The dollar skips decisions to contain the crisis and records a new jump

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[size=52]The dollar skips decisions to contain the crisis and records a new jump[/size]

[size=45]Baghdad / Hussein Hatem[/size]
[size=45]The exchange rates of the dollar are still fluctuating despite the recent decision of the Council of Ministers to amend the exchange rate of the dollar against the dinar, equivalent to 1,300 dinars per dollar.[/size]
[size=45]The government of Prime Minister Muhammad Shia' al-Sudani expects prices to gradually stabilize during the coming days, while noting that fluctuation in the exchange rate cannot be eliminated unless demand is met.[/size]
[size=45]Since the first month of the Sudanese government taking over the administration of the country, the exchange rate of the dollar against the dinar witnessed an upward rise, to exceed 1,500 dinars per dollar before the end of last year.[/size]
[size=45]Since the beginning of this year, the exchange rate of the dollar has witnessed sudden jumps, as it crossed the threshold of 1,600 dinars to the dollar, and it remained between 1,600 during the month of November.[/size]
[size=45]And the financial advisor to the Prime Minister, Mazhar Muhammad Salih, says, “The function of the Central Bank of Iraq and its monetary policy is to ensure monetary stability in Iraq,” noting that “volatility in the exchange rate cannot be eliminated except in the event that demand is met.”[/size]
[size=45]Salih added, "The central bank has adopted a strong monetary policy in favor of the strength of the Iraqi dinar," noting that "the rise in exchange rates has dealt with inflation."[/size]
[size=45]He pointed out, "The general level of prices will witness stability, prices will gradually decrease, and things will return to normal."[/size]
[size=45]Saleh pointed out that "all financial transfers will be made through international banking channels clearly," adding that "the package launched by the Central Bank allows the transfer to any citizen."[/size]
[size=45]Saleh explained, "Economic stability is one of the rights of the Iraqi citizen, and whoever contradicts his rights will be subject to legal and judicial accountability." And he indicated, “The purpose of raising the dollar exchange rates about a year and a half ago was to bridge the financial deficit and debt,” noting that “manipulation in exchange rates affects the public life of the citizen greatly, as happened during the last two years.” In turn, the rapporteur of the Finance Committee in the former parliament, Ahmed Al-Saffar, says, "Citizens have lost confidence in the Central Bank of Iraq and government measures regarding the exchange rate of the dollar against the Iraqi dinar."[/size]
[size=45]Al-Saffar added, "The government focuses on small merchants, leaving the big ones who illegally acquired public money."[/size]
[size=45]He pointed out, “The recent central bank measures are temporary,” adding, “We will remain exposed to shocks repeatedly if the Iraqi economy is not rebuilt, exit from the rentier economy, and alternative solutions away from dependence on imports are developed.”[/size]
[size=45]Al-Saffar pointed out that “linking the fate of citizens to the price of the dollar and imports from abroad, as well as total dependence on oil revenues, is an incorrect procedure.” He explained, "The crisis is not related to the central bank only, and the government must control smugglers and speculators at exchange rates, as well as provide goods in the market and avoid inflation."[/size]
[size=45]For his part, the researcher and economist, Hammam Al-Shamma, says, “The decision to return the exchange rate to an average level is appropriate because the situation has been disturbed,” adding, “However, financial speculation will remain within reasonable limits, as it shows the state of the economy and knowledge of the effective exchange rate to move economic factors.”[/size]
[size=45]Al-Shamaa added, "Talking about disengaging the US Federal Reserve is a technical economic issue and means disengaging us from the dollar," adding, "We hope to convert to the Chinese yen or the Russian ruble, but it is not available because we sell oil in dollars."[/size]
[size=45]He suggested, “The delay in sending the 2023 budget due to a review of some of its paragraphs, and it may not be issued, and the exchange will remain at a rate of 1/12.”[/size]
[size=45]Al-Shamaa concluded by saying, "The number of employees is not an exaggeration that is being talked about, and the operational budget will be reduced due to necessities and openness to investment."[/size]
[size=45]It is noteworthy that the two central Al-Kifah stock exchanges in the capital, Baghdad, closed yesterday evening, Wednesday, at 153,000 Iraqi dinars, compared to 100 dollars.[/size]
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