WOTS WED AUG 4 21
A conversation with Iraqi Deputy Prime Minister and Finance Minister Ali Allawi
The dollar exchange rates on the Iraqi local stock exchange on Wednesday, (August 4, 2021).
Favorite Currencies Forex Quotes
| Symbol | Bid | Ask | High | Low | Open | Change | Time |
|---|---|---|---|---|---|---|---|
| USD/IQD |  1436.9000 |  1487.5000 | 1457.2000 | 1457.2000 | 1457.2000 | 0.1000 | 08:57 |
| USD/VND | 22945.0000 | 22950.0000 | 23019.7900 | 22991.7800 | 23019.7900 | -34.1500 | 00:25 |
| USD/CNY |  6.4604 | 6.4624 | 6.4694 | 6.4583 | 6.4693 | -0.0089 | 05:31 |
| USD/KWD | 0.2999 | 0.3009 | 0.3000 | 0.2999 | 0.3000 | -0.0001 | 04:43 |
| GBP/USD | 1.3934 | 1.3937 | 1.3947 | 1.3901 | 1.3912 | 0.0022 | 05:31 |
| USD/IRR | 42000.0000 | 42210.0000 | 42097.5000 | 42097.5000 | 42097.5000 | 0.0000 | 00:00 |
| USD/IDR | 14317.0000 | 14317.0000 | 14336.0000 | 14289.0000 | 14318.0000 | -2.0000 | 05:31 |
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Including Iraq.. Learn about the largest countries in gold reserves for the first half of 2021
The United States of America ranked as the largest country in gold reserves for the first half of 2021, according to the World Gold Council.
In a table of 100 countries with the largest gold reserves seen by Shafaq News Agency, the council stated that "the United States took the lead in the largest gold reserves in the world during the first half of 2021, with reserves amounting to 8,133 thousand tons, followed by Germany second with 3,359 thousand tons, Italy came third with 2,451 thousand tons, and then France came fourth with 2,436 thousand tons.
He added, "Russia came fifth with 2,292 thousand tons, China came sixth with 1,948 thousand tons, Switzerland came seventh with 1,040 thousand tons, Japan ranked eighth with 846 tons, India came ninth with 705 tons, and the Netherlands came tenth with 612 tons."
In the Arab world, Saudi Arabia ranked first and 18th globally with a reserve of 323 tons, followed by Lebanon second and 20th globally with a reserve of 286 tons, followed by Algeria third and 26th globally with a reserve of 173 tons, followed by Libya fourth and 34th globally with a reserve of 116 tons. Then Iraq ranked fifth and 39th globally with a reserve of 96.3 tons, followed by Egypt sixth and 41st globally with a reserve of 80 tons, followed by Kuwait seventh and 43rd globally with a reserve of 79 tons, followed by Qatar eighth and 48th globally with a reserve of 56 tons, and then the UAE ranked ninth and 49th globally with a reserve 55 tons, and Jordan ranked tenth and 53rd globally, with a reserve of 43 tons.
Event Recap: A conversation with Iraqi Deputy Prime Minister and Finance Minister Ali Allawi
On July 28, the Atlantic Council’s Iraq Initiative hosted an event with His Excellency Ali Allawi, Iraq’s Deputy Prime Minister and Finance Minister, to discuss the Iraqi delegation visit to the United States, the White Paper for Economic Reforms, and Iraqi economic and political developments. Dr. Abbas Kadhim, director of the Iraq Initiative at the Atlantic Council, moderated the conversation.
In English
https://www.youtube.com/watch?
Highlights of the Iraqi delegation visit to the US
- Allawi acknowledged that the delegation visit’s main focus was political and revolved around the future presence of US troops in Iraq.
- The response from Baghdad on the agreement between President Joe Biden and Prime Minister Mustafa al-Kadhimi that US combat troops will leave the country has been highly supported across the Iraqi political spectrum, Allawi said encouragingly.
- Allawi believes that there are great benefits in having US logistical and tactical support without combat involvement from American troops, as he believes it gives Iraq a better base of support in reducing terrorist activities in the country.
- On the economic front, Allawi elaborated on the extensive series of conversations he had with leading US economic institutions, particularly highlighting his meeting with US Treasury Secretary Janet Yellen, where they discussed the depth and extent of the US commitment to the Iraqi reform program.
- Allawi hopes that the US expands its engagement with the Iraqi economy beyond just oil, gas, and power sectors, citing consumer-goods production, construction, and housing sectors as examples of areas that the US could be more involved in.
- Expanding on climate change, Allawi discussed Iraq’s reaffirmation to maintaining Paris Climate standards.
- On both the economic and political front, Allawi believes that the Iraqi delegation’s visit to the US was “very successful.”
The White Paper for Economic Reforms
- From the onset, Allawi established that the white paper is not a short-term plan. Rather, it is a long-term initiative seeking to overcome a significant amount of issues in the Iraqi economy.
- The underlying thesis, Allawi claims, is that the current central government’s structure is inadequate to accommodate the needs of a modern economy.
- Allawi argues that extreme and radical change will be required to tackle the daunting task of overhauling an economy that he believes has been underperforming since the 1970s.
- Allawi believes the most critical change that needs to happen to reform the Iraqi economy is a massive shift away from oil dependency in the economy, describing the critical need for diversification. Allawi argued that Iraq must diversify the economy “meaningfully” by looking at the changing regional and global economic environment.
- When discussing the creation of the white paper, Allawi describes how it did not come from one individual person. Rather, it is a combination of studies spanning more than fifteen years and the inclusion of current issues that make up this comprehensive reform package.
- From a global perspective, Allawi stresses the importance of the international community supporting this effort, believing that this effort does not have much to do with a lack of resources or capital transfer, citing that Iraq is not under-resourced but has had its resources mismanaged.
- In regards to implementation, Allawi noted that the Iraqi government’s first decision was a difficult but necessary one: a significant adjustment to the exchange rate because of the belief that the Iraqi dinar was grossly overvalued.
- Allawi discussed the consequences of devaluation. However, he noted that a studied devaluation is much better than a chaotic one and, since there was a high risk of overdemand for the Iraqi dinar, resources would have been depleted.
Internal Iraqi economic and political developments
- Allawi claimed that “it is a mistake” to say the government has done nothing to mitigate the effects of devaluation, citing the commitment of 50 percent of the incremental increase from the changes in the exchange rate, increasing expenditures in social areas, maintaining drug prices, and doubling the social security net.
- Giving an update on internal gas projects, Allawi highlighted how the first phase of gas guarding had been completed with the Basra gas company, with 20 percent of the total gas produced by the associated fields now treated by the company. He noted that there are hopes of expanding this project by about 40 percent.
- When asked about the internal security situation and how militia groups will respond to the recent US-Iraq combat troop agreement, Allawi split these militias into three groups: those in the government, those with some organizational coherence, and “renegades”—with the first two groups either being accepting of the recent US military news or remaining neutral.
- In terms of Iraqi banking sector reforms, Allawi acknowledged that this critical issue has been left unattended. Therefore, major steps have been taken during July that aim to alter the internal rules and procedures of the banks and change their board of directors.
- As a new government looms over the current Kadhimi administration, Allawi believes that, to keep his white paper reforms intact, there needs to be greater support by the international community to reaffirm their commitment to this project.
Iraqi economic and political developments
- The impacts of the coronavirus pandemic on Iraqi imports caused shipping prices to go up by three or four times, claimed Allawi, citing this increase in global prices as one of the main issues the Iraqi government faces.
- Allawi described the ongoing economic integration project between Egypt, Jordan, and Iraq as one of Iraq’s most important initiatives, believing that the integration of all three economies through the removal of trade barriers and improved transportation benefits all parties.
- Expanding on the Egypt, Jordan, and Iraq integration project, Allawi described the potential for a combined market of over 150 million people, giving these three nations better opportunities and a competitive advantage in attracting foreign investors.
- Allawi believes that bilateral trade with India has been “quite robust.” He emphasized how India has been supplying Iraq during the pandemic with various critical pharmaceuticals—like the AstraZenca vaccine—and how India has a “significant share” of the public sector pharmaceutical imports to Iraq.
The dinar exchange rate" enters the electoral fray in Iraq
The lack of participating lists, files of achievements to speak to the public, made them jump to topics that tantalize the feelings of people with limited income."
The exchange rate of the income of the dinar Iraqi in the election campaign for many of the actors involved in the entitlement of the Iraqi parliament, as affects a large segment of the Iraqi people that have been affected by the reduced value of the end of last year.
It seems that the lists participating in the elections’ lack of files of achievements to speak to the public, which expectations indicate a large segment of the elections boycotted, made them jump to topics that tickle the feelings of simple people and people with limited income, such as returning the Iraqi dinar exchange rate to what it was before the end of last year, Although it is difficult and perhaps impossible to achieve
this within the next few years.
Issued Bank CBI on December 20 (December) 2020, a decision to reduce the value of the Iraqi dinar against the dollar , the US guarantees to sell it through the phases, the first purchase of the dollar from the Ministry of Finance B1450 dinars to sell the central bank of banks B1460 dinars and then to citizens B1470 dinars.
The previous price of the dollar was sold by the Central Bank at a price of 1180 dinars, and then it is sold in the Iraqi markets at a price exceeding 1200 dinars.
Shiite list propaganda
The Shiite lists participating in the elections clearly used the issue of the exchange of the Iraqi dinar in the electoral campaign. The leader of the "Al-Fateh" list, Hadi Al-Amiri, confirmed in a speech during the electoral announcement conference of his alliance, his quest to re-exchange the dollar raised by the government and the Central Bank, and to provide job opportunities.
The same positions were adopted by the leader of the "State of Law Coalition" Nuri al-Maliki, the former Prime Minister, Haider al-Abadi, the "Islamic Virtue" party and some Shiite figures participating in the elections.
However, Shiite political blocs that were and are still calling for changing the exchange rate by returning it to its previous position, denied that the purpose of their demands to change the exchange rate is electoral.
The representative of "State of Law", Kata Al-Rikabi, denied that his demand to change the exchange rate was part of the electoral slogan, explaining that his bloc demanded a change in the exchange rate months ago and during the vote on the budget.
Al-Rikabi added, "Our demand to change the exchange rate is not an electoral slogan, and we put forward our opinion and abstained from voting on the 2021 budget for this reason, and therefore our opinion is not part of the electoral race, because we do not make the Iraqi citizen a game between the conflicting parties."
He points out that when the dollar exchange rate was raised, the "state of law" opinion was that the price "is not commensurate with the Iraqi citizen and is against the poor and the class below the poverty line, and it is our humanitarian and national duty to maintain this position and work to return the previous price."
are able to change it
On the other hand, the representative of the Al-Fateh Alliance, Muhammad Al-Baldawi, believes that the coalition's demand to change the exchange rate is not an electoral slogan, and he will work to change it, and that he was previously opposed to raising the exchange rate of the dollar.
Al-Baldawi added, "Many companies and contractors stopped their work as a result of the high exchange rate, which led to large losses, in addition to the fact that raising the exchange rate harmed the simple Iraqi citizen."
He explained, "We are working to change the exchange rate in the future, and we have a vision on the matter and we have submitted proposals to the government, and the latter has a vision and we respect all visions, but we believe that the citizen should not bear the tax of wrong policies, and thus we will work after the formation of the new government, and we will present our vision to it to adjust the exchange rate." ".
Gradual reduction in the future
In a related context, a member of the Parliamentary Economy and Investment Committee, Ali al-Lami, believes that the slogan of some political blocs regarding returning the exchange rate to its previous position falls into the door of the electoral conflict, suggesting that there will be a gradual future reduction.
Al-Lami added, "Some political blocs proposed working to return the exchange rate to its previous position, which is part of electoral propaganda, especially since those parties tried during months to return the exchange rate to its previous position, but they were unable, and therefore I do not expect it to change in the next stage."
Shiite blocs, especially those loyal to Iran, pressured the government and the rest of the political blocs to return the Iraqi dinar exchange rate to its previous state, before it was reduced at the end of last year, taking advantage of the rise in food prices to obstruct the approval of the budget and threaten the Central Bank of Iraq and the government, and the spread in February (February) The "Hezbollah Brigades" militants in the capital, Baghdad, whose first goal was to comply with the demand of the Shiite forces.
However, these attempts failed to force the Iraqi parliament and the Central Bank of Iraq to change the new exchange rate, which was passed in the country's general budget approved on March 31 of this year.
Central bank authority
Al-Lami explains that Parliament does not have the authority to raise or lower the exchange rate, because it is within the authority of the Central Bank, and that Parliament does not have the authority to take this decision, noting that the House of Representatives wanted not to raise the exchange rate by this size, but rather gradually and to be accompanied by some measures taken by the government, especially in supporting the weak and low-income classes.
A member of the Parliamentary Economy Committee is likely that there will be a gradual reduction in the exchange rate in the event that pressure on the Prime Minister or the Central Bank is increased by the political blocs, although the “Central” confirms that the rise is beneficial to the country’s economy.
It is constantly needed
In turn, the economic affairs specialist, Safwan Qusay, indicates that there is a need to continue at the current exchange rate, to provide good reserves of the dollar in the treasury of the Central Bank.
He adds that "if the Ministry of Finance finds that there is a surplus in revenues, it can support the Iraqi dinar in 2022, and that the support be gradual so that the reduction is according to a certain scale, and is not a significant decrease," noting that the government can reconsider salaries and social welfare expenses. Including reducing damage to the fragile layers.
The surplus supports the fragile layers
Qusay continues that it is the Ministry of Finance that announces its capabilities to support the dinar or cover the fragile classes, and it is the one who determines the exchange rate, and members of Parliament do not have the decision as it is a financial measure and therefore they should not interfere in this matter, considering that the aim of these statements is to give an impression to the voter Iraqi, that if elected, the exchange rate will be lowered.
He points out that strengthening the Iraqi dinar again means continuing to withdraw the central bank's reserves, which leads to the weakness of its reserves, noting that any future decision in the reduction must be according to a gradual, studied ladder without confusing the market.
It is unlikely that the dollar exchange rate will be changed to less than 1460 dinars per dollar, explaining that the citizen's purchasing power decreased, which was reflected in the sales of the Central Bank, and this is what the government bet on, i.e. a decrease in demand for hard currency, which contributes to compensating for the decrease in reserves.
80 billion reassuring reserves
Qusay continues that when Iraq's reserves reach a reassuring level of 80 billion dollars in the coming period, then there
may be a contribution from the central bank and the transfer of reserves into initiatives through the housing initiative, stressing that it is this monetary policy that corrects the exchange rate strike.
Iraq reserves 63 billion dollars
Iraq’s cash reserves of the dollar amount to about 63 billion dollars, after it was about 50 billion dollars at the end of 2020, which represented its lowest level in a decade, as it decreased from 90 billion dollars in early 2020 after a series of internal loans to the Iraqi government from the Central Bank And government and private banks, to cover salaries and expenses after the decline in oil prices, and it is dedicated to securing Iraq's imports, as well as a cover for the local currency issued in the same year.
It's hard to change it
The head of an institution specialized in economic studies, Manar Al-Obaidi, says that the independent policy of the Central Bank makes it difficult to respond to political pressures that seek to reduce the exchange rate of the dollar.
"Changing the exchange rate significantly will cause confusion in the Iraqi market," he added, pointing out that the central bank's policy is independent and does not follow electoral conflicts, and that politicians' talk about the reduction is aimed at winning voters.
He asserts that the House of Representatives does not have the right to take the decision to reduce, but it is possible to question the governor of the Central Bank or dismiss him.
Currency smuggling continues
Regarding the control of currency smuggling, Al-Obaidi confirms that government figures show that there is a large smuggling of currency, and the Central Bank has not succeeded in reducing it, and the volume of remittances shows that it reaches the limits of 40 billion dollars, at a time when the volume of imports is 15 billion, which indicates A difference of
$25 billion.
Despite the rise in the exchange rate of the dollar against the dinar, the Central Bank of Iraq’s dollar sales rose
unexpectedly last July, as more than four billion dollars were sold, and the bank sold in five sessions before and after the Eid holiday about 200 million dollars in One session, in an indication of the return of the increasing demand for currency, which some interpret as most of it as part of currency smuggling out of the country.
The devaluation of the Iraqi currency is one of the most important conditions for international financial institutions, such as the International Monetary Fund and the World Bank, to support Iraq in 2021, as well as reforming the ration card system, lifting subsidies on fuel prices, and reducing the Iraqi government's expenditures and the general salary rate in the country.
With the exception of the devaluation of the Iraqi currency and the start of reforms in the ration card system, the rest of the files were not moved due to the extensive political pressures on the Iraqi government to prevent it from implementing them, especially the reform of wages and salaries laws because they affect basic electoral segments of most Iraqi political parties.
CBI Update: Just a note:
including $14,920,000. CASH
ISX Update: Shares Traded: not updated for todayValue Traded: not updated for today
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8-3-2021 Newshound Guru Militiaman Article: "Al-Kazemi announce the launch of the economic reform plan within the white papers" The meeting today was specifically stating was to announce the start of implementing the administrative and executive mechanisms - advanced level of implementation. It isn't the underlying issue. It's the main administrative and executive mechanisms to get things done. In other words, 'You gotta move. Get things going!' And that's what they're doing.
8-3-2021 Intel Guru MarkZ [via PDK] If they do decide to lock us down again using covid as an excuse…it...may be a good cover for our exchanges. ...On the redemption center side my contacts are still “on call”. They tell me they will be there within hours as soon as they are given the “GO”.
8-3-2021 Intel Guru Frank26 I know you want "now". But I don't know when "now" is. Nobody knows the date. What we do know is they're doing it. What we do know is that they're very blatant. They're very obvious/telling of what they're doing with their currency, with their exchange rate, with their economic reform of the countries pouring in, with their article VIII status. All of this is for the raising of the value of their currency...
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