Parliamentary Finance: The measures taken by the Central Bank to change the exchange rate are weak

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[size=52]Parliamentary Finance: The measures taken by the Central Bank to change the exchange rate are weak[/size]

[size=45]Bright news[/size]
[size=45]Yesterday, Tuesday, member of the Finance Committee, Saad Al-Toubi, revealed evidence of clear corruption violations by some banks, stressing that the measures taken by the Central Bank to change the exchange rate are “weak” and have been of no benefit.[/size]
[size=45]While the government is talking about measures it intends to implement to contain the dollar crisis, which may include penalties for individuals and private banks whose involvement in the manipulation process has been indicated, while demands are emerging for the necessity of following up on the implementation of these measures to ensure positive results are achieved.[/size]
[size=45]Observers believe that the process of controlling the causes of the crisis is necessary to put an end to rampant corruption, and economists consider that these measures need careful follow-up of their implementation by the competent government agencies, as well as supporting them with a number of other steps to create a state of economic stability.[/size]
[size=45]Useless plans[/size]
[size=45]Financial Committee member Saad Al-Toubi explains in an exclusive interview with Al-Mada: “As a financial committee, we made demands several times from the Central Bank, the Governor of the Central Bank, and government banks, and we discussed many matters, including changes to the exchange rate, and how to maintain it at the established price, and we believe that the procedures The measures taken by the Central Bank, whether new or previous, have not been of any benefit, such as imposing sanctions on some banks and other measures it has taken because they are very weak measures and do not rise to the level of ambition in a country that is experiencing an unnoticeable change in exchange rates. He notes, “This results in a weakening of the Central Bank’s oversight of most government banks and government platforms.”[/size]
[size=45]Corruption rates[/size]
[size=45]Al-Tobi adds, “There is an example of weak monitoring, which is when an Iraqi citizen travels outside the country and goes to the platform to obtain the exchange rate of “one hundred and thirty-two thousand” for one hundred dollars, and this process is unregulated, and as a financial committee we have evidence of violations that contain clear corruption from some banks, as The Central Bank tried to break the rate of corruption, but it was unable in the past periods, so we gave the Central Bank a week to carry out some reforms, but it is incapable of any banking measures and reforms and has not adjusted the exchange rate.”[/size]
[size=45]He concludes by saying: “There are promises made by the Central Bank due to government pressure by the Prime Minister on the Central Bank for certain periods in order to provide a settlement or reforms. Therefore, we hope in the coming days for an end to this crisis.”[/size]
[size=45]Questions[/size]
[size=45]Financial and economic expert Safwan Qusay Abdel Halim explains, “The process of improving the value of the Iraqi dinar requires a long-term strategy, supporting local production and creating a model environment to know who is requesting hard currency, and what are the purposes of this request, as well as knowing the import destinations through which it is made.” Importing goods into Iraq, and what are the opportunities for local growth to reduce the demand for the dollar for import purposes?[/size]
[size=45]A common account[/size]
[size=45]The expert added, speaking to Al Mada, that “we need a clear map of the relationship between the demand for hard currency and the possibility of increasing local production capacity to cover these demands,” noting, “There are medium and short-term solutions, and the more we allow the international trading system to deal with... Directly with local production and consumers through the Amazon website or through the Alibaba website, which can open a window for marketing international goods for sale in Iraqi dinars inside Iraq in exchange for the Ministry of Commerce and the Ministry of Finance purchasing the Iraqi dinar from these sites and converting them to the US dollar at the official rate. The fewer opportunities we have to deal with informal suppliers, and if we cannot control the dollar in the informal market, there are other solutions related to the possibility of having a joint account to purchase goods from the punished side, whether it is Iran, Syria, or some Turkish companies, in exchange for settling these dues on behalf of the government. Through this joint account, similar to the process of purchasing Iranian gas or other commodities that the American government allowed to be purchased in exchange for paying dues to Oman or Qatar, so that the Iranian side can benefit from this joint account in purchasing all types of humanitarian goods, and thus reduce the demand for the dollar in the informal market. We allow demand to grow through the legitimate platform.”[/size]
[size=45]inability[/size]
[size=45]Abdel Halim continues by saying: “The Central Bank’s procedures will not be able to control the dollar in the informal market unless the border crossings are controlled, and the movement of official and unofficial imported goods is tracked to ensure that they reach consumers at official prices without speculation or selling them outside the Iraqi market, and the introduction of cash dollars from outside the Iraqi market.” Iraq into its country for the purpose of benefiting from the price difference, as there is an urgent need to work on twinning monetary policy with fiscal policy for the purpose of controlling commodity prices and financial transfers.”[/size]
[size=45]The dollar and its price fluctuations constitute a major problem for citizens because the matter is linked to the movement of the commercial market and the prices of goods. It is a crisis that may worsen unless solutions are put in place to ensure people’s livelihood.[/size]
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