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The Central Bank refuses to reduce the exchange rate of the dollar and is heading towards a new policy for its stability DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

The Central Bank refuses to reduce the exchange rate of the dollar and is heading towards a new policy for its stability

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The Central Bank refuses to reduce the exchange rate of the dollar and is heading towards a new policy for its stability Empty The Central Bank refuses to reduce the exchange rate of the dollar and is heading towards a new policy for its stability

Post by RamblerNash Wed Jun 23, 2021 11:29 pm

2021-06-23 BY SOTALIRAQ

The Finance Committee in the House of Representatives decided to host the Minister of Finance against the backdrop of raising the dollar exchange rate and its instability in the local markets, stressing that it had agreed with the Central Bank to set a mechanism to reduce the repercussions of changing the exchange rate by regulating the sale of hard currency.

And the Parliamentary Finance Committee indicated in a statement that (Al-Mada) received a copy of it, that it discussed, while hosting the Governor of the Central Bank, Mr. And ways to preserve and invest them properly.

The statement added that “the meeting discussed projects, plans and loans that the bank promised to implement after changing the currency exchange rate,” noting that the committee stressed the need to adhere to those promises and the speed of their implementation, in particular those that contribute to the employment of unemployed youth and support the housing, industry and agricultural sectors, support the local product and ease restrictions and procedures routine on it.”

In the federal budget bill for 2021, the value of the dinar was reduced to 1446 per dollar, after it was 1182 dinars per dollar over the past years. The proposal sparked a wave of widespread resentment in popular circles. The statement continued, "The meeting touched on the issue of electronic linkage between the ministries of commerce and finance, the customs and tax authorities with the Central Bank, as well as the automation of procedures at border crossings," adding that the Parliamentary Finance called for the government to perform its duty towards this, as indicated by the Finance Committee and the House of Representatives from During the 2021 budget law.

In its statement, the Parliamentary Finance called on the Central Bank to take the strongest strict measures regarding banks that violate the controls, stressing its support for the bank in this regard, because the current period requires concerted efforts between all authorities, pointing out that it was directed to host the Minister of Finance to discuss what was presented in the hosting and discuss a number of issues that concern economic reality.

For his part, the Governor of the Central Bank provided clarification on what the bank has taken and the steps it seeks to take to reduce the negative effects of changing the exchange rate, revealing at the same time the launch of an initiative worth 5 trillion in addition to contributing to moving the housing sector to complete the residential complexes that were suspended, as well as close Issuing bonds that enable citizens to invest their money.

For his part, Mahmoud Dagher, an economic expert, confirms in a statement to (Al-Mada) that reducing the dollar exchange rate or returning to its previous price is not possible and will not be achieved, indicating that the Central Bank has the ability to control the stability of the dollar exchange rate and not to increase it from time to time.

A while ago, the Central Bank confirmed “the stability of the dollar exchange rate and the absence of any intentions to change,” and that what is being circulated is not true, as the price chosen at the end of 2020 for the dollar exchange was based on in-depth studies of the requirements of the economic and financial situation and the objectives of monetary policy. He pointed out that his foreign currency sales are based on the stability of his foreign reserves at excellent levels, as those sales were increased to meet all legitimate requests, "and the price will stabilize as a result of the measures taken by the Central Bank recently and which it will take."

The bank pointed out that the statements related to the exchange rate are promoted for speculators to benefit from, and that the Central Bank has communication channels that represent official sources of information.

The price of the dollar rose gradually during the current week, bringing the price of the dollar on the main stock exchange in Al-Kifah to 149.900 dinars per 100 dollars, and selling in exchange shops to more than 150 thousand dinars. Dagher adds that “in the event that the central bank provides the demand for the dollar in an orderly manner, it will be able to control and maintain the stability of selling the dollar in the local markets,” noting that the continuation of the central bank’s current policy may enhance the stability of the dollar exchange rate.

On December 20, the Central Bank decided to reduce the value of the dinar against the dollar to 1450 instead of 1184, to contain the financial crisis, but the decision caused stagnation in the economic movement and a rise in commodity prices in local markets.

Earlier, the Central Bank said that the main reason behind the devaluation of the dinar is to fill the inflation gap in the 2021 budget after the collapse of global oil prices, which is a major source of financial resources.

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RamblerNash
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