Iraq an economic Study

The turmoil in the Iraqi dinar exchange rate against the dollar recently led to negative effects, which directly affected the business sector and commodities in the markets, which led to the loss of confidence of dealers and investors in the monetary authority. The decline of the dinar came after the Central Bank of Iraq stopped its activities related to pumping liquidity in foreign exchange to meet the needs of banks and their customers, as it was pumping an average of 140 million dollars or more per day to maintain the value of the currency and support its stability, and stopping the pumping of liquidity led to a jump in the exchange rate of one dollar from 1200 to 1280 Iraqi dinars, amid warnings of the continuation of this rise due to the curfew imposed by the authorities as part of the procedures to face the outbreak of the Corona epidemic.

Last Edited by Ohio chic on 04/14/2020 11:11 AM

Parliament is getting ready to radio the CBIs reserves to pay the governments salaries.

raid, not radio... feckin autocorrect

Time well tell..hold on to your hats and stay ready! This is not over yet...nor is it a pipe dream...chance favors the prepared mind!

Hard to believe things here are so quiet

Would have thought all the hard core ppl that created 490 pages of thoughts about the dinar

Would have much to say durring these times.

This silence makes them look like deep state plants

Live and learn I suppose

Nope
Just get tired of the same old stuff.

They still dint even have their government together
Not gonna do the dinar until the country is more stable...period.

Parliamentary source: Al-Kazemi’s government will print the currency to pay employee salaries

Baghdad / ... Parliamentary source confirmed, Thursday, that the government of Prime Minister Mustafa Al-Kazemi will go to print a new local currency in order to pay the salaries of employees.

The source said to "Eye of Iraq News", "This measure is one of the solutions to overcome this economic crisis that is ravaging the country, so it is necessary to find harmless solutions for future generations such as the use of cash or gold reserves in the central bank."

He pointed out that we, "after the application of this procedure, we expect a decrease in the Iraqi dinar exchange rate against the dollar," stressing that "this will have a positive impact on activating the industry in Iraq and not resorting to global or regional markets that provide goods to Iraq at low prices because of the high exchange rate The dinar is compared to the currency of Turkey, Iran and others. "

The financial advisor to the Prime Minister, Mazhar Muhammad Salih, had determined, on Wednesday, the loan disbursements that the government intends to request from home and abroad.

Saleh said in a press statement, "The government submitted a draft law to Parliament in order to authorize it to borrow from internal and external financing sources, in order to bridge the deficit and enhance public financial liquidity when necessary."

And, "The borrowing came because of the financial hardship that the country is going through, and in order to bridge the revenue deficit gap against fixed expenditures, especially in the operating budget."

He added, "The legal cover did not provide the government with internal and external borrowing, due to the lack of a federal budget law for the year 2020."

He pointed out that "internal or external loans will be included in the event of legislation for the budget for the year 2020 or its alternative the final account at the end of the fiscal year (as a reality)."

Saleh said, "External loans will go toward supporting investment projects and completing the stalled ones and the urgent need to launch them, while internal loans will be allocated towards the operational budget in the government's needs for insurance of salaries and others."

It is mentioned that the Iraqi Council of Ministers approved the draft of the domestic and foreign borrowing law to finance the fiscal deficit for the year 2020 and refer it to the parliament in accordance with the provisions of the constitutional articles. Finished 2

deep state plants..

[link to secureservercdn.net (secure)]

Member of the Parliamentary Finance Committee, Hanin Qaddo, confirmed on Saturday (30 May 2020) that Prime Minister Mustafa Al-Kazemi owns the powers to cancel the foreign currency auction at the Central Bank .

Qaddo said in an interview with (Baghdad Today), that "the Prime Minister, has the powers to cancel or stop the auction of foreign currencies in the central bank."

He added, "This matter provided that it is attached to a study or documents proving the existence of money laundering operations, or corruption operations occurring during the sale operations," stressing "the need for the government and the central bank to control the exchange rate of the dollar against the Iraqi dinar in Iraqi markets."

Often, deputies from various blocks and components talk about the existence of major corruption operations that take place at the auction of currency sales by banks and personalities accused of money laundering operations .

Member of the mini-parliamentary committee concerned with following up the implementation of the budget, Abdul Hadi Al-Saadawi, spoke Monday (July 08, 2019) about the exit of the currency auction from the control of the central bank, while the latter sold $ 150-200 million on a daily basis .

Al-Saadawi said in a press statement that "there are problems and violations recorded on the sale of the currency by the central bank, as well as the currency exchange rate, which is often mobile and unstable in most cases," noting that "any candidate for the position of the governor has to sit with the parliamentary finance to discuss These two things . "

Kuwaiti diplomatic sources commented on the rumors regarding Kuwait forgiving Iraq’s remaining debts related to the Gulf War compensation and the postponement of other payments.

The Kuwaiti newspaper, "An-Nahar", quoted the sources as saying, "During his recent visit to Kuwait, the Iraqi Minister of Finance submitted a request to postpone the payment of the remaining debts for a period ranging between one or two years, given the economic conditions imposed by the low oil prices as well as the repercussions of the spread Corona virus, "noting that" the request is still under study and has not yet been decided by the government. "

The sources added that "Iraq had paid Kuwait a portion of the debts in the month of April, at a value of 440 million dollars," explaining that "the total value of the remaining debt amounts to 2.8 billion dollars."

The former Kuwaiti MP, Abdul Hamid Abbas Dashti, wrote that his country exempted Iraq from debts amounting to 3 billion dollars, and decided to postpone further payment.

"Congratulations to Iraq, to a $ 3 billion debt forgiveness due to Kuwait, and to a delay of $ 1 in debt," Dashti wrote in a tweet on Twitter.

Neither Kuwait nor Iraq has formally announced the existence of such an agreement between the two countries, as was previously the practice.

And Finance Minister Ali Allawi, who is also Deputy Prime Minister and Acting Oil Minister, suggested that Kuwait postpone about $ 3 billion of Iraq’s debt related to the Gulf War compensation (1990-1991).

Conscious / reduce the Iraqi dinar exchange rate … punish people / d. Hussein al-Asadi

June 3, 2020 20 Views
Iraq is going through extremely sensitive conditions, as the Iraqi economy faces a real challenge after the catastrophic failure to find alternatives to selling crude oil. Barrel according to explorations in 2018, or 8.5% of thebalance's global reserves - - and yet he annually imports 3.3 trillion Iraqi dinars in oil products - the annual report of importing Iraq 2018, the Central Statistical Organization 2019 - and he imports energy worth 7 trillion Iraqi dinars - the 2019 budget Iraqi facts:Issue 4529 on 11/11/2019 - all of which can be produced in Iraq, as well as other resources such as agriculture, various industries, trade, tourism, etc., with no Sovereign Wealth Fund that provides additional imports and a portfolio to protect the future of generations, especially in times of crises, Iraq today He asks for aid to pay the salaries of employees and retirees because what enters the treasury is not equal to a quarter of what Iraq needs to cover salaries only.The financial budget for the year 2019 was allocated to the salaries of retired civilians and the military (9,316,652,417,000) Iraqi dinars, and the salaries of employees equal (43,404,629,267,000) Iraqi dinars and total The annual rate for the year 2019 is (52,721,281,684,000) Iraqi dinars, which means that Iraq needs monthly (4,393,440,140,000) Iraqi dinars, and if we take into consideration that the Iraqi dinar exchange 1,200 dinars per dollar means that Iraq needs monthly to (3,660,000,000) approximately one dollar, while the GDP of Iraq is approximately (1,100,000,000) dollars for the month of March and (1,200,000,000) dollars approximately for the coming months, as Iraq needs (2.5) billion dollars approximately per month in order to cover monthly salary expenses only, this is regardless of other needs, and to address This catastrophic failure began to raise some voices in order to reduce the Iraqi dinar exchange rate against the US dollar in order to increase the budget number and reduce the deficit in it, and I find it necessary to clarify some of the terms, so the reader may be surprised by the ignorance of many of those who speak in this field and perhaps they are in important locations of responsibility.5) Almost a billion dollars a month in order to cover monthly salary expenses only, this is regardless of other needs, and to address this catastrophic failure, some voices have started to decrease the Iraqi dinar exchange rate against the US dollar to increase the budget number and reduce the deficit in it, and I find it necessary to clarify some terms The reader may be surprised by the ignorance of many of those who speak in this field, and perhaps they are among those in important positions of responsibility.5) Almost a billion dollars a month in order to cover monthly salary expenses only, this is regardless of other needs, and to address this catastrophic failure, some voices have started to decrease the Iraqi dinar exchange rate against the US dollar to increase the budget number and reduce the deficit in it, and I find it necessary to clarify some terms The reader may be surprised by the ignorance of many of those who speak in this field, and perhaps they are among those in important positions of responsibility.
Floating Exchange Rate: A floating currency is the rate of currency that has floated so that it has become fully liberalized, so the government or the central bank does not interfere in determining it directly, but it is automatically generated in the currency market through the Supply And Demand mechanism that allows By setting the exchange rate of the national currency against foreign currencies, this term corresponds to the fixed price of the currency exchange Fixed Exchange Rate A specific price will be set against a major global currency (usually the US dollar, but also other major currencies such as the euro, yen, or basket of currencies), in order to maintain On the local exchange rate, the central bank buys and sells its own currency on the foreign exchange market for the currency in which it is linked.
Devaluation is the devaluation of the official exchange rate of this currency against an international reference currency (the US dollar or the euro, for example), so that the number of units of foreign currency that can be obtained against one unit of the national currency is low, and it is correct to talk about devaluation when it is The exchange rate is subject to the direct management of the government or the central bank, which determines this price through a government decision, and according to the same logic, it is possible to talk about raising the price of the currency Revaluation in exchange for reducing it, and this is when the exchange rate is subject to the direct management of the government or the central bank as well, and we note that the reduction The price of the currency and its elevation are within one framework which is the fixed exchange of the currency, but when the exchange rate is subject to the forces of supply and demand (floating the currency) and there is a decline in the value of this currency, depreciation of the currency, the decline is an automatic result of the free interaction between supply and demand in the foreign exchange market without interference Direct from the government or the central bank, according toFor the same logic, we can talk about the rise in the value of the currency Appreciation versus its decline, and we note that the rise and fall of the currency price within the currency float.
Since Iraq works within the fixed fixed rate system, we can talk about reducing and raising the exchange rate of the currency, and here I do not want to differentiate between the two systems, each of them has its conditions despite the market economy and its idea that the state should not interfere in economic activities and let the market control itself It operates a system of floating the currency and its price depends on the iron principle of supply and demand, but the actual conditions of Iraq do not allow for reasons that are too long to be explained.
Countries with a fixed exchange rate resort to reducing the currency exchange rate for economic reasons in improving their balance of trade mainly due to an increase in domestic production versus the importer. The currency reduction makes the difference between the outside and the inside and reduces the importer in front of the exporter, and this assumes that there is internal production It covers the local need and wants to preserve it and export it abroad, but in the Iraqi case, unfortunately, there is no industry, no agriculture, no internal production, it covers the local need as well as being an exporter, as Iraq has nothing to export other than Crude Oil, and I speak here As for the reality of what is there and not what I am calling for, the total imports for the year 2018 for commodities and petroleum products amounted to (37) billion dollars, equivalent to (43.8) trillion Iraqi dinars, and the total imports for the year 2018 for the non-oil commodities (34.1 dollars) Equivalent (40.5) One trillion Iraqi dinars, and Iraq has no need to reduce the exchange rate, but it is sufficient for it to prevent the import of any material that can be dispensed with. As for the real effect of the devaluation, it is the direct punishment for the Iraqi people, if we know that 6 million Iraqis receive a salary or aid from the Iraqi government and the number of individuals The Iraqi family is 5 people, we are talking about about 30 million Iraqis who live on what they receive from salaries or aid from the Iraqi government, all of these will be affected by this procedure, because inflation occurs. Inflation in prices is due to the low purchasinging power of the Iraqi dinar. An Iraqi after the currency devaluation has become worth 500 thousand dinars, and if she receives a number that is a million, therefore she will live in great distress because of this reduction, and the other affected are the owners of internal debts in the local currency, which amount to about 40 trillion dinars, which represent treasury transfers and debits with banksThe government and the central bank for companies, contractors, and merchants, and if they are a number, it will remain that the Iraqi government owes them to 40 trillion, but after the devaluation they will owe 20 trillion on the assumption that it has been cut in half. As for the external debtor, it remains the same because in foreign currency the dollar or the like.
Another issue remains here is the confidence of investors and companies in the currency after the devaluation is much less because the stability of the currency is one of the factors that encourage investment and entry in projects as well as problems related to economic feasibility after the devaluation, which is the basis of the intervention of the government or the central bank in fixing the exchange rate or only for work The principle of floating currency from the beginning.
Hence, we believe that those who seek to actually depreciate the currency are punishing the Iraqi people because of the wrong policies and economic failure that brought the country to this situation, as the people in this bear the mistakes of politicians and are punished

Last Edited by Ohio chic on 06/04/2020 06:57 AM

Parliamentary criticizes the option of external borrowing: We need Iraqi dinars, not foreign currencies

2020.06.04 - 22:23



People - Baghdad

The Deputy for the Block of Walkers, Inaam Al-Khuzai, called on Thursday, Prime Minister Mustafa Al-Kazemi, to avoid external borrowing, pointing out that financial institutions operating in Iraq can be persuaded to secure good sums to supplement and finance the budget.

Al-Khuza’i said, in a message addressed to al-Kazemi, which NAS received a copy of (June 4, 2020). The reasons for the external borrowing law are the decline in oil prices, and this decline is not surprising, and Iraq has been living with it for years due to the fluctuations of oil prices, both low and high. She added, "Consequently, there is no need to mortgage the country's economic and financial resources abroad due to the volatility of oil prices, especially since prices are experiencing a tangible recovery after touching the $ 40 per barrel barrier recently due to the commitment of major oil producers to control production and start global economic activity in coexistence with the Corona pandemic and gradually move the economic sectors." .

Al-Khuza’i explained, “The second reason for abandoning external borrowing is that the budget does not need cash (in foreign currency). Rather, there is a need for (Iraqi dinars) to bridge the financing gap until prices recover and maximize other government’s financial resources,” noting that, “The government directs External borrowing depends on Iraq’s fate to international wills and a serious threat to its political, economic and social security, and instead, internal borrowing should be approved by tracking the financial flows flowing from Iraqi banks (Rafidain and Rashid and the Iraqi Trade Bank) and other private banks, and the central bank will support these banks as It happened in 2016 and 2017.

The representative pointed out that "financial institutions operating in Iraq can be persuaded to secure good sums to supplement and finance the budget, until oil prices improve and pay off all domestic obligations and debts without harming the sovereignty and political and economic future of Iraq," stressing, "The government's need to maximize revenue Non-oil, eliminating pockets of corruption, waste ports in state resources, such as border ports and huge revenues, real estate of the looted country, opening a file (debts owed by communication companies), and Iraqi money abroad, and other abundant financial resources, not immediately resorting to easy solutions ( External borrowing) and risking the future of the country and the citizen.

Anyone seen Trumps RV statements

More of a off hand remark

[link to twitter.com (secure)]

Boom
Mic drop



Al-Alaq: The devaluation of the dinar should not be the first line of defense to confront the financial crisis

Central Bank Governor Ali Al-Alaq

Banks
The Governor of the Central Bank of Iraq, Ali Al-Alaq, stressed that the devaluation of the dinar against foreign currencies should not be the first line of defense to confront the financial crisis and bridge the budget deficit.

In a letter addressed to the former Assistant Secretary-General of the League of Arab States, Legal Adviser to the Prime Minister, Dr. Fadel Mohamed Jawad, and obtained by Al-Iqtisad News, Al-Alaq said that "by virtue of the responsibility of the Central Bank for monetary policy, the study and review of the exchange rate is a continuous matter from Before formations of the bank and its board of directors based on in-depth studies that take into consideration all factors and variables, "noting that" the exchange rate is not a sacred matter so that it cannot be compromised. "

He added that "the devaluation of the dinar against foreign currencies should not be the first line of defense, nor should it be a means to bridge deficits, shortcomings and failures in the performance of other financial, commercial, investment, tax and customs policies", explaining, "easy solutions that achieve financial value should not be used Limited at the expense of damage to all segments of society caused by inflation, especially the fragile and poor segments. "

He stressed that "we note the inaccuracy of the (some) account of the reduction achieved by the dinar from resources to the public budget, as the correct calculation is that we subtract from the total dollar revenues the share of oil companies, which amounts to 14 billion dollars annually and the payment of debts, interest and external liabilities amounting to more than 5 billion Dollars, in addition to the equipment and materials imported by the government, such as oil derivatives, ration materials, etc., the net of this amount strikes at the new price of the dinar, ”noting that if the dinar’s value is reduced to 1500 dinars per dollar, what the Ministry of Finance gets from the difference is 5 trillion dinars.

He noted that "the devaluation of the dinar against the dollar will lead to protection and stimulation of the local product is something that many notes suffer because this measure is used by some countries to encourage exports and in the case of Iraq the goal is to provide ingredients to stimulate domestic production and protect it from dumping policy practiced by exporting countries, especially neighboring countries, This goal will not be achieved by reducing the value of the dinar because the price difference is because of the dumping policy or because of the depreciation of the currency of these countries in a very large way. "

Al-Alaq called for controlling random imports and stopping dumping policy through controlling border crossings, as the number of informal border crossings is more than official and strict application of customs duties is an effective application of laws to protect the product and the consumer and anti-dumping

the Finance Committee of the Iraqi parliament, Thursday (2 July 2020), commented on news that there are possible intentions to change the exchange rate of the dollar against the dinar within the expected financial reform law.

The committee's rapporteur, Ahmed Saffar, said in an interview with (Baghdad Today), that "until now we have not seen the draft financial reform law, but there are information and leaks, we report that there is an intention to change the exchange rate of the dollar against the dinar, but we do not know its accuracy until the moment, as there is Some deputies went for this option, and there is also parliamentary opposition to this approach. "

And Al-Saffar said that "any devaluation of the dinar or dollar will cause inflation in prices because it will reduce the purchasing power of the Iraqi dinar, and here the affected people with limited income from employees, contracts and renters will be affected," noting that "within monetary policy, this is the last solution to the crises."

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), "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 "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 because of the lack of its acquisition in the global market, especially with the decline in international oil prices."

He added that "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-Aqidi pointed out that "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."

Economists suggested reducing the value of the Iraqi dinar against the dollar by a value ranging between 1300 dinars or 1400 against one dollar to provide additional budget resources that allow part of the salaries to be spent, while others considered that any proposed float process may go out of control and cause a significant increase in the price of the dollar against the Iraqi dinar.

HAHA...dinarvets was reported to microsoft for being a phishing site for data. Screw you yota and adam montana. HAHA

This will be a very serious matter when it transpires. Remember...you can lead a horse to water but you cannot make him drink!

........

In terms of immediate steps, at a minimum, a devaluation of the Iraqi dinar (long pegged at 1,182 to the dollar) seems likely in 2021. This would relieve some pressure on the Central Bank and make the government’s expenses cheaper (since its income is in dollars), but it would also drive up inflation over time. The bigger threat is that by mid-to-late 2021, the Central Bank will no longer be able to support the government, forcing austerity through non-payment of operational expenses, including salaries.

It is clear that the government needed to adopt a policy of cutting public sector expenses while increasing its capital investment in agriculture and industry and devoting more resources to education and health. Kadhimi’s reform measures in June were too little, too late. Still, the austerity that Parliament has resisted will be inevitable if oil prices do not rise dramatically in the months to come. A key priority from an international point of view is that the IMF, as a condition for its loans, impose upon Iraq the reforms for which Allawi has been advocating and which parliament has so rejected. It does not seem likely that reform will come to Iraq by any other means.

[link to carnegieendowment.org (secure)]

Iran begins deleting zeros from its currency and a new banknote
by Walter
Editing date: 12/11/2020 19:59



[Follow_Wine]

The Central Bank of the Islamic Republic of Iran issued a new banknote of 100,000 riyals (equivalent to ten thousand tomans), where 4 zeros were printed in a light color in preparation for removing these zeros from the currency, as well as the number 10 drawer at the two sides at the bottom of the paper Cash.

Fars News Agency reported that the Central Bank of Iran recently issued a new banknote in the denomination of 100,000 riyals (10 thousand tomans), as it contained some differences with the paper currencies of this currently widespread category.

The most important of these changes is the printing of 4 zeros of the five zeros in a light color, in preparation for deleting the four zeros from Iranian currencies.

The number 10 is also included on the left and right sides of the banknote. As well as behind the banknote.

Well ole Jeffy has gone contraire...he now predicts 3 more years of waiting.

High Oil Prices Behind Delay In Sending Budget By The Government

Council of Ministers to audit it in coordination with a special committee from the Ministry of Finance and the International Monetary Fund to update the exchange rate of the Iraqi dinar before the end. of the fiscal year, "indicating that" according to government estimates that we have informed about the price of a barrel of oil in the general budget, it will be between 42 - 43 dollars. "

[link to ninanews.com (secure)]

I saw this. Def sounds promising but I’ve heard the wind blow before

Only way the dinar is going to go up in value now is if the dollar keeps devalueing

Negotiations between Iraq and the International Monetary Fund to determine the exchange rate of the Iraqi Dinar



The Parliamentary Finance Committee revealed, on Monday, negotiations that the Iraqi government is conducting with the International Monetary Fund to determine the exchange rate of the dinar against the dollar in Iraq.

The official Al-Sabah newspaper quoted the committee’s rapporteur, Ahmad Al-Saffar, as saying that one of the reasons for the “budget delay is due to negotiations between the Ministry of Finance and the International Monetary Fund to determine the exchange rate of the Iraqi dinar.”

Al-Saffar revealed that "there are opinions to reduce the exchange rate of the Iraqi dinar against the dollar," indicating that "this measure will lead to inflation and negatively affect those with limited incomes who depend on their salaries."

Last Edited by Ohio chic on 12/07/2020 05:27 PM

Parliamentary Finance comments on the rise of the dollar and the possibility of its float


The Parliamentary Finance Committee commented on the recent rise in the exchange rate of the dollar against the dinar in Iraq.

The exchange rate on the Al-Kifah Central Stock Exchange in Baghdad is currently 1270 dinars to the dollar.

"We do not know what are the reasons for the high exchange rate of the dollar or the government's intention to raise the exchange rate of the dollar to 1,300 dinars, and this news remains unconfirmed to us, but what is certain is that the increase in demand for it raises the price," committee member Ahmed Hajj Rashid told Al-Furat News.

He ruled out "the possibility of taking action to float the dollar in Iraq."

It is noteworthy that what is meant by floating the currency (the dollar or other) is to make the exchange rate of this currency fully liberalized, so that the government or the central bank does not interfere in determining it directly, but rather it is automatically secreted into the currency market through the supply and demand mechanism that allows setting a price Exchange of the national currency against foreign currencies.

The owners of banking offices attributed the recent increase in the dollar’s exchange rate in Iraq to the increase in demand for it by citizens and merchants alike, with news of the Ministry of Finance’s intention to raise the dollar’s exchange rate to 1,300 dinars.

It is noteworthy that the reporter of the Finance Committee, Ahmed Al-Saffar, revealed to {Al-Furat News} the day before yesterday, Sunday, that "one of the reasons for the government delay in sending the draft fiscal budget for 2021 is that there are understandings between the Ministry of Finance and the International Monetary Fund to update the Iraqi dinar exchange rate" usually it "a sensitive issue. It must be updated in a way that does not cause inflation. "

Hi Gang

It's certainly getting interesting Again.Yeah ?