A parliamentarian warns against decreasing the dollar exchange rate: the Iraqi state may be unable t

POSTED ON[You must be registered and logged in to see this link.] BY [You must be registered and logged in to see this link.]

[size=52]A parliamentarian warns against decreasing the dollar exchange rate: the Iraqi state may be unable to pay salaries[/size]

[size=45]Member of Parliament Mishaan al-Jubouri said on Sunday that reducing the exchange rate of the dollar against the local currency may lead to the Iraqi state's inability to pay the salaries of public sector workers in the event of a drop in oil prices in global markets.[/size]
[size=45]Al-Jubouri said in a statement he published on Twitter today, “Reducing the dollar exchange rate will cost the budget an additional 10 billion dollars annually,” adding, “If the oil price drops to $60, you will be unable to pay salaries and will not be able to finance infrastructure projects.” .[/size]
[size=45]He suggested that "efforts are focused on finding ways to support the poor and reduce the prices of basic commodities that are related to the needs of people with limited income."[/size]
[size=45]Al-Jubouri's statements come after the Iraqi parliament held a meeting on Saturday, attended by Central Bank Governor Mustafa Ghaleb Mikhaif, and was boycotted by Finance Minister Ali Abdul-Amir Allawi to discuss the repercussions of the high exchange rate of the dollar against the dinar.[/size]
[size=45]Hakim al-Zamili, First Deputy Speaker of the House of Representatives, who chaired the meeting, instructed the formation of a parliamentary committee to investigate the facts, gather information and follow up on the work of the Central Bank of Iraq, while calling on the government to address the negatives resulting from the change in the exchange rate and the rise in market prices. He indicated that the Council will take all necessary measures in the event The government has failed to do so, and he will be obligated to use his constitutional powers to remedy the effects of this issue.[/size]
[size=45]In turn, the independent deputy, Basem Khashan, said in his blog on Facebook today that “most of the political parties supported raising the dollar exchange rate, and the budget passed in which the current official exchange rate was approved with the approval of most political blocs, and the exchange rate was raised without the government taking any measures.” Measures to compensate for the huge losses in the salaries of employees, workers and poor people.[/size]
[size=45]He added, "It is okay for parties to change their position regarding raising the dollar exchange rate, but these parties must express this change through the correct democratic constitutional means."[/size]
[size=45]On Thursday, Al-Sadr presented six proposals regarding the exchange rate of the dollar against the Iraqi dinar, including summoning the Minister of Finance, Ali Allawi, and the governor of the Central Bank, Mustafa Ghaleb, immediately.[/size]
[size=45]On Friday, an official source in the Iraqi Ministry of Finance strongly ruled out the possibility of changing the exchange rate and reducing the value of the dollar against the dinar because of its negative repercussions on the country's economy, after the demands of the Sadrist movement's leader Muqtada al-Sadr to conduct a review of this file.[/size]
[size=45]The official source said that the change in the exchange rate of the US dollar against the Iraqi dinar came after the drop in oil prices to below 30 dollars per barrel, and the decrease in the financial revenues achieved from selling crude at the end of the year 2020.[/size]
[size=45]He explained that "the exchange rate of the dollar against the Iraqi dinar is fixed and cannot be changed easily."[/size]
[size=45]The source, who asked not to be named because he was not authorized to declare, added that “the International Monetary Fund and the World Bank supported Iraq’s move at the time to devalue the dinar against the hard currency, and any change in the exchange rate without studying will have a negative impact on the financial and economic situation in Iraq.” .[/size]
[size=45]On December 19, 2020, the Central Bank of Iraq officially announced the adjustment of the foreign exchange rate (the US dollar) to 145,000 dinars for every $100, according to the state’s general budget for the year 2021 approved by the House of Representatives.[/size]
[size=45]It is noteworthy that the annual inflation in Iraq rose significantly after raising the exchange rate of the dollar against the dinar in the 2021 budget.[/size]
[size=45]It is noteworthy that all prices of materials and goods in the Iraqi market witnessed a significant increase, in conjunction with the devaluation of the dinar, which sparked a wave of strong resentment among the popular circles, as well as the objections of some interested in economic affairs.[/size]
[size=45][You must be registered and logged in to see this link.]