What does it mean to reduce the Iraqi dinar price against the dollar? .. An economist answers

Baghdad – people: On Thursday, economist and academic expert Nabil Al-Marsoumi expected a set of results if the proposal to reduce the price of the Iraqi dinar against the dollar was applied to counter the financial crisis.

“If the Iraqi dinar exchange rate is reduced substantially by 25%, for example, the economies of some of the countries neighboring Iraq that export to it more than 20 billion dollars will be severely damaged,” said Al-Marsoumi, an academic at the University of Basra. Annually, because the cost of its exports to Iraq will become high and its competitive capabilities in the Iraqi market will decrease, which is an important brake on taking this type of policy due to the strong influence that neighboring countries possess in Iraq.

He added, “Given the lack of flexibility of the production base and its limitations in Iraq, the prices of imported goods will rise in the short term, especially, but in the medium and long term this may constitute an incentive to activate the role of the private sector in establishing projects producing consumer goods, especially food, to cover the needs of the Iraqi market, which will lead to lower prices. Later”.

He continued, “The government revenues denominated in the Iraqi dinar will increase by the same percentage of the dinar price, which will increase its ability to cover public expenditures and maintain the cash reserves of the Iraqi Central Bank from erosion.”

He pointed to another point which is that “putting an end to the flight of capital in view of the low value of the dollar in the face of the dinar, as well as reducing Iraqi investments abroad, especially in real estate and reducing Iraqi deposits in foreign banks, as well as the relative reduction of money laundering operations in Iraq.”

In this regard, the decree expected that “reducing foreign labor in Iraq, as work becomes less feasible on the one hand, and foreign labor becomes more expensive compared to national employment.”

Nasnews.com

An economist defines 3 controls for printing new quantities of the national currency and warns of the harm of a group of society

Baghdad today _ Baghdad : The economist, Rasim al-Akidi, spoke today, Monday, of the 3 most important regulations that must be observed when printing the national currency, in order to prevent the high prices in the country and the poor segments.

Al-Akidi said, in an interview with (Baghdad Today), that

(1) “any process of printing the Iraqi local currency must take into account 3 important factors, which are the monetary mass (the amount of money that is printed) the volume of the deal (that is, after the currency is printed how much will be its size in the markets Shops, homes, banks) and trading volume (i.e., the number of activities that deal in the national currency, and how many activities that deal in hard currencies, including the dollar).

Al-Akidi added,

(2) “Any process of printing the national currency must be printed according to the economic cycle of the country, i.e. the sum of all commercial activities and practices that take place and on the basis of which the volume of monetary transactions will be.”

(3) The economic expert pointed out that “when Iraq printed 40 trillion dinars and then reached 56 trillion in the past years, that was according to the economic cycle of the country,” noting that “any increase in printing is more than the need of the economic cycle will create more monetary mass than the market needs What leads to the creation of inflation that pushes up prices and affects the purchasing power of many segments, especially the simple and the low-income. ”

(4) A well-informed source at the Ministry of Finance, on Wednesday (May 13, 2020), denied that there was any resort to the option of printing the currency to face the economic crisis.

He said in an interview with (Baghdad today), that

(5) “the option of printing the currency to provide salaries is excluded and not presented to the meetings of officials at the present time.”

Economists offer the option of printing controlled amounts of the currency or reducing the value of the dinar against the dollar to provide additional resources that will flow into the state treasury to secure the operational budget, including the salaries of employees.

Baghdadtoday.news

Iraq is more than a challenge

Mustafa Al-Kadhimi, Prime Minister:

As the date i have reached before parliament to complete the ministerial formation approaches, our people, their national forces, and our youth, who demand their rights, must be put in front of the challenges that they face that require everyone to come together to overcome them, and the constructive and intensive dialogues i are carrying out with all political forces aimed at reaching what satisfies our people and restores confidence in the crisis by overcoming the worsening political process that they face and putting Iraq at a crossroads.

I have met my duty and I already know the difficulties that stand before me, and the heavy legacy that will face me at all levels and in all vital fields that are linked to the lives of citizens, and the security, sovereignty and independence of the country. Aware that the crisis is comprehensive and enters the fabric of the state and its institutions, and hinders its economic strength, which has faltered during the past period, has not achieved what would comprehensively promote the food security of the country, or promote industry and diversify the state’s imports, expand investment, and rehabilitate eroded infrastructure.

The difficulties were compounded by the failure to seriously review the structure of oil production and marketing and interest in oil derivatives, while the crisis of administrative and financial corruption was recycled, and many state and institutional completion systems were dismantled. Instead of encouraging investments, labour sectors and restarting troubled factories by securing what they need edifying the unemployed workforce, the level of job inflation in state agencies has been raised, resource depletion and disguised unemployment.

All of this has made the challenges facing any government double. Knowing all these difficulties, I responded to take responsibility, relying on the understanding of the blocs and the political leaders, and before that the public of our people, who are afflicted, oppressed, and demanding their natural rights, for the necessities of the stage, especially since the serious decline in the country’s resources with the collapse of oil prices necessitates the government to look in all directions to find urgent sources to pay the salaries of state workers, and to cover the expenses necessary to manage the affairs and obligations of institutions, especially to ensure the safety of citizens from the Corona pandemic.

As I put these facts before our people and political leaders, I reaffirm that Iraq is bigger than challenges, crises and problems, no matter what, and that we need to cooperate and join hands with all the forces of our people, including parliamentary blocs, political parties, social and cultural events, and with understanding from our young demonstrators, enabling the government to do its duty.

This support is now required of the parliamentary political blocs to help complete the ministerial composition by voting on the list of candidates for vacant ministries, in order to further develop practical plans to complete the tasks entrusted to the government in the transitional phase, to respond to the legitimate aspirations of citizens to provide the possible limit of services and decent livelihoods and to stop the violations and abuses to which they are subjected, and to return their children who have been arrested and absent.

We should not lose sight of all of us that after seventeen years, we find ourselves in an unenviable situation, our sovereignty has continued to be diminished, violated or subject to suspicion, and the territory of our country is meant to become a field of conflict for others, and the security of our citizens is threatened, not only from the continuation of ISIS and its sleeper cells, but also from the weapons that have escaped outside the state, all manifestations of corruption, looting of public funds, waste of wealth, and the unacceptable level of iraq’s classification in terms of education, health and services.

Unemployment is no longer a phenomenon that can be contained, but the number of unemployed, especially among graduates, has exceeded levels that we have not reached in any previous circumstances. The poverty line now includes the mothers and families of the martyrs who took their lives in defence of the homeland. Although the wealth that has entered Iraq’s coffers over the past 17 years has been enough to rebuild the country and establish the Future Fund, corruption has drained it, some of which have been openly escaped out of the country, and I have not found responsibility for the near-empty treasury!

I found it my duty in these difficult and complex circumstances to put our people in the face of the difficulties we face, including the contradiction between the public promises that confirmed my freedom to choose the ministerial composition, and the behind-the-scenes manoeuvres, pull and attract some. This hinders and hinders the completion of the government in order to carry out its tasks with vigour and concerted efforts to reach the stated objectives.

It seems at times that the assurances we make of the need to correct the courses of the political process and put the country on the path of recovery does not find ears to some here or there, without paying attention to the fact that the country is threatened by what will put us all in the face of options that are not winners and the best of the decline to chaos, God forbid, which leads to the reaffirmation of the need to put all the higher national interests above the secondary interests, and to join the efforts of all blocs and parties and their understanding of our people, to cross this stage.

We have no choice but to respond to the just popular demands expressed by the protest movement and the demonstration sit-ins, which brought together the finest girls and young people of our people, and sincerely work to achieve their demands to restore iraq’s glory, strength and dignity, and to liquidate the legacy of the abhorrent quotas in all its manifestations, to cross this stage.

We have no choice but to respond to the just popular demands expressed by the protest movement and the demonstration sit-ins, which brought together the finest girls and young people of our people, and sincerely work to achieve their demands to restore Iraq’s glory, strength and dignity, to liquidate the legacy of the abhorrent quotas in all its manifestations, and to fight financial and administrative corruption.

It is not possible to take any serious step without initiating something that restores the state’s prestige and extendits its sovereignty, which requires that no party, whatever its affairs, strength or loyalty, be above the will of the State, the Constitution and the law, and that the weapon and firepower become in the hands of the State and the armed forces and under the command of the Commander-in-Chief of the armed forces.

I would like to reiterate once again to remove any confusion, that the task entrusted to me is to cross the transition as soon as possible, and to respond to urgent tasks directly, most notably:

– Completing the electoral law with the necessary checks or amendments, finalizing the final version of the Law of the High Electoral Commission, securing all necessary elections as soon as possible, cooperating with the UNITED Nations representative and local and international observers, and ensuring that the right foundations are put in place to hold elections in a political and security atmosphere that ensures their integrity and fairness.

– Take all measures and measures in cooperation between the Ministry of Interior and all the security services to protect the demonstrators and ensure the safety of their squares, and express their will freely, peacefully.- I reiterate here that orders have been issued to all security services to release all detained protesters, search, investigate and investigate the finding of the abductees and diagnose those who carried out the assassinations and put them before the law.

– Take all urgent measures to address the economic and financial crisis, rationalize spending, fight corruption, start the necessary reforms, and protect our people from the Corona pandemic.

Before and during all this, the restoration of the prestige of the state, the affirmation of national sovereignty, the restriction of weapons in the hands of the official institutions concerned, the security of the country in the face of terrorist threats, the establishment of the rule of law and the establishment of the rule of law and the equality of all. As I pledge what I am saying here, I find it my duty to express the assessment of the blocs and their leaders who responded to me in voting on the incomplete ministerial composition, and I look to everyone to support our efforts and the meetings and dialogues we are doing to complete the composition and facilitate its tasks within the framework of our transition tasks.

I conclude with a reply to those who warned me that I have no political party or a parliamentary bloc that protects me in the past commitments made in the service of my people, saying:

“Who can be able to god to have loved him to God by not passing him may have made God for all that he has?”

The greatest of God.

Alsabaah.iq

A deputy talks about 4 agencies that “loot” the state treasury, which the previous governments did not address!!

Baghdad today – Member of Parliamentary Finance Committee Jamal Kujer revealed, the presence of 4 parties, who said that they are looting Iraq’s treasury, pointing out that they are facades for some countries.

Cougar said in an interview with (Baghdad Today), that “the Minister of Finance’s recent talk about the presence of pockets in the state, out of control, spending billions annually, is not a secret but a known and known matter to public opinion,” stressing that “the problem in Iraq is diagnosed from a period that is not Few, but we need to adopt solutions to confront corruption with vigor and firmness and stop wasting money. ”

Cougar added, “The most important files of corruption in the Iraqi countries are represented by border outlets, oil, currency sales, collection, economic offices, space and fictitious projects.” The amount of money stolen because of the corrupt. ”

Cougar pointed out that “there are 4 entities that plunder the treasury of Iraq, who are people, militias, parties and mafias, most of whom are fronts for some of them from neighboring countries, and this explains the inability to address them by previous governments.” Easier. ”

The Finance Minister, Ali Allawi, said in a televised interview, that “there is supposed to be a unified account for all the state’s funds, but there are pockets that are out of control with billions”, stressing that there are “trillions of accounts for some ministries.”

On a related level, a member of the House of Representatives revealed the alliance of Saireon, Riyadh Al-Masoudi, about countries from which smuggled Iraqi money was transferred.

Al-Masoudi said in an interview with him (Baghdad today), that “corruption in the country has reached an unbearable level, even if some people have built palaces of the Iraqi people’s money.”

He pointed out that “Iraqi funds that have escaped from the country over the past years fill the UAE, Jordanian, Egyptian, and Turkish banks,” stressing that “the recovery of these funds will contribute to building large infrastructure projects.”

Iraqakhbar.com

Al-Araji: Al-Kazemi must review the auction of the currency

Gilgamesh Press / Baghdad – The former Deputy Prime Minister, Bahaa Al-Araji, confirmed today, Thursday, the review of the currency sale auction in the event that the new Prime Minister, Mustafa Al-Kazemi, wants to reform the economic situation.

Al-Araji tweeted on his Twitter account and followed him, “Gilgamesh Press,” saying, “If Al-Kazemi wants economic and financial reform, he must start by structuring governmental banks and companies of the Ministry of Industry that have become a burden on the national economy, as well as increasing the capital of private banks to be in front of real banks, not financial brokerage stores, With a review of the auction sale of the currency to limit its smuggling. ”

Glgamesh.com

A member of Parliamentary Finance reveals the size of Iraq’s debts and is likely not to approve the 2020 budget

Baghdad today – Member of the Parliamentary Finance Committee, Muhammad Sahib Al Daraji, affirmed on Tuesday (19 May 2020) that Iraq’s debts amounted to 124 billion dollars, while the 2020 budget was unlikely to be approved.

Daraji said, during his hosting of the program (Shortest Roads) presented by Dr. Nabil Jassem on Al Sharqiya News Channel, that “Iraq’s debts currently amounted to 124 billion dollars, while expenditures in 2019 amounted to approximately 116 trillion dinars,” noting that “the debts due on Iraq include The consequences of the war for us in Kuwait. ”

He added that “the previous government erred when it agreed to reduce oil production because it caused great losses,” calling on “Prime Minister Mustafa Al-Kazemi, to take a decisive position on this decision after the appointment of a new oil minister, even if we had to leave the OPEC agreement.”

He pointed out that “there are many solutions that must be followed to save the country from the economic crisis it is going through, including preventing speculation with food and not importing products except the necessary things, as well as imposing control on the border ports by the Iraqi government to ensure that unnecessary products are not imported.” It is “possible to achieve this by supporting the anti-terror agency because there are large (militias) controlling these outlets.”

He continued: “The exchange rate of the currency must be changed, and the direct sale to the citizens should be taken instead of the auction, and external relations must be exploited and worked to improve them,” stressing that “it is necessary to review Iraq’s decision on reducing oil, and to return from it regardless of circumstances.”

On the budget, Darraji commented: “The circumstances Iraq is going through are difficult, and the possibility of passing the 2020 budget, so far, is not certain.”

Baghdadtoday.news

They refuse to ask Iran to return $ 500 billion to Iraq

On Thursday, Raafidoun movement called on Iran to return $ 500 billion to Iraq, after seizing it through fictitious projects through the Islamic banking network and the sale of hard currency.

In a statement received by Al-Akhbariya, the movement said,

(1) “We have seen the request of the head of the National Security Committee in the Iranian parliament to recover $ 20 billion from the Syrian regime that it had spent there to keep the dictator dominating the necks of the Syrian brothers.”

She added,

(2) “Regardless of the responsibility of the Iranian regime for the Syrian tragedy and the displacement of its proud people, Iran does not have the right to demand funds that it spent on its own will to achieve expansion projects on its behalf against the interest of the Arab people.”

And she continued,

(3) “On this occasion, we are asking Iran to return the $ 500 billion that it seized with fraud and fraud and mock projects in conspiracy with its clients who have ridiculed Iraq’s budget in favor of the Iranian regime through their control of political, economic and military sites in Iraq,

(4) particularly through the network of fake Islamic banks and the auction of hard currency sales.”

Ikhnews.com

A proposal on the government table to face the parliamentary economic and financial crisis warns!

Baghdad today –  The decision of the Parliamentary Finance Committee, Ahmed Al-Saffar, on Wednesday (May 20, 2020),

(1) warned against demands to raise the price of the dollar against the Iraqi dinar to confront the financial crisis and maintain the hard currency,

stressing that this decision is not in the interest of the Iraqi financial system.

Al-Saffar said in an interview with (Baghdad today) that:

(2) “raising the dollar exchange rate to face the financial crisis and preserve the hard currency is one of the proposals and monetary measures that the state may take to avoid the liquidity crisis.”

He added,

(3) “It is not in the interest of the financial system to raise the exchange rate of the dollar because it will lead to a decrease in the Iraqi dinar price and a decrease in purchasing power and will lead to inflation,” noting that “the classes with limited income and those with salaries will be the first affected by this decision.”

(4) Al-Saffar pointed out that “raising the price of the dollar depends on the government’s ability to apply the necessary public spending from other sources.”

(5) The economist, Rasem Al-Akidi, warned, Thursday (14 May 2020), of floating the Iraqi dinar against the dollar, that is, reducing the value of the Iraqi dinar against the dollar according to a proposal put forward by economists to provide additional funds for the Iraqi budget to be paid as salaries for employees.

Al-Aqidi said in an interview with (Baghdad Today),

(6) “The issuance of any decision to float the dinar against the dollar in light of the current conditions in Iraq is very dangerous for the country which is basically suffering from uncontrollable losses, namely fees, customs, taxes and many other financial resources.”

And that :

(6) “the flotation does not constitute an increase in the value of the Iraqi dinar, but rather we will see an increase in the exchange rates of the dollar due to the lack of its acquisition in the global market, especially with the decline in global oil prices.”

He added that :

(7) “the flotation will lead to a significant increase in prices, and will be paid by the poor,” noting that “the flotation is taken in light of the stable financial conditions of the state, as well as the diversification of the economy and its dependence on resources other than oil.”

Al-Akidi said that :

(8) “floating the dinar against the dollar is launching the process of buying and selling without any limits, and the country will face an unprecedented rise in prices with limited and steady salaries, so conditions will be more difficult, especially in the humanitarian context.”

Baghdadtoday.news

Deputy: The names of the vacant ministries are ready and awaiting a parliament session

BAGHDAD – Mawazine News, MP for the Al-Hikma block, Star Al-Jabri, confirmed that the names of the vacant ministries are ready and awaiting a parliament session to vote on them this week.

Al-Jabri said, “Prime Minister Mustafa Al-Kazemi held consultations with political forces and blocs to complete his ministerial cabinet, which had not been completed by 7 ministries, before Eid Al-Fitr.”

He added, “The names are ready and Al-Kazemi is presenting a request to the Presidency of Parliament to hold a session to pass it this week.” Ended 29 / A

Mawazin.net

Borrowing from the World Bank has negative effects on the economy of Iraq

Osama Chalabi, former deputy governor of the Central Bank of (time) borrowing from the World Bank has negative effects on the economy of Iraq

The interview was conducted by: Saad Al-Sayegh Chalabi said Osama – Deputy Governor of the Central Bank of Iraq until 2003 that monetary prejudice Balaanaat It represents the last gasp of the Iraqi financial situation , and that this should never happen.

And he added, in a short interview with Time in its international edition, that borrowing from the World Bank has conditions Humiliating and future effects, and pointed out that the currency auction has special conditions that have been discussed with The World Bank delegation.

In the text of the interview follows : ‭ ‬ ‭

‬Iraq is suffering from severe financial crisis due decline global oil prices and inability to secure salaries for employees and retirees Is Central Bank maintains Bkhozan reserves of hard currency ( dollar and gold ) to secure salaries?

The current monetary crisis was expected even before the emergence of the Krone Virus crisis and what we are in now, and in fact it is The Central Bank of Iraq still maintains a deposit of cash reserves in US dollars, as is well known to me Competent circles and it ranges from sixty to sixty two billion US dollars. A large proportion of this figure is a legacy prior to the occupation. The monetary reserve of states has special sanctity with the nations and a guarantee of the economic and monetary situation of the country and the prestige of the state. Precaution is difficult and not desirable and it represents the last breath.

As for gold, the central banks usually reserve a percentage of their cash capabilities with gold and deposit it with Swiss banks Deposit interest but low rates. Before the occupation, the Central Bank of Iraq had types of gold balances that were kept in its fortified safes Al-Majdat, who sold the siege period, bought from the world market, and another went special. I do not have accurate figures on the amount of its current balances, as it is one of the central bank’s characteristics.

Returning to the monetary situation, there are alternative methods other than compromising the cash reserve, which is borrowing from the World Bank This option is one of the traditional methods, but it is the largest in terms of negotiating difficulty and its conditions will be insulting in the future Until the price of oil returns to nearly its price before the current crisis. However, the crisis is inevitably coming, according to the schedule of oil revenues for the coming months, according to what Mr. Issam presented Chalabi in his important tweets a few days ago, as the nation will face a difficult time.

Another important issue is happening now, where a new government will be formed and headed by a capable prime minister who knows how to recover Even if a percentage of the money stolen to pay for breath, the nation is now in danger and the danger includes everyone and will record history Here guys did.

The continuation of the currency auction in the central bank, despite the stoppage of oil revenues and the accompanying smuggling of currency It has a significant impact on the rise in the price of the dollar against the value of the Iraqi dinar.

Currency auction The International Monetary Fund previously dispatched a representative three or four years ago to discuss an issue with me Currency auction. I remember that these meetings took place in the halls of the Intercontinental Hotel in Amman, where I briefed them on a formula The work of the auction, which raised the excitement of everyone about the bad process, because the subject of the auction must be dealt with wisely and in style sober.

Recently been put for printing Iraq meet staff and salaries retired currency Is this true procedure So what has been done?

The idea of ​​printing a currency is, I think, far and difficult because it will get a wave of higher prices for goods and services, as happened previously in the internal circulation and it is difficult to combine the two currencies , and we will go back to before twenty years ” original Swiss ” .

And that this proposal is not useful under the current circumstances and has major economic repercussions that Iraq suffered from in A lot of the time, and this happened during a period when the necessities for the action were necessary, as the country was saved from dire results. It also does not give any support to external trading.

As a result of the end, the Central Bank of Iraq and since the year two thousand and three bear full responsibility for the outcome of monetary policy . The talk is many and many, but the result is what we are today and God is kind to worshipers. Thank you.

Azzaman.com