Iraq gets rid of freezing its financial assets and takes a step towards exiting from Chapter VII
Iraq gets rid of freezing its financial assets and takes a step towards exiting from Chapter VII
Economic expert Ahmed Saddam confirmed today, Monday, that Iraq has got rid of the problem of freezing its financial assets after completing the payment of Kuwaiti compensation.
Saddam told "Earth News" that "Iraq will exit from Chapter VII after it has fulfilled all its international obligations, the latest of which is the payment of Kuwait's compensation amounting to 52.4 billion dollars."
He added, "This means that the Iraqi government has got rid of the problem of freezing its financial assets. In addition, completing the payment of compensation to Kuwait and removing Iraq from Chapter VII will give the impression that Iraq is now outside the framework of dangerous countries," noting that "this is a positive impact on Iraq's international reputation." And it has a positive impact on its economic reality.”
The Federation sets a date for the decision to run for the presidency of the Republic
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Playing with the dinar as currency
It is a dangerous beginning for the future of an Iraq that does not possess neither economic infrastructure nor any stable economic system. The manipulation of the value of the Iraqi dinar hastily and without any local or international consultation as a populist tool and a political mechanism to further establish the hegemony of a person or influence in an inappropriate time segment, exposes the future of Iraq to disaster.
Months ago, Iraq devalued its currency by 22% against the dollar, and the main reason was in order to be able to distribute salaries on time and every month, and in parallel with that, market prices began to rise in the same proportion; The citizen is the one who pays the tax, meaning that the employee pays the tax or the price twice.
By all economic and logical criteria, no matter how wrong the devaluation decision was and far from any economic arguments, if it was manipulated again and the value of the dinar was raised again, the mistake would be greater and worse.
Iraq was not suffering, not last year and now, from a cash crisis, but from the problem of corruption and the disappearance of billions of dollars. Iraq suffers from a problem of monetary and banking policy, the problem of allocating the large military and security budget that is disguised, official and unofficial, suffering from the problem of constantly buying weapons without any benefit and without planning, From the problem of personal and partisan whales, from the problem of buying counterfeit services such as electricity, these major and invasive problems are not addressed by depreciating and raising the price of the currency, but rather through reform and the process of radical, correct and continuous reform.
Most of the Iraqi leaders are ignorant in the economic aspect and should not imitate Turkey and Iran and say that they suffer from the problem of the currency and currency rate, and they have been around for years and continuous, no because this is called a corrupt and incorrect analogy, as they are two countries, with economic and industrial infrastructures, and export is the basis of their economy, not import. , and both of them do not have the same employees as Iraq, each person has a product except for the percentage of the unemployed in them. In these two countries, the hours of production in the private sector are very high, and in the public sector is much better than in Iraq, but in Iraq, the production period of working hours Eight does not exceed 20 minutes.
Every year in Iraq, a major and convincing economic lie emerges, which is to determine the rate of economic growth and write his name falsely in the ranks of the countries of the world. The lie lies in the fact that Iraq depends in the criterion of economic growth on the level of increasing the export of crude oil, and this is the opposite and contradictory with the standards of economic growth.
In conclusion, if Iraq compares itself to a country like Lebanon, it is better and closer to reality than it resembles the developed countries in the economic, political and social aspects.
Finally, I say that the political and populist play on fiscal and monetary policy will affect all funds and will not solve any problem or crisis.
And if the new cycle of government administration begins in this way, this means that the Iraqis are waiting for difficult years, as the dirt will only make them worse.
The Governor of the Central Bank responds to a parliamentary question regarding the price of the dollar
The Governor of the Central Bank, Mostafa Ghaleb Makheeb, responded today, Monday, to the question of Representative Hadi Al-Salami regarding the dollar exchange rate, the circumstances and causes of the decision taken in it, as well as the results achieved through it since late 2020.
here is some of the text
The Iraqi Parliament / Office of Representative Hadi Hassan Al-Salami, the esteemed
What is a parliamentary question?
good greeting..
Your letter No. (34) on 2/1/2022, which came to us on 2/9/2022,
We would like to state the following:
1- The countries that follow the fixed exchange rate system consider the exchange rate policy as one of the strategic issues managed by the Central Bank in consultation with the concerned authorities in the government and according to the economic conditions.
2- The Central Bank of Iraq follows the fixed exchange rate system, which is responsible for “setting the value of the dinar against
dollar.
has been tampered with. dollar. The decision to change the official exchange rate on 20/12/2020 was a result of the economic and financial conditions that Iraq experienced during the year 2020, which are described below, and was at a direct request from the Ministry of Finance. As well as the issue of changing the exchange rate with the International Monetary Fund, which supported the idea of changing the exchange rate, which had been advised by the Iraqi government since the double shock in 2014. In addition, consultations were held with the Iraqi government regarding changing the exchange rate, which generated convictions of the need to change the exchange rate at that time, and this was done by the Central Bank based on Article (1/4/a) of the Law
The countries that follow the fixed exchange rate system consider the exchange rate policy as one of the strategic topics managed by the Central Bank in consultation with the concerned authorities in the government and according to the economic conditions. The Central Bank of Iraq follows the fixed exchange rate system, which is responsible for determining the value of the dinar against
Central Bank of Iraq No. 56 of 2004, the rate entrusted with the formulation and implementation of monetary policy in Iraq, including the foreign exchange policy of the Central Bank of Iraq.
For now, and this is the order that the Central Bank has done based on Article (1/4/a) of the Law
Central Bank of Iraq No. 56 of 2004 The rate entrusted with the formulation and implementation of monetary policy in
Iraq, including the foreign exchange policy of the Central Bank of Iraq.
4- The reasons for changing the exchange rate of the dollar are as follows: a) The adoption of a low exchange rate of the dollar against the dinar has led to the inability of the local product to compete with imported goods. The more cheap the dollar, the easier it will be for those who export goods to Iraq to sell them at prices lower than the prices that the Iraqi product can sell. Over time, the Iraqi factories were closed and their products were replaced by imported goods. Agricultural production has also been disrupted due to competition from imported products. With this decision, the national product was granted a preferential advantage over the importer, equivalent to the rate of change in the exchange rate of about (23%). In fact, the competitiveness obtained by the national product will turn after a period (according to the extent of the flexibility of consumption of imported goods) to an absolute advantage, at which point the import from Those commodities, when the real sector is active and achieves the advantages of mass production and the fixed costs of production are reduced, supported by what other economic policies provide. The decline in public revenues due to the drop in global oil prices during the year 2020 as a response to the repercussions of the Corona pandemic and the global economic closure. The price of one barrel reached about (20) dollars in 2020. The exchange rate adjustment has contributed to the realization of additional resources for public finances.
Al-Rain clinic
date number:
NO :
C) Due to the spending pressure and the finances resorting to borrowing, the internal public debt doubled from about (38) trillion dinars at the end of 2019 to (64) trillion dinars at the end of 2020, which was the result of the parliament’s legislation for internal borrowing laws, as the Ministry of Finance was transferred With internal and external borrowing, the Ministry of Finance issued treasury transfers to government banks, which in turn discounted them to the bank
Iraqi Central. D) As a result of what was mentioned in paragraph (c) above, the balance of the currency issued for circulation increased from about (52) trillion dinars at the end of 2019 to (66) trillion dinars at the end of 2020.
e) Against the background of the foregoing, the financial situation has become a serious threat to the position and adequacy of foreign reserves and to the ability of the Central Bank of Iraq to continue to defend the value of the currency and the previous exchange rate. Therefore, adjusting the exchange rate was not to address the financial gap in financing, and this is not a decision related to it only or because of low oil prices, but it is a national strategic decision aimed at protecting our national wealth and the real productive sector. Also, the idea of adjusting the exchange rate is not a temporary decision, but rather an option that was put forward in our deliberations by the Financial Authority years ago, provided that the performance of public financial institutions, the most important of which are taxes and customs, should be modified. What should the government and the Ministry of Finance address. With
E - The current exchange rate represents the price accepted by the Iraqi government to meet the increasing expenditures and reduce
The deficit and the repayment of the internal public debt as well as the external debt. Because the main source of public revenue
he is
With the financial authority for years, provided that the performance of public financial institutions is modified, the most important of which are taxes and customs, as we have always believed that financial policy tools can be activated to excellent levels to support treasury resources,
This is what the government and the Ministry of Finance should address. E - The current exchange rate represents the price accepted by the Iraqi government to meet the increasing expenditures, reduce the deficit, and pay the internal public debt alongside external debts. Because the main source of public revenue is the export of crude oil. On the other hand, the current exchange rate contributes to an increase in local production, given that the prices of imported goods have become more expensive for the consumer, while locally manufactured goods have become less expensive.
As stated at the beginning of our answer in the first paragraph. 6 - On the other hand, changing the exchange rate during short periods shows the local markets, threatens investment, creates economic stagnation and weakens confidence in the monetary policy and the value of the local currency. It also contributes to increasing speculation in foreign currencies and increasing their hoarding as a safe haven and store of value more than currency.
local. 7- Setting up oil resources, whether in dinars or dollars, in the accounts of the Ministry of Finance. Any differences are supposed to contribute to reducing the planned deficit. It is possible to inquire from the Ministry of Finance about the answer to the last question mentioned
In your book above.
with respect.
ے
frightful conqueror
Representative Hadi Hassan Al-Salami’s question to the Governor of the Central Bank:
Al-Rain clinic
date number:
NO :
C) Due to the spending pressure and the finances resorting to borrowing, the internal public debt doubled from about (38) trillion dinars at the end of 2019 to (64) trillion dinars at the end of 2020, which was the result of the parliament’s legislation for internal borrowing laws, as the Ministry of Finance was transferred With internal and external borrowing, the Ministry of Finance issued treasury transfers to government banks, which in turn discounted them to the bank
Iraqi Central. D) As a result of what was mentioned in paragraph (c) above, the balance of the currency issued for circulation increased from about (52) trillion dinars at the end of 2019 to (66) trillion dinars at the end of 2020.
e) Against the background of the foregoing, the financial situation has become a serious threat to the position and adequacy of foreign reserves and to the ability of the Central Bank of Iraq to continue to defend the value of the currency and the previous exchange rate. Therefore, adjusting the exchange rate was not to address the financial gap in financing, and this is not a decision related to it only or because of low oil prices, but it is a national strategic decision aimed at protecting our national wealth and the real productive sector. Also, the idea of adjusting the exchange rate is not a temporary decision, but rather an option that was put forward in our deliberations by the Financial Authority years ago, provided that the performance of public financial institutions, the most important of which are taxes and customs, should be modified. What should the government and the Ministry of Finance address. With
E - The current exchange rate represents the price accepted by the Iraqi government to meet the increasing expenditures and reduce
The deficit and the repayment of the internal public debt as well as the external debt. Because the main source of public revenue
he is
With the financial authority for years, provided that the performance of public financial institutions is modified, the most important of which are taxes and customs, as we have always believed that financial policy tools can be activated to excellent levels to support treasury resources,
This is what the government and the Ministry of Finance should address. E - The current exchange rate represents the price accepted by the Iraqi government to meet the increasing expenditures, reduce the deficit, and pay the internal public debt alongside external debts. Because the main source of public revenue is the export of crude oil. On the other hand, the current exchange rate contributes to an increase in local production, given that the prices of imported goods have become more expensive for the consumer, while locally manufactured goods have become less expensive.
As stated at the beginning of our answer in the first paragraph. 6 - On the other hand, changing the exchange rate during short periods shows the local markets, threatens investment, creates economic stagnation and weakens confidence in the monetary policy and the value of the local currency. It also contributes to increasing speculation in foreign currencies and increasing their hoarding as a safe haven and store of value more than currency.
local. 7- Setting up oil resources, whether in dinars or dollars, in the accounts of the Ministry of Finance. Any differences are supposed to contribute to reducing the planned deficit. It is possible to inquire from the Ministry of Finance about the answer to the last question mentioned
In your book above.
with respect.
ے
frightful conqueror
The Parliamentary Development Institute holds a training course for new MPs
The Parliamentary Development Institute, with international partners, held a two-day training course for new MPs in the areas of legislation and .oversight A statement by the institute, received by (Baghdad today), said that "the course is in cooperation with the International Partners Foundation for Governance, and under ".the auspices of Sirwan Abdullah, Secretary-General of the Council In his speech, he pointed out the importance of "the active participation of the representatives in the interactive workshop, which will increase the knowledge of the representative, which will help him to expand the information base, exchange ".experiences and benefit from the experiences of international parliaments
For his part, Saad Fayyad, Director-General of the Parliamentary Development Institute, expressed in his speech during the session his welcome to the experts in the International Partners Foundation for Governance and his appreciation for the trouble of traveling to Iraq despite the difficult circumstances and reaching the Parliament with the aim of providing their expertise in developing the capabilities and .skills of women and gentlemen of Representatives Fayyad pointed out that the methodology adopted by the Institute in its strategy in the field of development and training depends on motivating the representative to participate and attend interactive sessions, as it is an essential feature to provide information or experiences that may not be obtained from other parties, stressing the Institute's keenness to achieve this goal by benefiting from international experiences. patriotism and the development of work skills, in addition to the expansion of the use .of technology to provide specialized training
Fayyad pointed out that the partnership with the International Partners Foundation for Governance is based on a long history of cooperation with the House of Representatives that extends for about 14 years through its clear role in bringing about positive changes in the legislative and oversight fields, in addition to its contribution to training hundreds of cadres of the Council’s formations in various fields, which led to Acquiring new skills in parliamentary work, which motivates us in the Parliamentary Development Institute to perpetuate the momentum of cooperation to reach the desired goals in developing the work of the legislative institution, stressing the keenness of the Parliamentary Development Institute to make the most of this interactive workshop that will be held over two days and the information it provides will be provided by experts in
The field of enhancing and developing professional capabilities and adopting innovative and modern training mechanisms in providing information to new members of the House of .Representatives
The first day of the training course focused on budget preparation and economic .control
f\eb 20 22
Exchange offices demand the central bank determine its position on the exchange rate: rumors confused the market
The owners of exchange offices in Baghdad confirmed today, Sunday, that they have expanded the difference between buying and selling to ten figures, and while they demanded the Central Bank to determine its position on the process of changing the price of the dollar, an economist considered that the fluctuation in the price of the dollar led to a stagnation in the markets.
Muhammad Hussein, the owner of the Fez exchange office, said in an interview with Shafaq News Agency, "What is currently happening with regard to the process of buying and selling the dollar is just jurisprudence, even for the major stock exchanges, and these jurisprudence is driven by rumors that in turn confused the market," noting that "what is happening of dollar sales belong to the citizens. Those who fear that the dollar will fall more, and not the exchange companies, as a result of rumors that indicate a decrease in the dollar.”
He added, "Some companies have stopped and refrained from buying or selling operations, while some other companies are immunizing themselves by setting a difference of 10 digits (tiger) between selling in relation to the stock price and ten digits between buying in relation to stock exchange prices after it was limited to five. numbers".
for his part; The owner of Al-Yaqin exchange office said in an interview with Shafak News Agency; “There is great confusion in the processes of buying and selling the dollar, and this confusion affected the work as a result of the Central Bank selling the dollar to offices through auction at a price of 146000 dinars per 100 dollars, while what is currently available from the price in the markets is 144500 dinars per 100 dollars, which is less Much more than bank rates.
He pointed out that "the market will remain in a state of confusion as a result of the existence of these rumors," calling on "the Central Bank to speak publicly by defining its position on changing the price of the dollar or not, or determining a specific time for changing the price of the dollar."
for his part; The economic expert, Hilal Al-Tahan, said in an interview with Shafaq News Agency, "The calls to reduce the exchange rate led to fluctuation in exchange rates, and therefore there is no buying of the US dollar at the present time, and I expect that there will be more decreases, and those who own dollars are trying to sell the dollar in any way for fear of loss."
Miller added; "The fluctuation will lead to an economic stagnation in the market, and consequently, the buying and selling operations will decrease, not only the dollar, but even residential houses, lands, goods and services," noting that "the citizen is waiting for the matter to be finally resolved by the government through the 2022 budget."
He pointed out that "the increase in the dollar's exchange from 120 to 145 thousand dinars compared to 100 dollars during the 2021 budget and the use of the shock method in dealing with the conditions of the Iraqi economy had a great impact on the rise in prices in the markets, where the exchange rate rose by nearly 25 percent, but the prices of goods Some of them rose to 100 percent and even 150 percent," noting that "this is due to the greed of some merchants and the government's lack of control over the markets, which affected the poor and even middle class of employees."
Miller emphasized; That "the arrival of financial surpluses after the rise in the price of oil globally began, there were calls to reduce the exchange rate of the dollar, which are realistic and correct calls, as this rise cannot continue after most of the people were affected by that, with the improvement of the financial situation and a good economy for Iraq."
It is noteworthy that the exchange rates of the dollar witnessed a decrease with the presence of calls to reduce the prices of the dollar with the improvement and the rise in oil prices, so that the Baghdad Stock Exchange recorded this morning, Sunday, 14500 dinars against the dollar, and the owners of the exchange offices worked hard in selling the dollar and the lack of clarity about the government’s direction to reduce the price of the dollar or not.
Source: The dollar exchange rate will be reduced gradually if approved
link are they considering this?
A parliamentary source said, on Saturday, February 19, 2022, that the meeting of the House of Representatives with the Governor of the Central Bank regarding the exchange rate of the dollar, resulted in the approval of reducing the exchange rate of the dollar, it will be gradually, step by step, so as not to affect the .market movement. And the citizen The source told the
Obelisk that changing the exchange rate in a sudden manner by about 135 thousand against $100 will have repercussions on the level of commercial and financial movement and on the citizen, who is difficult .to approve The parliament session was attended by deputies of the Sadrist bloc, some heads of blocs and a representative of .the state of law, while Finance Minister Ali Allawi was absent from attendance And the head of the Kurdistan Justice Bloc, Soran Omar, announced, on Saturday, the details of the session to host .the governor of the Central Bank in the Iraqi parliament
Omar, one of those present at the session, said that the governor of the Central Bank stressed during the session that the dollar exchange rate does not change, and that making an amendment to it requires changes and finding .solutions to a number of obstacles The governor added in the meeting, according to the post: We have 76 banks, while the banks in Iran and Turkey .do not exceed 30 banks in each of the two big neighboring countries The governor continued: Many banks do not have the required standards and obtained the license, including the .necessity of having 250 billion dinars as a guarantee Omar concluded his post by saying: The Governor of the Central Bank announced the formation of a fact-finding .committee on all matters related to the institution
The House of Representatives set, earlier, a date for a meeting with the Minister of Finance and the Governor of .the Central Bank in order to discuss the dollar exchange rate Earlier, the leader of the Sadrist movement, Muqtada al-Sadr, presented six proposals to control the repercussions .of the decision to change the dollar exchange rate
Deputy: The 2022 Budget Is Explosive
On Sunday, State of Law Representative Firas Turki expected the 2022 budget to be explosive for several reasons.
Turki said in a statement to the "Information" agency, "The 2022 budget will be explosive in relation to previous years for several reasons, the most important of which is the increase in oil production, the increase in demand, and most importantly, oil prices will be between 60_70 dollars, figures that previous budgets did not witness."
He added, "Through our work as representatives of the people, we seek to monitor the next government and work to provide all life requirements such as electricity, water and a decent life for the citizen."
He pointed out that "the next government must provide all the requirements for a decent life, such as infrastructure, job opportunities, and others, as it has a very large budget."
It is noteworthy that the price of a barrel of oil exceeded $90 per barrel, especially in the recent period.
A member of the Finance Committee, Jamal Cougar, revealed, earlier, the possibility of approving the 2022 budget before the formation of the new Iraqi government.
The Central Bank of Iraq breaks its silence and reveals details regarding the dollar exchange rate
The Central Bank of Iraq considered, on Sunday, that positive results were achieved from the exchange rate of the US dollar against the dinar, warning of an “economic stagnation” in the event of its repeated change within short times without studying.
An authorized source in the Central Bank of Iraq issued a statement this evening, which was reported to Shafak News Agency, that the current exchange rate has achieved many positive results, the most prominent of which was reducing the state budget deficit to achieving a surplus at the end of 2021, and giving local producers and investors an important competitive advantage. With imported goods.
The source said that the repetition of changing the exchange rate within short times without a study from the concerned authorities leads to an economic recession, confuses the work of local markets, increases speculation on foreign currency, and squanders the gains made by the current exchange rate.
The source stressed that despite the rise in global oil prices of an unstable nature, there is no connection between this rise and the objectives and results of changing the exchange rate, indicating that the current rise in oil prices will enable the Iraqi government to rebuild the Iraqi economy correctly, and build financial buffers. Sufficient to face any future fluctuations in international oil prices.
On the other hand, the Governor of the Central Bank of Iraq, Mustafa Ghaleb Mokhif, praised the results of his meeting with members of Parliament yesterday, Saturday.
In a separate statement to the Central Bank, which was received by Shafak News Agency, the Governor of the Bank provided a full explanation of the Central Bank’s tasks, the mechanisms for buying and selling foreign currency, and the supervision of the banking sector.
The governor also presented, according to the statement, the justifications that necessitated the adjustment of the foreign currency exchange rate and the results that have been achieved and will be achieved in the medium and long term, indicating that the Central Bank is studying the issue of the exchange rate from its various aspects, and public financial institutions must perform their tasks in a complete manner to achieve all the objectives of the decision.
Earlier today, Sunday, the owners of banking offices in Baghdad demanded that the Central Bank determine its position on the process of changing the price of the dollar.
The exchange rates of the dollar (yesterday and today) witnessed a continuous decline amid political statements calling for the reduction of dollar prices with the improvement and rise in oil prices, and the owners of exchange offices worked hard in selling the dollar and the lack of clarity about the government’s direction to reduce the dollar price or not.
And yesterday, Saturday, the Iraqi Council of Representatives held a meeting headed by Hakim Al-Zamili, the first deputy speaker of the Council, to discuss the reality of the dollar exchange rate against the local currency.
The Governor of the Central Bank, Mustafa Ghaleb Mokhif, his deputy and a number of officials in the bank attended the meeting, while Finance Minister Ali Allawi and his ministry boycotted the meeting.
In his speech during the start of the meeting, Al-Zamili promised the Minister of Finance to question him under the dome of Parliament, and to issue a decision banning him from traveling outside Iraq.
It is noteworthy that the Central Bank of Iraq, on December 19, 2020, officially announced the amendment of the foreign exchange rate (the US dollar) to be 145,000 dinars for every $100, according to the state’s general budget for the year 2021 approved by the House of Representatives.
As a result, according to specialists, the annual inflation in Iraq rose significantly, so that the prices of all materials and commodities in the Iraqi market rose significantly, which sparked a wave of strong resentment among the popular circles, as well as the objections of some interested in economic affairs.
Nassif: The Meeting With The Governor Of The Bank And The Representative Of Finance Led To The Formation Of Two Economic Committees
Representative of the State of Law coalition, Alia Nassif, confirmed, on Sunday, that a meeting of a number of representatives of political forces yesterday with the Governor of the Central Bank and a representative of the Ministry of Finance was to put pressure on restoring the dollar exchange rate, noting that the meeting led to the formation of two economic committees.
Nassif said in a statement to "Al-Maalouma", that "the meeting was successful, although the absence of the Minister of Finance generated some confusion, but the community decided to form two economic committees, the first to discuss with the Minister of Finance the economic feasibility and the other to follow up on the Central Bank."
He added, "Any decision taken to reduce or restore the exchange rate must be through the budget," noting that "the current exchange rate will remain as it is."
Nassif indicated that "the demand of the meeting was to reduce the exchange rate and make major governmental changes towards helping the citizen."
Dollar exchange rates are falling again
Today, 18:56
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