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A new statement by the Central Bank of Iraq about the dollar exchange rate and the possibility of reducing it to 120 thousand
13,106 Policy 2022/07/10 16:52
Baghdad today - follow up
Today, Sunday, the Central Bank of Iraq confirmed that there is no justification for changing the exchange rate of the dollar against the Iraqi dinar, while
indicating that the economic circumstance is the main criterion for changing the exchange rate.
Deputy Central Bank Governor Ammar Khalaf said in a statement to the official agency,
"The exchange rate at the present time, in our opinion, as a monetary authority, there is no justification for changing it," explaining that
"changing the exchange rate remains within the monetary authority's policy and according to circumstances." He added that
"the economic circumstance is the main ruler, and
there is no future plan to change the exchange rate, whether after 3 or 5 years, and
it is the economic conditions that determine what is the appropriate decision that fits the time period at the time." He stressed that
"the exchange rate is within the monetary policy and is the exclusive competence of the Central Bank, and when it sees that there is a necessity, it thinks about changing the exchange rate, but
currently there is no justification or need to modify it," explaining, that
"monetary policy, one of its advantages is flexibility in general, It is not good to change the exchange rate quickly because it confuses the markets and weakens the economy.”
This comes after a number of political forces in Iraq renewed the call to change the exchange rate of the dinar against the dollar, by returning the old value to it before December 2020, which amounted to 1200 dinars to the dollar, instead of the current value of 1458 dinars.
In previous statements to Al-Araby Al-Jadeed, Iraqi parliament member Ahmed Al-Rubaie revealed the existence of what he described as
“a broad movement of political forces towards changing the exchange rate, by raising the value of the dinar and reducing the price of the dollar and returning it to what it was or a price close to the previous figure.
In order for citizens to feel the positive impact of this, and to ease the burdens of high prices resulting from the crises and wars that a number of countries are witnessing.”
Representative Uday Awad revealed, in an interview with reporters in Baghdad, that more than 100 deputies had collected signatures to reduce the exchange rate of the US dollar against the dinar.
The Iraqi Ministry of Oil announced, earlier this month, that it had achieved oil revenues of more than 60 billion dollars, during the months The first six for the current year 2022.
The recent recovery of oil prices globally, in an unprecedented manner, caused a financial surplus for the country, through which the country was able to recover and emerge from the financial crisis.
The financial advisor to the Iraqi Prime Minister, Mazhar Muhammad Salih, had revealed, earlier, that Iraq is living in its best financial conditions, ruling out the country's need to resort to external borrowing.
Iraq has oil reserves of about 145 billion barrels, equivalent to 17 percent of the reserves of the Middle East, and 8 percent of the world's reserves, which is the fifth largest in the world.
However, Iraqi government figures indicate that it has proven reserves of 153 billion barrels.
A new statement by the Central Bank of Iraq about the dollar exchange rate and the possibility of reducing it to 120 thousand
13,106 Policy 2022/07/10 16:52
Baghdad today - follow up
Today, Sunday, the Central Bank of Iraq confirmed that there is no justification for changing the exchange rate of the dollar against the Iraqi dinar, while
indicating that the economic circumstance is the main criterion for changing the exchange rate.
Deputy Central Bank Governor Ammar Khalaf said in a statement to the official agency,
"The exchange rate at the present time, in our opinion, as a monetary authority, there is no justification for changing it," explaining that
"changing the exchange rate remains within the monetary authority's policy and according to circumstances." He added that
"the economic circumstance is the main ruler, and
there is no future plan to change the exchange rate, whether after 3 or 5 years, and
it is the economic conditions that determine what is the appropriate decision that fits the time period at the time." He stressed that
"the exchange rate is within the monetary policy and is the exclusive competence of the Central Bank, and when it sees that there is a necessity, it thinks about changing the exchange rate, but
currently there is no justification or need to modify it," explaining, that
"monetary policy, one of its advantages is flexibility in general, It is not good to change the exchange rate quickly because it confuses the markets and weakens the economy.”
This comes after a number of political forces in Iraq renewed the call to change the exchange rate of the dinar against the dollar, by returning the old value to it before December 2020, which amounted to 1200 dinars to the dollar, instead of the current value of 1458 dinars.
In previous statements to Al-Araby Al-Jadeed, Iraqi parliament member Ahmed Al-Rubaie revealed the existence of what he described as
“a broad movement of political forces towards changing the exchange rate, by raising the value of the dinar and reducing the price of the dollar and returning it to what it was or a price close to the previous figure.
In order for citizens to feel the positive impact of this, and to ease the burdens of high prices resulting from the crises and wars that a number of countries are witnessing.”
Representative Uday Awad revealed, in an interview with reporters in Baghdad, that more than 100 deputies had collected signatures to reduce the exchange rate of the US dollar against the dinar.
The Iraqi Ministry of Oil announced, earlier this month, that it had achieved oil revenues of more than 60 billion dollars, during the months The first six for the current year 2022.
The recent recovery of oil prices globally, in an unprecedented manner, caused a financial surplus for the country, through which the country was able to recover and emerge from the financial crisis.
The financial advisor to the Iraqi Prime Minister, Mazhar Muhammad Salih, had revealed, earlier, that Iraq is living in its best financial conditions, ruling out the country's need to resort to external borrowing.
Iraq has oil reserves of about 145 billion barrels, equivalent to 17 percent of the reserves of the Middle East, and 8 percent of the world's reserves, which is the fifth largest in the world.
However, Iraqi government figures indicate that it has proven reserves of 153 billion barrels.
