New criticism of the exchange rate hike: it did not reduce the sale of hard currency reserves

New criticism of the exchange rate hike: it did not reduce the sale of hard currency reserves

09/08/2021 10:58

Iraqi Dinar-DollarBaghdad / Obelisk: The Finance Committee of the House of Representatives said, on Wednesday, September 9, 2021, that all the justifications for changing the exchange rate of the dollar compared to the Iraqi dinar have not been achieved, denying the existence of a decrease in the sales of the Central Bank so far.

A member of the committee and representative of the Saeroon Naji Al-Saidi bloc said in a press statement to Al-Mada newspaper that Al-Masala followed that the Finance Committee has not yet received a draft budget for next year, and we do not know anything official about the dollar price.

At the same time, he suggested that the discussion of the budget would be postponed completely until next year due to the approaching date of the elections scheduled to take place on the tenth of next month.

He went on to say that none of the objectives of raising the exchange rate were achieved, whether at the financial level related to the deficit, or the monetary one related to reducing the sale of hard currency reserves, stressing that all these justifications did not have any effect on the ground.

Cabinet spokesman Hassan Nazim confirmed earlier that the dollar exchange rate will be fixed in the draft financial budget law for 2022 and there will be no change in it.

Nazim said in a press statement, which was followed by “The Obelisk”, that increasing the dollar exchange rate is an idea that has been discussed for years, and the previous government did not dare to take this step because of the risks and controversies surrounding it, and Al-Kazemi’s government was bold to take this decision because it is in the interest of the Iraqi economy, and in the economic vision. Reform of the Ministry of Finance, as this idea was presented within the reforms of the white paper and won acceptance and extensive discussion.

And he went on: The government always takes steps to support goods and materials whose prices have risen, and has developed solutions and taken decisions regarding them. The idea of ​​the dollar exchange rate is not retracted by this government, and I do not think any 2022 budget will change this price, since this government is the one who will set the budget for the next year.

And Finance Minister Ali Abdul-Amir Allawi had previously stated that the exchange rate of the dollar against the Iraqi dinar will not change in the next budget, as it reflects many issues and raises it for the benefit of some economic sectors.