentives during the coming years to the private sector and strengthen the reserve. “.

After that, a member of the Legal Committee, Representative Hussein Al-Aqabi, considered the Finance Minister’s statement unsuccessful.

Al-Oqabi said, “The legislative authority is the authority to decide on financial matters from imposing financial burdens, whether they are fees or taxes, and the recent statement of the Minister of Finance regarding the exchange rate of the dollar is unsuccessful, and if the exchange rate increase came in accordance with the Central Bank Law, but it can be corrected and modified from Before the legislative branch. ”

He added that “the position of the Minister of Finance is unsound, negative, and unconstitutional and cannot be accepted at all,” stressing that “the House of Representatives must assume its moral and constitutional responsibility in this direction because the Iraqi people are under great pressure due to the increase in spending, which led to the increase in prices by more than 30% did not create significant economic and financial burdens on large segments of the people. ”

Al-Aqabi called for “the need to correct the equation by Parliament, as it is a moral obligation to support large segments of Iraqis,” stressing “the need for the government to be aware of its legal and constitutional rights and to feel the suffering of millions of poor and simple people.”

On Tuesday (March 2, 2021), Finance Minister Ali Abdul Amir Allawi made new statements regarding changing the exchange rate of the dollar and the 2021 budget, while stressing that the exchange rate cannot be modified.

The government’s economic measures made the poor poorer and the rich in wealth
The economic expert, Bassem Jamil Antoine, spoke of a party benefiting from the procedures for raising the exchange rate of the dollar against the dinar, while setting two levels for considering citizens below the poverty line or within extreme poverty.

Antoine said in a televised statement, “Every citizen whose income does not exceed 110 dinars per month is below the poverty line according to the strategy adopted by the Ministry of Planning, while less than 60,000 falls within extreme poverty.”

He added that “the economic measures adopted by the government recently, including changing the dollar exchange rate, have made the poor poorer and the rich have wealth, because the poor keep the Iraqi dinar, while the rich keep the dollar, indicating that the poor has weakened his purchasing power after the size of his income level decreased.”

And he indicated that “without creating job opportunities, the level of poverty will expand in the country.”