Advisor to the Prime Minister announces the decline in the effects of the parallel market and the decline of its activity

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Advisor to the Prime Minister announces the decline in the effects of the parallel market and the decline of its activity

 economy

•  Today, 15:07

Baghdad Waa Nassar Al , Hajj

The financial adviser to Prime Minister Mazhar Muhammad Saleh announced on Sunday the decline in the effects of the parallel market and the decline in its activity, while revealing the reasons for the decline in the exchange rate of the dollar against the dinar, and the importance of monetary policy and its imposition of a climate of stability at the general level.

Saleh said, to the Iraqi News Agency (INA): "The economic policy played a major role in imposing a climate of stability in the general level of the dollar exchange rates," noting that "the state of superiority of the official exchange market in financing Iraq's foreign trade caused a decline in the effects of the parallel market and the decline of its illegal activities."

He pointed out that "the decline in parallel market rates in favor of the official exchange rate is a tangible success on the coherence of the country's economic policy in its three aspects: financial, monetary and trade," pointing out that "the work and high coordination of policies led to the provision of a stability incubator embodied by the relative calm of the price and the containment of seasonal price fluctuations for highly demanded materials, specifically the provision of basic commodities related to consumption and daily living for citizens."

He pointed to "the importance of using the customs policy, which was represented (reducing customs tariffs and diversifying imports without quantitative determinants of basic and necessary commodities) within the performance of fiscal policy in attributing price stability and ensuring the supply of foodstuffs and commodities, necessary and production supplies at the official exchange rate and in accordance with the requirements of the national economy, as well as high stability in bank financing for foreign trade for the private sector, which has been adopting stable official exchange rates of 1320 dinars per dollar and in a broad and more flexible manner through regularity. funding operations and their stability."

He pointed out that "the demand for foreign currency for the purposes of financing the country's foreign trade, on the part of the private sector, is today supported by large reserves of foreign currency, which is the highest in the history of the country, reaching today nearly 111 billion dollars."

He continued, "These high reserves of foreign currency reflect the annual trade efficiency of the country of more than 16 months of import at least against the global standard for the commercial efficiency of foreign reserves, which is limited to about three months only, and that the ability of those reserves to cover the issued currency is full coverage in foreign exchange, which is a stability indicator that contains any existing or expected harmful price fluctuations