Despite The Consensus On His Failure, The Minister Of Finance Continues To Defend The Decision To Raise The Exchange Rate

Despite The Consensus On His Failure, The Minister Of Finance Continues To Defend The Decision To Raise The Exchange Rate

2022/05/25 | 10:48 AM

Despite The Consensus On His Failure The Minister Of Finance Continues To Defend The Decision To Raise The Exchange RateInformation/Baghdad:

Caretaker Finance Minister Ali Allawi reiterated, on Wednesday, his defense of his government’s decision to raise the price of the dollar, which specialists and experts agreed on its failure and its negative impact on the poor and middle classes.
Allawi said, in statements reported by the official Iraqi News Agency and seen by / the information /, that “the devaluation of the Iraqi dinar led to the preservation of foreign currency reserves with the Central Bank of Iraq after the low and critical levels that reached in late 2020,” noting, that “the recovery in Oil prices and prudent financial management, help reserves become $70 billion by April.”
He added, “It is expected that the continued recovery of oil prices will increase these reserves to more than 90 billion dollars by the end of 2022, which is a record level for Iraq,” noting that “the depreciation of the Iraqi dinar against the US dollar in December 2020 contributed to the decline Demand for the US dollar, while the current demand for the dollar is higher than the declines seen in 2020, it is much lower than the period before 2020.”
Allawi pointed out that “the continuation of the Ministry of Finance’s sales in US dollars reflects the increase in oil revenues, and the increase in the government’s provision of goods and services to citizens,” stressing that “the increase in the Ministry of Finance’s sales of US dollars in return for the decrease in demand for the dollar will lead to an increase in foreign currency reserves with the Central Bank.” finished/25

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