Deputy: International bodies have suggested two prices for the exchange of the dollar against the government

Deputy: International bodies have suggested two prices for the exchange of the dollar against the government

Posted, 05-03-2021

25k Iraqi Dinar notesA member of the Finance Committee in Parliament, Jamal Cougar, confirmed that the decision to reduce the value of the Iraqi currency against the dollar saved the country from a certain economic collapse, while noting that international bodies had warned the Iraqi government of the consequences of the economic collapse.

In a televised interview, Jamal Cougar said, “The period before the devaluation was true to the budget deficit at the time of 100 trillion, and all indications were that the country was going to an economic collapse.”

Cougar added, “The devaluation of the currency was one of the steps that stopped the economic collapse in Iraq, in addition to the procedures for printing currency and imposing taxes as well as compressing expenditures.”

He pointed out that “Parliament is not a defender of the government and its steps,” indicating that “Iraq had two proposed options, the International Monetary Fund proposed an exchange rate of up to 1650, while the World Bank proposed 1450 and the government went to the second option.”

Jamal Cougar commented, Wednesday (March 3, 2021), on fears of a jump in the dollar’s ​​price above 1,500 dinars after the budget was approved in 2021.

Cougar said in a press statement, “There is no reason to fear a jump in the price of the dollar above 1500 dinars after the budget is approved in 2021, as the price of the dollar will be fixed according to the General Budget Law, and this is a law that no one can tamper with the texts of the law, and the price The exchange will be as shown in the text of the law. ”

He added, “The Iraqi government, through the Central Bank, has many procedures and decisions that prevent manipulation of the dollar exchange rates outside the official rate, and that is why there are no fears of any rise in the dollar exchange rate after the budget is approved.”

Since the collapse of oil prices earlier this year, Iraq is facing an unprecedented liquidity crisis, the government of Prime Minister Mustafa Al-Kazemi has been forced to borrow from the bank’s reserves in dollars to pay nearly $ 5 billion per month, representing public sector salaries and pensions.

The decision sparked a wave of anger in the Iraqi street, but Al-Kazemi defended his government’s move and said that he had two options: “Either the collapse of the regime and enter into overwhelming chaos, or we enter into a Caesarean section for reform.”

Several political blocs in Parliament criticized the decision to devalue the Iraqi currency against the dollar, while the leader of the Sadrist movement, Muqtada al-Sadr, said, “The central bank and all other banks are captive to corruption and the corrupt, and the government and parliament must seek specialized methods to end this and liberate it immediately.”