Government official: Iraq is not thinking of floating the currency at the moment

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 2022-08-10 06:47A-AA+

Shafaq News/ A government official confirmed, on Wednesday, that Iraq is not considering floating the currency currently, indicating that the flotation at the present time will threaten the collapse of the country’s economy.

The official said in an interview with Shafaq News Agency, “The rentier nature of the Iraqi economy makes it difficult to float the Iraqi currency, and therefore Iraq is not currently thinking of floating it.”

The official, who asked not to be named, added, “Access to hard currency in Iraq comes mostly from our oil exports, which is in the hands of the government, and that the local market is circulating for it and does not bring this currency, and therefore its flotation will threaten the Iraqi economy with collapse because it will increase demand for it in exchange for limited supply.”

He also indicated that “floating the currency without diversifying the economy will have negative repercussions on the purchasing power of the Iraqi consumer, especially the middle and poor groups,” adding that, “the float is on the table with the government in the long run because of its importance in stimulating the production process in the country.”

It is noteworthy that some officials talk from time to time on the necessity of floating the currency and liberalizing it to preserve the hard currency reserves with the Central Bank.

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