AM:09:14:19/04/2023
The Prime Minister, Mohammed Shiaa Al-Sudani, pledged that the exchange rate of the US dollar will return to 1320 dinars, and that the financial situation in Iraq will be at its best.
It is noteworthy that Al-Sudani assumed the presidency of the current government, on October 27, 2022, according to a political agreement paper, which resulted from the “State Administration” coalition, and the age of his government was about 6 months.
Al-Sudani said, during an interview with a group of Iraqi television stations, followed by NRT Arabia, that “the tripartite budget means economic stability and the positive message of the private sector, and all international financial institutions advise that the private financial, social and economic situation of Iraq needs a medium-term budget.”
He added that “maintaining the continuity of the ration card, the growing need for electricity stations fuel, and the entitlement to unpaid loans, led to the deficit and inflation in the budget, and there are many treatments for it.”
Al-Sudani pointed out that “the provinces now have 8-9 trillion allocations in the food security law, and the disbursement did not exceed 10%, and in the budget there is 4.5 trillion between the petro dollars and the development of the regions, and it is with the projects of ministries that can cover the needs of the provinces during the rest of this year,” distinguishing by saying: “We must overcome a situation where the budget is an opportunity to political blackmail or put the interests of this or that party, it is a budget for all Iraqis and is waiting for by the people and institutions.”
the political agreement
On the political agreement paper, the Prime Minister said: “We respect the agreement that produced the State Administration Coalition, contributed to political stability and resulted in a political agreement with general principles voted by the House of Representatives, and it represents an incubator for this government.”
Al-Sudani refuted that there are any differences in the state administration coalition, insofar as views regarding the budget or the principle of partnership, and partnership outside the scope of the constitution are unacceptable, he said.
He pointed out that “the total percentage of the allocations of the Kurdistan Region in the budget is still fixed, which is 12.67, and has not been changed,” stressing that “the agreement on April 4 with the Kurdistan Regional Government is important, and regulates the relationship that the government contributed to regulating during the contents it put in the draft tripartite budget.”
Al-Sudani said that “the loss of revenues of 475,000 barrels per day is a large number and damage will affect everyone,” adding: “Within days we will go to the signing of contracts between SUMO and oil companies, and the Turkish side is notified of the resumption of exports from Kurdistan.”
The Prime Minister reiterated that “the duty of the federal government to pay the salaries of employees, whether they are in the region or any province, and it is not honorable, and this is what the Council of Ministers is working on.”
dollar and dinar
Regarding the exchange rate, Al-Sudani stated that “there is cooperation between the Kurdistan Regional Government and the Central Bank; so that it has branches in the region, for the purpose of providing foreign currency to traders present and working there, as well as citizens in accordance with controls and activities.”
He pointed out that “all fluctuations in the dollar price were the result of the non-implementation of the agreement signed between the government and the Central Bank with the US Federal Reserve in the previous stage, and the duration of the agreement was two years, and ended on November 15, 2022, less than a month after the current government began its tasks.”
“We decided to adhere to the standards of the global banking system, we started intensive procedures in the central bank, the government and the private sector, and we were interested in maintaining food prices,” he continued.
“Over time, the process of compliance with banking standards increased, all traders began to enter the electronic platform, and the government helped them obtain foreign currency at the official price instead of relying on illegal trade,” Al-Sudani said.
He stressed that “the number of traders using the electronic platform is increasing, and the parallel price has begun to fall close to the official price of foreign currency, and will continue to decline,” adding: “The Iraqi dinar is strong, and our financial situation is at its best.”
Al-Sudani continued: We have confidence in our Iraqi currency, and our procedures are moving in the right direction, and in every cabinet session there is a decision or action towards economic reforms and improving the investment environment,” stressing that “the exchange rate will return to 1320 dinars to one dollar.”
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