December 20, 2020
1 min read

Iraq PM calls for financial reforms to avert ‘chaos’

Iraqi Prime Minister Mustafa al-Kadhimi has warned of a collapse of the social and political systems and overwhelming chaos without a financial reform in the country.

Al-Kadhimi made his comments during an extraordinary session of the Iraqi cabinet on Saturday to discuss the federal budget for the fiscal year 2021, which came after the Central Bank of Iraq (CBI) decided to devaluate the national currency due to the economic crisis that resulted from the decline in oil prices and the coronavirus pandemic, reports Xinhua news agency.

“The political crisis in Iraq is linked to three issues: power, money, and corruption. We are working to address the crisis from an economic standpoint and with a bold decision to overcome the obstacles of corruption and money,” al-Kadhimi’s media office said in a statement.

Earlier in the day, the CBI decided to reduce the value of the Iraqi dinar to be 1,450 dinars per $1 in the central bank, instead of its previous price of 1,119 dinars per dollar.

The exchange rate of the dollar will reach 1,470 dinars in the local market, the statement said.

The CBI attributed the decision to the financial crisis that resulted from the decline in oil prices and the pandemic, which led to a large deficit in the state budget, forcing the government to borrow money from banks to pay salaries and to cover other expenses, according to the statement.

In a separate statement, Iraqi Minister of Finance Ali Abdul-Amir Allawi said “it has become clear that urgent reforms are needed in various economic fields, including the currency exchange rate.”

“Despite the difficulty of this decision, we are forced to take such a step to address a large part of the crisis, and to ensure the protection of the Iraqi economy by achieving a brave reform step,” Allawi added.

Also Read: IS militants torch 2 oil wells in Iraq

Also Read: Iraq, France call for easing regional tension

Previous Story

Johnson announces new curbs amid Covid-19 surge

Next Story

Indonesia imposes tougher virus curbs

Latest from -Top News

Von der Leyen Faces Twin No-Confidence Votes

The two bids have one common thread which is criticism over the European Union-US trade deal and the disfavourable terms it has placed on European exporters….reports Asian Lite News European Commission President

India-EU Trade Talks Resume

The proposed India-EU FTA covers 23 policy areas, or chapters, of which at least two – market access and rules of origin – have yet to be resolved….reports Asian Lite News India

India Launches Relief Ops in Bhutan

The Royal Government of Bhutan has expressed sincere gratitude to the Indian Army…reports Asian Lite News Amid unprecedented floods caused by a low-pressure system over the Bay of Bengal, relentless rainfall has

Piyush Goyal Heads to Doha for Trade Talks

During the visit, both sides are expected to discuss the proposed India–Qatar Free Trade Agreement (FTA)….reports Asian Lite News Union Commerce and Industry Minister Piyush Goyal will travel to Doha, Qatar, on
Go toTop