The exchange rate adjustment will be for one time only and will not be repeated in the future

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Baghdad / Obelisk: The Ministry of Finance issued, on Saturday, December 19, 2020, a new statement regarding the exchange rate of the dollar against the dinar, while indicating that the exchange rate would be modified for one time.

The Minister of Finance, Ali Allawi, said in a statement: 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 is well known to the sons of our honorable people, and in our dear country Iraq, the financial crisis resulting from the sharp decline in oil revenues was also linked to the existence of structural imbalances in The Iraqi economy has not been seriously addressed and carried over from one stage to another.

He added: On this basis, it became clear to the eyes of the importance of urgent reforms in various economic fields and axes, including the currency exchange rate, explaining that although this decision is one of the difficult decisions, 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 the protection of the Iraqi economy, activate its activity, achieve a courageous reform leap, and conduct real development with the help and participation of all government, political forces, and economic and social actors.

He added that the decision to adjust the exchange rate will be one-time only and will not be repeated in the future, pointing out that the government will work in addition to the Central Bank to fix the new price that is consistent with the requirements of the reform.

He stressed that the government will work immediately to 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 increase in the prices of some imported goods, indicating that we have directed government banks to increase interest rates to encourage citizens to keep their savings in these banks. And take advantage of the high interest provided to them.

Allawi 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 this measure, in addition to the competent international bodies, 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’s reform program, with regard to aspects of reforms and economic development.

And he indicated that the Ministry of Finance has a detailed paper on questions that could be asked about changing the exchange rate in the country, stressing that the Iraqi economy will increase in effectiveness with the entry into force of economic reforms, and that there is a correction for pessimistic and erroneous interpretations, some of which carry a political background to impede the reform movement and prevent a shift. Quality in the fields of industry, agriculture and development.


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