"THANK YOU FOR YOUR OPINION... BUT THE CBI & UST AGREED ON SOMETHING ELSE." BY FRANK26, 5 MAY

 KTFA

FRANK26:"THANK YOU FOR YOUR OPINION... BUT THE CBI & UST AGREED ON SOMETHING ELSE.".....F26

Specialist: Floating the dinar is economic suicide

5/3/2024

 
- Baghdad
 

Economist Muhammad Hashem Helou confirmed that the central bank cannot float the dinar exchange rate.

Helu said, "The Central Bank of Iraq cannot think about floating the exchange rate because it will abandon its only influential tool in light of the weakness and disruption of other economic tools."

He added that the exchange rate is the nominal stabilizer of monetary policy in Iraq, and thinking about abandoning it is economic suicide and the bank cannot even think about that.

He continued, adding that floating the exchange rate in the presence of a parallel market and large speculators, and the presence of people who own billions of dinars and others who own billions of dollars, will lead to a sharp decline in the value of the currency, high levels of inflation, and rising prices..

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