TNT:
Tishwash: Reducing the exchange rate.. Will Iraq move to the “punished currencies” zone? – urgent
The economist, Salam Sumaisem, shed light on an issue related to the move to reduce the exchange rate of the dollar, noting that it “contradicts” with Iraq’s post-2003 policy, which goes towards a system of “freedom of exchange” rather than restricting it, wondering whether the step comes within the context of the “divorce of the dollar.” And move to the penalized currency area.
Sumaisem said in an article published by the Public Policy-Making Forum-London, which Baghdad Today viewed, that “reducing the exchange rate is not a government decision, but rather a product of economic policies and reform measures that cause an adjustment in the exchange rate,” noting that “this reduction will lead to some On a dollar at a reduced price and selling it at a higher price to people, and the difference between the two prices will be high, which leads to new inflation that hits the economy.
She pointed out that “Iraq after 2003 abandoned the policy of restricting the exchange rate to a system of freedom of exchange,” while wondering whether “Iraq had retreated and decided to return to the previous system, or is it a step to divorce the dollar and move to the area of penalized currencies?”
And if the second goal is achieved, Sumaisem shows that there are two facts: “The first is that no oil country is allowed to value its oil in anything other than the dollar, and whoever dares to bear the consequences, like Venezuela, Iran, and Iraq before 2003.”
The second is that “the international monetary system for the world after 1945 and until now is a system that relies on the dollar, as the Bretton Woods agreement aims to create a kind of stability in monetary policies and exchange rates between countries of the world by laying the infrastructure for the movement of capital between countries as a basis for facilitating trade.” Global,” indicating that “Iraq does not need economic suicide, but rather a decision that realizes the economic importance of Iraq and its great role.” link
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Tishwash: The Governor of the Central Bank of Iraq meets the Executive Director of the International Monetary Fund
His Excellency the Governor of the Central Bank of Iraq, Mr. Ali Mohsen Ismail, met with the Executive Director of the International Monetary Fund, Dr. Mahmoud Mohieldin, on the sidelines of his visit to Washington, DC.
During the meeting, aspects of bilateral cooperation were discussed to serve the interest of the Iraqi economy and monetary policy, as well as ways to develop the Iraqi banking sector.
For his part, His Excellency the Governor said: The Central Bank of Iraq has taken a package of measures to reform the Iraqi banking sector and develop its work in line with international standards, which will reflect positively on Iraq’s international trade and the national economy.
He added: The Central Bank continues its measures in combating money laundering and terrorist financing, by taking a set of decisions that support these measures, which reflected positively on Iraq’s ratings in this field.
In turn, the Executive Director of the International Monetary Fund, Dr. Mahmoud Mohieldin said that the International Monetary Fund continues to provide technical support to the Central Bank of Iraq in various fields.
It is noteworthy that His Excellency the Governor of the Central Bank, is currently visiting Washington, as part of an official government delegation, in order to start official talks with the US Federal Bank.
Central Bank of Iraq
Media Office
10/2/2023 link
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