The National Business Council calls for a review of the exchange rate based on the impact of the oil price decline
Economie | 01:21 - 29/06/2020
Baghdad - Mawazine News,
the Iraqi National Business Council responded to the advisor to the Speaker of Parliament, Humam Al-Shamaa, indicating that the dinar exchange rate against foreign currencies through the currency sale window for obligations imposed by itself due to the circumstances that Iraq is going through, in advance of a three-stage proposal to review the exchange rate pricing on the basis of The impact of low oil prices with setting priorities for the import of raw materials for local industries
The Council said in a message seen by / Mawazine News / that "the dinar exchange rate against foreign currencies through the currency sale window for obligations imposed itself due to the circumstances that Iraq is going through, which were unfortunately interpreted in a different way to distort the facts" and go to say
"and we are not surprised by such responses Skepticism and accusations, as we have become accustomed to it as a private sector to marginalize and underestimate our role, and this wrong behavior is what led Iraq to our donors because of the hegemony and bureaucracy of the government sector that failed over more than (17) years of managing the economic file.
"We were hoping for a direct dialogue with the decision-makers to discuss our proposals to find solutions to address the gaps that we need most in these difficult circumstances," he added.
The Council reminded that it is a socio-economic organization that possesses field and theoretical capabilities and expertise and can express opinions and advice to all Iraqi state institutions to correct paths wherever they are found.
The Council pointed to the reference of the candle in its message about the theory of inflation and its repercussions, and the increase in poverty rates to (20%) of the oppressed people who lie below the poverty line, and enjoy the few with wealth.
He believed that this diagnosis is "an affirmation that the wrong policies of successive governments after the year (2003) in managing the economy created the large gap in the standard of living between (the elected few?) And the majority of the people who suffer from poverty and neglect due to corruption and mismanagement."
"You (Al-Shamaa) talked about the necessity of mobilizing resources because of the three challenges (falling oil prices, corona, and early elections), and the rulers of the Iraqi people’s leader (according to the description of Al-Shamaa) cannot bear more tensions for fear that the table will turn against them," and the council considered that this The offering is "strange logic."
"Changing the exchange rate we called for to achieve justice, eradicate corruption, collect taxes and customs duties, and protect the product will turn the table over the rulers," he asked.
He stressed that this "is to mobilize resources instead of exchange differences, tax and customs evasion go to the pockets of the corrupt and transfer without import."
He stated that "improving the social welfare network, increasing inclusiveness and compensating retirees through the resources derived from accidental results from changing the exchange rate from the state's duties to raise injustice and reduce the level of poverty."
He also pointed out that "the social protection network is not a continuous state, nor is the ration card, but rather a temporary case due to the lack of diversification of income sources and reliance only on oil imports."
He stressed the importance of "setting the right policies and strategies and implementing them to upgrade the industrial and agricultural realities and other economic sectors while providing climates for the growth of the private sector and its involvement in the economic decision with a real fight against corruption and improving the investment environment will provide hundreds of thousands of job opportunities and thus will reduce the protection network to unimportant levels and this is in place In all countries of the world."
He also saw that "the exchange rate change has nothing to do with the process of printing the currency and we do not need to recall its disadvantages, mixing the papers from the economic scripts, as printing the currency in an ill-considered and without cover will lead to inflation.
And we did not demand that for security, neither near nor far, but rather that This process on its own terms and conditions."
He also asked about what is the equation on which the Central Bank relied on proving the exchange rate with the number (1190), knowing that a number of neighboring countries exporting to Iraq have floated their currency against the prices of the dollar
"Why do we cling to the fixation of the exchange rate and not allow it to change slightly to achieve additional imports into the state treasury while increasing the ability of the domestic product to compete and grow," he said..
"The job of selling currency is not one of the duties of the central bank," Ann stressed, explaining that this was recognized by the governor of the central bank, who confirmed the Ministry of Finance's request to exempt it from this commission.
He presented a three-stage proposal to review the exchange rate pricing on the basis of the impact of the oil price drop, while setting priorities for the import of raw materials for local industries - and he said that
"The first stage is the exchange rate pricing on the basis of the impact of the low oil price, which is reflected in the commodity price in varying proportions.
The lowest percentage of the commodity price decrease is taken and added to the dollar price for the purpose of preserving the rest of the agriculture and industry.
It is possible to enter new goods and new crops produced by Iraq because of the disparity in the low price. Oil and its implications for commodity imports."
As for the second stage, it requires "studying the exchange rate of the manufactured and exporting countries to Iraq in pricing the dollar against what is included in the development of industry and agriculture locally based on a standard situation for the purpose of fulfilling the market need of imported goods with locally produced goods."
He also stressed the setting of "priorities for the import of raw materials for local industries" and warned of what he called "black money", calling for the collection of customs, taxes and other fees such as product protection and others in addition to the exchange rate during the sale and transfer of currency, these foundations on which our mission and appeal appealed.
As for the third stage, it concerns the tax and customs duties, and the council said, "The central bank still apologizes for doing it, as it is not one of its tasks."
He concluded the question, "Why did the bank not apologize for selling the currency, which is one of the tasks of the Ministry of Finance?" M hn