Baghdad Today

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Member of the representative economy: The World Bank wants to raise the exchange rate of the dollar more than it is now

Member of Parliament’s Economic and Investment Committee, Nada Shaker Jawdat, said today, Tuesday (December 20), that the World Bank is seeking to increase the exchange rate of the dollar against the Iraqi dinar.

In an interview with (Baghdad Today), Jawdat indicated that “the World Bank wants to increase the exchange rate of the dollar against the Iraqi dinar, more than the current price.”

“But this matter is rejected by parliament, and we will not accept any new increase, whatever the reasons,” she added.

Jawdat indicated, “The World Bank, and even the International Monetary Fund, submitted a proposal before the government of Mustafa Al-Kazemi raised the price of the dollar recently, but these international bodies want to raise the price further, and this matter harms the living situation of the Iraqi citizen, especially with the high percentage Poverty and unemployment in the country.”

Ihsan Shamran, a consultant at the Central Bank of Iraq, revealed that the Ministry of Finance provided two reasons for raising the exchange rate of the dollar against the dinar, while noting that the Iraqi dinar is strong and will not collapse according to two international standards.

“There was a dialogue for the Central Bank and the Ministry of Finance with the International Monetary Fund to raise the exchange rate to 1450 dinars against the dollar to improve the performance of public finances,” Shamran said in a televised interview.

He added, “There are two reasons presented by the Ministry of Finance to raise the exchange rate during its discussions with the Central Bank. The first is the decline in the state’s resources due to low oil prices, and the second reason is to create competition in the Iraqi economy that allows national production to be strong in front of the foreign commodity. On the other hand, the vulnerable classes must be supported with a fund and a special account To support them with financial grants.”

Regarding concerns about the collapse of the value of the dinar against the dollar due to a change in the exchange rate, Shamran said, “According to international standards, the Iraqi dinar is one of the strong currencies because there is a reserve of funds in the Central Bank that exceeds 60% of the source for trading as a condition for considering it strong and this is the first criterion for its strength.”

He added, “International standards stipulate that the currency should be strong and not collapse, that there should be reserves that secure 6 months of foreign trade, and the current reserves of the bank secure 26 months.” Source