09:18 - 07-07-2022
The Central Bank of Iraq resolved the controversy over the parliamentary and societal demands to change and restore the currency exchange rate against the Iraqi dinar.
The Deputy Governor of the Central Bank, Ammar Khalaf, stated, in a press statement, that “there is no justification for changing the exchange rate at the present time, and we, as a monetary authority, do not find that there is sufficient justification to change the currency exchange rate for the time being,” noting that “the currency exchange rate It has changed more than once since 2004 until now, due to monetary policy tools and economic conditions, whether to strengthen or reverse the value of the dinar.
He added, "The economic circumstance is the main ruler in the currency exchange rate, as there is no time limit planned for five years or less or more for changing the exchange rate, which is subject within monetary policy to the competence of the Central Bank exclusively."
He explained, "When the Central Bank sees that there is a necessity, the exchange rate is changed, but at the present time we do not find a necessity or justified need to modify the current exchange rate."
He continued, "The economic conditions determine the appropriate decision-making and in a manner appropriate to the time period," noting that "the monetary policy is characterized by flexibility, but in general it is not good for the exchange rate to be changed quickly because it confuses local markets and weakens the wheel of the economy."
And the government official considered, “It is incorrect for the central bank to change the exchange rate during a convergent time limit, as it will affect the movement of the markets and reduce investment and production,” noting that: “During the first quarter of 2021, we took steps to change the exchange rate when we found a quasi-economic stagnation. in business."
[You must be registered and logged in to see this link.]