Al-Nasiri identifies the reasons for the exit of hard currency from Iraq and suggests how to preserve it

Economic and Banking Adviser Samir Al-Nasiri
 
08/16/2020

Economy News - Baghdad

The economic and banking advisor, Samir al-Nusiri, confirmed, on Sunday, that hard currency in Iraq is still vulnerable to leakage outside the country without return due to unplanned and uncontrolled imports of goods and consumer and unnecessary goods and of poor origin and outside the Iraqi standard specifications, revealing a set of proposals that would preserve the currency The difficult one that Iraq needs in the current crisis it is going through.

Al-Nusayri said in an interview with "Al-Eqtisad News", that "imports in every country are traded in hard currency, while in Iraq since 2003 until now, local production, which is the basis for determining imports, has not been supported," indicating that "import is complementary to local production and not As a substitute for it, but after the opening of the borders and markets, and the introduction of inferior consumer products and at low prices compared to the local product, due to the insecurity of raw materials and government support, this led to the exit of hard currency, mainly through imports of the private sector.

Al-Nusiri added, "The best solution to preserve hard currency is for the government to support local production and to activate the laws on protecting the local product and protecting the consumer, which are laws that have been on the shelves for years and have not been activated," stressing the importance of providing raw materials and electricity to the factories and structuring government factories. And the participation of the private sector in its management. "

He continued, "Iraq without local products comparable to the importer cannot maintain its hard currency as required," noting "the need for the government to address the structural imbalance in the economy, activate the productive sectors and address the deficit in non-oil revenue and the deficit in the balance of payments and the trade balance."

Al-Nusiri concluded his speech by saying: "We are a country. We do not have a clear economic approach, and the private sector has not been involved in making economic decisions, which requires and must meet with government support."

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