Thursday (14 May 2020), warned against floating the Iraqi dinar against the dollar, that is, to reduce the value of the Iraqi dinar against the dollar, according to a proposal put forward by economists to provide additional funds for the Iraqi budget to be paid as salaries for employees.
Al-Aqidi said in an interview with (Baghdad Today), “The issuance of any decision to float the dinar against the dollar in light of the current conditions in Iraq is very dangerous for the country which is basically suffering from uncontrollable losses, namely fees, customs, taxes and many other financial resources.”
And that “the flotation does not constitute an increase in the value of the Iraqi dinar, but rather we will see an increase in the exchange rates of the dollar because of the lack of its acquisition in the global market, especially with the decline in global oil prices.”
He added that “the flotation will lead to a significant increase in prices, and will be paid by the poor,” noting that “the flotation is taken in light of the stable financial conditions of the state, as well as the diversification of the economy and its dependence on resources other than oil.”
Al-Akidi said that “floating the dinar against the dollar is launching the process of buying and selling without any limits, and the country will face an unprecedented rise in prices with limited and steady salaries, so conditions will be more difficult, especially in the humanitarian context.”
Economists suggested reducing the value of the Iraqi dinar against the dollar by a value ranging between 1300 dinars or 1400 against one dollar to provide additional budget resources that allow part of the salaries to be disbursed, while others considered that any proposed float process may go out of control and cause a significant increase in the price of the dollar against the Iraqi dinar