Finance committee warns of "deterioration" of Iraqi economy
BAGHDAD: The finance committee in the Iraqi Council of Representatives today warned about the deterioration of the Iraqi economy due to the low exchange rate of the dinar to the US dollar, assuring that proposals are underway to get the country back on its feet.
Committee member Shawrash Mustafa said the committee began to study the deterioration of the Iraqi dinar exchange rate and put in place several methods to halt the crisis. The proposals will be delivered to the Ministry of Finance and Iraqi Central Bank (ICB).
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Mustafa did not disclose details of the proposals, saying only that they are "enough to end the fiscal deterioration".
"Many issues may affect the dinar exchange rate and declining economy, the most prominent is the political side and the effects of what's happening in the region," said Mustafa.
The Iraqi dinar yesterday registered the lowest exchange rate in three years against the US dollar at a selling rate of 1290 dinars per dollar.
The decline in the dinar began early last month after it was stable at a rate of 1190 per dollar.
The ICB issued strict procedures on selling hard currency to Iran and Syria due to the international sanctions imposed on the two countries. The ICB last month denied media reports that it stopped selling foreign currency as a measure to protect the Iraqi economy due to the political crisis in the country.
The ICB is responsible for maintaining price stability, implementing monetary policy and regulating the banking sector.