Special Sunday Podcast: How is the exchange rate stable?

Special Sunday Podcast: How is the exchange rate stable?

The articles I discuss are posted below:

US shoots down Iranian drones attacking airport in Iraq: officials

this is in retaliation to an attack that happened yesterday

The Irbil airport has come under a series of attacks this year

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U.S. forces shot down a pair of Iranian drones that attacked the Irbil airport in Kurdish-held northern Iraq late on 20th anniversary of Sept. 11.

There were no injuries or damage, according to a spokesman for the U.S.-led coalition in Iraq.

U.S. forces shot down a pair of Iranian drones that attacked the Irbil airport in Kurdish-held northern Iraq late on 20th anniversary of Sept. 11.

There were no injuries or damage, according to a spokesman for the U.S.-led coalition in Iraq.

 

The U.S. counter-rocket, artillery and mortar system (C-RAM) engaged the two bomb-laden drones which were made in Iran, a separate U.S. official told Fox News. 

"Each attack against the GoI, KRI and the Coalition undermines the authority of Iraqi institutions, the rule of law and Iraqi National sovereignty," Operation Inherent Resolve spokesman Col. Wayne Marotto said in a statement posted to Twitter. "These attacks endanger the lives of civilians and the partner forces from the ISF, Peshmerga and Coalition." 

The Erbil airport, where some U.S. troops are based, has come under a series of attacks this year by Iranian-backed militia forces.

The attack is the first following a two month lull in drone and rocket attacks to target the U.S. presence in Baghdad and military bases across Iraq. On July 8, rockets landed in and around the heavily fortified Green Zone in the Iraqi capital Baghdad, which houses the U.S. Embassy. It caused material damage but no casualties.

Until recently the attacks were a frequent occurrence. The U.S. has blamed Iran-backed militias for attacks. More recently, the attacks have become more sophisticated, with militants using drones instead of Katyusha rockets.

Roughly 2,500 U.S. troops remain in Iraq, with an additional 900 troops in neighboring Syria to make sure the remnants of ISIS stay underground. 

US Ambassador: Efforts to support the private sector in Iraq

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Today, Sunday, the US ambassador to Baghdad, Matthew Tueller, revealed efforts to support the private sector in Iraq.

The US ambassador to Iraq, Matthew Tueller, said in a statement to a number of media outlets, "Our participation in the conference to launch the results of the survey of small and medium enterprises for the governorates (Baghdad, Nineveh and Basra), to highlight and focus on field survey efforts, launch small and medium enterprises, and highlight the empowerment of women."

He added, "There is tremendous energy among the Iraqi youth, and we seek to remove obstacles and develop and develop the private sector to serve the Iraqis."

How is the exchange rate stable?

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The exchange rate of the dollar against the dinar stabilized at a price of 148 thousand dinars compared to the 100 dollars against the official price after raising it at the price of 145,000 dinars, and it is still slightly high.

The question is what is the reason behind this stability?

I see that the main reason behind this stability is due to the application of the theory of supply and demand for the first time in Iraq.

The effects of the inflation that occurred due to the sudden change in the exchange rate became evident on the reality of the standard of living on all members of society without exception, even in varying proportions.

And the poor segment was the most affected, and then followed by the middle class of retirees and employees, who are the vast majority in the country.

One of the effects of inflation is the clear deflation, as the demand for most commodities decreased and cast a shadow on the market.

Thus, there was a somewhat slowdown in the import process due to the weak demand, followed by a slight decrease in the demand for the dollar, so you find price stability evident these days.

The objective of controlling the outlets and preventing the import of some commodities may have other partial effects on the stability of prices.

This reality brings us back to the concept and role of consumer culture in the process of balancing prices in the market, how?

If we have the ability to adopt a consumer culture that limits the apparent wastefulness in our consumer behavior, we will contribute to maintaining price stability. This means that government measures alone are unable to control the pace of prices unless accompanied by a balanced consumer culture by sacrificing some needs for a while, which will limit the The huge demand for hard currency with the aim of stabilizing the price and reducing it to less than the official rate.

The second thing that will help to stabilize the exchange rate is for government agencies to control currency smuggling, and this matter needs great capabilities.

Regarding the return of the official price to its previous era, I do not see the possibility of this in the short term. Rather, it needs time until the government controls the payment of its debts and the monetary reserve remains at the internationally accepted limits.

For this, the citizen must deal with this reality and arm himself with a solid consumer culture that helps him and the state to achieve stability.

We are also approaching a new stage after the elections, even if the picture is not yet clear until a new government is chosen and awaits its economic program, which will define the features of the stage and allow economists and analysts to determine the stages of stability and propose solutions to return prices to their previous era and stability to become parallel to the value of the Iraqi dinar.

Waiting for how things will turn out, then every incident will have a talk, we will watch to see.   (hmmmm like time will tell?  hahaha)

Memorandums of understanding and international agreements.. That is why Al-Kazemi's visit to Iran is important for both countries

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The Foreign Relations Committee of the Iraqi Parliament revealed, on Sunday, the reason for the visit of Prime Minister Mustafa Al-Kazemi to Iran, while pointing out that the visit came to activate memoranda of understanding agreed upon during the Baghdad Conference for Cooperation and Partnership, which was held late last month.

Committee member Amer Al-Fayez told Shafaq News, "The visit of Prime Minister Mustafa Al-Kazemi at the head of a high-ranking Iraqi delegation to Iran at this time is of importance to the two countries, and it also came to complement the previous visits of Iraqi and Iranian officials."

Al-Fayez added, "The visit will witness the activation of many memoranda of understanding and international agreements between Baghdad and Tehran, on top of which is the file of water, energy, economy, trade exchange and securing the borders between the two countries."

He pointed out that the visit also comes to "activate the memorandums of understanding recently signed between the two countries during the Baghdad Conference for Cooperation and Partnership", as well as to "confirm the security of bilateral relations between Baghdad and Tehran in all political, economic and commercial fields."

On the morning of Sunday, September 12, 2021, the Iraqi Prime Minister, Mustafa Al-Kazemi, arrived in Tehran for the second visit during his assumption of the position, and the first since the new Iranian President Ibrahim Raisi took office

Details of Al-Kazemi and Raisi meeting

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Today, Sunday, Prime Minister Mustafa Al-Kazemi affirmed Iraq's desire to expand trade and economic exchange and all aspects of inter-partnership with Iran

Al-Kazemi's office said in a statement, received by Alsumaria News, that the latter "presided over and President of the Islamic Republic of Iran Ibrahim Raisi, the expanded meeting between the Iraqi and Iranian delegations, which was held today, Sunday in the Iranian capital." Tehran

Al-Kazemi renewed, according to the statement, "congratulations to my president's success in assuming his duties, and his government's wishes for payment and success, stressing that the renewal of his visit to Iran shows the importance he attaches to him." Iraq To strengthen cooperation between the two countries, and his aspiration to consolidate the bilateral partnership

He explained, “A number of strong ties and relations in various fields bring together Iraq its neighbor, Iran, and that there is a desire to expand trade and economic exchange and all aspects of inter-partnership, pointing out that Iraq seeking to take significant steps with respect to financial commitments to Iran, and the Shatt al-Arab dredging operations.

Al-Kazemi revealed, “The intention of Iraq A decision was taken to lift the condition of obtaining entry visas in advance for Iranian visitors arriving through airports, after the ceremonies commemorating the fortieth anniversary of Imam Hussein (peace be upon him), indicating that the Iraqi government agencies are making every effort to make this event a success and facilitate this occasion for the participants coming from all Islamic countries . " the key , " his government's desire to strengthen economic and trade relations with

In turn, the Iranian president valued "Al-Kazemi's step in facilitating the entry of Iranian visitors participating in the commemoration of the fortieth anniversary of Imam Hussein (peace be upon him), as well as the bilateral efforts made to accelerate the rail link between the two countries

It places this endeavor among its priorities, recalling that the Islamic Republic of Iran believes that a strong and capable Iraq will serve the region, as well as in the interest of positive relations between the two countries.