Economist to / NINA /: "Despite the rise in the price of oil ... the price of the dollar is still high in Iraq ... and the central bank is the reason

Friday 19, March 2021 11:47
 
Baghdad / NINA / Economist Raad Twig criticized the central bank’s monopoly on the dollar, stressing: "The rise in the price of Basra oil to $ 70 a barrel will not be able to reduce the price of the dollar in Iraq."

Twig said in a statement to the Iraqi National News Agency ( NINA ): "Despite the high oil prices and the price of Basra crude reaching $ 70, the price of the dollar is still high within what is targeted by the Central Bank of Iraq, about 145 thousand dinars for one hundred dollars," attributing that For the lack of other major sources to sell the dollar.

He pointed out that "the main source for selling the dollar is the central bank’s currency window, and other sellers of the dollar are mere intermediaries for what the currency window is to generate, and therefore the exchange rate cannot deviate from the orbit of the central bank’s monetary policy and the price it sets." The rentier economy dependent on oil and the Iraqi economy’s dependence on the monetary position of the government as a source of dollars. The market mechanisms of the Iraqi economy are incomplete or disrupted until the emergence of large productive forces from the private or mixed sector or even government with the ability to export in order to achieve self-sufficiency, replacing import. .

He continued: "The availability of other sources for the economy will be a real source for the dollar and can break the monopoly of the Central Bank as the only source of the rentier dollar, and thus the restrictions are removed from the market mechanisms and market forces work effectively and the exchange rate becomes in a real balance according to the country's economic needs." / End 8

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