Parliament calls for reducing the financial value of the dinar against the dollar, rather than external borrowing


12/28/2015

Parliamentary Finance Committee confirmed, on Sunday, said the decision to reduce the value of the Iraqi dinar against the dollar is not a fortuitous and that the work done began two months ago. The sale is expected to arrive in the price of the dinar against the dollar to 1,400 dinars in the coming weeks and is considered a substitute for foreign loans, economists said the decision to raise the value of the dollar against the dinar is one of the conditions set by the International Monetary Fund to extinguish the fire and loans.


He said the parliamentary finance committee member Ahmed Rashid meat, in an interview for the "long", "The decision to reduce the value of the Iraqi dinar against the dollar is not new was introduced two months ago, but the central bank did not announce it today and revealed gradually."
He added by saying that "The central bank is responsible for the stability of the Iraqi dinar against other currencies, the Parliamentary Finance Committee has discussed how to raise the value of the dollar without causing confusion in the local market, and personally asked the research department to conduct a study on the subject of
All sides ."

Rashid said that "the low rate of the dinar against the dollar will increase the volume of inflation, and the survival of the dollar on what it is at the present time would hurt the state, because the demand will increase the amount of a day, it is possible that the state can not afford to pay the amount of this demand."
He added that "We have a study with one of the financial advisors are focused on raising the government support to the dollar gradually, and the days and months ahead will see changes to monetary policy, and there are benefits to be reaped from the government by reducing the value of the Iraqi dinar."
For its part, he said the parliamentary finance committee member Majda al-Tamimi in an interview for the "long", that "the reduction in value of the Iraqi dinar against the dollar and other foreign currencies is one of the alternatives substitute for external borrowing, and this procedure can state from which to believe the employees' salaries and controls the size of the expenses and thus reduce the fiscal deficit ratio, and the measure taken in such a critical condition. "
She added that "there are expectations that up selling price to 1,400 dinars, in the case of the application of this decision, the citizens' purchasing power will decrease, not blocking, but little of its needs during the month is received by the employee of his salary will be the amount, but it is one of the alternatives that were presented to the government for the sake of Non-leveraged externally It is possible to solve the crisis. "
Meanwhile, economist Resan Hatem says in an interview for the "long", "The decision to reduce the value of the Iraqi dinar against the dollar is one of the conditions set by the International Monetary Fund in order to extinguish the fire and Iraq accumulated loans years ago."
"The decline in the value of the dinar against the dollar by 1 to 2 per ten would lead to harm to people with limited income and the owners of savings, and this action is a kind of rush and must be carefully applied, because it could lead to damage to the value of the Iraqi dinar."

[rtl]"[/rtl] Hatem said, "I do not think that this decision will have benefits for the state at the moment, because the Iraqi economy is a yield economy depends on oil revenues, only without the diversification of sources of income."
He added that "there are effects on the central bank by the government and the International Monetary Fund to reduce the value of the Iraqi dinar, and may be forced to it."
He said economic reform Institute adviser Ahmed al-Husseini, Wednesday (23 / December / 2015), in an interview to the (long-Presse), "The devaluation of the dinar against the dollar error involves a very serious implications," noting that it "leads to inflation, particularly in the Under the austerity experienced by the state and reduced salaries. "
Husseini and adds that "the thrust of such a procedure requires the presence of the production of goods and services to be covered, and not, as is the case in Iraq, where almost are imported everything," adding that "the central bank went to lift the dollar exchange rate will hurt the middle class and exacerbate the suffering of the poor more, what It requires him (the central bank) to pay attention to the consequences of that. "
In turn, says a member of the Union of Entrepreneurs Muhannad Sabri, in an interview to the (long-Presse), said that there is "confusion in the political decisions of the government reflected negatively on the economic reality," she returned to "prosthetic solutions do not benefit the Iraqi economy and the government must find a radical solution mono economy side depends almost entirely about oil. "
Sabri explains that "Iraq is a sorry state of dependence on oil", calling for the need to "revitalize agriculture, industry, tourism and other important sectors to diversify national income resources."
And see a member of the Union of Entrepreneurs to "raise the value of the dinar certainly will reflect negatively on the commercial reality where would lead to an unequal equation as a result of the abundance of the dinar against the dollar a few, most of the country in business dealings in dollars, and imports almost everything."
Sabri, stresses that "the decision to reduce the value of the dinar will be correct only if a real production and national industry obviates the importer and meets the need of the citizens were available."
A source at the Central Bank in an interview to the (long-Presse) that "the selling price of the dollar has not changed and is still the equivalent of thousand and 166 dinars," noting that "the Board of the Central Bank's management met a few days ago has not been included on its adjusted sale price of the dollar against the dinar's agenda, but I did not think so at all. "

The source, who asked not to be named, said: "The central bank is always trying to find solutions that support the Iraqi dinar and maintain stability."