A year fraught with financial risks, and the dollar price will remain until 2026

[size=52]A year fraught with financial risks, and the dollar price will remain until 2026[/size]

[size=45]Economists ruled out that the dollar exchange rate would be restored to its previous state, while others warned that the delay or slowdown in approving the federal budget law for the year 2022, portends a financially unprosperous year despite the rise in oil prices in the global market.[/size]
[size=45]The "white paper", of which (the devaluation of the dinar against the dollar) is one of its pillars, represents a reform program aimed at developing the private sector, reducing dependence on the state and stimulating production in various governmental and private sectors, and this increases the likelihood of its continuation during the coming period.[/size]
[size=45]Adviser to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, said that "the country needs legislation regulating financial affairs throughout the year 2022," stressing that this is "one of the main priorities and tasks of the new parliament."[/size]
[size=45]There is still an intersection and divergence between the financial needs and desires for the current year on the one hand, and what is expected to be carried out by the fiscal policy in the presence of a law-enacted budget on the other hand, according to Mazhar Saleh.[/size]
[size=45]Saleh pointed out, during his speech to (Al Mada), that "the fiscal policies that adopt last year's standards on the current year are minimal policies without taking into account the requirements for growth in GDP, population growth and sustainable development needs."[/size]
[size=45]He added, "The longer the budget law legislation is delayed, the more new expenditures that serve the growing economic activity will slow down and a state of semi-deflation will be recorded in the national economy."[/size]
[size=45]The Prime Minister’s Adviser for Financial Affairs noted that “the general budget expenditures constitute approximately 50% of Iraq’s gross domestic product, but in this case and in the absence of legislation, the expenditures will remain slow and do not reflect the criteria of a financially prosperous year in oil revenues, such as the current year, unless The budget will be initiated as soon as possible and in accordance with the standards of development and stability for the current year.”[/size]
[size=45]On the other hand, the economic expert, Salam Sumaisem, revealed that “the white paper prepared by the current government included a paragraph related to the devaluation of the Iraqi dinar against the dollar, for a period of five years, which means that there is no change in the exchange rate in the federal budget for the year 2022.” .[/size]
[size=45]Sumaisem indicated, during her speech to (Al Mada), that “the rise in oil prices, or is it beneficial for any country, what about Iraq, which relies on oil to finance 97% of its budget,” noting that “the increase in oil prices contributed to alleviating the size of the fiscal deficit.” For 2021, but now there are no final accounts to estimate the size of the benefits resulting from the rise in the price of oil in the global market.”[/size]
[size=45]The manipulation of the value of the dinar against the dollar took place in special and compelling economic conditions, and its purpose was to address the budget deficit in the past 2021, and in fact, an economic gain was achieved in favor of Iraq as well as support for the foreign currency reserves, but this initiative, which the government and the Bank considers, will not be reversed. The central bank is a gain and a victory for the country, according to the economist, Muhammad Amin Hawrmani.[/size]
[size=45]Hawrmani said, in an interview with Al-Mada, that "despite the repercussions of the price hike for some materials imported from abroad, the smuggling of currency to neighboring countries has decreased significantly, and this is another gain for Iraq."[/size]
[size=45]He explained that "the rise in oil prices is more appropriate to be exploited by Iraq to promote sustainable development and solve its crises, especially the electricity crisis and the trend towards developing sustainable and clean energy and addressing environmental problems as a result of burning gas associated with oil, for more than three decades and to no avail."[/size]
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