CBI and Finance Ministry does not consider devaluation for those reasons, MP says

Shafaq News/ The member of the Parliamentary Finance Committee, MP Jamal Kocher, outlined the obstacles hindering the devaluation of the Iraqi dinar in the general budget for 2021.

In an interview with Shafaq News Agency, Kocher said, "The Central Bank and the Ministry of Finance cannot reduce the exchange rate (of the dinar) again for several reasons, including that the main reason for raising the dollar exchange rate was to downsize the deficit and operating expenses of the government in the general budget."

He added, "the general budget is designed on the new price of the dollar—the same for the Projects and commitments. Therefore, changing the dollar price means that you require changing the entire budget from A to Z," noting, "the calls for changing the price of the dollar are based on the rise in the price of oil. There is no guarantee that oil prices will remain high."

"Many people were inflicted by changing the dollar price. They may resort to court when it is reduced again as a result of the damage they have suffered," he noted, "changing the price of the dollar again by the bank will confuse the market. Investors and contractors with the government will distrust the central bank consequently."

The Parliamentarian concluded, "the Central Bank and the Ministry of Finance are not ready to change the dollar for all these reasons," adding that the financial policy is a prerogative of the Central Bank and the Ministry of Finance.