political| 07:48 – 14/12/2021
Baghdad – Mawazine News
The Central Bank of Iraq announced, today, Tuesday, that it had prepared a draft currency structure study, while determining the negative effects when the dollar was re-exchanged to 1200 dinars.
The bank said, according to the official agency, that “the central bank has completed the preparation of a study of the currency structure project,” noting that “the timing of the implementation of the project depends on the bank’s policy and the political and economic conditions of the country.”
He added, “The bank has no intention of issuing new denominations of the currency,” noting that “continuing to provide new banknotes to compensate for the damaged banknotes.”
And about the negative effects caused by re-exchange of the dollar to 1200 dinars in the event that the next House of Representatives issues a decision to do so, the bank stressed that “this will affect negatively and will lead to the exchange rate in the parallel (local) market getting out of control, and consequently sharp fluctuations in the exchange rate that lead to to harm the interests of citizens and projects,” noting that “this will cause a destabilization of confidence in the stability of the financial system in Iraq, and such a decision will lead to the exit of local investment and production projects from competition, thus exacerbating the unemployment crisis as a result of those projects stopping work.”
He added, “The increase in the exchange rate led to an increase in the competitiveness of the local product and thus an increase in its market share, as well as a reduction in expenditure pressure on the Ministry of Finance by 23%, which enabled the Ministry of Finance to overcome the crisis resulting from the drop in global oil prices during 2020 and the first months of 2021.” , explaining that “this also led to an increase in the flexibility of public finances to carry out the necessary structural reforms to achieve financial sustainability in Iraq.”
With regard to the central bank’s foreign currency reserves, the bank stated that “the volume of the total foreign reserves during the month of December 2021 amounted to 63.793 billion dollars,” noting that “the volume of net foreign reserves during the current month reached 59.980 billion dollars.” Ended 29 / h