Disclosure of the time limit to reduce the price of the dollar
Disclosure of the time limit to reduce the price of the dollar
Posted, 11-03-2021
The financial expert, Mahmoud Dagher, announced, on Wednesday, that it was not possible to make a new adjustment in the exchange rate of the dollar against the Iraqi dinar after only 3 months, just because of the high oil prices, stressing that everyone knows about the fluctuation of the oil market and not stopping at a certain level.
Dagher said in a press statement, that “adjusting the currency rate is exclusively the specialty of the Central Bank of Iraq, and no party, whether legislative, executive, or judicial, has the right to interfere with it in any way.”
He added, “The purpose of these claims is to exploit them to obtain electoral votes through statements that affect the street, but they are not issued by a competent authority that realizes the seriousness of the issue and does not know its repercussions on the Iraqi economy,” according to NRT Arabia.
He explained, “The first change, which is a historic decision, as it was not possible to take such steps for years, and it was inaccurate and without planning and came after a great deal of pressure on the Central Bank of Iraq, and it is not possible to make a new amendment after only 3 months only because of the high oil prices, and everyone knows.” “The oil market is volatile and does not stop at a certain level, and in the event of a new decline in oil prices, what steps can representatives be taken by the representatives demanding to adjust the price?
He described these steps as “ill-considered and would lose confidence in the Iraqi dinar and make it difficult to determine the relationship between wholesalers and retailers, since the commercial and investment relations are based on the future, that is, forward dealing.”
Dagher pointed out that, “instead of demanding an adjustment of the currency rate, it is better to float it, as happened in Egypt and Sudan, and this also would leave negative effects on people’s lives as a result of losing confidence in the Iraqi dinar.”
He continued, “The government can take advantage of the global increase in oil prices by repaying the loans it withdrew and reducing Iraq’s debt, as the value of external loans reached 27 billion dollars and 62 trillion internal.”
He expressed his hope that “not to borrow in the manner mentioned in the federal budget for 2021, which the government has presented, as these loans would burden the country and economically shackle it in the future.”
With regard to talking about bank reserves, Dagher said, “The position of bank treasury is excellent, contrary to what is rumored about it that it is bad, especially in light of high oil prices, as revenues have increased and we approached $ 55 billion, which is a suitable reserve to manage the affairs of the country.”
More than 130 deputies in Parliament had submitted a request to the Finance Committee to make the exchange rate of the dollar 1,300 dinars, against the backdrop of high oil prices in global markets.
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