Specialists call for the activation of the private sector: the surplus oil revenues must be invested

[size=52]Specialists call for the activation of the private sector: the surplus oil revenues must be invested[/size]

[size=45]Specialists in economic affairs are talking about the possibility of restoring the exchange rate of the Iraqi dollar against the US dinar after the rise in oil prices, which touched 95 dollars.[/size]
[size=45]And the Central Bank of Iraq decided in December 2020 to raise the price of selling the dollar to banks and exchange companies to 1460 dinars, from 1182 dinars to the dollar, with the aim of compensating for the decline in oil revenues caused by the deterioration in oil prices, which caused the increase in the price of the dollar and the devaluation of the Iraqi dinar in a decrease in the purchasing power of citizens .[/size]
[size=45]More than a year after changing the exchange rate of the dinar against the dollar, oil prices witnessed an unprecedented rise in about 7 years, as a barrel of oil last Friday evening touched 95 dollars, which called on specialists to demand a review of the exchange rate of the dollar against the Iraqi dinar and the investment of the surplus from oil revenues. to revive the economy.[/size]
[size=45]And the expert in economic affairs, Dia Al-Mohsen, believes that "the rise in oil prices calls for a review of the exchange rate of the dollar against the Iraqi dinar."[/size]
[size=45]He added that "the rise in the exchange rates of the dollar significantly affected the living conditions of the middle and poor classes and caused an economic recession."[/size]
[size=45]Al-Mohsen called on the new House of Representatives to “reduce the dollar exchange rate and not send the budget at the current rate,” adding, “The issue lies in persuading the International Monetary Fund to reduce the exchange rate.”[/size]
[size=45]And the specialist in economic affairs continued, "It is necessary to look at a number of facts, including those related to the recovery of the economy and the rate of population growth, and then determining the price of a barrel of oil in the current year's budget according to economic conditions."[/size]
[size=45]For his part, the economic affairs specialist, Basem Jamil Antoine, says that “the current dollar price is the outcome of the white paper that organized the process from 3 to 5 years and considered it part of the economic reform process with regard to the financial situation and banks,” adding that “the state cannot change its currency, but the important thing is that It is the real reform that serves the poor classes of the people.”[/size]
[size=45]Antoine added; "The exchange rate is not important as long as there is compensation for the poor classes that make up the majority, and there will be social assistance, the provision of the ration card and the creation of job opportunities is a basic issue."[/size]
[size=45]The specialist in economic affairs pointed out that "there is a rise in the unemployment rate and a rise in poverty rates, due to the lack of job opportunities, and the private sector is frozen and does not practice its work."[/size]
[size=45]He stressed, "The rise in oil prices should cover the deficit and create opportunities for the unemployed young people, and therefore there will be a recovery in the market, an end to waste and corruption, and the employment of the private sector."[/size]
[size=45]In turn, the economist, Ali Al-Fariji, believes that "the main purpose of the decision to increase the exchange rate is no longer necessary, given the cash abundance achieved as a result of the rise in the price of a barrel of oil."[/size]
[size=45]Al-Fraiji says that "decreasing the value of the Iraqi dinar against the dollar did not achieve the goals, as a result of the movement of the local market and the turbulent economic reality that we live in now."[/size]
[size=45]He pointed to "the absence of strategies to absorb the economic shock by the government, and deal with it to mitigate the negative repercussions left by the decision to raise the dollar exchange rate," noting that "the cash abundance from the rise in the price of a barrel of oil has achieved the goal of covering the salary bill in the general budget."[/size]
[size=45]And the economic affairs specialist indicated that “several negatives accompanied the decision to raise the exchange rate, including the confusion factor in the local market, accompanied by an unrealistic rise in the real estate market, as well as the significant effects on the prices of consumer goods and services, which have become a commodity controlled by many greedy traders.”[/size]
[size=45]And the Ministry of Finance warned earlier, of the consequences that the revaluation of the currency may have, indicating that the step “will lead to a decrease in the value of the dinar for oil revenues and thus eliminate a large potential part of the budget resources, which are employed in reconstruction, health, education, and social transfers. and other priority areas, and the government’s ability to face current and future challenges will be severely weakened.”[/size]
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