Al-Sudani calls on citizens not to acquire the dollar and confirms that the Iraqi dinar is the stron

by **rocky** Wed 01 Feb 2023, 6:46 am

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Al-Sudani calls on citizens not to acquire the dollar and confirms that the Iraqi dinar is the stron

by rocky Wed 01 Feb 2023, 6:46 am

Al-Sudani calls on citizens not to acquire the dollar and confirms that the Iraqi dinar is the strongest and we will return the exchange to its official rate
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The Iraqi Prime Minister, Muhammad Shia al-Sudani, confirmed that the government will return the exchange rate of the dollar to what it was, calling on citizens not to own the dollar because “the dinar is stronger.”
The Prime Minister, Mohamed Shia Al-Sudani, said that exchange rate fluctuations are not a decision of the government, parliament, or the central bank, as happened when the exchange rate was raised in 2020 by a decision of the government and the approval of Parliament.
He explained, in an interview with Al-Iraqiya TV, that international standards and the relationship between the Central Bank with the Federal Reserve and the US Treasury, to control the movement of money, which merchants find difficult to work with, led to a rise in the exchange rate.
The Iraqi markets are witnessing a crisis after the decline in the exchange rate of the Iraqi dinar against the US dollar to below the rate set by the Central Bank of Iraq, which led to confusion in the market, and fears among citizens of a further rise in the price of the dollar, despite the Iraqi government's assurances that the exchange rate will return to the specified level.
The prime minister pointed out that “currency smuggling was clear and constituted a chronic crisis,” asking: “What has stopped except for the high price of some commodities, even though we sell 30 million dollars while we used to sell 300 million?”
Al-Sudani acknowledged that “the procedures will take time,” adding, “We will certainly return the dollar to its official price, and we will save it, and we will accustom merchants and businessmen to correct and legitimate trade.”
In this context, he referred to weekly meetings held with businessmen who complain of problems with taxes and customs in order to solve the problems they face, and “something that was supposed to happen during the two years that were granted to the Central Bank,” revealing that the agreement between the Central Bank and the Federal And the US Treasury concluded two years ago, without the central bank taking concrete steps to prepare for its implementation.
Regarding what is reported about money smuggling from the Kurdistan Region, he said: “We hear about money smuggling and transferring it to Kurdistan and from there to neighboring countries,” adding that he had spoken with the President of the Kurdistan Regional Government “about money smuggling and the need for cooperation on this file.”
On the discussions with the American side regarding the dollar, he indicated that “a high-level delegation headed by the Foreign Minister will visit Washington on the seventh of February to discuss more than one file, including fluctuations in dollar prices.”
The exchange rate of the dollar in the Iraqi markets and stock exchanges today, Tuesday, reached 1,680 Iraqi dinars per dollar, in a new indication of the growing exchange rate crisis in Iraq despite government promises and recent measures to limit the rise in the exchange rate, resulting primarily from the lack of control over the dollar currency smuggled into the country. Abroad, and thus the US Federal Bank reduced the liquidity sent to the Iraqi government from the dollar currency in exchange for Iraq selling oil.
Al-Sudani denied what was reported about setting a new exchange rate in the budget law, as the government does not want to interfere in monetary policies, adding that “all possibilities are contained in adjusting the exchange rate of the dollar.”
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