Economist: The devaluation of the Iraqi currency caused a collapse in the currencies of these countries

20:28 2021/03/28

Baghdad today - Baghdad

Today, Sunday, the economic expert, Rasem Al-Aqidi revealed a surprise regarding the repercussions of the change in the price of the dollar against the Iraqi dinar, while referring to a group of countries whose local currencies were damaged as a result of the decline of the Iraqi currency.

Rasim al-Aqidi said, in an interview with (Baghdad Today), that "the monetary block in Iraq before the exchange rate change amounted to 61 trillion dinars, of which the government owns only 20%, while 40% of the bloc is in neighboring and regional countries, and 40% at Banks, banks, markets, and civilian homes."

Al-Aqidi added, "After the new dollar price, banks related to neighboring countries and foreign companies dealing with Iraqi private banks have replaced their Iraqi currency with dollars, and have stopped buying dollars at the new price because it does not suit them."

He pointed out that "what happened from collapses in the exchange rates of some Arab and regional currencies and the rise in prices, whether in Lebanon, Turkey, Jordan or Syria, came as a result of their dependence on Iraq to obtain dollars."

The economic expert explained, "The state now owns 60% of the Iraqi monetary mass, which is a positive framework that allowed it to move the file of loans and advances and invest them through interest," indicating that "the change in the price of the dollar gave some of its fruits within a short period of time."

And the economic expert, Dawood Al-Jumaili, had spoken earlier, that Iraqi money had been taken into account during the previous exchange rate.

Al-Jumliy said, "The price of the previous dollar, of (1200), was considered a cheap exchange rate by the exporting countries.

Therefore, Iraq was one of the largest importers of goods, as it adopted an unreal dollar exchange rate and was not based on scientific theories, for the purpose of flooding the market with imported goods.".

The economic expert called "to put laws in the 2021 budget in order to protect the poor classes and those with limited income from sudden changes taking place in the Iraqi economy."

After the decision to reduce the exchange rate of the Iraqi dinar against the dollar, the economic agency "Bloomberg" said that the decision of the Central Bank of Iraq, which includes adjusting the exchange rate of the US dollar against the Iraqi dinar, is a deserved reduction in the value of the national currency"."

In a report translated (Baghdad Today), Bloomberg explained that the measure “reduces the currency by about 20 percent against the dollar,” indicating that it came “to avoid depleting countries’ foreign currency reserves after the Corona virus drained energy demand and caused a collapse the prices".

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