Economist: The return of the dollar exchange rate to the previous is unlikely.. for this reason

Saturday 04 December 2021 10:26
 
Baghdad / NINA / - The specialist in economic affairs, Maitham Laibi, ruled out the return of the dollar exchange rate to the previous exchange rate against the dinar, attributing this to the fact that this measure would prejudice the credibility of the central bank and monetary policy.

Laibi said in a statement to the National Iraqi News Agency / NINA /: “It is unlikely that the central bank or the government will return the dollar exchange rate to the previous one, and if it does, this will greatly prejudice the credibility of monetary policy, meaning that the private sector; and the public in general, has confidence in the government’s actions from In order to achieve its goals, such as targeting inflation and achieving stability.

He stressed: "The Central Bank's retreat from its decisions will shake confidence with the public and make the public build its decisions on the basis of the imbalance of the rules of the game between the two parties and turn stability into a series of actions and their negative responses, especially since the private sector in a country depends on a managed exchange rate, making it subject and receiving signals. From the central bank and the government, not the market.”

He continued, "The "manipulation" of the exchange rate counters from time to time will further complicate this already critical relationship, especially since the Central Bank, in its previous announcement, after which the exchange rate was changed, made it clear that this amendment is final and for one time. / End 8

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