The Central Bank of NINA: The change in the price of the dollar has nothing to do with the financial crisis, and the rise in oil prices will not fill the budget deficit

Wednesday 17 November 2021 18:06
 
Baghdad / NINA / - The Central Bank of Iraq resolved the controversy over the return of the dollar exchange rate to its previous position simultaneously.

The Deputy Governor of the Bank, Ihsan Shamran Al-Yasiri, stated, in a statement to the National Iraqi News Agency ( NINA ), that “the change in the dollar exchange rate has been studied by several specialized technical, financial and executive bodies,” noting that “the exchange rate was modified only based on extensive studies between the Ministry of Finance, the executive authority and the monetary authority, which is the central bank, in agreement with important international institutions to clarify the fair price of the dollar.”

He added, "We reached this price of 1450 dinars against the dollar, to which the central bank commission and the bank's commission are added to the public, which means that the price of the financial policy is 1450 dinars against the dollar, the price of the central bank is 1460 and the price of banks is 1470 dinars to the public."

On the repercussions of changing the exchange rate on the financial crisis, the Deputy Governor of the Central Bank stressed that “the financial crisis has nothing to do with changing the exchange rate, and that solving it does not mean a return to reducing the exchange rate of the dollar against the dinar, because the exchange rate is a monetary financial instrument that has nothing to do with the immediate problem.” Noting that "there has been a delay since 2010 that was supposed to amend the dollar exchange rate, and now it has been modified, as we hope for the return of the activity of economic institutions in light of the current exchange rate."

And regarding the rise in international oil prices and the surplus from the general budget, Al-Yasiri explained that “the surplus from the improvement in international oil prices will help reduce the budget deficit, but I do not think that the rise in oil prices by the end of this year can reach to bridge the deficit,” noting that “part of the The public budget deficit can be financed."

Al-Yasiri pointed out, “There were proposals to use oil price differences in financing projects, governorates, and others, but the opinion of the government, the previous parliament, and the Ministry of Finance was to fill the deficit first rather than expand spending.”/ End 5

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