October 6, 2021 | banking

Finance Ministry: Exchange Rate Of Dollar Led To A Decrease In Demand For Foreign Currency And Was Positively Reflected On Decrease In Imports


Baghdad / NINA / - The Ministry of Finance confirmed that the devaluation of the currency against the dollar helped reduce the demand for foreign currency and positively affected the decrease in imports and the increase in local production.

It said in a statement that it has constantly followed the indicators of devaluation against the dollar and over the past nine months, and the indicators show that the change in the exchange rate contributed to increasing the foreign reserves with the Central Bank of Iraq to “60” billion dollars in April 2021, after it was “54” billion dollars in December 2020, this came after implementing the reform measures.

The statement explained that the change in the exchange rate contributed to a decrease in the demand for foreign currency, which was positively reflected in the decrease in imports and the increase in domestic production.

It added that the indicators indicated a clear improvement in commercial activity in the past nine months of the current year 2021 in light of the crisis, the spread of the 'COVID-19', and it also helped to stop the penetration of the Iraqi market and flood it with cheap goods that curb attempts to upgrade local production.

The statement continued, 'The ministry is working to reinvest the achieved revenues with the aim of building a targeted production base outside the oil sector and relying on other sectors, which will contribute to a decrease in demand for the dollar as a result of compensating some produced goods, which made the proportion of imports to local consumption decline.'

The statement indicated that 'since the formation of the current government, the ministry has adopted plans and mechanisms to work on reforming Iraq's fiscal policy, and culminated in the adoption of the reform paper, the 'white paper', which outlined future economic and financial policy steps to advance local production and reduce imports for the country. This measure also contributed to improving the state of the general budget, reducing imports and moving towards encouraging local products and providing job opportunities.

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