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A final round of the dollar and the Iraqi dinar in the budget .. Can the exchange rate be changed? DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

A final round of the dollar and the Iraqi dinar in the budget .. Can the exchange rate be changed?

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A final round of the dollar and the Iraqi dinar in the budget .. Can the exchange rate be changed? Empty A final round of the dollar and the Iraqi dinar in the budget .. Can the exchange rate be changed?

Post by claud39 Thu Feb 11, 2021 9:22 pm

A final round of the dollar and the Iraqi dinar in the budget .. Can the exchange rate be changed?


February 10, 2021







A final round of the dollar and the Iraqi dinar in the budget .. Can the exchange rate be changed? GettyImages-460421142%20%281%29_9








Ultra Iraq Editorial Team 


Since the Iraqi government announced a change in the exchange rate of the dollar against the dinar as a result of the drop in oil prices, and what the Corona pandemic has produced on the Iraqi economy, the citizen, in addition to the merchant with various groups, is living a period of wandering in financial dealings, which resulted in a "good opportunity" for conflict between the exploiters For crises in such circumstances.


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A member of the Finance Committee said that the dollar exchange rate has not been tampered with in the 2021 budget 



The value of the US dollar after the Iraqi government resorted to reducing the dinar, in an attempt to pull the country out of the financial and economic crises, reached 1450 dinars, after it had been stable at the threshold of 1200 dinars over the past years, which led to great losses, close to a quarter of the value of the Iraqi savings of money , As well as a quarter of their monthly salary.


Negative effects despite reassurances


Economic academic Jawad Al-Kaabi comments, in a statement to "Ultra Iraq," saying that "the decision to reduce the dinar has led to more impoverishment of the poor, bankruptcy and the suspension of small and medium businesses, due to the increase in the prices of food, medicine and imported production requirements by more than 30%, indicating that" and after each The damage that occurred The decision-makers (the prime minister, the minister of finance, and the governor of the central bank) continue to insist on their unfair decision for the right of the poor citizen and the productive business owners in the real economy. "




This comes at a time when the Iraqi government reassured citizens about the decision to reduce the value of the official currency, stressing that it "will not affect the classes that depend on local goods." Prime Minister Mustafa Al-Kazemi also cited during his speech at the Iraqi Council of Ministers session, in several countries, including "the Emirates And South Korea and Singapore when they made difficult decisions in the past to reform the economy.


Will the return attempts succeed?


A number of parliamentarians are calling for rallying pressure towards restoring the exchange rate to its previous position or reducing it to 130,000 as a compromise solution, while Deputy Nahida al-Daini, in a televised interview affiliated with Ultra Iraq, did not rule out an agreement between the leaders of political blocs to raise the exchange rate of the dollar. Against the Iraqi dinar, hoping to reduce the deficit in the country's general budget, noting that "the economic crisis will continue for the coming years with the absence of industry and agriculture," while parliamentarians say that manipulating the exchange rate is not within the powers of the House of Representatives.


A member of the Parliamentary Finance Committee, Sherwan Mirza, believes that “the exchange rate of the dollar has not been tampered with in the 2021 budget, given that the country's financial policy has been drawn on the price stated in the draft law, stressing that“ the exchange rate is within the authority of the government and we do not think it intends to change it in Her copy of the bill. "


Regarding the inclusion in the budget of the Finance Committee a paragraph regarding compensation to contractors in Iraq from the damage of the exchange rate, the expert, economist Ahmed Hathal, criticizes that step, indicating that "the greatest harm was on the shoulders of citizens, and the government should compensate citizens in the same way as compensating contractors, especially those covered by care networks." Social and low-income people. "


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An economist says that the issue of the dollar exchange rate came as a result of conditions imposed by the World Bank on Iraq after discussions that lasted for more than a month before the decision



Hathal says to "Ultra Iraq", "The policy of raising the exchange rate to 1450 can be likened to a shock, and this policy is considered wrong to use because the economic situation did not allow this with the possibility of dispensing with the step and going to fight corruption in the financial pockets and outlets to save money, pointing to "Attempts to return the price to 130 thousand, which is currently being discussed, should not be accepted, as it would represent a new shock to the market and citizens regarding the debtor-creditor relationship."


Terms and conditions


In the end, the 2021 budget is approaching the date of approval next week, according to statements by MPs, and it seems that the issue of changing the exchange rate is impossible because the law was built on the basis of 1450 dinars to the dollar, with the price of a barrel of oil at 45 dollars.




And economic analyst Hussein Al-Askari confirms, "The issue of the dollar exchange rate came as a result of conditions imposed by the World Bank on Iraq after discussions that lasted for more than a month before the decision, indicating that" these conditions are in return for allowing an increase in currency exports abroad, and thus this represents another plundering process. After the damage to local goods and materials, whose prices have become very low, this weakens the national product. "


In his speech to "Ultra Iraq," Al Askari indicated, "There is some kind of truth in the movements of the representatives in the Iraqi parliament to return the exchange rate to the lowest level to preserve the purchasing power of citizens, as they depend on monthly and perhaps daily salaries and income, pointing to the need for Iraq to leave the issue of the economy. Rent-seeking and the end of dependence on abroad to import goods. Accordingly, the infrastructure must be rebuilt first, including the agricultural and industrial sectors. For example, the existence of the framework agreement between Iraq and China is the key to a solution available for implementation. "


Meanwhile, the Al-Fateh Alliance came out with a new position, to depend on the vote of its more than 50 deputies on the 2021 budget bill by adopting the dollar exchange rate of 119 thousand dinars, in addition to four other conditions demanding job grades and payment of dues to categories of free lecturers, at a time when MPs are demanding Their number exceeded 40 deputies by proposing a return of the exchange rate to 130 thousand dinars as a compromise solution to end the push and pull and conflict in the markets and stock exchanges.


With the movement of some political blocs in this regard, the Parliamentary Finance Committee confirms that the Iraqi dinar exchange rate against the dollar cannot be changed by the House of Representatives proposal or the signatures of parliamentarians.  
 


claud39
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