An economist diagnoses 3 challenges to the decision to restore the exchange rate

An economist diagnoses 3 challenges to the decision to restore the exchange rate

11-16-2022

An economist diagnoses 3 challenges to the decision to restore the exchange rateInformation / Diyala…
The local economist, Bassem Adnan, identified, on Wednesday, three challenges facing the decision to restore the exchange rate in Iraq.
Adnan said in an interview with Al-Maalouma, “The laws set clear powers for the financial management file in Iraq, and it is within the jurisdiction of the Central Bank, which is considered an independent entity and cannot be interfered with or impose decisions, including restoring the exchange rate to its previous state.”
He added, “3 challenges face any decision to restore the exchange rate of the dollar to its previous state, the most prominent of which is the loss of financial liquidity estimated at 22 trillion dinars, which is a large amount, especially since we are facing a period of frequent fluctuations in the oil price exchange, which will make any next step in this direction difficult or even impossible.” .
He pointed out that “Al-Kazemi’s government committed grave mistakes that made raising the exchange rate a tool for grinding millions of poor people, because it did not protect the markets and did not put in place mechanisms to prevent monopoly and speculation in basic materials to push prices to rise by a rate ranging between 20-50%.”
Dozens of members of the House of Representatives support the decision to return the exchange rate of the dollar to its previous position due to the repercussions of the high prices of basic materials in the markets.

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