The Prime Minister of Iraq, Muhammad Shiaa Al-Sudani, stated on Tuesday that he knows why the US dollar is becoming more expensive compared to the Iraqi dinar. He agrees that penalties should be imposed on currency speculators, but he also mentioned that private banks and money changers are contributing to the increase in the dollar’s value.
During the weekly press conference attended by Al-Sudani, he stated that there are issues with banking reform and major challenges facing the government. He also blamed currency speculators for the current high dollar exchange rate in the markets.
He said that private banks, merchants, and bank owners are trying to maintain the current dollar exchange rate.
Al-Sudani emphasized that they are supporting certain banks that they trust have been successful in order to be a part of the solution. He added that one of the challenges they face is the lack of strong and strict penalties in Iraqi law against individuals who are caught speculating on the dollar exchange rate.
During a recent statement, he highlighted that despite the high exchange rate of the dollar, food prices remain stable and the government is willing to intervene in certain matters. The government has initiated a program that provides medicines for chronic diseases from international sources and sells them in the market at subsidized rates. Similarly, the government will provide construction materials that will be sold at subsidized prices. This initiative is expected to reduce the price of the dollar in the market by limiting the influence of traders and speculators.
Al-Sudani emphasized the importance of the Development Fund, which is an important project and should have its own law. The Fund has been included in the budget law.
During a recent announcement, he stated that a fund was voted on and it brings hope to the Iraqi economy. The fund will be dedicated to the private sector and will provide investment opportunities. Among its top priorities is constructing around one thousand schools. After that, it will have a role in other sectors such as industry, environment, and housing.
Al-Sudani has stated that the cost of producing electricity is quite high and the government has given the Ministry of Electricity permission to implement modern electronic systems to measure the cost of electricity consumption. The government will also ensure that those with limited income are taken into account through a specific mechanism. This new system will help prevent the wastage of electricity and provide energy stability.
He announced that there will be a trial for these organizations in 10 regions. Each region will have 10 sectors with 50,000 subscribers receiving electricity 24/7.
The Ministry of Electricity in Iraq has been granted a license to contract with major companies to supervise their new systems for recording consumption fees. These systems will have a quick solution for any defects in their recordings, and dedicated teams will be available to address any issues in record time. This information was stressed by an official who also emphasized that the Prime Minister and the Iraqi government are involved in this process.
Al-Sudani mentioned that it will be one full year since the formation of the government on October 27. He proposed that the House of Representatives host a meeting to discuss the achievements and failures that have been made since the formation of the government until now.
