Abdel Basset Turki (bright): dollar jumps to 0 o 200 religion r unless the Government
Abdel Basset Turki (bright): dollar jumps to 0 o 200 religion r unless the Government take bold action to address the financial crisis 17/11/2015 05:05 PM
Calling Dr. Abdel Basset Turki Al-Hadithi, Fund Manager return affected areas in Iraq, to adjust the exchange rate of the dollar against the local currency to reduce the effects of the financial crisis experienced by Iraq, especially with a large deficit in the budget of 2016. Dr. Abdul Basit, interesting article in particular by its «bright»: "financial crisis require officials to take bold decisions in adjusting the exchange rate, but the day will come when the exchange rate of the dollar (2000) and then the economic catastrophe will be incurred as poor and think these migration and joining the Iraqi immigrant peers". Dr. Turki pointed away from prosthetic solutions to the financial crisis, such as reducing salaries and increase taxes because these solutions will never be a successful solution to bridge the budget deficit, which this year amounted to about $ 20 billion. He reiterated Al-Hadithi recalled a proposal submitted to the Government earlier to amend Iraqi dinar exchange rate to become comparable to purely price real though it was introduced in time for the price which meets the requirements of reform, perhaps 1500 dinars per us dollar, but now it extends according to the requirements of the financing of the general budget and the need to cover an important part of the deficit. The response to this proposalIs that it will prompt further price increases (inflation) and that, consequently, the low income are paid the price for it, so it may accompany our proposal on exchange rate adjustment provision card supplies effective, of course, both proposals are not consistent with the International Monetary Fund.
General budget suffers both a reflection of the number of workers in government employment and retired them or tasks assigned to them historically significant expansion in public expenditure and the expansion of political management in the view of the Government as the authority and was not service management, and this leads to public resources as opportunities for further expansion in the authorities reflected in appointments and contracts that can be obtained through this power, and thus eroded global government job weksadih created and legislation to protect citizens and provide services for, and may Abundant oil resources have allowed this behavior very much authoritarian rentier, so when the price of oil to decline is unusual and is expected to continue through 2016 and erosion of public revenues as a result of this, the financial crisis, the crisis appeared less in 2009 but that public spending was less than that which we are witnessing today and foreign reserve round in government accounts was higher, helped by oil prices resume surge later to cover this deficit and postpone the crisis. previously suggested 9/ 7/2015 via an article in the newspaper Orient glue mechanisms we believe necessary to address the financial crisis and structural imbalances in the economy, had anticipated the coming of objections to these proposals and that's what actually happened. And this expectation is the knowledge that the problem is not seen in real size and not by causes, but by address Tip of the iceberg so to speak. The wizards were focused on securing more revenue to compensate for the shortfall in oil revenues while reducing overhead as possible. this mechanism was part of reforms undertaken to this point, the trend to maximize income derived through expansion of customs tariffs and taxes, plus try domestic borrowing through the issuance of Treasury bonds through public and foreign bonds and borrowing from the World Bank and the International Monetary Fund, and had talks with Oman international organizations in the context of getting these loans. Either reduce public expenditure has focused on reducing salaries for staff and limited later to reduce certain segments of salaries (nominal) without reducing Mission ceased allocation of public expenditures to justice between individual employees to address allocations to subsequent laws as an alternative financial objective of reducing expenditures, while proceeding to renegotiate with foreign oil companies operating tours of licenses and is more effective in reducing public spending and thus budget deficit than in reducing Salaries for example with what negotiation may bring opportunities to modify the terms of these contracts are in the interest of greater long-term Iraq. now suspended customs tariffs, and not expected to get local loans match the planned numbers of declining capabilities of State banks, not only the acquisition of bonds, either foreign actors have put tough conditions for the marketing of mortgage bonds and accept Iraq by influential external indebtedness once again pushing To postpone it to borrow now at least, the IMF did not include previous policy refers to possibility contribute amounts sufficient to fill this deficit or a significant proportion of it has promised $ 1.2 billion dollars increase in viable while the planned deficit is expected to exceed 20 billion dollars, with the conditions established by the economic policy and instructs its commitment in conjunction with conditions to activate the loan. This is what we expected when we pointed out in the article published in the newspaper Orient glue on 9/7/2015 that all these tools are ineffective in dealing with the crisis and will probably also disabled, there were views that defend these mechanisms and their introduction has proved so far failing under the current circumstance. To agree on the obvious for the economic policy that the crisis be a choice between alternatives based on the least expensive social, political and economic most effective starting and then most social and political impact later in the social sciences there are pink without assigned solutions and choose between these solutions is in fact choose between freckles and in failure of tools (Advanced) resorted to cope with the crisis, it is expected that the continued reliance on them will lead to mandated harsh political and social with economic crisis The most embarrassment.
Unfortunately they read the proposals reflected at that time went to discuss the proposed cost as seen in normal circumstances, we have proposed the following1) that the ration card are supported by leading to a guaranteed minimum level of consumption per capita of Iraq and expanding to include eight core subjects for all categories of people, although this proposal might lead to an increase in spending but lower-than-global prices of the commodity markets now and secure production of wheat (charged in national currency) with a genuine effort to reduce opportunities for corruption that can plague this card contracts, would reduce the need to increase spending on the card Fairly ration, plus what trouble these materials provided by the Ministry of trade to reduce the opportunities for speculation on the commodities in the domestic market if prices rise. If within the balancing act 2016 reinstate double Tolerancing tax officials state that would preserve an acceptable limit of the real income of the low-income.(2) the timely proposal is the Iraqi dinar exchange rate adjustment to become comparable to purely price real though it was introduced in time for the price which meets the requirements of reform, perhaps 1500 dinars per us dollar, but now it extends according to the requirements of the financing of the general budget and the need to cover an important part of disability. the response to this proposal is that it will push to further price increases (inflation) and that, consequently, the low income are paid the price for it, so it may accompany our proposal In the exchange rate adjustment provision card supplies effective, obviously both proposals of the IMF does not agree with them. the option now is between accepting a high rate of inflation which clearly means a decrease in real income of citizens, particularly low-income and direction into the unknown in the near future, inflation means that the basket will back off citizen options than the previous conditions have been divided so that the focus of spending on the most necessary commodities. The alternative to this is the continued introduction of effective mechanisms to deal with the crisis, amid expectation of continued low world oil prices, may be this entry (and salary) threatened already corrosion either by direct reduction or more taxes and deductions which not only reduce consumption, but also create social problems in financial obligations that he used employee (rent, loans, banking, wages of study for children. Etc) either at the macroeconomic level in the economy it is complaining about deflation and recession so more recession and economic downturn and this note for interactive transactions in the economy rate (real estate prices, car, equities ... Etc) and thus to more unemployment and strong job opportunities even in service sectors as commerce, transport and in danger of inflation expectations in the event Iraqi dinar exchange rate change, the latest data of the Ministry of planning to achieve the annual inflation rate in Iraq for 1, 6% this rate is by all accounts economic point simply that the economy is moving towards more deflation and decline, means more unemployment. If providing an acceptable level of per capita consumption, especially for low-income earners low-lying inflation is treatment for stimulating the economy and real sectors which particularly artisanal and small-scale industries and agricultural sector and family first, then start wheel real production in the economy outside the range of rental is one-sided.
The strength of competing goods and services identified cost reflected in the prices of deliberative and under current exchange rates, the cost of dinar Iraqi production ability in foreign currency is greater than the assigned goods produced in nearby Iraq so Iraq became a market for these goods, even though the border is secured to protect kmerkih the price difference was rewarding to assume risk in smuggling outside officialdom. standing with opponents changing rateExchange of bank deposits affected expect dollar or foreign obligations towards national currency contracts that could be addressed early by the Monetary Authority and the financial share bear damage is expected to propose an intermediate rate of settlement obligations that predate the date of exchange rate adjustment if unable to fully offset. crisis need bold decisions unless the exchange adjustment date, maybe the exchange rate of 2,000 dinars to the dollar would not be feasible, and then I'll disagree only on the date of the disaster that I wish not to be Close and do not benefit the apology by the inability to take responsibility, bear the الفقرء as always the worst effects to enroll them can join regiments of immigrants again.