Raising the value of the dinar .. Will Iraq back down from the decision to reduce the value of its local currency?
These are the articles I discussed on the My FX Buddies Podcast:
Details of the parliament session on dollar exchange rates and currency smuggling
Today, Saturday, the First Deputy Speaker of the House of Representatives, Hakim Al-Zamili, called on the judiciary to issue a travel ban book to the Minister of Finance until the completion of his accountability under the dome of Parliament, stressing that Allawi did not .attend the parliament session, a dangerous precedent
The Media Department of the House of Representatives said in a statement received (Baghdad today) that "the First Deputy Speaker of the House of Representatives, Hakim Al-Zamili, held an expanded meeting, which was attended by a number of heads of political blocs and representatives, to host the Governor of the Central Bank, Mustafa Ghaleb Makhi, while Finance Minister Ali Abdul-Amir Allawi declined to attend." To discuss the issue of currency smuggling, the dollar exchange rate, and the control of some banks in the currency auction, and to develop the most effective .solutions to reduce its impact on citizens
Al-Zamili demanded, according to the statement, "the Public Prosecution to take the necessary legal measures fundamentally, to prevent the travel of the Minister of Finance, Ali Abdul-Amir Allawi, because there are a number of files against him, and until the issue of his accountability is resolved when he appears during this week's session and questioned in the event of refusal, holding" the Ministry of Interior and ".the Intelligence Service responsible in the event leaving the country
Al-Zamili stressed that “the presidency and members of the House of Representatives are legally, morally and legally responsible for defending the rights of the people, as they are their representatives,” noting that “the request to host the Minister of Finance and the Governor of the Central Bank came with an official request signed by more than 50 deputies, and that this week will witness a parliamentary session. An emergency questioning of the minister,” noting that “any party that seeks to disrupt the role of the legislative and oversight authority is important, and that work ”.is underway to hold the corrupt accountable
He pointed out that "the reform paper presented by Allawi did not achieve anything except harming the people and increasing poverty," stressing that "Allawi's failure to ".attend Parliament is a dangerous precedent
A member of the Presidency instructed to "form a parliamentary committee to investigate the facts, gather information and follow up on the work of the Central Bank, calling on the government to address the negatives resulting from the change in the exchange rate and the rise in market prices," noting that "the House of Representatives will take all necessary measures if the government is unable to do so and will be obligated to use His constitutional powers to treat the effects of this ".issue
The statement added that "during the meeting, a lot of inquiries, questions and proposals were raised by the members of the House of Representatives to the governor of the Central Bank, and in his turn, Mustafa Makhhib explained the monetary policy of the Central Bank and the reasons that prompted the rise in the exchange rate of the dollar, and the pledge to hold banks that are beyond controls and manipulate exchange rates to be held accountable." Al-Zamili called on the Central Bank Administration to provide the House of Representatives with data, information and periodic reports on currency sale auctions, and to work on ”.evaluating the banking policy in the country
Shock of the dollar again .. Why can't Parliament change the price ?against the Iraqi dinar
The leader of the Al-Fateh Alliance, Fadel Al-Fatlawi, confirmed today, Saturday, that changing the exchange rate of the dollar against the Iraqi .dinar is linked to the draft budget draft for the year 2022
Al-Fatlawi said, to (Baghdad Today), that “changing the dollar exchange rate against ."the Iraqi dinar is linked to a draft budget draft. year 2022
He added, "This matter is proven in the draft law by the Council of Ministers, and Parliament does not have the right to make any change to the dollar exchange rate, ".as well as the price of selling oil, as this is the prerogative of the government
And Al-Fatlawub, that "the change in the exchange rate of the dollar against the Iraqi dinar will be through the new cabinet, and the parliamentary blocs should work on ".this matter through the presence of their representatives in the Council of Ministers
He stressed that "Parliament does not have the authority to do so, and that is why it passed the previous price in the previous parliament, despite the parliament's ".reservations about it, but it is binding because it came from the government
A Leader In The Framework Sets The Date For Forming The Next Government
The leader in the coordination framework, Turki Al-Atbi, expected, on Saturday, the formation of the next government in the month of April.
Al-Otbi said in an interview with "Information", "The understandings between the framework and the rest of the other political forces are taking place at a good pace, and there are preliminary consensus on the features of the next government, stressing that he expects it to be formed next April, and the framework will be an essential part of it."
Al-Otbi added, "The framework includes large political forces that cannot be removed from the Iraqi scene, stressing that without political consensus, no candidate for the position of the republic will be passed, and the framework will be influential in determining the identity of the next president."
He pointed out that "there are independent deputies who will soon engage in the coordination framework, which will raise the number of its members in the House of Representatives."
The President of the Kurdistan Region and the Prime Minister meet with a high-ranking delegation from the US Congress
On the sidelines of the Munich Security Conference, the President of Kurdistan Region, Nechirvan Barzani, and the Prime Minister of the Regional Government, Masrour Barzani, met today, Saturday, with a high-ranking delegation from the US Congress.
The delegation is headed by Lindsey Graham, which includes members of Congress from the Republican and Democratic parties of the United States.
On Thursday, President Nechirvan Barzani and Prime Minister Masrour Barzani arrived in Germany to participate in the conference, which started from February 18 to 20.
And according to a tweet by the President of the Regional Government, Masrour Barzani, seen by Shafak News, that the two sides discussed during the meeting the latest developments in the political situation and the situation in Iraq in general, and efforts to form the new government and develop relations between Kurdistan Region and America.
He added that the US Congress delegation stressed that it looks with interest at the Kurdistan Region and has strong relations with it, taking into account all the challenges facing the region, expressing its belief that the relations between the two sides must remain strong and be developed.
Barzani indicated that he conveyed to the American side his thanks and appreciation for the American aid and support for the Kurdistan Region, and the need to continue its support for the Kurdistan Region to eliminate ISIS in a radical way.
Barzani added that the two sides also discussed the recent decision of the Supreme Federal Court regarding the oil and gas law in the Kurdistan Region, which does not serve the stability of the situation in Iraq and address the problems between the Kurdistan Region and the federal government.
The Minister of Finance calls on Parliament to hold a session to give a speech on the economy and the exchange rate
link much different tune today
Peace, mercy and blessings of God,
Referring to your letter No. 2438 dated February 19, 2022, I would like to inform the honorable Deputy Speaker of the House of Representatives that I am unable to fulfill his request to attend a meeting with Parliament today on such a short notice and under these circumstances.
As you know, I will formally ask the Speaker of the House of Representatives to convene the House of Representatives for a vote of confidence as Minister. In that session, I asked to be allowed to speak on the economy and the exchange rate.
I will always be ready to cooperate fully with the House of Representatives within the framework of the constitution, applicable laws and regulations and the principle of dividing powers and responsibilities between the executive, judicial and legislative branches of the state.
With thanks and appreciation
Hakim Al-Zamili: We will issue a travel ban against the Minister of Finance until he appears in Parliament
The House of Representatives hosted, on Saturday, February 19, 2022, headed by the First Deputy Speaker of Parliament Hakim Al-Zamili, the Governor of the Central Bank, Mustafa Ghaleb and his deputy, .to discuss the consequences of the price hike as a result of raising the dollar exchange rate During the session, Al-Zamili said, "The House of Representatives responds to any citizen, so how if the request is from an Iraqi leader with a request to research the financial policy, given that Muqtada Al-Sadr is not a political ".leader, but an Iraqi citizen, so he must be responded to He added: We have the signatures of more than 50 deputies to hold an emergency session to host the Minister of ".Finance and the Governor of the Central Bank, noting that "Parliament exercises its oversight role He said, “We were surprised that the Minister of Finance did not attend the meeting,” noting that “some leaders and leaders contacted us in order to wait on the issue of the Minister of Finance. If we do not exercise our ”.oversight role, Parliament cannot exercise its oversight role or host any minister anymore
He continued: We heard that the minister wants to submit his resignation, and this is his right, but there are files .that must be discussed, and there are requests for signatures from MPs to host the Finance Minister in Parliament He stressed that even if Allawi resigns, he will not be left without accountability, and we have files condemning .him, pointing out that we will issue a travel ban against the Minister of Finance until he appears in Parliament The Governor of the Central Bank, Mustafa Ghaleb Mokhif, his deputy and a number of officials in the bank .attended the meeting, while Finance Minister Ali Allawi and his ministry boycotted the meeting
The high turnout of citizens to buy the Iraqi dinar in Diyala
The rate of citizens' turnout in Diyala to exchange the US dollar for the Iraqi dinar increased, with an increase of 5-10% within 24 hours, due to fear of the exchange rate collapse at lower levels after the tweet of the leader of the Sadrist movement.
A local source in the province said that the exchange owners in Baquba and the rest of the cities confirmed the high rate of citizens' turnout to exchange the dollar for the Iraqi dinar by 5-10% within 24 hours and the purchase is very limited due to fear of the exchange rate collapse to lower levels after Al-Sadr's tweet and the developments that followed it in the House of Representatives.
The Central Bank pledges to hold uncontrolled banks accountable and manipulate exchange rates
Today, Saturday, the First Deputy Speaker of Parliament, Hakim Al-Zamili, called for addressing the negatives resulting from the change in the exchange rate, while the Governor of the Central Bank, Mustafa Ghaleb, pledged to hold banks that violate the controls and manipulate exchange rates to account.
An Expert Explains Eight Reasons For The Rise In Food Prices And Offers Solutions To Reduce Them
On Saturday, the economic expert, Manar Al-Obaidi, presented a number of reasons behind the rise in food prices, referring to the most prominent solutions to reduce their prices.
Al-Obaidi said, in a Facebook post, which was seen by / the information /, that “the inflation rate in the food sector increased by 6.6% compared to the beginning of 2019,” noting that “food items represent 28% of the relative importance of the Iraqi citizen among the total products.”
e explained that "the factors that led to the rise in food prices are: -
1- Changing the exchange rate of the dinar against the dollar has a direct impact on the prices of foodstuffs.
2- The high rate of inflation globally, not only in Iraq.
3- The increase in the demand for materials compared to the supply, especially the main ones globally, which led to a rise in basic materials such as wheat, corn oil and sugar.
4- The rise in oil prices led to a rise in prices in the transportation sector of materials, which will certainly be reflected in the price of the material itself.
5- The high rate of population growth in Iraq, which increases demand in return for the inability to meet most of the demand in the market.
Regarding solutions to reduce prices and reduce inflation, Al-Obaidi indicated that this is through:
1- Analyzing the high-priced materials and the percentages of rise, and measuring them on each governorate without the other, and the time periods.
2- Analyzing the reasons for the rise, whether as a result of the rise in the exchange rate or the external influences mentioned above.
3- Establishing agricultural and industrial projects necessary to provide food security.
4- Establishing giant storage projects that allow the purchase of large quantities of basic materials at the stage of their low prices, and keeping them as a kind of protection and using them in the event of high prices.
5- Reducing transportation costs by going to buy from sources that take into account the transportation price and concluding long contracts with the state in the field of processing.
6- Foreign investment in agricultural projects located in highly productive lands (higher than Iraq) to provide various products and ensure their continuity in Iraq.
And he warned that "the continued failure of economic policy will always contribute to relying on monetary policy, which leads to its destabilization and the failure of monetary policy, and thus the destruction of the country." finished/25h
Economist: It is “wrong” to change the dollar exchange rate
The General Coordinator of the Iraqi Economists Network, Bariq Muhammad Shubr, said today, Saturday, that it is a “mistake” to change the dollar exchange rate, giving several reasons for that.
An inch told Earth News, "The political struggle over the rise in the dollar exchange rate has continued since 2012 and we are following this issue, and we have repeatedly announced our rejection of political interference in the matter of monetary policy and in the Central Bank."
He added that "previous governments blatantly interfered with the independence of the Central Bank, and since then we have been witnessing trivial conflicts that are harmful to the Iraqi economy and the citizen over the exchange rate, and this thing is unreasonable."
The economist continued, “We are not talking about the populist necessities of the exchange rate, but there are objective factors as Iraq is facing a very difficult financial crisis and the price of oil fell to $ 26 in April 2020, and Iraqi oil revenues in the same year fell to less than half, while salary expenses in the year itself exceeded 40 trillion dinars.
He added that "everyone remembers the difficulty of paying salaries and the delay of the Ministry of Finance in paying salaries, and it was in front of two options, the best of which passed, either reducing salaries or borrowing, and resorted to borrowing, which was not sufficient to pay salaries, because of the political blocs' refusal to reduce salaries or impose taxes on salaries. The Ministry of Finance was forced to maintain a reserve The central bank has to raise the exchange rate.”
Shuber stressed that “our position on the matter is clear that the timing is incorrect and there are alternative measures that could have been resorted to, but it is not correct that the error is treated with a mistake, especially after the statement of the Deputy Governor of the Central Bank that no amendment will be made to the current exchange rate, and this is a sound position because it is wrong to change the rate of exchange.” current exchange.
Central Bank Governor during the session: The dollar exchange rate does not change
The head of the Kurdistan Justice Bloc, Soran Omar, announced on Saturday, February 19, .2022, the details of the session to host the governor of the Central Bank in the Iraqi parliament
Omar said that the governor of the Central Bank stressed during the session that the dollar exchange rate does .not change, and that making an amendment to it requires changes and finding solutions to a number of obstacles
The governor added in the meeting, according to the post, "We have 76 banks, while the banks in Iran and Turkey ".do not exceed 30 banks in each of the two big neighboring countries
The governor continued, "Many banks do not have the required standards and obtained the license, including the ".necessity of having 250 billion dinars as a guarantee
Omar concluded his post by saying: "The Governor of the Central Bank announced the formation of a fact-finding ".committee on all matters related to the institution
?What are the legal ways to reduce the price of the dollar again
Legal expert Ali Al-Tamimi revealed, on Saturday, February 19, 2022, the legal methods that .can be taken to reduce the price of the dollar again
Al-Tamimi told the obelisk, “According to Article 61 Seventh / B of the Constitution, 25 deputies can raise a general topic for discussion, clarification, and host the competent minister, and Article 58 of the Constitution authorized the holding of the extraordinary session with the approval of 50 deputies, and this is not an interrogation, but ."rather an interrogation in agreement with the Constitution and the internal system. to Parliament He added: "Economic security is one of the first priorities of the government of the care of day-to-day affairs, and this security is an exception to the concept of conducting business or daily affairs," noting that "according to this, the governor of the Central Bank may propose to change the dollar exchange rate and go down with it and .present it to Parliament until It gives him legitimacy
He continued: "Then, if the vote receives an absolute majority of the number of members, half of the total number plus one, this change will be approved, as the justifications for this are the impact of this rise in the ".exchange rate on the poor and the prevalence of crime, suicide and heinous crimes
He explained: "The rise in the exchange rate also violates articles 30 and 31 of the constitution, which obligate the ".government to provide a free and decent life
Al-Tamimi indicated that the other solution is, "After this clarification, this proposal is included to go down the exchange rate in the next budget law, which is presented by the elected government according to exchange rate ".changes, and this becomes a binding law
Al-Tamimi pointed out that "the economic situation had a significant impact on the lives of the poor and led to an increase in crime, divorce and suicide, so the urgent solution is in the public interest, as people's lives are above ".the law and the people are the source of authority
Shock of the dollar again .. Why can't Parliament change the price ?against the Iraqi dinar
The leader of the Al-Fateh Alliance, Fadel Al-Fatlawi, confirmed today, Saturday, that changing the exchange rate of the dollar against the Iraqi .dinar is linked to the draft budget draft for the year 2022
Al-Fatlawi said, to (Baghdad Today), that “changing the dollar exchange rate against ."the Iraqi dinar is linked to a draft budget draft. year 2022
He added, "This matter is proven in the draft law by the Council of Ministers, and Parliament does not have the right to make any change to the dollar exchange rate, ".as well as the price of selling oil, as this is the prerogative of the government
And Al-Fatlawub, that "the change in the exchange rate of the dollar against the Iraqi dinar will be through the new cabinet, and the parliamentary blocs should work on ".this matter through the presence of their representatives in the Council of Ministers
He stressed that "Parliament does not have the authority to do so, and that is why it passed the previous price in the previous parliament, despite the parliament's ".reservations about it, but it is binding because it came from the government
Devaluation Of The Exchange Rate .. Its Effects And Repercussions On The Iraqi Economy
Iraq’s devaluation of the Iraqi dinar towards the US dollar did not come out of luxury, as the decision would not have seen the light if it had not been for the extensive study by economic experts, the owner of which generated the conviction of Iraq’s representatives to vote on the decision later..
The Central Bank of Iraq was compelled to take this A step after the barrel price reached below (30) dollars per barrel, and at that time the Central Bank of Iraq began to spin to grind the Federal Reserve, and if this gnawing process continues, the Iraqi economy will gradually reach the point of collapse.
Yes, Iraq maintained a semi-balanced monetary policy at the time, which positively affected the movement of capital and reduced dollar sales and currency smuggling, and thus the percentage of speculation in the market decreased, although we know that the process of raising the price of the dollar will not produce its real results except on the medium and long levels.
With this positivity rate, negative blows must be received, directed precisely at low-income and self-employed people. Therefore, we find rises in inflation rates and poverty line rates, with an increase in the unemployment rate and market stagnation.
The Iraqi government had to reduce the repercussions of the exchange rate increase and find appropriate mechanisms to support low-income people, but it was unable to achieve this. regarding it.
Now, it is difficult to change the exchange rate of the dollar with the push of a button. We do not want to repeat the wrong policy in the sudden increase in the exchange rate to the use of the qualitative antagonist, which will also constitute a shock to monetary and even financial policy that is not safe from its repercussions, while it came suddenly as well..
The gradual decline in the value of the dollar towards the Iraqi dinar with the intensification of monetary policy beyond dependence on the rent economy (selling oil) will contribute significantly to the fragmentation of financial inflation and alleviating the repercussions of the decision taken on the movement of the market, as well as supply and demand in the currency sale market, especially if there is the will of the portfolio In collecting the revenues of the border crossings and reducing speculation in the dollar price.
The International Monetary Fund and the World Bank supported Iraq's move at the time to reduce the value of the dinar against the hard currency, and any change in the exchange rate without studying will have a negative impact on the financial and economic situation in Iraq. This is a fact that advocates of devaluing the exchange rate must put into their accounts.
The call of the leader of the Sadrist movement, Muqtada al-Sadr, and if it came out with national motives, in order to relieve the burdens of the Iraqi citizen, it remains subject to study by economists. Therefore, a higher committee must be formed that includes senior economists, experts and academics, with the Minister of Finance for research and study, and before recommendations are submitted to the General Secretariat, so that we can respond then The negative repercussions of the International Monetary Fund towards Iraq, as a proxy for the Iraqi economy to be subjected to shocks that undermine the current monetary stability.
the video I talked about in the podcast:
Raising the value of the dinar .. Will Iraq back down from the decision to reduce the value of its local currency?
A slight decrease in the exchange rates of the US dollar against the Iraqi dinar in the local markets, on Friday, one day after the Iraqi parliament announced its intention to hold a meeting with Minister of Finance Ali Allawi and Central Bank Governor Mustafa Ghaleb Makheef to discuss the exchange rate of the dollar.
The Iraqi parliament decided to summon the officials based on "the direction of the leader of the Sadrist movement, Muqtada al-Sadr," according to a statement issued by the media office of the Deputy Speaker of Parliament, Hakim al-Zamili, who belongs to the Sadrist movement.
On Thursday, Al-Sadr presented six proposals regarding the dollar exchange rate, including summoning the Minister of Finance and the Governor of the Central Bank under the dome of Parliament, organizing the Iraqi currency market centrally and enacting "some laws that increase the value of the Iraqi dinar exchange rate."
As soon as the recall decision was announced, the selling prices of the dollar in the local market recorded a slight decrease, as the price of the 100-dollar banknote reached 147.5 thousand dinars, compared to 148 thousand dinars the previous day.
The Central Bank of Iraq had devalued the official currency against the US dollar in December 2020, in the first such measure in half a decade, and coincided with a stifling financial crisis afflicting the country as a result of the collapse of oil prices at the time.
The exchange rate set by the Central Bank amounted to 1450 dinars to the dollar, instead of the previous rate of 1190 dinars, which sparked a series of criticisms from politicians, economists and citizens alike.
The Iraqi government attributed the decision to cut at the time to the stifling economic crisis that the country, the second largest oil producer in OPEC, is going through, as a result of the drop in crude prices.
But the recent rise in the price of oil in global markets to record levels not seen in seven years, has sparked controversy recently regarding the decision to devalue the Iraqi dinar and the possibility of reconsidering it.
"limited interest"
It is noteworthy that the decision to reduce the value of the Iraqi dinar was taken when the price of a barrel of oil in international markets ranged between 40 and 50 dollars, compared to its price today, which reached more than 90 dollars.
Iraqi researcher and economic expert Salam Sumaisem says that "any decision to raise the value of the dinar against the dollar may achieve some benefit, but it will not necessarily lead to the return of inflation levels to what they were in the past."
Sumaisem, who previously worked as a consultant in the Iraqi government, added in an interview with Al-Hurra that "the reduction of the dinar came within an agreement with international bodies, and it lasted for 5 years, and it cannot be easily undone."
She notes that "unfortunately, the government did not implement the rest of its commitments that it set in the white paper, including diversification of revenues and governance in taxes, fees and border crossings, and it was satisfied only with devaluing the currency."
In October 2020, the Iraqi Council of Ministers approved new mechanisms for economic reform, which it called the "White Paper", which he said includes "hundreds of measures to revive the Iraqi economy" and invest the country's "enormous resources" in the "scientific method".
The "white paper" included proposals, including reducing government salaries by 12-25 percent, lifting government support for some sectors, stopping funding the retirement fund from the budget, reducing government support for public companies, meeting electricity wages "according to international pricing" and increasing customs wages. and taxes."
Advisers to Iraqi Prime Minister Mustafa Al-Kazemi did not respond to repeated calls to Al-Hurra to request comment.
And the professor of international economic relations, Abdul Rahman al-Mashhadani believes that "the government is supposed to review the exchange rates after about a year of making the decision, as a result of the rise in oil prices and inflation in the Iraqi market."
But al-Mashhadani explains in his interview with Al-Hurra that "the review is very difficult at the present time, because it means that we will link the price of the dinar to oil, and this is not correct from an economic point of view."
He adds that "the decision to reduce the value of the Iraqi dinar was not successful from the beginning, because it caused a decrease in the value of the local currency by about 30 percent, and led to an economic recession that resulted in a significant increase in the prices of foodstuffs and others."
Al-Mashhadani asserts that "the current inflation rate has reached more than 10 percent in general, but on the level of some basic commodities, it has reached nearly 100 percent, such as oil, rice, flour and others."
He points out that "the return to the old exchange rate will not lead to the return of prices to their previous era" for reasons including that "traders will not venture back to the old prices, considering that they will be afraid of the government's fluctuating decisions, and the lack of guarantee that it will not return and take a similar decision to reduce the value of the dinar again."
Al-Mashhadani says that any decision to raise the value of the Iraqi currency "will lead to a new economic stagnation in the market, and make many traders refrain from importing, and thus lead to a shortage of materials that will cause prices to rise again."
gradual return
In a statement issued in conjunction with the decision of the Central Bank of Iraq to reduce the value of the Iraqi dinar, the Ministry of Finance promised that "the decision to adjust the exchange rate will be for one time only and will not be repeated in the future."
She added that "the government and the central bank will work to fix the new rate that is in line with the requirements of the reform."
She pointed out that "the government will immediately support the affected sectors and the poor 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."
Even if the old exchange rates are returned, this should be done gradually, according to Al-Mashhadani.
Al-Mashhadani says that "the decision to devalue the currency from the beginning was supposed to be gradual, by devaluing the dinar little by little until the desired goal was reached, but they suddenly raised it, causing a defect."
In addition, Al-Mashhadani believes that the government could have reduced the damage caused by the devaluation of the dinar by "transferring half of what it obtained from the exchange value change, to support the weak and poor classes, so that they can face these changes."
He points out that "changing the exchange rate is the last remedy, and the government should not offer it unless there is a coverage of its negative effects by supporting agriculture and industry so that there can be local production capable of covering the local market."
Al-Mashhadani calls for "structuring the Iraqi economy in a way that allows isolating the exchange rate from the gross domestic product, and not to resort to this decision whenever oil prices fall."
In this context, Sumaisem says that "the Central Bank is the only party capable of taking a decision to change the value of the currency."
Sumaisem, who had a role in writing the Central Bank of Iraq law, adds that "the central bank must adhere to monetary policy, and its first objective is to achieve economic stability that is achieved through the exchange rate."
On the other hand, a member of the Finance Committee in the former parliament and current MP Jamal Seydou confirms that "there is currently no decision to reduce or raise the value of the Iraqi dinar."
Sido adds to the "Al-Hurra" website that "there is talk of measures to reduce corruption in the currency auction process and to control the prices of materials in the market."
He asserts that "it is not within the authority of the government to take such a decision, but the matter is subject to the central bank exclusively."
Commenting on a question about the possibility of raising the value of the Iraqi dinar against the US dollar, Seydoux said, "This issue is very unlikely."
He concludes by saying that "the move to devalue the local currency was good at the time, but it is bad now, because it greatly affected the market and the Iraqi citizen" alike.
Source: The dollar exchange rate will be reduced gradually if approved
link are they considering this?
A parliamentary source said, on Saturday, February 19, 2022, that the meeting of the House of Representatives with the Governor of the Central Bank regarding the exchange rate of the dollar, resulted in the approval of reducing the exchange rate of the dollar, it will be gradually, step by step, so as not to affect the .market movement. And the citizen The source told the
Obelisk that changing the exchange rate in a sudden manner by about 135 thousand against $100 will have repercussions on the level of commercial and financial movement and on the citizen, who is difficult .to approve The parliament session was attended by deputies of the Sadrist bloc, some heads of blocs and a representative of .the state of law, while Finance Minister Ali Allawi was absent from attendance And the head of the Kurdistan Justice Bloc, Soran Omar, announced, on Saturday, the details of the session to host .the governor of the Central Bank in the Iraqi parliament
Omar, one of those present at the session, said that the governor of the Central Bank stressed during the session that the dollar exchange rate does not change, and that making an amendment to it requires changes and finding .solutions to a number of obstacles The governor added in the meeting, according to the post: We have 76 banks, while the banks in Iran and Turkey .do not exceed 30 banks in each of the two big neighboring countries The governor continued: Many banks do not have the required standards and obtained the license, including the .necessity of having 250 billion dinars as a guarantee Omar concluded his post by saying: The Governor of the Central Bank announced the formation of a fact-finding .committee on all matters related to the institution
The House of Representatives set, earlier, a date for a meeting with the Minister of Finance and the Governor of .the Central Bank in order to discuss the dollar exchange rate Earlier, the leader of the Sadrist movement, Muqtada al-Sadr, presented six proposals to control the repercussions .of the decision to change the dollar exchange rate
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