It is likely to resume parliament sessions at the end of this week

Information / Baghdad… Independent MP Mohsen Al-Saeedi suggested, on Sunday, the resumption of the regular sessions of the House of Representatives at the end of this week to discuss and approve a number of important laws.

Al-Saeedi said in a statement to Al-Maalouma, “After the end of the legislative recess, it is possible that the Presidency of the House of Representatives will set a new date for the resumption of regular sessions at the end of this week.”

He added, “The new legislative term will witness discussion and approval of a number of laws, in addition to discussing important issues, including the exchange rate of the dollar.”
Al-Saeedi indicated that “the parliament will make up for what it missed during the previous legislative term in the new legislative term,” noting that “the new legislative term will witness the committees proceeding with legislative procedures for laws and proposals.”

A member of the Parliamentary Legal Committee, Aref the lawyer, confirmed earlier in the day that the legislation of important and controversial laws is subject to political consensus.

Almaalomah.me

What is meant by currency float? What are its advantages and disadvantages?

The floating currency is intended to leave the value of a country’s currency to supply and demand when compared to another currency. There are millions of traders around the world buying and selling currencies, which helps determine their value for others. The floating exchange rate is determined by these daily interactions between traders. If investors By buying the US dollar heavily, it is likely that its value will rise against other currencies, and this means that more dollars will be needed to purchase the same number of goods from abroad.

The author, Mohamed Abdel-Khaleq, an economic analyst, writes:

How does the currency floating system work?

The basis of the currency floating system is supply and demand. If the supply is greater than the demand, the value of the currency will decrease. On the contrary, if the demand is greater than the supply, its value will increase.

In the short term, the float can be affected by factors such as speculation, natural disasters, and political news, for example: elections can often lead to periods of negative sentiment if an extremist party has a chance to grab power.

As for the long term, it is inclined A floating exchange rate in the forex trading market indicates volatility based on economic performance For the country and its balance of trade, if the economy is performing poorly it tends to see less investment from abroad, this means that less demand is made for the currency and thus exert negative pressure on its value.

The trade balance is the net of what a country exports and imports, so if a country imports more than it exports it has a net flow of its currency, this is because it demands more goods from other countries than those countries demand from them domestically, in return, the country sends more of its currency to abroad, thus increasing the market supply and decreasing its value.

Theoretically, a flotation mechanism can help countries recover from recession. This is because their currency tends to weaken as a result of poor economic performance. In turn, exports become more competitive because they are cheaper in the international market. This can help provide a boost to local exporters. At the same time, imports become more expensive. This may make goods more expensive in the short term but has the potential to boost alternative domestic suppliers who become relatively cheaper.

Advantages of floating the exchange rate

1. Stability in the trade balance… The trade balance is the difference between what a country imports and what it exports. It may also be known as “net imports”. This is an important economic aspect because it is a component of a country’s economic output.
A floating exchange rate allows for more stability in this region as the currency is volatile. When a currency depreciates it means that exports become cheaper to the rest of the world. This provides a boost to the balance of trade between countries as they can export more because they are relatively cheaper than their competitors.

By contrast, when a country sells a large number of goods abroad and has a positive trade balance, its currency is likely to strengthen, meaning that other countries will start to find it more expensive to import from that country. In turn, countries may look where Another about cheaper goods, which negatively affects the exchange rate.

2. Stability of inflation… One of the main drawbacks of a fixed exchange rate is that countries will naturally “import” higher prices, so the benefit of floating is that hyperinflationary countries will experience a depreciation of their currency, and this will then help offset the inflationary effect on other countries.

3. Decrease in foreign exchange reserves… By working under a system of floating exchange rate, the central bank in the country no longer needs large reserve currencies to stabilize the exchange rate, under the system of fixed exchange rate central banks need a wide range of currencies, and this means that if Needed to strengthen its currency it will sell foreign reserves thus increasing other supply in the market and lowering the value.
Instead, under a system of floating exchange rates, that same money can be used in a way that benefits the broader economy.

4. Independence… Under a fixed rate system shall operate central banks For different countries in line with each other, for example: if a country raises interest rates to deal with inflation other central banks will need to respond, this is because what happens in one country is likely to affect monetary conditions in another country.

When currencies are linked to the dollar, changes in the value of the dollar will have an impact on the value of other currencies. In contrast, these countries are subject to the feelings of the US Federal Reserve Bank and its monetary policy. By contrast, the floating exchange rate allows countries to decide on their monetary policy. Without focusing only on other countries.

5. Fewer speculative attacks… When a currency is artificially forced to stay at a fixed level, there is often bubbles in market activity. Investors know that a currency is undervalued, but with a fixed exchange rate central banks struggle to maintain a constant exchange rate.

There is a point where the countries currency remains stagnant, but the fundamentals appear to be undervalued or overvalued, this opens the door to speculative attacks on the currency as it seeks to make some easy money, and this in turn can lead to drastic shifts in the foreign exchange market which can cause great distress to national economies.

In contrast, a floating exchange rate is constantly changing reflecting a wide range of underlying conditions ranging from inflation to economic performance, so the exchange rate is largely in line with its underlying value.

Disadvantages of floating the exchange rate

1. Exacerbation of economic issues… Countries may face economic difficulties at home, there may be excessive inflation rates, economic stagnation or poor job opportunities, all of which can play a role in the foreign exchange market.

As a result of the flotation, investors look at the basic features of the economy to determine its value, and these basics include economic indicators such as growth and inflation, so when these indicators perform poorly, they are likely to lose value against other currencies.

The float also has the potential to drive the economy down as a weak currency puts pricing pressures on its imports, so for countries that import heavily they may face higher prices that will likely reduce consumer demand.

2. Possible volatility… One of the main problems with a flotation is that it can create volatile conditions for companies and countries, a sharp depreciation in the value of a currency can greatly affect the dynamics of its economy, imports become significantly more expensive which puts pressure on value-adding exporters, moreover Companies that import raw materials will see higher prices as a result.

If the economy is formed in such a way that imports are a major component, it may struggle more during periods of currency weakness. By contrast, countries such as export-led China may benefit, since most of their business is focused on exporting their goods become cheaper abroad and thus Increased demand and improved economic conditions at home.

3. Weak monetary policy is excused by a flotation system… If the central bank has the responsibility of maintaining a currency peg, it has the autonomy to pursue its own monetary policy and economic agenda.

This is a two-sided coin. On the one hand, a well-managed monetary system can take advantage of this freedom, and on the other hand, mismanagement can lead to hyperinflation and financial crisis.

Many countries have tried to work their way out of debt by floating the currency, but the result has always been excessive levels of inflation and a bad credit rating. Instead, countries that may struggle to manage their monetary policy are better off having a fixed exchange rate.

Alsumaria.tv

Al-Abadi Warned Us Of The Consequences Of Devaluing The Dinar Two Years Ago

Earth News / The head of the Victory Coalition, Haider al-Abadi, called today, Tuesday, for quick measures to restore the value of the dinar to what it was, while stressing that what is happening is the consequences of the decision to reduce the dinar two years ago.
Al-Abadi said, in a tweet via “Twitter”, followed by Earth News Agency, that “what is happening in terms of serious repercussions on the standard of living of citizens due to the low exchange rate of the dinar and the rise in prices requires quick measures to restore the value of the dinar to what it was.”

He added: “We warned of the consequences of devaluing the dinar two years ago, despite the agreement of the blocs on it, and we are now warning against the consequences of continuing the policy of draining the country’s economy, especially since the oil revenues for the current year 2022 have exceeded 150 trillion dinars, which is equivalent to the total oil revenues for the three years 2015, 2016 and 2017, days.” ISIS war.

He pointed out that “this huge increase in revenues must be in the interest of the citizen and not a burden on him.”

Earthiq.news

Disclosure of the date of the arrival of the budget to Parliament

Information / special… Today, the representative of the State of Law coalition, Bahaa al-Din al-Nuri, revealed the date for the arrival of the general budget to the House of Representatives, while stressing that the budget is still in the corridors of the Ministry of Planning.

Al-Nouri said in an interview with “The Information” that “the general budget will reach the House of Representatives on the eighth of next January, after completing the legislative recess and the parliament resuming its sessions,” noting that “the decision on the general budget law will need a month in Parliament to vote on it officially.” .

And he continued, “The Ministry of Finance will send a committee to audit, in addition to the Parliamentary Finance Committee, in order to read and review all its paragraphs and details, so that they are ready to be passed under the dome of Parliament,” noting that “the general budget is still in the corridors of the Ministry of Planning in order to complete the addition of some paragraphs.”

And he indicated that “there is a serious desire from all political blocs to approve the general budget law as soon as it reaches parliament, because it contains many paragraphs on which most segments of society depend.”

Earlier, the Ministry of Planning confirmed that “Prime Minister Muhammad Shia’ al-Sudani assigned the Ministries of Planning and Finance to quickly prepare the general budget for the year 2023 and submit it within appropriate time periods to the House of Representatives in order to proceed with the procedures for its approval.

Almaalomah.me

Rights: America imposes guardianship over the Iraqi people

Information / Baghdad… The head of the Parliamentary Rights Bloc, Saud Al-Saadi, accused, on Tuesday, the United States of America of imposing guardianship on Iraqi sovereignty, the Iraqi economy and money.

Al-Saadi said in a statement to Al-Maalouma, “What is happening is the imposition of American tutelage on Iraqi sovereignty and on the Iraqi economy and money,” noting that “Iraq came out of Chapter VII, and no one can impose any tutelage on it, and therefore we demanded the restoration and transfer of Iraqi funds in full to Treasury of the Iraqi state.

He added, “Our position is firm, which is not to transfer money from Iraqi oil sold to the US Federal Bank, which controls, together with the US Treasury Department, the procedures for transferring dollars into Iraq.”

Al-Saadi pointed out that “America recently put in place procedures and restrictions that caused a decrease in the percentage of Iraqi funds transferred to Iraq, which caused a shortage in supply and an increase in demand, and thus led to a rise in the exchange rate of the dollar against the Iraqi dinar.”

Almaalomah.me

Al-Sudani urges the Central Bank to activate steps to sell foreign currency at official rates

Shafaq News / The Prime Minister, Muhammad Shia’a Al-Sudani, urged, on Tuesday, the Central Bank of Iraq to activate steps to sell foreign currency at official rates to the population, with the aim of curbing the rise in the exchange rate of the dollar against the local currency.

This came during his meeting today with the Governor of the Central Bank of Iraq, Mustafa Ghaleb Makhaif, according to a statement issued by the Sudanese media office.

According to the statement, Al-Sudani “listened to a detailed presentation from the bank’s governor regarding the rise in the foreign currency exchange rate, and the most important measures taken by the bank in this field.”

The statement stated that “the Prime Minister urged the Central Bank to achieve general stability of prices and the exchange rate, in accordance with the tasks stipulated in Articles (3 and 4) of the Central Bank of Iraq Law, which stipulate that the Central Bank aims to achieve stability in the local exchange rate, and organize and monitor the work of Banks, enhancing the safety and efficiency of payment systems, and developing the payment system.

Al-Sudani stressed the need for the bank to take the necessary measures to prevent illegal speculation and everything that harms the local market and leads to higher prices.

He also urged activating steps to sell foreign currency at official prices to citizens through purchasing with electronic cards, opening sales outlets for travelers, or clients outside Iraq, or financing foreign trade, in accordance with the fundamentalist contexts and international standards for opening documentary credits and remittances.

The Governor of the Central Bank presented to the Prime Minister the positive position of the financial situation, stressing that the crisis regarding foreign currency is an emergency crisis for technical reasons, and coincided with the work of the new electronic platform and the delay in transfers due to the Christmas holiday.

The governor praised Council of Ministers Resolution No. 352 of 2022 to stop the work of pre-collection of taxes and customs duties on goods entering government ports, prevent double taxation, and collect them according to the approved contexts at border crossings.

And the exchange rate of the dollar continues to rise since days against the Iraqi dinar in the main stock exchange in the capital, Baghdad, and in Erbil, the capital of the Kurdistan Region, and it rose today to approach the barrier of 160,000 dinars for the category of 100 dollars, and this rise is the first of its kind since 2003 until now.

The rise of the dollar in the Iraqi local markets led to an increase in the prices of foodstuffs in the wholesale markets, which are considered the main artery of the citizen’s life.

In today’s statement, the central bank attributed the dollar’s rise against the dinar to “temporary pressures resulting from internal and external factors, given the adoption of mechanisms to protect the banking sector, customers, and the financial system.”

The bank confirmed that foreign trade requirements (for the purposes of documentary credits or transfers) are fully covered by the official price (1465) dinars to the dollar for documentary credits and (1470) dinars to the dollar for transfers.

Shafaq.com

The Iraqi prime minister is caught between allied pressure and US appeasement

Iraqi Prime Minister Muhammad Shia al-Sudani is facing pressure from some forces within the coordination framework to reconsider the strategic framework agreement with the United States, at a time when the latter is trying to maintain good relations with the American administration and avoid any tremors with it.

Iraq and the United States signed a strategic framework agreement in 2008, which included a number of axes, including regulating the presence of US forces in the country, in addition to provisions related to strengthening cooperation in various economic, cultural and political fields.

And after the killing of the commander of the Quds Force, the external wing of the Iranian Revolutionary Guard, Qassem Soleimani, and the deputy head of the Popular Mobilization Forces, Abu Mahdi Al-Muhandis, in an American strike in Baghdad in early 2020, the Iraqi parliament, under pressure from Shiite forces and factions loyal to Iran, issued a resolution obligating the Baghdad government to withdraw the American forces deployed in the country. Within the framework of an international coalition to combat the Islamic State.

Pro-Iranian Shiite forces are trying to take advantage of the existence of a pro-government government to put pressure on the removal of all US forces from Iraq

Indeed, the Al-Kazemi government reached a consensus about a year ago regarding the withdrawal of US forces from the country, and the transfer of the remaining ones to tasks with an advisory and training dimension, in a move that sparked widespread controversy in the Iraqi arena, and rejection by the Shiite forces.

Today, some Shiite forces are trying to take advantage of the presence of a loyal government to pressure the expulsion of all American forces, in a move that observers say would affect the relationship between the two countries, which is what the current Iraqi prime minister is trying to avoid.

The leader in the coordination framework, Turki Al-Atbi, called for the need to reconsider the strategic framework agreement with Washington. Al-Atbi said in a press statement, “In light of the challenges and painful events that Iraq has gone through during the past years, it has become necessary to reconsider the strategic framework agreement with Washington, which did not achieve any of its general goals, and Iraq is directly affected by it.”

Al-Atbi added, “We have five important observations regarding the provisions of the strategic agreement, the most prominent of which is Washington’s exploitation of some of its provisions in flying military aircraft without any inspection, which means a major security problem that must be paid attention to, in addition to issues related to the economy, money, and repeated violations of aircraft and drones and their bombing of targets in depth.”

The leader in the framework that represents the political umbrella of the Sudanese government indicated that “Iraq’s current situation requires a revision of all agreements with the United States and others and making them according to a path that serves national security and directly preserves its sovereignty.”

The demands of leaders in the coordination framework to reconsider the American presence come with the return of attacks attributed to ISIS. Since the beginning of this December, seven attacks have been recorded on Iraqi security forces in the regions of Kirkuk, Diyala and Tarmiya, killing nineteen people and wounding fifteen others.

Observers of Iraqi affairs rule out the success of the current pressures in pushing the Iraqi prime minister to go towards reconsidering the strategic framework agreement, or working to end the US military presence, especially since he realizes the extent of Iraq’s need for US support, both on the security and even political level.

Al-Sudani stresses the importance of continuing joint work, especially in the field of advising and training the Iraqi forces, which are fighting the confrontation against terrorism effectively and professionally.

Observers point out that Al-Sudani will try to convince the forces objecting to the American presence of the need to postpone the opening of this file, at least in the foreseeable future, and to focus on priority issues at the internal level.

The Iraqi Prime Minister, who also holds the position of Commander-in-Chief of the Armed Forces, stressed the importance of cooperation and coordination with the United States earlier this month, during his meeting with the Commander of the US Central Command, General Michael Korella.

During the meeting, Al-Sudani stressed “the importance of continuing joint work, especially in the field of providing advice and training to the Iraqi forces, which are fighting the confrontation against terrorism effectively and professionally,” stressing that “the Iraqi forces are determined to continue working in order to stabilize stability and preserve the successes achieved in the war on terrorism.” “.

The number of American forces in Iraq is estimated at about two thousand soldiers, deployed in three main locations, which are the “Ain al-Assad” base, located 130 km from the city of Ramadi, the center of Anbar Governorate, in western Iraq, and the “Victoria” camp, adjacent to Baghdad International Airport, which There is a mission and intelligence analysis unit in it, along with the “Harir” base, located north of Erbil, in the Kurdistan region of northern Iraq.

Rawabetcenter.com

Economist: The government’s measures will contribute to devaluing the dollar within two weeks

Information / Baghdad … The economist, Bassem Antoine, confirmed that government measures will contribute to a decrease in the exchange rate of the dollar within two weeks, while he identified two main reasons behind the continuous rise.

In a statement to Al-Maalouma, Antoine said, “The set of measures taken by the government of Prime Minister Muhammad Shia’a Al-Sudani and the Central Bank by reducing the price of the dollar and limiting imports will contribute to the return of the exchange rate of the dollar to what it was and within two weeks.”

He added, “The high exchange rate of the dollar against the Iraqi dinar stands behind it for two reasons: the first is the failure to legislate the budget law by determining the exchange rate, while the other factor is the transfer of corrupt money from the Iraqi dinar to the dollar, which led to an increase in demand for the dollar.”

The Finance Committee in the House of Representatives attributed earlier the reasons for the high price of the dollar against the Iraqi dinar to the pressure exerted by the US Federal Bank on the Central Bank of Iraq.

Almaalomah.me

Because of the rise in the dollar.. a parliamentary threat to interrogate Al-Sudani and the governor of the Central Bank

Information / Baghdad… The House of Representatives is heading to interrogate the Prime Minister and the Governor of the Central Bank after the end of the House of Representatives recess in the event that the measures taken fail to restore the exchange rate to its normal state.

A member of the Legal Committee, Raed al-Maliki, said in an interview seen by /information/, that “the government has begun working to restore the exchange rate by taking some measures.”

Al-Maliki added, “Parliament, by virtue of its oversight work, has monitored the government’s work, and two points or two violations have been diagnosed so far: the failure in fiscal policy and the exchange rate, a failure that demonstrated the government’s inability to control the issue of the exchange rate and fiscal and monetary policy.”

He explained, “Parliament is monitoring the government’s actions during this period, and will await the results of these measures until the end of the legislative recess,” waving, “to demand the interrogation of the prime minister and the governor of the central bank, if no results are reached in this regard and the exchange rate returns to its previous state.”

Almaalomah.me

A parliamentarian reveals the date of the decline in the dollar exchange rate

Information / special… A member of the House of Representatives, Baqir Kazem, revealed the new measures taken by the Central Bank in order to reduce the exchange rate in the local markets, while stressing that the rise in the price of the dollar will decrease within a month from now.

Kazem said in an interview with “The Information” that “the central bank is working to form a new appropriation department for the import of goods in order to control the parties that used to monopolize the dollar in the local markets,” noting that “these measures came after the escalation of smuggling operations in the previous period, which led to to the height it is now.

And he continued, “The high exchange rate these days will not last more than a month after the new procedures that are being implemented by the Central Bank,” noting that “the latter will work to sell the dollar to merchants in the circle of new credits, at subsidized prices, directly.”

He noted that “the reason for the increase is that many merchants transfer millions of dollars to money exchangers and fake companies working to smuggle it out of Iraq,” stressing that “the exchange rate after the new procedures will settle at 146,000 Iraqi dinars for 100 dollars.”

The Prime Minister called for “opening the file of the currency auction, the exchange rate and the state of chaos in the markets within the agenda of the next cabinet session and taking immediate and urgent measures to address this file, which has become an unacceptable door to corruption and waste of public money.”

The Finance Committee in the House of Representatives attributed earlier the reasons for the high price of the dollar against the Iraqi dinar to the pressure exerted by the US Federal Bank on the Central Bank of Iraq.

Almaalomah.me