Economic specialist for / NINA /: Lowering the exchange rate of the dinar will negatively affect the national currency and the Iraqi citizen

Tuesday 27, October 2020 19:59
 
Baghdad / NINA / The specialist in economic affairs, Hussein Shaker Tahilo, confirmed that lowering the exchange rate of the Iraqi dinar directly affects the national currency and has a negative impact on the middle-income segment of employees and a large segment of the poor.

In a statement to the Iraqi National News Agency ( NINA ) , Tuhilo said : "What is being raised in the corridors of the Iraqi government through its white reform paper on lowering the exchange rate of the Iraqi dinar directly affects the national currency, as it leads to higher costs of living in the future, and a decrease in power." Purchasing power, as well as the rise in the general level of prices, thus the middle-income segment and a large segment of the poor will be affected.

He pointed out, "The reduction is to make the value of the monetary unit of the national currency equal to a smaller number of foreign exchange units, as the reduction is based on two basic pillars, namely the national currency, which is the basic currency on which the reduction is located, and the foreign currency, which is the currency whose value becomes higher after the reduction." ".

He added: "The gap in the exchange rate of the dollar against the dinar between the official and parallel markets is large, and this has minimal negative and positive effects on the Iraqi economy, including financing the budget deficit through the difference between the dollar exchange rate sold by the central bank and the parallel exchange rate." .

The economic specialist was surprised that "this funding finances a small part of the deficit and this annual planned deficit has reached (81 trillion dinars), according to the 2020 budget, which the government withdrew from parliament upon its arrival, but the government sent the second borrowing paper and the white reform paper in which the deficit was determined by about 41 trillion. Dinars, which Parliament opposed to vote on borrowing again. "

The economic specialist has suggested several solutions to this problem, either through what he called the recipes, including (the quick economic political recipe), which is financing through external and internal borrowing, and thus this solution represents a new burden added to the previous debts of Iraq, whether external or internal, and that it addresses part Simple from the current crisis as presented, or the slow recipe, which is a comprehensive economic reform of the Iraqi economic structure and finding a cure for cancer of the rentier state by diversifying the Iraqi productive structure in various economic sectors such as industry, agriculture, services, and even the oil sector. / End 8

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