The Parliamentary Finance Committee expected, on Sunday, August 15, 2021, that the exchange rate would remain at its current status, while indicating that raising the exchange rate aims to achieve three main factors.
Committee member Naji al-Saidi said in a statement received by “The Obelisk” that the exchange rate will maintain its position during the next period for the next five years, on the description that the real value of the Iraqi dinar is determined through the exchange of the dollar against the dinar in addition to the purchasing power of the Iraqi dinar and the resulting net goods and services during a certain period.
Al-Kazemi’s government is working to reduce the deficit in the general budget and increase cash reserves, while plans are employed to support local products in front of imported goods from countries.
He pointed out that decreasing the value of the dinar increased the competitiveness of the Iraqi price, describing that goods that come from abroad, especially Turkey, Iran, Syria, Saudi Arabia and Jordan, benefit from the strength of the Iraqi dinar against the dollar because the dollar currency is a global currency, and when the dollar exchange rate is raised, the competitiveness of goods will rise and fall because it is less Iraqi exports from abroad.
And the Central Bank of Iraq decided earlier to adjust the exchange rate of the dollar against the Iraqi dinar, as the purchase price of the dollar from the Ministry of Finance amounted to 1450 dinars, and the price of selling it to banks was set at 1460 dinars per dollar, while the selling price to the citizen is 1470 dinars per dollar.
Poverty indicators in the country increased to 27 percent due to the increase in price hikes, according to the Ministry of Planning.
The prices of goods, especially foodstuffs, rose due to the rise in the exchange rate of the dollar.
The main reason for the continued rise in the dollar exchange rate is the lack of real government control over the Iraqi market, as well as the work of private banks and exchanges, which manipulate prices according to their interest without any oversight or accountability.
Observers believe that the currency auction did not decrease in its sales, nor did the poor class improve its living conditions, and most importantly, it left an important segment of society under the burden of poverty, namely the employees and retirees.
The monthly income of employees and retirees declined as a result of the change in the exchange rate on the one hand, and on the other hand, the increase in the prices of goods, medicines and basic commodities in the local markets.