The Iraqi Ministry of Finance: The exchange rate of the dollar against the dinar is fixed and cannot be changed

politicsIraqbreakingdollarMinistry of Financeexchange rateagainst the dinar 2022-02-18 06:08A-AA+

Shafaq News/ On Friday, an official source in the Iraqi Ministry of Finance strongly ruled out the possibility of changing the exchange rate and reducing the value of the dollar against the dinar because of its negative repercussions on the country’s economy, after the demands of the leader of the Sadrist movement Muqtada al-Sadr to conduct a review of this file.

The official source told Shafaq News Agency, that the change in the exchange rate of the US dollar against the Iraqi dinar came after the drop in oil prices to below 30 dollars per barrel, and the decrease in the financial returns achieved from selling crude at the end of the year 2020.

He explained that “the exchange rate of the dollar against the Iraqi dinar is fixed and cannot be changed easily.”

The source, who asked not to be named because he was not authorized to declare, added that “the International Monetary Fund and the World Bank supported Iraq’s move at the time to devalue the dinar against the hard currency, and any change in the exchange rate without studying will have a negative impact on the financial and economic situation in Iraq.” .

On Thursday, the Presidency of the Iraqi Parliament announced that it had summoned Finance Minister Ali Allawi and Central Bank Governor Mustafa Ghalib to come to the parliament building “immediately” tomorrow, Saturday.

The Presidency stated, in a brief statement, that the summoning of financial officials came as a “response” to the directives of the leader of the Sadrist movement, Muqtada al-Sadr.

On Thursday, Al-Sadr presented six proposals regarding the exchange rate of the dollar against the Iraqi dinar, including summoning the Minister of Finance, Ali Allawi, and the governor of the Central Bank, Mustafa Ghaleb, immediately.

Al-Sadr’s proposals included, “strongly stopping currency smuggling, looking into the matter of some banks such as (Middle East, Al-Qabd, and Al-Ansari) belonging to some people who control the currency, and other private banks, and dealing firmly with banks belonging to some of the parties controlling the country and people.”

In addition, Al-Sadr urged “to organize the Iraqi currency market centrally and in a correct manner, by enacting some laws that increase the value of the dinar exchange rate.”

On December 19, 2020, the Central Bank of Iraq officially announced the adjustment of the foreign exchange rate (the US dollar) to 145,000 dinars for every $100, according to the state’s general budget for the year 2021 approved by the House of Representatives.

It is noteworthy that the annual inflation in Iraq rose significantly after raising the exchange rate of the dollar against the dinar in the 2021 budget.

It is noteworthy that all prices of materials and goods in the Iraqi market witnessed a significant increase, in conjunction with the devaluation of the dinar, which sparked a wave of strong resentment among the popular circles, as well as the objections of some interested in economic affairs.

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