Who is responsible for the collapse of the Iraqi dinar price?

With the continued devaluation of the Iraqi dinar's exchange to the dollar, and turmoil occur in the prices of goods in the local market, political forces are pitting accusations of responsibility for this. There is a parliamentary tendency to question the central bank governor about that issue.
PM:05:38:26/12/2020


Aktham Saifeddin
Journalist

With the continued devaluation of the Iraqi dinar's exchange to the dollar, and turmoil occur in the prices of goods in the local market, political forces are pitting accusations of responsibility for this. There is a parliamentary tendency to question the central bank governor about that issue.

The rise in the price of the dollar, today afternoon, reached 132 thousand dinars compared to 100 dollars, after that it rises to 137 thousand, Thursday, to fall to 130 thousand in the afternoon, and return to rise to 132 thousand dinars, and it was at the beginning of the month 123 thousand Iraqi dinars for the 100 dollars.

The "State of Law" coalition led by Nuri Al-Maliki accused the government of Mustafa Al-Kazemi of being responsible for raising the price of dollar, saying that it "deliberately raised the price of the dollar" as part of his government’s procedures.

"The governor of the Central Bank informed the Finance Committee in Parliament that the bank will raise the exchange rate of 100 dollars to 145 thousand Iraqi dinars," said the deputy of the coalition, Abdul Hadi Al-Saadawi, and then he was indicating in a televised statement that "previous meetings with the government were to divide the rise into two phases, and it is not surprising. , Where it is in two steps, the first to 130 thousand dinars and then to 145 thousand, but the government decided to go to the issue of 145 thousand dinars”.

The "Nasir coalition", led by Haider al-Abadi, confirmed the parliamentary approach to questioning the governor of the Central Bank regarding this file, stressing that the exchange rate was "intentional."

"The reason for the high selling price of the dollar is the result of political interference in the currency auction," said coalition MP Nada Shaker. She explained that "speculative companies led by political parties are behind the increase in selling the dollar in the local markets, and that the rise is an intentional matter and political parties stand behind it."

Member of the National Approach Bloc, MP Hussein Al-Oqabi, accused the government of not taking any measures to control the exchange rate of the dollar. He said in a statement that "the rise in the exchange rate of the dollar was employed by a number of intermediary banks, which are directly linked to the central bank, in order to achieve profits from the currency auction."

He stressed that "influential figures in the Iraqi state dominate the work of these banks, which causes a great loss to the Iraqi state and is in the interest of those parties," blaming the government for that, accusing it of "ignoring the file and not taking any steps to control the exchange rate," demanding for "making it clear."

Economic expert Jamal Al-Rubaie told Arabi Al-Jadeed that "failure to take urgent governmental measures to control the exchange rate will cause a disaster in the local market”.

Moreover, he stressed that "the file is linked to many interventions, some of them political and others related to the influence of beneficial parties on the selling price of the currency, which seriously complicates the issue, and will have serious repercussions if the government does not take firm and swift measures."

This comes, in light of the difficult financial crisis that Iraq is going through, resulting from the drop in global oil prices, which was reflected in the possibility of approving the budget and providing salaries.

 

 

 

 

 

 

 



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