A member of the Parliamentary Finance Committee, Abd al-Hadi al-Saadawi, warned, on Tuesday, that the Central Bank would declare bankruptcy in the first quarter of next year if it continues to flounder with its policies, denying the existence of a trend to increase the exchange rate of the dollar against the Iraqi dinar.
Al-Saadawi said in a press interview that “there is a big problem in the Central Bank and there is confusion in its policy, especially recently.” The process is an easy procedure and the government can implement it, and it is obligated to implement it as it was enacted in a law. ”
Al-Saadawi added that “there is fraud in the recent currency sale auction, banks and banking companies have been identified at the expense of other companies and banks, and there is confusion in selling the currency in an abnormal way, and politics within the bank because of the control of one of the parties on this issue was the reason for the increase in the dollar price against the local currency in order to Realizing profits for some banks and companies “,
Pointing out that “Parliament or the Finance Committee do not have a direction to increase the exchange rate of the dollar against the dinar, but there is a tendency for the government in this area to determine the exchange rate within its strategic plan, but it has not actually started until the moment.”
He pointed out that “the manipulation of the exchange rate of the dollar against the dinar was done through an auction selling the currency, and it is possible to solve the problem through an electronic window to sell the currency in front of every bank or company and within an exchange rate close to the exchange rate from the central bank with a difference of a point or two to ensure that there is no manipulation, price increase and speculation.” As it happens now, when the teams reach more than eight points, and reach ten points. ”
He stressed that “this is one of the obvious doors of corruption, and the most dangerous of which is the issue of going from the issue of selling the currency in the window of selling the currency to money laundering outside Iraq. We have warned us a lot about this matter and we demanded the adoption of automation and that every dollar exiting Iraq is matched by goods at the same price that enter the country.”
He continued, “The division of banks and companies into categories was not successful, and there is an interrogation of the governor of the Central Bank inside the dome of Parliament awaiting the completion of the legal procedures for him, and then in the event that the governor proves that there is no shortcoming of him and his procedures are correct, he will not bear any administrative action and if the opposite will bear the result by dismissing him.” Pointing out that “the policy of the central bank will lead to the bankruptcy of Iraq completely, and this is what the International Monetary Fund and the World Bank indicated, including the issue of printing the currency without a monetary cover, and we have referred to this matter many times on the grounds that all these policies will lead to the collapse of the financial market.” In the country and lead to the bankruptcy of Iraq, and in the event that the central bank continues its monetary policies, the central bank will declare its bankruptcy in the first quarter of next year.
Al-Saadawi stressed, “Automating the work of the currency auction window with customs and taxes does not require large amounts or effort, and it is possible to coordinate with the Ministry of Science and Technology of the Ministry of Higher Education and has experience in this field in order to close this section and this dangerous file that in case it is overlooked will lead to The complete collapse of the state on the grounds that the government withdraws all the cash in banks and the currency sale window is taking all hard currency out of Iraq.