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Stay tuned for a new manipulation of the dollar’s price .. a decision that will produce losers and winners in the Iraqi street March 12, 2021 A surprise that may happen within 30 days (Getty) Ultra Iraq Editorial Team The Iraqi street is living in a period of instability and looking for new changes in the country at the level of the exchange rates of the dollar against the Iraqi dinar, in a new shock that may cause sudden confusion while the markets try to absorb the previous shock of raising the price of the dollar against the value of the Iraqi dinar late last year. During the previous days, a wave of parliamentary calls and government rejection intensified about the possibility of restoring the previous exchange rate of the dollar against the Iraqi dinar of 120 thousand dinars per hundred dollars, or choosing a compromise solution represented by adjusting the exchange rate in the budget by 1,300 dinars per dollar, after the rise in oil prices and achieving financial profits that spend On the financial deficit, which negates the need to continue the government move to reduce the value of the Iraqi dinar and its consequences on the Iraqi street, which has begun to turn into a new stumbling block in the road to the 2021 budget. While the Finance Committee denies the existence of powers for the possibility of manipulating the exchange rate in parliament and considers it a governmental order taken by the Ministry of Finance and the Central Bank, other parliamentary bodies have hinted that they can go to amend the Central Bank Law if necessary, in order to go to amend the exchange rate in Parliament. New recommendations within 30 days And while the governmental and parliamentary bickering in this regard intensified, the Ministry of Planning gave new hope and a possible possibility to re-change the exchange rate, when it announced in a statement that "Ultra Iraq" received a copy of it, holding the first meeting of the committee to study the effects of changing the exchange rate, and talking about recommendations that will be issued after 30 days. The Ministry of Planning said in its statement that "the committee formed according to Cabinet Resolution No. 63 of 2021, which will study the consequences of changing the currency exchange rate, held its first meeting at the Ministry of Planning," noting that "this committee was formed to study the implications of changing the currency." The exchange rate of the dollar against the dinar, and the suggestion of the required solutions, as far as the matter is related to investment projects, "while noting that" the committee's work period will be one month, and after that it submits its recommendations to the Council of Ministers for decision. " A new jolt in the Iraqi market For his part, the economist, Manar Al-Obeidi, highlighted the great consequences that any new manipulation of the hard currency rate will cause in Iraq. Al-Obeidi said in a clarification received by "Ultra Iraq", "There are a lot of discussions these days regarding reviewing the exchange rate and whether it will be changed or not and return it to 1200 dinars per dollar," noting that "any change in the exchange rate in the near future will have repercussions." Major, including the loss of confidence in the Iraqi economy. " He added that "the exchange rate was under pressure from the World Bank and the international bodies supporting Iraq, and the process of returning the price will lead to a reduction in support from these parties," noting that "even with a change in exchange rates, most of the materials will not return to their normal prices directly, but rather a period of time will prevail." The lack of confidence in the Iraqi market will cause importers to maintain a high exchange rate for fear of a return to its rise. " Al-Obaidi considered that "the government should take advantage of the currently high price of oil to start building strategic industrial projects capable of providing raw materials for manufacturing industries, which will support the provision of a local product capable of providing various products to the Iraqi market," indicating that "if the price must be changed Exchange, so it is better to move towards floating the dollar instead of the policy of controlling the exchange rate and depleting hard currency to maintain a stable exchange rate. Losers and winners in the Iraqi street For his part, points out the General Coordinator of the Iraqi Economists Network, bright an inch, that "changing the exchange rate has brought about a major redistribution of wealth, whose size is difficult to scientifically calculate." In an interview with Ultra Iraq, inch added, "It is expected that the re-introduction of the previous exchange rate will cause the redistribution of wealth in favor of those who own the Iraqi dinar, while the devaluation of the Iraqi dinar was in favor of the owners of the physical assets and the US dollar." And he indicated that "whoever does not own any assets, dinars or dollars will lose again."