Financial advisor: monetary policy will maintain the stability of the exchange rate in the present circumstance

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'No deficit in the balance of payments account'

Financial advisor: monetary policy will maintain the stability of the exchange rate in the present circumstance

2021.05.31 - 22:54

 

 

  

Baghdad - People  

The financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed, on Monday, that the monetary policy of Iraq will maintain the stability of the exchange rate, while indicating that the current account of the balance of payments is free of deficit, but there is an expectation of a surplus in the future.  

  

 

Saleh said, in a statement to the official agency, followed by "People" (May 31, 2021), that "the reduction of the national currency against the dollar was based on a one-time decision," and that the country adopts a fixed exchange system, stressing that "there is an equation between the theory of adjusting the exchange rate and The deficit in the current account of the balance of payments relative to the gross domestic product. "  

He added, "Whenever the deficit increases by 4% or more, an adjustment or reduction is made in the external value of the currency to avoid a deterioration in external payments," pointing out that "Iraq currently does not suffer from a deficit in the current account, but rather there is stability and balance." "There is a surplus in the future relative to the gross domestic product, in light of the positive developments in the oil market and the positive improvement in Iraq's foreign exchange reserves."  

He emphasized that "monetary policy will maintain the stability of the exchange rate at the present time."  

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Advisor to the Prime Minister of Iraq: The current account for the balance of payments is free of deficit

Mazhar Muhammad Salih, Financial Adviser to the Prime Minister of Iraq

 May 31, 2021 10:17 PM

 

Mubasher:  Mazhar Muhammad Saleh, the financial advisor to the Iraqi Prime Minister, confirmed today, Monday, that the monetary policy of Iraq will maintain the stability of the exchange rate.

The financial advisor to the Iraqi Prime Minister indicated that the current account of the balance of payments is free of deficit, but rather there is an expectation of achieving a surplus in the future.

Saleh said, to the Iraqi News Agency (INA), that "the reduction of the national currency against the dollar was based on a one-time decision," and that the country adopts a stable system of exchange, stressing that "there is an equation between the theory of adjusting the exchange rate and the deficit in the current account of the balance of payments relative to gross domestic product".

He added, "Whenever the deficit increases by 4% or more, an adjustment or reduction is made in the external value of the currency to avoid a deterioration in external payments," noting that "Iraq currently does not suffer from a deficit in the current account, but rather there is stability and balance."

"The financial advisor to the Iraqi prime minister expected that there will be a surplus in the future relative to the gross domestic product, in light of the positive developments in the oil markets and the positive improvement in Iraq's foreign exchange reserves."

The financial advisor to the Iraqi Prime Minister stressed that "the monetary policy will maintain the stability of the exchange rate in the present circumstance."

On December 20, the Central Bank of Iraq decided to reduce the value of the Iraqi dinar against the dollar, bringing the price of 100 dollars to 145 thousand dinars, after it was 122 thousand Iraqi dinars.