Finance reveals the repercussions of raising the exchange rate on the Iraqi economy

 
05/10/2021

Economy News - Baghdad

The Ministry of Finance revealed, on Tuesday, the positive effects of raising the exchange rate on the Iraqi economy.

The ministry said in a statement received by "Al-Iqtisad News", that it has continuously followed up the indicators of devaluation of the currency against the dollar and over the past nine months. If it was $54 billion in December 2020, this came after implementing reform measures.

"The change in the exchange rate also helped reduce the demand for foreign currency, which was positively reflected in the decrease in imports and the increase in domestic production," she added.

The indicators confirm, according to the statement, the improvement of “commercial activity in the past nine months of the current year 2021” in light of the spread of the Corona virus, as well as “stopping the penetration of the Iraqi market and dumping it with cheap goods that curb attempts to upgrade local production.”

The ministry indicated that it is working "to reinvest the revenues of the generated funds with the aim of building a targeted production base outside the oil sector and relying on other sectors, which will contribute to a decrease in demand for the dollar as a result of compensating some of the goods produced, which made the proportion of imports to local consumption decline."

He pointed out that it has adopted, "since the formation of the current government, the development of plans and mechanisms to work on reforming Iraq's fiscal policy, and culminated in the adoption of the reform paper (the White Paper), which outlined future economic and financial policy steps to advance local production and reduce imports for the country. This measure also contributed to improving the state of the public budget and reducing imports." Orientation towards encouraging local product and providing job opportunities.

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