Threatening to adjust the exchange rate threatens the national economy with a new blow

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[size=52]Threatening to adjust the exchange rate threatens the national economy with a new blow[/size]

[size=45]Baghdad/Bright news[/size]
[size=45]The dollar exchange rate is one of the most important tools of the Iraqi market, which mainly depends on imports. Accordingly, economic experts believe that adjusting the dollar exchange rate again, could constitute a “big shock” to the markets in Iraq, and its “costs are high.”[/size]
[size=45]Back to the previous exchange rate[/size]
[size=45]Members of the House of Representatives, in an official document, demanded the issuance of a parliamentary resolution that restores the exchange rate of the US dollar against the Iraqi dinar to its previous rate, without considering the likely repercussions of the decision they are requesting.[/size]
[size=45]Member of the Parliamentary Integrity Committee, Hamid Al-Shiblawy, said in an official document, titled “Reducing the dollar exchange rate”, that “due to the repercussions of the rise in the exchange rate of the dollar against the dinar, which negatively affected the economic situation of the Iraqi family, which burdened the citizens, especially those with limited income, we Members of the attached list, we ask the Presidency of the House of Representatives to include a paragraph to reduce the dollar exchange rate and gradually return it to the previous exchange rate within the work schedule of the next session in the public interest.”[/size]
[size=45]The list showed the signatures of 40 deputies so far, and it is reported that the Central Bank of Iraq announced, on December 19, 2020), officially adjusting the foreign exchange rate (the US dollar) to be 1450 dinars, instead of 1200 dinars, for one dollar, according to the budget The General Assembly of the State for the year 2021 approved by the House of Representatives.[/size]
[size=45]New hit to the market[/size]
[size=45]For his part, the researcher in economic affairs, Daoud Al-Halfi, believes in an interview with (Al-Mada) that “the adjustment of the dollar exchange rate once again may generate a painful blow to the Iraqi market, especially if it happened suddenly and without a realistic study,” noting that “decreasing the value of The dollar will not address inflation, as the advocates of the amendment imagine.”[/size]
[size=45]Al-Halfi stressed that "the sudden drop in the price of the dollar has many risks, the most important of which is the loss of the local currency, confusion in the movement of imports, and an increase in the prices of foreign goods."[/size]
[size=45]And that «the Iraqi market does not need another strike at this time, there is a need to study the impact of reducing the exchange rate of the dollar first, and evaluate the repercussions before embarking on this step».[/size]
[size=45]populist pressures[/size]
[size=45]Adviser to the Prime Minister for Economic Affairs, Mazhar Muhammad Salih, said that "the monetary and financial policy institutions have no intention of adjusting the dollar exchange rate at the present time." He considered what is being circulated in the media "populist political pressures".[/size]
[size=45]He pointed out that "the discussion on this issue should not be in this way, because it causes concern in the markets," noting that "the exchange rate adjustment should be left to the next government and studied in light of the budget's resources and the state's moves to preserve the foreign currency."[/size]
[size=45]Service for currency speculators[/size]
[size=45]For his part, Raed Fahmy, Secretary of the Iraqi Communist Party, believes that "the process of suddenly adjusting the dollar exchange rate will be costly and will create significant repercussions," noting that "the issue should not be subject to political moods, as the responsibility lies with the Central Bank."[/size]
[size=45]He believed that "the sudden change in exchange rates will create new turmoil in the market," stressing that the social repercussions and the impact of the decision on the poorest social strata must be calculated.[/size]
[size=45]Fahmy continued, "The change in the exchange rate will serve the interests of major currency speculators, which is what is happening now, by spreading rumors that caused the exchange rate to become unstable in the markets."[/size]
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