The Prime Minister's advisor about changing the dollar exchange
RayRen98 said
08:05 PM Jun 28, 2022
Urgent "On a quiet fire" .. a surprising and important statement by the Prime Minister's advisor about changing the dollar exchange
Time: 06/27/2022 22:27:19 Reading: 8,372
{Economic: Al Furat News} The financial advisor to the Prime Minister, Mazhar Muhammad Salih, surprised the Iraqis about the possibility of changing and reducing the exchange rate of the dollar against the dinar.
Saleh said on the program “Al-Mastra” broadcast by Al-Furat satellite channel this evening: “We need to cook on a quiet fire and monitor prices until the end of 2022, oil prices and foreign reserves,” stressing that “a change in the exchange rate is possible, but it requires patience and careful study.”
He pointed out that "there are fixed facts on the ground. The exchange rate of the dinar to the dollar follows stability, and it is not arbitrary, but rather a contract between the Central Bank of Iraq and the Ministry of Finance, because the foreign currency offer comes from the Ministry of Finance 100%, which is the only source for it in the country."
Saleh added, "But the Central Bank deals in dollars to maintain cash reserves and prevent inflation, and the modern Iraqi financial history is witnessing cooperation in determining the dollar exchange rate between the Central Bank and the Ministry of Finance."
He stressed that "the agreement with the Ministry of Finance to set the dollar exchange rate for a period of three years, but changing it became a surprise, and it is within the shock policy, and there are limits to the change in the dollar exchange rate, and it is not a political or populist issue."
He noted that "the first limit according to commodity prices and the market, and at that time the central bank will defend the stability of prices according to the reserve, which is the highest in its history now, and we have an encouraging surplus for the end of the year from 8 to 10 percent."
He stressed, "If prices and financial policies fail to defend the livelihood of the poor and social protection salaries, the Central Bank will intervene by raising the purchasing power of the Central Bank through its foreign reserves."
"It is logical that the fiscal policy has a package to defend the livelihood, relieve the poor classes and social welfare, and compensate farmers for the differentials in grain prices, and the government maintains fuel prices and government services fixed, and this stability is a kind of support that rose to 15% of GDP."
And regarding changing the dollar exchange rate, the Prime Minister’s advisor said: “Everything is possible, but we need patience in changing the dollar exchange rate in the event of high prices and the fiscal policy is unable and monetary policy is able to cover the dinar,” noting that “the Food Security Law if it cannot secure the requirements.” In the event of an increase in prices, the central bank will intervene to preserve the strength of the dinar against the dollar.”
And regarding changing the dollar exchange rate, the Prime Minister’s advisor said: “Everything is possible, but we need patience in changing the dollar exchange rate in the event of high prices and the fiscal policy is unable and monetary policy is able to cover the dinar,” noting that “the Food Security Law if it cannot secure the requirements.” In the event of an increase in prices, the central bank will intervene to preserve the strength of the dinar against the dollar.”