"Monetary systems in the neighborhood hinder the development of Iraqi industry"
Central Bank of "Nass": The value of the Iraqi dinar increased by 9% .. These are reasons for the stability of the exchange rate
Tuesday 20 November 2018
Baghdad - Nas
The Central Bank of Iraq announced on Monday the appreciation of the Iraqi dinar against foreign currencies and the stability of the exchange rate of the local currency against the dollar.
"The market, for the first time since 2004, is witnessing stability in the exchange rate of the Iraqi dinar against the dollar, due to the success of fiscal policy," said Mahmoud Dagher, director of financial operations and external debt, in an exclusive interview with NAS today (November 20, 2018).
The Central Bank of 2017 and 2018, where the market gap between the official exchange rate and other exchange rates, which were up by 8%.
Dagher pointed out that the importance of the stability of the dollar exchange rate in a country like Iraq affects the purchasing power factor, noting that
"while the currencies of neighboring countries have collapsed, the Iraqi currency has increased by 9% compared to previous years, Income of the Iraqi individual."
"The main problem is how we can stimulate the two main sectors, agriculture and industry, which monetary policy can not achieve without coordination with fiscal policy," Dagher said.
Dagher spoke about the protection that the state must provide for Iraqi industry and agriculture and the border control with neighboring countries.
He said that industrial loans face a problem that requires border control to protect loans and industrial projects because the imported goods compete with the local product and this is not because of the best quality, but the use of neighboring countries, Floating cash at a time when Iraq uses the fixed exchange rate of the dollar, which makes the imported product low price for national products.