Tishwash: The dollar explodes against the Iraqi dinar”: Bad dealings and the rise in oil are “striking hard” .. Will it fall to 13
The economic expert, Wissam Al-Tamimi, said that there is no justification for keeping the dollar high in the local market in light of the rise in oil prices and their recovery, pointing out that the siege of the people must end before the street explodes due to mishandling of the citizen’s pension.
“The government went to the poor class to achieve financial gains at its expense, as it resorted to raising the exchange rate of the dollar and tightened customs procedures and fees on goods and goods amid the greed of the merchant who could only raise the price of his goods for the citizen,” Al-Tamimi said in statements monitored by “Yass Iraq.” .
He added that “the government no longer has any justification for continuing to raise the dollar exchange rate in the local markets, especially with the recovery of oil prices and the Basra Light crude exceeded the threshold of $ 60 a barrel.”
And that “the price of a barrel of oil, which exceeded the 60 dollars, is equivalent today to 87 thousand dinars, while the price of oil a year ago recorded the same price in dollars, but it is less valuable in dinars, and the government achieved large revenues at that time and was able to overcome the budget deficit.”
He explained that “the government’s continuation of this approach towards the citizen will make the street explode with anger, as there is no justification for the continuation of the current economic policy.”
Since the House of Representatives received the 2021 budget, passing it through several amendments and discussions, and attempts to host the central bank governor, attempts are being made to re-debate the price of the dollar and the possibility of reducing it to 1300 dinars to the dollar, in addition to several MPs collecting signatures to reduce the price of the dollar against the dinar after raising it by a government decision to 1450.
These demands gave a “dose of hope” to the Iraqi street, which still hopes to bring the exchange rate down to its normal state or at least mitigate its effects by choosing an average price of 1,300 dinars against the dollar.
While a number of MPs and experts are reviewing the rise in oil prices and reducing the deficit, they pointed to the possibility of reducing the dollar’s exchange rate and the need to raise it to this rate because the main reason, which is the huge financial deficit, has been negated by the rise in oil prices.
However, the Parliamentary Finance Committee settled last Friday the matter related to the demands of members of Parliament to change the price of the dollar in the budget law, while confirming that the price is fixed according to the set by the government.
Committee member Shirwan Mirza said in a press statement, followed by “Yes Iraq”, that “the price of the dollar is fixed and has not been manipulated, given that it was determined in accordance with the financial policy of the Iraqi government.”
He added that “the requests of members of the House of Representatives regarding changing the exchange rate of the dollar against the Iraqi dinar, do not go beyond being requests only,” stressing that “the Parliamentary Finance Committee does not have any authority to change the exchange rate.”
Mirza continued, “The Parliamentary Finance Committee worked according to the powers granted to it only to amend and replace some articles of the budget law for the year 2021.”
On the other hand, the economic expert, Rasim Al-Akidi, said that the dollar exchange rate in the Iraqi market will witness 3 successive jumps, before it reaches the price of 1600 dinars per dollar.
“The exchange rate of the dollar in the 2021 budget was set by the government at 1450 dinars, and it has witnessed fluctuations in terms of upward and downward movement, but in any case, the decision to spend in the budget will not change,” said Rasim al-Aqidi, in televised statements.
Al-Aqidi added, that the decision to change the exchange rate, “came to prevent neighboring countries from benefiting from the old exchange rate, which was an understatement, and to push most of the banks of neighboring countries or political forces to share economic interests, obtain Iraqi cash and collect the largest value of the dollar in past years, as it is Hard currency ”.
He continued, “The exchange rate of the dollar will jump to 1490 dinars after the budget is approved, and the exchange rate set by the government is fixed at 1450, and then it will witness another rise after the launch of 50% of the financial allocations for projects and ministries, and it reaches from 1520-1550 and then witnesses a third increase. Of its kind, when the exchange starts, that is, whenever cash is pumped into projects, whether investment, loans or salaries, it will pay to increase the withdrawal on the dollar, because the rates of demand for the purchase of materials from the markets of all kinds will rise at higher rates.
The economic expert pointed out that “a file to import will push forward in the rates of recovery of the dollar, and at that time the dollar exchange rate will rise, perhaps to 1600 dinars in exchange offices.”