Will the exchange rate change?
Manar Al-Obaidi wrote: There are a lot of discussions these days regarding the review of the exchange rate and whether it will be changed or not and return it to 1200
First, any change in the exchange rate in the near future will have major repercussions, including a loss of confidence in the Iraqi economy.
Secondly, 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.
Third, even with a change in exchange rates, most of the materials will not return to their normal prices directly. Rather, a period of mistrust will prevail in the Iraqi market that will make importers maintain a high exchange rate for fear of the possibility of a return to high.
Fourth, the government should take advantage of the currently high price of oil to immediately 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.
Fifthly, if the exchange rate must be changed, 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.
Sixth, what is required of the Ministry of Planning is to work aggressively to clarify the sectors most affecting the rise in the price of the dollar and to work actively to launch programs packages to reduce the impact of the decrease in the price of the dinar on these sectors, especially in the food and health sector.
Seventh, work on issuing a performance follow-up report on the development plan, which is the basis for building the country and activating the correct economic policies instead of focusing on monetary policy, which is supportive of economic policy and not the pillar of the Iraqi economy.
Eighth, the need to activate the 3 trillion initiative announced by the Central Bank to support vulnerable groups and work to activate the ration card and improve its vocabulary.