[size=36]A statement from the Ministry of Finance regarding the exchange rate of the dollar[/size]
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, on Sunday, the Ministry of Finance issued a statement regarding the reduction of the Iraqi dinar against the dollar.
And the ministry stated in a statement received by / Mawazine News / a copy of it, that "the Ministry of Finance sought with all its institutions to correct the structural distortions in the Iraqi economy, which the public financial policy lacked, which led to restricting the ability of financial reform in the country, and when oil revenues collapsed two years ago, the government was Iraq is facing enormous financing pressures while it was struggling with its basic internal and external obligations, as the cash reserves of the Central Bank were in a rapid decline, and in December 2020, it was expected to be implemented within a year, and Iraq was on the brink of a comprehensive economic crisis that came as a result of the drop in oil prices.
And she added, "The decision to reduce the value of the dinar came within a package of fundamental reforms that target the structure of the Iraqi economy, and this decision was taken as a result of a stifling economic crisis that befell the whole world represented by the Corona pandemic, where the price of a barrel of oil at the time reached $ 20, and this is what caused an economic crisis that led The difficulty of meeting the government’s financial obligations from previous external and internal debts in addition to the salary bill for employees, retirees and social protection, as the Social Protection Authority was supported by increasing the allocations of the new targeted groups to compensate for the emergency change in the exchange rate and subsidizing the poor segment, but the House of Representatives reduced the amounts allocated to the new inclusion Which led to the non-inclusion of new families within social protection.”
And she pointed out, "The change in the exchange rate of the dinar came in conjunction with the implementation of the economic reform project, which the Iraqi government called the "white paper" and it was a necessary option to reform the structural system of the Iraqi economy. The Central Bank, which confirmed that raising the exchange rate led to an increase in the possibility of local product competition, and to reduce expenditure pressure on the Ministry of Finance by 23%, which enabled the Ministry of Finance to overcome the crisis resulting from the drop in global oil prices during 2020 and the first months of 2021.
I continued: "The decision to adjust the exchange rate came after the state’s foreign currency reserves were depleted and some private banks controlled the market for selling currency by illegal means. We worked to raise the foreign currency balance through a series of decisions in addition to the rise in oil prices. The Central Bank of Iraq, and raising Iraq’s global credit rating internationally, as the statistics of specialized international organizations indicate the gross domestic product by 9% for the first half of 2021, and the growth of the non-oil economy by more than 21% in the first half of 2021 and this is due to the strong performance in The service sectors after easing the measures to prevent the emerging corona virus, and this recovery reduced the lag in the oil sector, by 10% in the first half of 2021, as Iraq adjusted its share in OPEC and since then, OPEC gradually increased the production share of member states, which was reflected an increase in the gross domestic product (GDP)General and basic inflation in Iraq for the period from January to July 2021, reaching 5.2% and 6.3%, respectively, due to the increase in domestic demand and the insufficient supply of commodities to meet the entire growing demand, in addition to the positive impact of inflation due to the decline in import prices in some exporting countries facing a depreciation in the value of their local currencies.
And she indicated, that she "worked to attract companies to support investment in Iraq for the purpose of promoting the country's economy by maximizing non-oil revenues and emphasizing the need to adopt the budget of programs to achieve the best performance of the plans and timings set and to develop appropriate mechanisms within its strategy to finance and involve the private sector and to approve the completion of strategic projects with a multiplier effect." Reducing the banks’ monopoly on foreign currency, and in light of the stifling financial crisis, they dealt with the suffering of a large segment of the contracts of the Ministry of Electricity and free lecturers, as they were converted into contracts based on Cabinet Resolution No. 315 of 2019 and all the problems that many ministries faced from their contracts terminated, including the Ministry of Defense and Interior And the Popular Mobilization Authority and the solution of all problems related to bonuses, promotions and other benefits for all employees and citizens.
She pointed out, "It also worked within its strategy to prepare a sound and stable financial position for the country by preparing budgets for the coming years within the available resources to address the reluctance that occurred in strategic projects. Hence, the Ministry of Finance would like to show that it worked in difficult economic conditions with which it dealt with most financial situations and from During its plans for the white paper project adopted by the government and the Ministry of Finance with its reform project in order to advance the economic reality, as the Ministry of Finance invested those positions that were put in place to reform the economic situation and the stifling financial crisis after it preferred difficult solutions, including raising the dollar exchange rate against the Iraqi dinar. h