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- Section : Iraq
Baghdad / Obelisk: The financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed, on Monday, May 31, 2021, that Iraq’s monetary policy will maintain the stability of the exchange rate, while noting that the current account of the balance of payments is free of deficit, but rather there is an expectation of a surplus in the future.
Saleh said in a press interview followed by “The Obelisk”, that the reduction of the national currency against the dollar was based on a one-time decision, and that the country adopts a fixed exchange system, stressing that there is an equation between the theory of exchange rate adjustment and the deficit in the current account of the balance of payments relative to GDP. .
He added, that whenever the deficit increases by 4% or more, an adjustment or reduction is made in the external value of the currency to avoid a deterioration in external payments, pointing out that Iraq currently does not suffer from a current account deficit, but rather there is stability and balance, expecting that there will be a surplus in the future. Relative to the gross domestic product, in light of the positive developments in the oil markets and the positive improvement in Iraq’s foreign exchange reserves.
He stressed that monetary policy will maintain the stability of the exchange rate in the present circumstance.
On December 20, the Central Bank of Iraq decided to reduce the value of the Iraqi dinar against the dollar, bringing the price of 100 dollars to 145 thousand dinars, after it was 122 thousand Iraqi dinars.
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