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Representative Finance: The Central Bank will take measures regarding the dollar exchange rate

A member of the Parliamentary Finance Committee, Ahmed Al-Saffar, said, Friday (December 18, 2020), that the Central Bank of Iraq will take measures regarding the price of the US dollar against the Iraqi dinar .

The official agency quoted Al-Saffar as saying, and IQ NEWS followed him, that “the leaked budget project is unofficial, and no one knows who is behind its leakage, what is the purpose of its diversion, and what is meant by the diversion, and this affected the market situation and the citizen’s psyche.”

He added that his committee “met with the governor of the Central Bank (Mustafa Ghaleb), and that there are some measures that the governor will take,” noting that the Parliamentary Finance Committee “continues to follow up the matter, and is awaiting the arrival of the draft budget (to Parliament) so that it has its own opinion on this. Affair.”

For his part, a member of the same committee, MP Naji Al-Saidi, said in a statement to the official agency as well, that “the governor of the Central Bank, during his hosting by the committee regarding the repercussions of the high exchange rates of the dollar towards the Iraqi dinar, indicated that this rise was caused by the government, not the Central Bank, considering The dollar comes from Iraqi oil sales that go into the Development Fund for Iraq in the United States of America.

He continued, “The real owner of the dollar is the Ministry of Finance, which sells the dollar to the Central Bank as the government accountant,” indicating that the ministry “and two months ago refrained from selling the dollar in order to raise its price towards the Iraqi dinar to bridge the general budget deficit and achieve some developmental operations according to what The government believes, and therefore, the central bank’s justifications that the rise in the exchange rate is a government decision, and it was not a decision issued by the Central Bank.

Al-Saeedi pointed out that “until this moment, the cabinet has not voted on the general budget, and the Finance Committee has not received anything official from the government in this regard.”

He stressed, “It is not possible to deduct twice from the employee, as the first deduction will be through the high exchange rate of the dollar towards the Iraqi dinar, and the second deduction is the allocations of state employees and I think in economic terms this is absolutely untrue,” pointing out that “the Finance Committee and Parliament have the authority Amending, deleting or adding what he deems appropriate during this period.

According to the initial draft of the 2021 budget, which was circulated by the media yesterday, Thursday, the exchange rate of the dollar will stabilize in the 2021 budget by 1450, or 145 thousand dinars for the 100 dollar category .

The leakage of the draft budget for 2021 led to confusion in the exchange rate of the dinar after the leaked draft set an exchange rate of 1450 dinars to the dollar, which caused a rapid rise in the price of the dollar, which jumped to more than 1350, up from a margin between 1280 and 1320 in the past days.

A member of the Parliamentary Finance Committee, Abd al-Hadi al-Saadawi, said that the governor of the Central Bank, Mustafa Ghaleb Makhaif, informed the committee that the central bank will raise the exchange rate of one hundred dollars to 145 thousand dinars as of tomorrow, Sunday. Source