What does it take to change the dollar exchange rate and return it to the previous? Iraq should foll
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[size=18][size=16]Today, Wednesday, economic experts considered it difficult to change the exchange rate of the dollar and return it to its previous rate.
Economist Uday Al-Alawi said, according to the official newspaper, that "some of them see that changing the exchange rate is just a digital process that goes up or down," noting that "this change greatly affects the market and the obligations of many who live on selling materials in it."
Al-Alawi added that "it is absolutely not possible to change the exchange rate overnight, because the damages of those decisions that are taken without knowledge are estimated at billions of losses on citizens," noting that "changing the exchange rate requires overlapping processes of continuous preparation of the market that take at least two years."
He explained that "the statements regarding the change in the dollar exchange rate confused the market and stopped many commercial operations, and imposed on families to reduce spending and be satisfied with important goods, despite the fact that workers in the private sector constitute about 80% of society and they are more than directly affected by such statements." .
And he indicated, "Any moves in the process of decreasing and raising the exchange rate must be studied, because there is a benefit between the merchant and the simple citizen, in addition to the fact that many citizens have converted their transactions to the dollar after decreasing the price of the dinar, which suggests that it is not fixed internally, which causes a change A significant economic situation in the event of a decrease or increase in the exchange rate of the dinar against the dollar.[/size][/size]
[size=18][size=16]Al-Alawi linked "the efforts to change the exchange rate on the one hand and the government formation talks on the other hand," noting that "they will be temporary statements and will not go beyond promotion and media marketing." [/size]
[size=16]On the technical level, experts believe that "Iraq should follow the steps of some neighboring countries that have fixed the dollar's exchange rate against its currency for years, even though they do not have any economic data, while the exchange rate in Iraq changes frequently."[/size]
[size=16]On the same level, other blocs, on the other hand, are trying to push economic laws to the House of Representatives, as Hakim al-Zamili, the first deputy speaker of parliament, had announced the Sadrist bloc’s intention to legislate a law to deduct a financial grant from oil revenues to be distributed directly among citizens under the title “People’s Oil Grant.” However, experts and observers pointed out that these endeavors cannot be implemented within the law, as there is a budget deficit estimated at more than 27 trillion dinars.[/size]
[size=16]Observers warn of Iraq's dependence on the current high oil prices, especially that their fluctuations will continue according to market requirements and the consequences of the world's actions regarding the general closure to confront the Corona pandemic.[/size]
[size=16]They stressed the need for there to be alternatives away from oil rents, as this wealth may not last long, and could decrease at any moment, noting that those funds can be invested in establishing infrastructure for industrial cities that can compete with the world.[/size][/size]