Sadr alliance nominates Sadiq Naim to the post of central bank governor

Baghdad: Sumer News – A source in the alliance led by Muqtada al-Sadr, on Sunday, the nomination of Sadiq Naim to the post of governor of the Central Bank.

The source said in a press statement that “Sadiq Naim was nominated to the post of governor of the Central Bank.”

He added that “Naim’s nomination came because of his qualifications and integrity,” noting that “previously for the pleasures of running a number of positions.”

It is noteworthy that some sources said earlier, that the post of governor of the Central Bank will be a coalition of others led by Moqtada al-Sadr

Sumer.news

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Our current rate is $995 per million for uncirculated IQD.

www.TheDinarExchange.com

Foreign Exchange Market: Why You Should Invest in Iraqi Dinar

Investing in foreign currency is discussed in the news and is one of the major investment options around the world. People invest in foreign currencies intending to hold a particular currency and sell it when it appreciates. It is a trend that has been there for a longer period and only mastered by those individuals who have excellent skills and knowledge in the forex exchange.

Before investing in this industry, you need to understand the value of currencies as compared to other currencies. This means that you should know how the Japanese yen compares to the South African dollar. That’s the only way you will be able to leverage the market fluctuations and make profits. One of the basic principal about foreign currency trade is that you must know which currency is higher than the other before you trade. For example, if the dinar value is very high in the morning, you would expect it to depreciate in the evening.

What’s the Secret?

Currency fluctuations happen to all major currencies, which means that you have to keep monitoring how currencies are changing in value. The secret is buying low, holding, and selling when the value appreciates. Sometimes you may be forced to cut your losses and move to another investment if the currency you are holding is not promising.

Top Five Currencies to Invest

You will always come across information in news articles on the best currencies to invest. However, not everything that is written in these articles is factual. Most of the information is based on history and trends but not what is currently happening in the forex market. However, there are some financial and business articles such as Financial Times and Yahoo Finance which will always present a fair assessment of the foreign exchange market.

Nevertheless, some top currencies dominate the world at any given time. You should focus your attention on investing in these currencies and you will be guaranteed of profits within a short period, sometimes even in a single day. Some of these currencies have been discussed below.

1. The U.S. Dollar

This is the most traded currency in the world, and you will never lack it in the market. For a longer period, the U.S dollar has been used as an intermediary in triangular transactions. What makes it suitable is the fact that it is accepted across the world and some countries put the U.S. dollar in their reserve banks.

2. The European Pound (Euro)

Despite being relatively new, the Euro has already established itself as the second traded currency on the planet. Most of the incentives in trading with this currency come from the fact that it is the official currency in Europe and many people are using it.

3. The Japanese Yen

Japanese yen is highly traded because it is, informally, the Asian currency. If you want to gauge the economy of countries such as Thailand, Singapore, and South Korea, you have to evaluate the performance of Japanese yen in comparison to other currencies around the world.

4. The British Pound

The British pound, mostly referred to as Sterling Pound, is a fairly traded currency owing to its relative value to other currencies around the world. It is also a very liquid currency, which means that it can return its value and profits within a day.

5. The Canadian Dollar

The Canadian dollar is a very useful currency as it is very consistent with the value of the commodity market involving minerals, precious metals, and crude oil. Traders use the Canadian dollar to speculate on the fluctuations in the commodity market.

Other Upcoming Currencies

There are other currencies, such as Iraqi dinar, which is making significant impacts in the money market. For a longer period, this currency has been performing poorly, and there has been no liquidity due to the political instability in Iraq. However, everything has changed, and the current value of Iraqi Dinar stands at 0.00084 when compared to the U.S Dollar which is a significant improvement.

With the current political and economic stability, the value of Iraqi dinar has been improving consistently. If you are interested in investing in an upcoming currency, you need to select Iraqi dinar. It is an investment opportunity that you cannot ignore. In the next few years, Iraqi dinar is expected to become one of the major currencies in the Middle East.

Apnnews.com

Central Bank Basra branch introduces a window to provide small cash categories

The Central Bank of Iraq (CBE) launched a branch of the Basra branch on Thursday to develop a window from the issue division to provide small groups of 250, 500 and 1,000 dinars. The head of the Central Bank of Iraq Branch of Basra in a press statement briefed by the “Covenant News” , said that in view of the small groups of the Iraqi currency traded in the markets, the Iraqi Central Bank branch in Basra sought to provide these quantities for the purpose of facilitating the deal between a single trader And the citizen. He stressed that the provision of cash from all groups will facilitate the sale and purchase between citizens and owners of shops.

Al-Fahd added that the distribution of small categories through bank withdrawals, which are delivered to citizens through personal accounts and salaries will revive the local market and will be in the interest of the national economy and turnover of the wheel of monetary movement.

It is noteworthy that small groups have been implemented from the market significantly recently, and this gesture re-ease of dealing between citizens.

Alahadnews.net

BGG ~ The ONLY news that matters today!!

THE CENTRAL BANK CALLS ON BANKS AND FINANCIAL INSTITUTIONS NOT TO DEAL IN DOLLARS WITH FOUR COMPANIES

The Central Bank of Iraq on Monday called on all banks and financial institutions not to deal in dollars with four brokerage firms. The bank said in a statement received by Alsumaria News, a copy of it, that ‘the banks and financial institutions all not to deal in the currency of the US dollar with each of the Bara and the hour to mediate and buy foreign currencies authorized by the bank, knowing that the two companies are denied entry into the window of sale and purchase of foreign currencies.

The bank added that it is also “not to deal with Dubai Horizons and Verdun, which are located in the province of Irbil, which are not sanctioned by the Central Bank.” The Central Bank of Iraq was established as an independent bank under its law of March 6, 2004, as an independent body responsible for maintaining price stability and implementing monetary policy. It supervises 10 commercial banks, 26 private banks and 16 Islamic banks, as well as 19 foreign banks. 6 financial institutions and 31 financial transfer companies

Iraqdailyjournal.com

Central control of the level of inflation and supports electronic collection

Baghdad / Hussein Thugb – “The Central Bank has succeeded in controlling the level of inflation, maintaining prices, maintaining the purchasing power of the national currency, controlling the exchange rate and closing the gap, Between the official price and the market price.

“Foreign exchange reserves rose from US $ 40 billion to US $ 62 billion and diversification of the currency basket to support balance of payments and crisis response

Economic development.

The coordination with the Ministry of Finance in the management of public debt to support the budget and funding the deficit during the financial crisis experienced by Iraq because of the drop in oil prices, the issuance of national bonds in the international financial market worth $ 2 billion, as well as the provision of new products to invest liquidity of commercial banks and investment and support Profitability “.

Issuance of bonds

She pointed out that “the last period saw the issuance of bonds for the receivables of contractors after being audited by the Ministry of Planning and the Federal Financial Control Bureau, as well as the issuance of bonds to farmers on behalf of the Ministry of Finance and this move reflects a shift in a broader vision for the management of government public debt by the financial authority and monetary authority “He said.

Financial Inclusion

“We have supported the electronic collection of government fees, the facilitation of payments to citizens, the signing of a memorandum of understanding with Visa International, MasterCard International and Yunin-B International International to support the strategy of financial inclusion and the provision of electronic payment cards to citizens to urge them to work with the unified international bank account, Through bank accounts internally And other countries “.

Electronic payment

“The standardization of the sukuk security standards to increase confidence in exchange and encourage traders to deal with electronic payments instead of cash, electronic payment companies in order to support electronic operations and the issuance of license cards payment to banks, as well as linking banks and sites of the Central Bank of Iraq with data centers bank by cable To enhance the infrastructure of the banking sector and to increase the security of information and networks on the speed of data transmission Sizes Big “.

Financial operations

On the developments witnessed by the Central in the payments sector confirmed “the establishment of the National Bank to settle payments between banks and increase electronic financial operations between banks, companies and citizens, support electronic collections of government departments and facilitate Ways of payment to citizens “.

Memorandum of Understanding

“We have signed a memorandum of understanding with Visa International, MasterCard International and Yunin-B International International to support the strategy of financial inclusion and the provision of electronic payment cards to citizens. , As well as linking the banks and the Central Bank of Iraq with the bank data centers by optical cable Aziz infrastructure for the banking sector, increasing the information and network security, as well as high-volume data transfer speed. ”

Localization of salaries

The launch of the localization of salaries for all public sector employees through the transfer of salaries to employees’ bank accounts, as well as the easy receipt and withdrawal of salaries through the available payment channels, bank branches, ATMs, Points of sale, and enjoy the many advantages of bank accounts. “

Agenda of the session No. (11) Wed 17 April 2019

April 17, 2019

(Reading verses from the Holy Quran)

First: Vote on the draft law of financial administration. (Finance Committee).

THIS IS HUGE ‘financial administration’ why?

Because of this from March 20th “the Committee is keen to enact the law of financial administration as it gives a complete road map of the financial policy in the country in terms of management of money and cash in the state,” pointing out that “the change will raise the exchange rate of the Iraqi dinar against foreign currencies while maintaining the stability of inflation In the country”.

Alsabaah.iq

The effectiveness of monetary policy in Iraq

Monetary policy is one of the most important tools used by countries to deal with economic problems, whether at the level of growth, unemployment, poverty, inflation and monetary stability. There is no distinction between economic and monetary stability. Economic stability is linked to economic policy as a whole, This is different from the monetary stability, which aims to achieve balance in the exchange rate and safe levels of inflation rate and increase economic growth rates through monetary policy instruments, which naturally leads to economic stability if the response of the sectors The Central Bank of Iraq Law No. (56) of 2004 affirmed that one of the central objectives of the Central Bank is to achieve monetary stability. As a result of the non-response of the real sector to the variables of monetary policy, this reflects the structural imbalances in the Iraqi economy.

After 2003, the Iraqi economy exercised the tools of transition to a market economy, which has certain principles and rules committed by countries. Monetary policy has used the most influential tools in the exchange rate, which is the currency’s window in balancing demand and supply. This depends on oil revenues. Public finance relies on (89%) of public revenues as in the budget of 2019 and more in previous budgets. The oil sector accounts for more than (60%) of GDP, and notes the structural imbalances in public finances first, in the economic sectors Second.

These imbalances result in instability at the economic and monetary level. Thus, money supply is an internal variable of fiscal policy (as we always confirm) as long as the Ministry of Finance is responsible for selling the dollar to the central bank. By reducing or increasing public spending, as well as that every rise in the budget deficit leads to an increase in money supply because public finances resort to the instrument of public debt (internal and external) to meet the needs of the budget, which leads to the occurrence of inflationary waves pushing monetary policy to fill them through Window Currency is the most influential instrument because of the low interest rate flexibility in the banking system as a result of the separation between the real and monetary sector.

The monetary policy practiced the type of exchange rate nominally valid for monetary stability due to imbalances experienced by the economy. Statistical data issued by the Statistics and Research Department of the Central Bank show that the exchange rate for the years 2015-2018 reached a maximum of 1190 dinars (1180) dinars per dollar. As for the parallel market price, the maximum limit reached (1281) dinars per dollar, while the minimum reached (1215) dinars per dollar.

The foreign exchange reserve is a cover for the local currency and this ensures its stability and achieves development if it remains within the normative limits. The data indicate that the reserves index is moving towards safety according to international standards and covers more than 6 months of imports in case of lack of oil revenues. Including the so-called double shock in 2014, namely, the sharp drop in oil prices on the one hand, and the military strike against the organization calling on the terrorist on the other. This necessitated the intervention of the Central Bank to achieve stability and to meet the funding needs to face the financial and military shock Indirectly through the marketing of public bonds.

The reserves are not frozen, but are used in the management of currency and foreign cash investments, in addition to providing security for the national currency. If the demand for the dollar does not meet an equal offer, it means that it is one of the indicators of the collapse of the currency. Therefore, we note that the central bank is keen to cover domestic demand and demand for Import, and after 2015, I used a package of measures aimed at reducing the gap between my official and parallel prices.

When the central bank sells the dollar, it aims to preserve the value of the currency, so it does not practice a commercial process as much as it activates its tools to achieve stability. The international standards stipulate that the difference between the official bank price and the parallel price (2%) should not be noticed. More than (8%) This is a serious indicator that threatened the value of the currency at the time, but now we note that the monetary policy was able to achieve convergence between the official and parallel exchange rates and a difference acceptable globally and according to the agreement signed by Iraq, which stipulates that the difference (2%), The official exchange rate for this year (1190) dinars per d This means the reduction of the gap to less than 2%. This also means the monetary authority’s affirmation of the need to reduce the gap as a result of its commitment to the Central Bank’s law to achieve stability first and to raise the value of the local currency. It is possible for the citizen to benefit when buying goods

* Economic Researcher Ahmed Hazal

Economy-news.net

Is the foreign currency window an economic lever for Iran?

Dr.. Haidar Hussein Al-Tohma / Al-Furat Center for Development and Strategic Studies

The media arena is witnessing an exciting revival of economic experts, as they usually call specialists or non-specialists in economic sciences. Although the spread of economic culture is a benign advantage for developed peoples, economic policy and economic analysis with populist rhetoric full of illusions and simplification exaggerates the landscape and weakens the rigidity of economic knowledge, especially when these populist trends and trends infiltrate academic institutions and are academically debated as absolute economic facts.

In this context, a recent article on “The sale of the currency in Iraq, the destruction of the Iraqi economy and the revival of Iran’s economy” was recently published on social media. The fact of the matter is that the intellectual content of this article has been raised repeatedly in the media and on various economic occasions, leaving firm convictions with the negative role played by the exchange rate on the Iraqi economy and its positive role in reviving and developing the Iranian economy exclusively. Which increases the uncertainty and confusion about the actual independence of the central bank, not only the Iraqi government, but the economic interests of the neighboring countries.

The fact that the reactions and discussions on the management of the exchange rate of the Iraqi dinar and its dynamic association with the Iranian economy was an incentive to write this article, in a simple attempt to remove the ambiguity and confusion in a neutral scientific (and modest) and in the form of the following axes.

1- The name of the foreign currency auction has been changed to the foreign currency window. The window is not one of the instruments of monetary policy, but rather an administrative measure intended to stabilize the price levels.

2 – The currency window is not an ideal tool to manage the exchange rate in Iraq, but due to the economy and the depth of structural imbalances and weak national production in meeting the growing domestic demand for goods and services was to stabilize the exchange rate by feeding the demand for imports with oil dollars, Central Bank’s main bidder in the foreign exchange market.

3 – The overvaluation of the dinar exchange rate actually works to drain the dollar reserve in the Central Bank (assuming the relative stability of oil revenues) due to the positive relationship between the supply of the dollar and the dinar exchange rate, but this is the task of foreign reserves, at least in the exceptional situation that he lives Country.

4- Why was the exchange rate of the Iraqi dinar appreciated in this amount ??? The argument of the Central Bank (supported by the International Monetary Fund) is to raise the standard of living of citizens because the components of the consumer basket of citizens are fully imported. In addition to the goal of pushing banks to exercise their economic role desired as bridges to finance investment and economic growth in the country rather than engage feverishly in the auction (window) foreign currency in order to benefit from the differences between the price of the official exchange rate and the market price.

5 – Many believe that raising the standard of living of the citizen was at the expense of the advancement of the domestic product, which can not compete with foreign producer (Iranian, Turkish and Chinese) because the production costs are high in Iraq. Does this mean that reducing the value of the Iraqi dinar (1500 dinars for example, one dollar instead of 1,200 dinars) will support industry and increase the rates of production ???

The answer is no … because there are many requirements that need to be secured until the national product rises. Therefore, the policy of reducing the exchange rate of the dinar may be sustainable but after the availability of other requirements including (providing infrastructure and facilitating government legislation supporting investment and activating customs taxes and supporting the national product … ).

6. Finally, the question is: Is the excessive exchange rate suitable for the revival of Iran’s economy exclusively ???

The answer is both … because the excessive exchange rate revives all imports and from different countries (China, Turkey, Egypt, Jordan, the Gulf and many Asian countries), which gives these countries a comparative advantage in marketing their products to Iraq due to high unsatisfied domestic demand supported by high purchasing power. On the level of tourism, the strength of the Iraqi dinar increases the delegation of Iraqi tourists to different countries of the world, not just Iran, given the relative (unreal) power of the Iraqi dinar.

In conclusion, we would like to point out that neighboring countries, including Iran, do not rely heavily on the exchange rate of the Iraqi dinar in raising the rates of exports and achieve economic growth for several reasons, including:

1. The experience of recent years indicates that political and economic decision-making in Iraq fluctuates unpredictably and out of order.

2- The exchange rate of the Iraqi dinar is linked to the dollar reserve in the Central Bank, which is mainly related to the revenues of the Iraqi government from the oil exports, which is a function of the frequent fluctuation of oil prices in the world energy markets.

For years, the trading partners of Iraq (China, Turkey, Iran, Jordan and other countries) have been engaged in fierce competition to acquire the Iraqi market by reducing costs and prices or raising the quality of the product or reducing the prices of national currencies to achieve Comparative advantage of their national products.

Iraaqi.com

Al-Sadr announces a “new” transformation to uncover the “pests of corruption”: I will remind them without using weapons if I have a life!

Baghdad: Sadr’s leader Moqtada al-Sadr on Monday launched a new campaign for reform, saying he planned to repair the pests spread among the people without using weapons.

ikhnews.com