We look forward to forming an economic bloc with Saudi Arabia

Mubasher: The head of the Federation of Iraqi Chambers of Commerce, Abdul Razzaq Al-Zuhairi, said today, Monday, that Iraq is looking forward to forming an economic bloc with Saudi Arabia.

Al-Zuhairi added during the Iraqi-Saudi Business Forum held in Riyadh, “The Kingdom of Saudi Arabia is an important strategic depth, because of its large economy, and there are economic changes that occurred after Corona,” noting that “we are looking forward to forming an economic bloc with Saudi Arabia.”

He added that “Iraq owns water and energies, in addition to Saudi Arabia’s possession of expertise and money,” expressing his hope that “there will be communication between the Iraqi and Saudi private sectors, and we hope that it will keep pace with development.”

Today, Monday, the activities of the Saudi-Iraqi Business Forum were launched with the participation of Secretary-General of the Iraqi Council of Ministers Hamid Al-Ghazi, Minister of Commerce Majid Al-Qasabi, President of the Federation of Saudi Chambers Ajlan Al-Ajlan and President of the Federation of Iraqi Chambers Abdul Razzaq Al-Zuhairi, and a number of Saudi and Iraqi business owners, to discuss aspects of joint cooperation in the commercial and investment fields. and mechanisms to support and develop it.

Mubasher.info

Who determines the value of the currency, and what are the factors affecting it?

Al Furat Center for Development and Strategic Studies – Man has known about money and used it as a medium of exchange for several centuries, due to the multiplicity of his needs and desires resulting from the economic and social development in life. Paper currency was invented.

The value of the paper currency does not stem from the ability to convert it into coins (gold and silver), but rather from the guarantee of the issuing government, while the value of coins comes from the same materials from which they are made, such as gold or silver, whose exchange value was similar to their original value.

The value of the currency refers to the exchange rate of each country, which is determined according to its own currency. The value of the currency was previously determined according to the gold owned by the country, but in 1971 America stopped linking its currency to the dollar, taking advantage of its economic control over the world, and from that moment most global currencies became valued in dollars. The US dollar instead of gold, and the banks determine the amount of currency in circulation and according to the market need, that is, if the amount of currency printed in the market increases without an increase in the volume of services and production in the country, the value of the currency decreases, and this is called inflation, but if the amount of services and goods increased and the amount of the offered currency did not change In the market, the value of the currency increased or its purchasing power increased.

The exchange rate is defined as the number of units of a particular currency that must be paid to obtain one unit of another currency, or it is the number of foreign exchange units that equal one unit of national currency, in other words, the ratio of the exchange of two currencies, one of the two currencies is considered a commodity and the other currency is considered a price for it.

The importance of the exchange rate is that it represents a link between the local economy and the international economy, and is also a determinant of the competitiveness of the local economy.

There are many methods that countries follow to determine the price of their currency, namely the fixed exchange rate and the flexible exchange rate. Under the fixed exchange rate method, the government determines the exchange rate for its currency through the central bank, and the price is fixed fixedly, by linking the country’s currency to the currency of another country (the dollar, the euro, or Yen), for example, some Arab Gulf countries link their currency exchange rate to the US dollar, and some other countries link their currency to a basket of currencies such as the State of Kuwait, and therefore the value of the currency is determined through the Central Bank and is not affected by supply and demand.

As for the flexible exchange rate (currency float), in light of this method, the price of currencies in the currency market is determined by supply and demand, meaning if the demand for the currency is high, the value of the currency will increase, and vice versa if the demand is low, the value of the currency will decrease, for example if Iraq’s exports increase To the outside world, those countries will pay the value of those exports in Iraqi dinars, which leads to an increase in demand for it, which leads to a rise in its value and vice versa. Developing countries that depend heavily on imports will depreciate the value of their currency.

It should be noted that the value of the currency does not necessarily reflect the strength of the economy. A country’s currency may be weak, but the economy is strong, for example, the Japanese yen (the value of the Japanese currency is low, in order for exports to global markets to be at a low price, which leads to an increase in demand for it in addition to Low production costs and this leads to attracting foreign investment into Japan).

The value of the currency in a country may be high and the economy is as modest as the Jordanian dinar, that is, the countries that depend on exports are served by the low value of their currencies. As for importing countries, the high value of their currency is the most appropriate for them, and in general, countries seek through the Central Bank to keep the price of their currency appropriate. for international trade.

In addition to the above, the currency exchange rate has three main functions:

A: – The standard function, where local producers depend on the exchange rate in order to measure and compare the domestic prices of a particular commodity with international market prices.

B:- The developmental function, the exchange rate is used to develop certain exports to certain regions by encouraging exports.

C: – The distributive function, and this function is accomplished through the practice of international trade activities, through which the exchange rate is able to redistribute national income and national wealth among the countries of the world.

The exchange rate is affected by several economic factors, including (interest rate, public budget deficit, foreign exchange reserves, international loans, balance of payments, inflation and the rate of economic growth). As for the non-economic factors that affect the exchange rate, they are turmoil, wars, rumors and news.

Therefore, governments can deal efficiently and effectively with economic and non-economic factors affecting the exchange rate in order to enhance the value of the currency and increase its purchasing power.

Annabaa.org

The 2022 Budget Will Not Be Passed Until The Dollar Is Returned To Its Old Price

A Member Of The Coordination Framework, Ali Al-Fatlawi, Confirmed Today, Sunday, That The Draft Budget Law For The Year 2022 Will Not Be Passed Until After An Important Condition Is Met.

Al-Fatlawi Said In A Press Interview Followed By Al-Ahed News, “The Coordinating Framework, Through Its Presence In The Iraqi Parliament, Will Work To Restore The Dollar Exchange Rate To Its Old Price, And Otherwise, It Will Not Allow The Passage Of The 2022 Budget Bill Until After This Condition Is Achieved. The Important”.

Al-Fatlawi Added, “There Is No Current Justification For The Dollar’s ​​Exchange Rate To Remain In Its New Form, Especially With The Significant Rise In Oil Prices, And Raising The Dollar’s ​​Exchange Rate Has Greatly Affected The Lives Of Citizens, As It Raised Prices In The Market, And Contributed Significantly To Increasing The Poverty Rate, Which Is Why We Are Serious About Restoring The Price To Its Previous Position.”

Alahadnews.net

The Recovery Of Oil Prices Is A Justification For Restoring The Dollar Exchange Rate

The Information/Baghdad… The economic expert, Nabil Jabbar Al-Ali, expected, on Wednesday, a jump in oil prices in the coming days, after stabilizing the threshold of 75 dollars, stressing that the recovery of oil prices is a justification to reconsider the exchange rate of the dollar.

Al-Ali said in a statement to “The Information” that “the dollar’s ​​exchange rate depends on a fixed price policy that is not linked to the global economy,” noting that “the duty of pure monetary policy is to maintain stability and try to stimulate economic indicators within the country through per capita income, as well as the poverty rate and the indicator the prices”.

He added, “The Central Bank is primarily responsible for monetary policy in partnership with the Ministry of Finance, as well as the Ministry of Planning and the Economic Councils, and they must reconsider the dollar exchange rate, especially since this change came based on the requirements of the government’s deficit in the year 2020.”

Al-Ali pointed out that “the current government is currently facing an economic well-being that may rise in oil prices in the coming days,” stressing “the need to invest the surplus from oil revenues in economic projects.” finished / 25 h

Almaalomah.me

The Framework Pledges To Restore The Price Of The Dollar To Its Previous Era “As Soon As Possible”

Information/Baghdad… The representative of the State of Law coalition, Muhammad Hassan Al-Qadri Al-Shammari, confirmed, on Tuesday, that restoring the dollar exchange rate to its previous price is a basic requirement, noting that the forces of the coordination framework will work to restore it as soon as possible.

Al-Shammari said in a statement to “Al-Maalouma”, that “the current parliament is able to return the exchange rate of the dollar to its previous price, which is a popular demand in the first place,” noting that “the exchange rate has harmed a large segment of the people and cannot continue for a longer period.”

He added that “the framework will work to pressure the competent authorities to return it to its previous price,” noting that “one of our priorities as deputies is to work on restoring the exchange rate of the dollar against the Iraqi dinar in the service of our people.”

And the representative of the State of Law coalition, Firas Al-Maslmawi, had confirmed in a previous statement that his coalition and other representatives within the same direction would not allow the budget to be passed for the current year until after a reduction in the exchange rate of the dollar against the Iraqi dinar.

Almaalomah.me

Al-Kazemi’s advisor: We have the ability to pay off debts and confront them

Conscious / Baghdad – Today, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed that Iraq’s financial rating is high and has the ability to repay debts and confront them.

Saleh said, in a statement carried by (the Iraqi Media News Agency / INA) , that “the situation of foreign debt is comfortable and decreasing, and there is financial space in Iraq at the present time,” noting that “the obligation to pay does not exceed 20 billion dollars, and this has allocations in the budget.” .

He added that “Iraq’s rating is high, and this classification did not come from a vacuum and we have the ability to pay off debts and confront them,” noting that “the neo-liberalism in the world liberated the economies of the world, including Iraq, so liberating the economy and financial transfer in the world daily is about 5 trillion dollars, and this The exchanges include problems, economic crimes, money laundering, and others.”

He pointed out that “Iraq was infected with suspicions of money laundering due to the occupation of ISIS, which is a terrorist force and has external financing.

He stressed that “Iraq has proven that it is free of money laundering and has been raised from the list of high risks to natural, and this is a very important matter that gives freedom and liberalism to banks to work in global environments, the ability to immunize, attention and low cost, which encourages the entry of capital into the country without problems, and this is positive for the benefit of Iraq.” .

Al-iraqinews.com

Economist: The Current Year’s Budget May Recognize 135 Trillion Dinars

Information / Baghdad… The economic affairs specialist, Muhammad Ali al-Moussawi, explained that the current year’s budget may be approved at an amount of 135 trillion dinars, pointing out that the dollar exchange rate needs to be modified according to what the next government sees.

Al-Moussawi told “Information”, “The budget may be approved in the amount of 135 trillion dinars, but the dollar exchange rate may be subject to the policy of the next government and what it desires, at a time when total public spending reaches 130 trillion dinars.”

He added that “the price of a barrel of oil, and according to what has been achieved from revenues and a rise in prices, may be put in the budget by more than 60 dollars per barrel, as this is appropriate in light of the developments in prices and the increase in production decided by OPEC.”

And he indicated that “the dollar exchange rate adjustment has become an urgent need, as this requires a move from the next government, and the support of some ministries in order to reduce the suffering of the poor classes, especially since the opportunity is ripe for that.” finished 25

https://almaalomah.me/2022/01/14/576453/

Economist: The Government Has No Justification To Continue Raising The Dollar Exchange Rate

Information / Baghdad… The economic expert, Ihsan Al-Kinani, confirmed that the government does not have any justification to continue to raise the exchange rate of the dollar in the local markets, pointing out that oil prices and financial abundance make it imperative for the next government to take measures to reduce the exchange rate.

Al-Kinani told Al-Maalouma, “Oil prices exceeded 80 dollars per barrel, at a time when Iraq was able to overcome the financial crisis that occurred in 2020, which pushed towards raising the exchange rate of the dollar, and today the need for that is no longer needed.”

He added, “Iraq has all the financial capabilities and qualifications that necessitate a reduction in the exchange rate, especially after the completion of Kuwait’s compensation and the rise in oil prices, as well as the increase in oil production by OPEC after its last meeting on Tuesday of last week.”

And he indicated that “the next budget will be decisive, either to continue starving the people, or to return things to their previous status by reducing the exchange rate and specifying it in the budget.” finished 25

Almaalomah.me

Al-Kadhimi’s Advisor: Iraq currently has a fiscal space

The financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed today, Friday, that removing Iraq from the list of high risks for money encourages capital entry into the country, while noting that Iraq’s financial rating is high and has the ability to pay off debts.

The external debt situation is good and decreasing, and there is a fiscal space in Iraq at present time, noting that the amount to be paid does not exceed 20 billion dollars, and has allocations in the budget, Salih told the Iraqi News Agency (INA).

He added that “Iraq’s rating is high, as we have the ability to pay off debts,” noting that “the neo-liberalism in the world liberated the world’s economies, including Iraq, so liberating the economy and financial transfer in the world daily is about 5 trillion dollars, and such exchanges include financial problems, economic crimes, money laundering, and others.”

Salih also stressed that “Iraq has proven that it is free of money laundering and has been removed from the list of high risks, and this is a an essential matter that gives freedom and liberalism to banks to work in global environments, the ability to immunization, attention and low cost, which encourages the entry of capital into the country without problems, and this is positive step for Iraq.”

INA.iq

Exchange rate first

It is time to adjust the exchange rate to enhance the value of the national currency (the Iraqi dinar) against the dollar.

And now that the reasons that prompted the decrease in the exchange rate of the dinar against the dollar as a monetary treatment to overcome the obstacle of the country being forced to borrow externally and internally have disappeared, there is no justification for sticking to this painful measure that touched the lives of all segments of society.

The direct reason for this tight monetary policy was the drop in global oil prices with the effects of the Corona pandemic, and the world has largely overcome this difficult ordeal.
With the return of oil prices to the rise, a cash surplus was achieved that contributed to supporting and strengthening the Iraqi cash reserve, the safety valve for periodic financial crises and natural disasters.

In addition to the above, Iraq was able to close the curtain on the debts imposed on Iraq forcibly to Kuwait. These factors and indicators are encouraging to readjust the exchange rate to what it was before the revaluation of the dollar against the dinar Iraqi.

Perhaps one of the most important reasons and justifications for the demand to return the exchange rate to its normal state is the situation and the painful effects that the citizen has endured, forcing him to give the government the opportunity to address the already dire financial situation.

The measure to reduce the exchange rates of the Iraqi dinar against the dollar has caused chaos in the market and broke down the stability that the market enjoyed at the previous rate.

The prices of materials and goods have been inflamed, which has affected the purchasing power of the citizen. You can imagine the extent of the suffering caused by the prices of medicines and basic materials for all segments of society, especially the poor, the retired and the employees.

The measures taken by the government to treat the poor segments were not equivalent to the effects of the exchange rate difference.

Accordingly, one of the tasks of the new government is to take decisions to restore the price and take strict measures against price manipulators, especially medicines and important commodities that touch the citizen’s livelihood by activating the role of careful monitoring of the market.

In mentioning the prices of medicines, the Pharmacists and Physicians Syndicates must activate their role in monitoring and accountability.

For this reason, let us make readjusting the exchange rate the first task of the next government and parliament to relieve the burden of the citizen.

A question that comes to mind, can the concerned authorities begin to gradually reduce the exchange rate until the formation of the government to mitigate the double effects on both sides of the equation?

Alsabahh.iq