Raising the exchange rate … A statement from the General Manager of the Central Bank expected a decline in the withdrawal for two reasons
The Director General of Accounting at the Central Bank of Iraq, Ihssan Shamran, confirmed that the process of raising the exchange rate of the dollar in Iraq constituted protection for the borders without guards or weapons, referring to the smuggling of hard currency outside the country that was previously urged.
Ihssan Shamran said, in a press statement, that “the coming period will witness a decline in the withdrawal of the dollar in Iraq, especially after two clear initiatives that the Iraqi economy will recover, and that we will not need to import from neighboring countries, because Iraq will produce what it needs from the materials, such as the tomato crop, and others.” The local production will be sold in Iraqi dinars.”
Shamran added, “The process of raising the dollar’s exchange rate imposed protection at the borders without guards and without weapons, nor smuggling operations through the transfer of funds after buying the dollar at a low price inside Iraq.”
The Director General of Accounting at the Central Bank confirmed that the Iraqi producer and farmer needed protection, and there is no such thing as an economic collapse in Iraq, because the country possesses oil and agricultural resources.
The economic expert, Rasim al-Aqidi, had said earlier, that “the high exchange rate of the dollar after the approval of the Iraqi budget for the year 2021, is not surprising to us, and we expected it several weeks ago,” noting that “the government adopted the framework of the floating of the dollar to legalize its sale and prevent its smuggling.” To the outside, in various ways, but at the same time it lost control of the system of price movement of goods and materials, especially basic foodstuffs. ”
Al-Aqidi added, in an interview with (Baghdad Today), that “the government is currently fighting a hidden war with multiple tools working abroad for the benefit of regional countries, and is seeking to strike the financial policy adopted by Baghdad, after the decision to raise the dollar exchange rate,” indicating that “the war comes.” In terms of importing illegally imported materials or obtaining discounts, as well as tax evasion. ”
He continued, “Under the current circumstances, the dollar has become subject to the free float framework in the manner of speculation, supply and demand, which means that its rise to the top is very possible, but in return the government will not push into pumping large sums of money in an attempt to thwart what those parties and tools want.”
The economic expert pointed out, “The government unfortunately lost the principle of a sensitive balance between local production and its ability to cover market needs, so there is no consensus or coordination between the relevant departments in order to provide production and marketing requirements, and this is not in the government’s interest.”