Clarification from the Central Bank regarding the possibility of changing the dollar exchange rate
Monday, October 24, 2022 8:14 PM
Baghdad/National News Center
approximate translation –
The answer of the Central Bank of Iraq attached to its book No. 181 on 10/12/2022
. Addressed to the Honorable First Vice-President of the House of Representatives
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It is worth noting that the decision to change the exchange rate is a strategic national decision that is not linked to circumstances progressions; And that the negative results that may have resulted from it can be avoided by lle and governmental measures To support the Abell categories and improve the vocabulary of the Tamdim card” and not to back down from this important decision.
Regarding your inquiry about the possibility of changing the current exchange rate; We would like to clarify that the exchange rate Current right a lot of positive results; Including reducing the budget deficit, which achieved a surplus in the year 1 Compared to 2020: And the fiscal space that is created for the Iraqi government as a result of the price
The current exchange will help it pay its obligations, including some of its internal and external debts
Which contributes to enhancing financial sustainability” and increasing support for the fragile classes and financing investment projects stalled.
With regard to changing the exchange rate, we would like to point out the following:
Changing the exchange rate over short periods of time exposes you to the local markets, threatens investment and creates stagnation
The economy weakens confidence in monetary policy and the value of the local currency; It also contributes to increasing the intensity
Speculation in foreign currencies and increasing their hoarding as a safe haven and a disguise of value more than currency local.
ele od | Changing the exchange rate to correct the gap between the real value of the national currency (the dinar) and the value
The nominal value is due to the fact that the dollar is calculated at a low exchange rate; Which gives a high competitive advantage to the goods
imported services; impeding the advancement of the national product; While the exchange rate hike constituted a barrier
In front of the importer, a competitive advantage for the national product is equivalent to the rate of change in the exchange rate (about 9623).[/size]