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Published: Dec. 15, 2021, 10:02 p.m.

WOTS WED DEC 15 21 The Central Bank is talking about 'returning' the dollar exchange rate to 1200

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\nThe Central Bank is talking about 'returning' the dollar exchange rate to 1200: This is what will happen in the market\n

link   from Kurdish news     this may seem negative but I like that they are having "this conversation" is education without saying what we want to hear  imo

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Today, Tuesday, the Central Bank of Iraq announced that it had prepared a draft currency structure study, while determining the negative effects when the dollar was re-exchanged to 1200 dinars.

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The bank said in a statement, followed by NRT Arabia, (December 14, 2021), that "the Central Bank has completed the preparation of a draft currency structure study," noting that "the timing of the project's implementation depends on the bank's policy and the political and economic conditions of the country."

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He added, "There is no intention of the bank to issue new denominations of the currency," noting that "continuing to provide new banknotes to compensate for the damaged banknotes."

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And about the negative effects caused by re-exchange of the dollar to 1200 dinars in the event that the next House of Representatives issues a decision to do so, the bank stressed that \u201cthis will affect negatively and will lead to the exchange rate in the parallel (local) market going out of control, and consequently sharp fluctuations in the exchange rate that lead to to harm the interests of citizens and projects,\u201d noting that \u201cthis will cause a destabilization of confidence in the stability of the financial system in Iraq, and such a decision will lead to the exit of local investment and production projects from competition, thus exacerbating the unemployment crisis as a result of those projects stopping work.\u201d

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He added, "The increase in the exchange rate led to an increase in the competitiveness of the local product and thus an increase in its market share, as well as a reduction in expenditure pressure on the Ministry of Finance by 23%, which enabled the Ministry of Finance to overcome the crisis resulting from the drop in global oil prices during 2020 and the first months of 2021." , explaining that "this also led to an increase in the flexibility of public finances to carry out the necessary structural reforms to achieve financial sustainability in Iraq."

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