Parliamentary source: Al-Kazemi’s government will print the currency to pay employee salaries **Devaluation Warning**

by Dinar Droid on Fri May 15, 2020 9:41 am

Baghdad / … Parliamentary source confirmed, Thursday, that the government of Prime Minister Mustafa Al-Kazemi will go to print a new local currency in order to pay the salaries of employees.
The source said to “Eye of Iraq News”, “This measure is one of the solutions to overcome this economic crisis that is ravaging the country, so it is necessary to find harmless solutions for future generations such as the use of cash or gold reserves in the central bank.”
He pointed out that we, “after the application of this procedure, we expect a decrease in the Iraqi dinar exchange rate against the dollar,” stressing that “this will have a positive impact on activating the industry in Iraq and not resorting to global or regional markets that provide goods to Iraq at low prices because of the high exchange rate The dinar is compared to the currency of Turkey, Iran and others. ”
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, had determined, on Wednesday, the loan disbursements that the government intends to request from home and abroad.
Saleh said in a press statement, “The government submitted a draft law to Parliament in order to authorize it to borrow from internal and external financing sources, in order to bridge the deficit and enhance public financial liquidity when necessary.”
And, “The borrowing came because of the financial hardship that the country is going through, and in order to bridge the revenue deficit gap against fixed expenditures, especially in the operating budget.”
He added, “The legal cover did not provide the government with internal and external borrowing, due to the lack of a federal budget law for the year 2020.”
He pointed out that “internal or external loans will be included in the event of legislation for the budget for the year 2020 or its alternative the final account at the end of the fiscal year (as a reality).”
Saleh said, “External loans will go toward supporting investment projects and completing the stalled ones and the urgent need to launch them, while internal loans will be allocated towards the operational budget in the government’s needs for insurance of salaries and others.”
It is mentioned that the Iraqi Council of Ministers approved the draft of the domestic and foreign borrowing law to finance the fiscal deficit for the year 2020 and refer it to the parliament in accordance with the provisions of the constitutional articles. Finished 2
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Parliamentary source: Al-Kazemi’s government will print the currency to pay employee salaries Devaluation Warning

Parliamentary source: Al-Kazemi’s government will print the currency to pay employee salaries Devaluation Warning