Allawi: The economy of Iraq will increase its effectiveness after the change in the price of the dollar

Minister of Finance Ali Abdul Amir Allawi
 
12/19/2020

Economy News - Baghdad

The Minister of Finance, Ali Allawi, announced that the decision to change the exchange rate of the dollar against the dinar will be a one-time.

Allawi said in a press statement received by "Al-Eqtisad News", "It is no secret to the sons of our honorable people the size of the global economic crisis that resulted from the repercussions of the Corona pandemic and shook the economies of most countries of the world, and in our dear country Iraq, the financial crisis resulting from the sharp decline in oil revenues has also been linked. In the presence of structural imbalances in the Iraqi economy that were not seriously addressed and carried over from one stage to another. "

He added that on this basis it became clear to the eye the importance of urgent reforms in various economic fields and axes, including the currency exchange rate, although this decision is one of the difficult decisions, but we are obliged to take it because it addresses a large part of the crisis and to avoid similar situations that other countries have been exposed to, and to ensure protection The Iraqi economy, activating its activity, achieving a courageous reform leap and making real development with the aid and participation of all government, political forces, and economic and social actors.

He indicated that the decision to adjust the exchange rate will be one-time only and will not be repeated in the future, and the government, in addition to the Central Bank, will work to fix the new price that is in line with the reform requirements, while the government will work immediately to support the affected sectors and the poor segments through measures that include increasing social welfare allocations in the general budget. In order to compensate for the possible rise in the prices of some imported goods, we have also directed government banks to increase interest rates to encourage citizens to keep their savings in these banks and to benefit from the high interest provided to them.

He pointed out that adjusting the exchange rate is a political decision of the Iraqi leadership, and it is a decision that enjoys the support of political and parliamentary forces and economic actors that have participated with the government in lengthy discussions to reach it, in addition to the competent international bodies for this measure, including the International Monetary Fund, which promised to allocate large sums to face the repercussions of the pandemic on Vulnerable groups, which are an important part of the government reform program regarding aspects of reforms and economic development. The Ministry of Finance has also prepared a detailed paper on questions that may be asked about changing the exchange rate in the country.

He noted that the Iraqi economy will increase in effectiveness with the entry into force of economic reforms, and that the pessimistic false interpretations, some of which carry a political background to impede the reform movement and prevent a qualitative leap in the fields of industry, agriculture and development, are correct.

https://economy-news.net/content.php?id=23205