Parliament calls for reducing the financial value of the dinar against the dollar ..
Parliament calls for reducing the financial value of the dinar against the dollar, rather than external borrowing
12/28/2015 0 Comments
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. As predicted that up sale 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 loans. He said the parliamentary finance committee member Ahmed Hamma Rashid , 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 has not been announced and today revealed gradually."
He added by saying that "The central bank is responsible for the stability of the Iraqi dinar against the other currencies, has been the Parliamentary Finance Committee 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 from all respects. "said Rashid said" the low rate of the dinar against the dollar will increase the volume of inflation, and the survival rate Dollar quo at the present time would hurt the state, because the demand amount will increase every day, it is possible that no state can repay 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 that the coming days and months will see changes to monetary policy, and there are benefits to be reaped government by reducing the value of the Iraqi dinar.
"For its part, the parliamentary finance committee member Majda al-Tamimi said 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 volume of expenditure and thereby 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 implementation of this resolution, the citizens' purchasing power will be reduced, as received by the employee of his salary will be the amount of not blocking the little needs during the month, but it is one of the alternatives that were presented to the government in order not to borrow externally It is possible to solve the crisis. "Meanwhile, he says economist Resan Hatem in an interview for the "long", that "the reduction in value of the Iraqi dinar against the dollar decision is one of the conditions set by the International Monetary Fund in order to extinguish the fire of Iraq accumulated loans years ago." He added that "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.
"He said Hatem" 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 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, especially in light of 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 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," he returned to "prosthetic solutions do not benefit the Iraqi economy and the government must find a radical solution unilateral economy depends almost almost entirely on 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 will reflect negatively certainly on the commercial reality which would lead to an unequal equation as a result of the abundance of the dinar against the lack of the dollar, in most of the country's business dealings in dollars, and imports almost everything. "confirms Sabri "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 are 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 table, but 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. "