The Ministry of Finance on Friday promised to adjust the exchange rate of the foreign currency against the Iraqi dinar, following the central bank's decision to devalue the local currency and raise the prices of imported goods and goods in the country.
The ministry said in a statement to Twilight News that it is fully aware that there are a number of supportive measures to be taken to increase the positive effects of the exchange rate adjustment. The Ministry of Finance has not been able to do so publicly because of the sensitivity of the issue and because the budget must be approved first by the Council of Ministers.
"She has led extensive discussions in recent weeks after the cabinet approved the budget on the follow-up to the exchange rate adjustment with many parties inside and outside the government," she said.
The discussions will culminate next week in a proposed expanded meeting with key public and private economic actors, where the Finance Ministry will develop a detailed policy program designed to increase the benefits of the exchange rate adjustment, she said.
In a statement, the ministry expressed hope that the measures would coincide with discussions within the House of Representatives on the budget.
"The main policy measures for the protection of the poor and vulnerable have been included in the budget and discussed in the minister's statement on the budget," the statement said.
The Central Bank of Iraq has decided to raise the selling price of the dollar to banks and exchange companies to 1,460 dinars, from 1,182 dinars per dollar, in order to offset the decline in oil revenues caused by the decline in oil prices.
Iraq relies 90 percent of its income on oil revenues, the last time it devalued the dinar was in December 2015 when it raised the selling price of the dollar to 1,182 dinars from 1,166 dinars previously.
The Central Bank launched its decision on the new price to sell the dollar at the currency auction on December 20, and since then, the bank has seen a decline in currency sales.
Iraq is under great pressure under the worst economic crisis since 2003 and so far, with low oil prices and the outbreak of the Coronavirus.
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