The Dollar Exchange Rate That Will Be Approved In The 2022 Budget

The Dollar Exchange Rate That Will Be Approved In The 2022 Budget

04/17/2022 | 5:01 PM

The Dollar Exchange Rate That Will Be Approved In The 2022 Budget Basil Abbas Khudair…

The question about the amount of the exchange rate of the US dollar against the Iraqi dinar that will be adopted in the 2022 budget is what we used to hear constantly from many optimists, and we say optimistic because we will pass the fourth month of the current (Iraqi) fiscal year and things are still managed by the caretaker government, and the President The current republic is unaccounted for in terms of the legality of its survival and its approval of the laws enacted by Parliament or the necessity of changing it in the manner stipulated in the constitution, as the president of the republic has not been elected and determined until today because of the blocking third, which means the legitimacy of his selection in a session attended by more than two-thirds of the members of the House of Representatives and other matters The budget, as is well known, is a tool for implementing the program set by the government and approved by the House of Representatives, and the government that should emerge from the 10/10/2021 elections has not yet been formed, so its president has not been determined, nor has its portfolios, programs and any of their details announced yet, and in short, the hopes By approving a federal budget for thisThe year’s possibilities are weakening day by day. In the calculations of time, there will not be much left of its life after the election of the president and the commencement of the new cabinet’s actual work. One of the evidence of the weakness of this possibility is the resort to issuing laws containing financial obligations to obtain spending powers that exceed the ceilings of the 2021 budget due to the absence of the 2022 budget. .

As is known to all, the currently approved exchange rate of 1450 dinars per dollar, which was approved by the 2021 budget, and officially, this rate was made by a decision by the Central Bank, being an independent body with jurisdiction over exchange rates according to the provisions of the constitution, and changing the current exchange rate does not have Relationship to the numbers of the federal budget because the Ministry of Finance, which handles the preparation of the budget, makes estimates of revenues and expenditures based on the contexts in which it operates, and it has to adopt the current exchange rate. For 2022 (and this is doubtful) the price will be adopted without any change, and this was confirmed by the Undersecretary of the Ministry of Finance in an official statement a few days ago, and there are those who believe that politicians can pressure towards changing the current exchange rate in a way that strengthens the value of the dinar or returns the previous exchange rates, which is what Some rely on it because most of the blocksThe politician that entered the elections raised such a slogan, supported by the presence of a lot of evidence that confirms that changing the exchange rate has harmed a lot and that its declared goals of fearing bankruptcy of the state due to low oil prices, stopping smuggling and supporting local products or others, have not been practically achieved for several reasons.

From our point of view, the current exchange rate will remain unchanged, because the parties involved in the matter have many justifications to keep it as it is. It began to declare that it compensated the poor and the weak with paragraphs supporting the ration card, social protection, and those with limited and no income, and those who depend on them from among the politicians will say that they tried and did not succeed this year because of the complexity and variables that it contains, and perhaps the amendment will be made in the coming years, and opinions of experts and advisors will appear who support the policy of stability The exchange rate because of the damage it causes to the (strength) of the national economy and the (reputation) of the dinar, and the conclusion is that it is unlikely that the current exchange rate will be changed in the coming days, even if a lot is proven with several evidences and proofs that changing the exchange rate was the spark that burned prices In local markets for goods and servicesBecause it (negatively) moved the conditions to which they are accustomed, increasing the number of those affected at home and abroad, and that compensation measures without changing exchange rates do not heal all wounds, and it is expected that the return to exchange rates constitutes a demand and wishes for most Iraqis, although it is unlikely that it will be 2022 achievements.