12/21/2021 15:18 Number of readings 1604 Section: Iraq
The financial advisor to the Prime Minister excludes the collapse of the local currency..and citizens are replacing it with dollars
Baghdad / Obelisk: A financial advisor to Prime Minister Mustafa Al-Kazemi ruled out, on Tuesday, December 21, 2021, a collapse of the local currency, "the Iraqi dinar".
Mazhar Muhammad Salih said in a statement followed by the obelisk, "There is no collapse of the local currency, and the Iraqi dinar is strong, and it is covered by good foreign reserves."
He pointed out that "monetary policy deals in dollars, and resorting to the system of "domestic and foreign currencies" in trade" due to two reasons for the existence of precautions in dealing with foreign currency and its stability, as well as the stability of transactions in it as well.
The Iraqis’ fears are increasing of a new decline of the dinar, affected by a series of collapses in the local currencies of neighboring countries and others close to them, most notably Turkey, Iran and Lebanon, which prompted citizens to quickly get rid of the local currency in their possession and replace it with dollars.
And limiting the buying and selling operations in hard currency by some owners of companies, car showrooms, and some interests whose dealings are linked to the dollar, for fear of a sudden collapse of the dinar against the dollar.
A member of the Finance Committee in the previous parliamentary session, Najeba Najib, said, "The demand of citizens to buy hard currencies, especially the dollar in recent times, and the inventory of buying and selling operations by some of them confirms the loss of Iraqis' confidence in the local currency.
On December 19 last year, the Council of Ministers announced raising the price of selling the dollar to banks and exchange companies to 1460 dinars instead of 1200 dinars to one dollar, with the aim of compensating for the decline in oil revenues caused by the deterioration in oil prices.
The markets witnessed a significant increase in the local market, which sparked a wave of strong resentment among the popular circles and some political blocs, as well as the objections of some interested in economic affairs.