WOTS THU MAR 3 22 Between the exchange rate and promises of reforms.. the fragile classes struggle with the high prices of the markets
These are the articles I would have discussed if I had done a My FX Buddies Podcast:
Al-Maliki calls for the formation of the next government
Head of the State of Law Coalition, Mr. Nuri al-Maliki, receives the Serbian and Pakistani ambassadors to Iraq The head of the State of Law Coalition, Mr. Nuri al-Maliki, received in his office today, in two .separate meetings, the ambassadors of Serbia and Pakistan to Iraq During the meeting, they discussed the latest political and security situation in Iraq and the .region
His Excellency affirmed Iraq's keenness to strengthen its relations with all countries of the world in a manner that serves the interests of the Iraqi people, and not to allow all attempts aimed at harming its interests and foreign relations, and refuses to interfere in its internal affairs, indicating that the next new government needs the support of brothers and friends to be able to .achieve its goals
The head of the State of Law coalition indicated the need for political blocs and forces to invoke the supreme national interest in order to speed up the .formation of a government capable of meeting services For their part, the two ambassadors expressed their interest in the Iraqi situation and the need to .strengthen relations and cooperation in various fields
Between the exchange rate and promises of reforms.. the fragile classes struggle with the high prices of the markets
The exchange rate of the dollar against the dinar is still standing against all attempts to reduce it by some political forces, amid the insistence and clear adherence of the Ministry of Finance and the Central Bank to the decision to maintain the price in exchange for reforms that the government will pursue in the coming period to reduce the damage caused to the fragile classes as a result of the rise The exchange rate, with assurances that there will be no point in any reforms as long as they are not accompanied by a reform process to combat corruption and end currency smuggling.
At a time when a parliamentarian stressed the importance of activating the automation system to combat corruption and currency smuggling, blaming the Minister of Finance and the Governor of the Central Bank for the reluctance to implement it, another pointed out that any sudden devaluation of the dollar against the dinar would have a similar damage to what happened at the time of its previous lifting, stressing the importance of Finding real remedies to reduce the damage to the poor classes and focus on supporting the ration card, social welfare and the lower classes of employees, while an economist stressed that all the justifications of the government and the Minister of Finance are of no value and she is well aware that her words are a distortion of facts and their goals do not serve the poor citizen.
Independent Representative Hadi Al SalamiHe stressed that the failure to activate the automation system caused the continuation of corruption, waste of public money and currency smuggling, stressing that the Minister of Finance and the Governor of the Central Bank bear full responsibility for this situation.
Al-Salami said in an interview with Alsumaria News, "Activating the automation system will be of utmost benefit in ending corruption and wasting public money and ending cases of manipulation of people's wealth, given that this step will lead to linking information technology and the tax and customs system withCentral Bank of IraqHe indicated that "these measures will lead to an end to the currency smuggling process and the inventory of tax issues and customs accounting, thus ending the issue of forged invoices used in the smuggling of hard currency abroad."
Al-Salami added, "These mechanisms, despite their importance in supporting the financial and monetary policy in the country, but the Minister of Finance and the Governor of the Central Bank did not abide by them and were not applied despite their inclusion in the enforceable laws, which caused the waste of public money and the continuation of corruption and currency smuggling."
He continued, "In order to defend the interests of the Iraqi people, who are considered the only victims of these wrong policies, we have submitted a complaint to the Attorney General, the Minister of Finance and the Governor of the Central Bank, due to the waste of public money and corruption."
Economic MonitorHamid Al-YasiriHe stressed that food prices have become unbearable and burden the simple citizen in a way that he is not able to face them, pointing out that the price of edible oil has reached prices equal to four times what it was last year, not to mention the high prices of sugar and edible oil in a reality that threatens The living situation of the simple citizen. For his part, the deputy confirmed
Al-Yasiri said in an interview with Alsumaria News, “The government should look at the situation of the simple citizen and bring those responsible for their ivory tower to the street and watch the systematic starvation of the poor classes by doubling food prices very dramatically,” stressing that “promises of reforms The citizen will not believe in it, and the only solution is to reduce the price of the dollar against the dinar, because if any reforms take place, they will benefit only certain segments and not all the Iraqi people, and it is not true that another class and starvation of the people are taken into account.
He added that "
He called for "the government and the finance minister to be with the Iraqi people and not against them, because all their justifications will not make the hungry citizen sleep at night comfortably." In an interview with Alsumaria News, Anouz said, "It is not possible to talk about a sudden devaluation of the dollar against the dinar, because it may lead to confusion, as happened when it was raised after information leaked before the decision to lift it was issued. Therefore, the reduction process in this situation will benefit the capital, especially the banks." Al-Ahly because it owns the dollar.”
Mohamed Anouz, that any sudden devaluation of the dollar against the dinar at the present time is something that cannot be talked about because it may lead to confusion in a similar way to what happened when it was raised more than a year ago, noting that the treatment for the repercussions of raising the price is by addressing all the obstacles that negatively affect the classes fragile.
He went on to say, "The trend that took place in the last parliament session after the Finance Minister presented his vision during hosting was through addressing the repercussions of raising the exchange rate."
And Anouz added, "The treatment is through addressing all the obstacles that negatively affect the fragile classes and working to support the ration card, social protection and minimum salaries for job grades, which reduces the repercussions of raising the price, in addition to coordination between all the ministries concerned with the file of price protection and importing goods to ensure that there is no raising Prices are exploited by greedy traders and market speculators.
He pointed out, "In the event that the government allocates sufficient funds to address the situation through direct and indirect support and obtain the necessary funds that the government needs, especially through customs, taxes and fees collected on Eid from state institutions in order to support the government's capabilities financially and provide assistance to the fragile classes, especially that the level of Poverty is high and the purchasing power of many citizens is weak for various reasons.
He stressed that "raising the dollar's price was with political approval and within convictions based on concrete conditions at the time regarding the issue of providing employee salaries while providing support to the fragile classes for you. In order to address the failure situation and reduce the burdens of citizens."
The Prime Minister of the Kurdistan Regional Government attacks the Federal Court and demands its re-formation
Today, Thursday, the Prime Minister of the Kurdistan Regional Government of Iraq , Masrour Barzani, attacked the Federal Supreme Court in Baghdad, calling for it to be reconstituted, following recent decisions that were taken and interpreted as "political" decisions, especially with regard to preventing the candidacy of the Kurdistan Democratic Party's candidate. Hoshyar Zebari for the Presidency of the Republic, and its decision against the illegality of the "Oil and Gas Law" .
And the Federal Court , in the middle of last month, issued a decision stating that the law adopted in the Kurdistan region of Iraq regarding the extraction and export of oil and gas by the local regional government was unconstitutional, and obligated Erbil to enable the Ministry of Oil and the Federal Financial Supervision Bureau in Baghdad, to follow up on the conclusion of contracts for the sale of oil and gas in the region .
And last week, the authorities of the Kurdistan region of Iraq held a meeting on this, and decided to reject the court's decision related to the oil and gas law, stressing that it will take all legal methods to protect the rights and powers of the region, considering the decision "not neutral."
Barzani stressed, during a press conference, "the region's readiness for dialogue with the Baghdad government to reach a radical constitutional solution, end differences and outstanding issues, and the constitution will be the rule, and we, in turn, will abide by the constitutional duties in full," adding: "Senior Iraqi officials stressed that if the region did not have oil, it would not be able to Obligation to provide financial benefits to the people of Kurdistan.
He stressed, "We will proceed to defend the constitutional rights of the people of Kurdistan, which have been violated," stressing that "a number of constitutional articles were violated by the recent decision of the Federal Court (the decision of the unconstitutionality of the Oil and Gas Law)."
He continued, "We asked the Iraqi government to give us an opportunity for dialogue on oil and gas, but unfortunately we were not given this opportunity, and this unilateral decision was taken, contrary to the spirit of the constitution and the basic principles of the federal system," noting that "the Federal Court took this decision at a critical time." is very".
Barzani considered that the Federal Court was "unconstitutional, and was not based on the law in its formation," calling for its re-formation "in accordance with Article 92 of the Constitution."
He added: "The constitution determined what the Kurdistan region does, and we will never give up these constitutional rights," stressing: "We are part of federal Iraq, and we have not seized anyone's right, and we do not accept the seizure of our rights, and the gates of Kurdistan are open to the Iraqi people, and the region was A haven for the afflicted, and there are a million citizens from the central and southern regions who are on the land of Kurdistan,” calling on all the people to “defend their constitutional rights and the rights of Kurdistan.”
The recent decisions of the Federal Court came in light of a deep political division in Iraq, specifically between the tripartite alliance that includes the "Sadr Movement", the "Sovereignty Alliance" and the "Kurdistan Democratic Party" on the one hand, and the " Coordination Framework " alliance on the other hand, regarding the formation of the government and the election of President of the Republic.
The "coordinating framework" described the decisions of the Federal Court as "courageous", considering that they "restored the right to the Iraqis." And the representative of the coalition, Alia Nassif, said in a statement, "The regional government (Iraqi Kurdistan) disposes of Iraq's wealth as it wants, and oil and gas revenues disappear without That citizens benefit from it, whether within the region or in the rest of the provinces.”
She stressed that "the court's courageous decision will enable the Federal Oil Ministry to take control of the region's oil file and review and audit all previous contracts," calling on the Oil Ministry to "follow up on the implementation of all legal procedures resulting from this decision."
Mazhar Saleh expects the fiscal deficit to disappear as global oil prices continue to rise
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, expected the ."disappearance" of the fiscal deficit in the federal financial budget with the continued rise in global oil prices Salih said that "the economic situation in Iraq in light of the high rise in oil prices will witness a remarkable improvement, as will the state of public finances, and at the very least the disappearance of the fiscal deficit of ".budgets if oil prices continue in this way
Saleh added, "However, there are global negative effects on this rise, because the rise in fuel is global and Iraq is an importing country, which will lead to bearing the inflation of imported materials. Food, because these two countries .produce 30% of the world's grain ".
Saleh added, "Iraq and the world will receive high inflationary waves
It is noteworthy that with the escalation of the fighting in Ukraine, it seems that Iraq will be affected, like other countries, but the degree of its impact will be great, according to experts who pointed to 3 strategic sectors that will .face major challenges due to the war: wheat, arms deals and oil
The Central Bank responds to a parliamentary question regarding )the dollar exchange rate (documents
Iraqi Parliament / Office of Representative Soran Omar Saeed
There is a question about the dollar exchange rate and money laundering
good greeting...
Your letter No. 0317D on 2/19/2020
We would like to point out that the information contained in your letter above regarding the (forged) invoices of some banks, which dates back to earlier dates, the Iraqi judiciary took its actions in a timely manner towards those banks, and the court’s decision was to reject the complaint against the banks and close the case for the absence of a crime because the permits submitted by the banks
It was correct and supported by the relevant border crossings.
On the other hand, the instructions of the window for the sale and purchase of foreign currency issued in 2021 obliged all banks participating in the window, to finance foreign trade through documentary credits and foreign transfers, to open a file for each company (customer) that includes, among many things, an endorsement for purchasing the goods or obtaining The service, confirmation of the transfer of the amount to the final beneficiary, confirmation of the bank’s search, investigation and verification of all parties related to the transfers. In addition, the border outlets have to do their duty and endorse the correct invoices. And that the banks that are proven to have submitted incorrect invoices are formally referred to the judiciary for action
Legal action against her.
As for your inquiry about the possibility of changing the current exchange rate, we would like to clarify that the current exchange rate has achieved many positive results, including reducing the budget deficit, which achieved a surplus in 2021 compared to 2020, and that the fiscal space that was achieved for the Iraqi government as a result of the current exchange rate will It helps it pay its obligations, including part of the internal and external debts, which contributes to enhancing financial sustainability, increasing support for the fragile classes and financing stalled investment projects.
With regard to changing the exchange rate, we would like to point out the following:
Changing the exchange rate during short periods confuses local markets, threatens investment, creates economic stagnation, weakens confidence in monetary policy and the value of the local currency, and also contributes to increasing speculation in foreign currencies and increasing their hoarding as a safe haven and store of value more than the local currency.
TODAY NEWs
The exchange rate change came to remedy the gap between the real value of the national currency (the dinar) and its nominal value, as the dollar was calculated at a low exchange rate, giving a high competitive advantage to imported goods and services, preventing the rise of the national product, while raising the exchange rate constituted a barrier to the importer.
And a competitive advantage for the national product equivalent to the rate of change in the exchange rate (about 23%).
It is worth noting that the decision to change the exchange rate is a national strategic decision that is not linked to interim conditions, and that the negative results that may have resulted from it, can be avoided by financial and governmental measures to support vulnerable groups and improve the vocabulary of the ration card and not retract this important decision.
with respect.
Banks are shops to exchange currency... and a valid appearance: 170 trillion dinars, an increase in budget revenues
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, said, Wednesday, March 2, .2022, that the rise in oil prices will increase the revenues of the general budget by 170 trillion dinars Salih told Al-Masala that if the average price of Iraqi exported oil reaches about $100 per barrel, the revenues of the general budget will exceed 170 trillion dinars, noting that this figure represents a large record revenue in the financial .and economic life in Iraq
He added that the increase in total revenues when it is outside the limits of financing expenditures approved in the budget or exceeds the limits of planned financing, is subject to the provisions of Article 19 / second of the effective Financial Management Law No. 6 of 2019 which states: When actual revenues exceed the estimates in the Federal General Budget Law for the year After covering the actual deficit, if any, the surplus is provided for use in the budgets .of the following years in a sovereign fund
He continued: In all cases, generating official reserves to be used for spending in the coming years through a sovereign savings fund managed according to the best international practices in managing and investing the official reserves of countries and benefiting from the investment returns of those official foreign reserves or disposing of them . .in financing the budgets of the coming years and achieving the so-called financial sustainability
And he went on: If the 2022 fiscal year ends without approving the budget and starting to spend at a rate of 1/12 of the actual current expenditures for the year 2022, the financial surplus will go to a fund or reserve account that represents the sovereign wealth in preparation, adding that the priority will go towards the sustainability of financing .investment projects that contribute to National income development and economic prosperity
He added that there is a major development that came in the effective Federal Financial Management Law that was amended in 2020, whereby governorates that did not benefit from their share of the allocation for investment projects were allowed to keep those allocations in the following year in a trust account to undertake the resumption of spending on approved investment projects in the following year Non-stop even in the event of delay in approving the .budget
He concluded his speech by saying: In addition to the foregoing and for the requirements of human and economic development and facing the problems of the standard of living, there are two issues that should be addressed from a financial point of view by adopting a draft law that, on the one hand, would help finance poor families, especially those covered by social care, and the other would run a package of new strategic projects that contribute In economic .growth and job opportunities and lead to the operation of the business sector without interruption
Oil prices continued to rise to levels not recorded in nearly a decade, while the European reference price of natural gas .recorded its highest price, due to the war in Ukraine, which continues to raise concerns about supplies
In this context, the former Parliamentary Finance Committee Chairman Haitham al-Jubouri revealed, on Wednesday, March 2, 2022, that the issue of the exchange rate is purely political auctions, noting that Iraq annually loses 9 trillion .dinars due to the lack of control over some outlets
Al-Jubouri said during a televised interview, which was followed by the obelisk, that the issue of the exchange rate is purely political bidding, and it is a government decision with a political cover, explaining that the Minister of Finance is .the owner of the proposal and his proposal because of the existence of a crisis and not out of a vacuum
He added: It was the option available at the time, and it was a necessary evil, stressing that the exchange rate should .not be a government decision
He added that 90% of banks are shops to change currency, noting that Iraq annually loses 9 trillion dinars due to the .lack of control over some outlets
147,050
The price in most exchanges
146,500
147,500
Favorite Currencies Forex Quotes
| Symbol | Bid | Ask | High | Low | Open | Change | Time |
|---|---|---|---|---|---|---|---|
| USD/IQD |  1458.0000 | 1462.0000 | 1456.8000 | 1456.7000 | 1456.7000 |  -0.4000 | 08:31 |
| USD/VND | 22800.0000 | 22890.0000 | 22841.7800 | 22813.6500 | 22813.6500 | 30.1700 | 08:31 |
| USD/CNY |  6.3186 | 6.3206 | 6.3200 | 6.3153 | 6.3195 | -0.0015 | 08:34 |
| USD/KWD | 0.3030 | 0.3035 | 0.3032 | 0.3028 | 0.3029 | 0.0001 | 08:21 |
| GBP/USD | 1.3380 | 1.3381 | 1.3417 | 1.3362 | 1.3405 | -0.0025 | 08:38 |
| USD/IRR | 42025.0000 | 42550.0000 | 42268.7000 | 42188.9000 | 42188.9000 | 65.2000 | 08:30 |
| USD/IDR | 14375.0000 | 14375.0000 | 14417.0000 | 14359.0000 | 14364.0000 | 11.0000 | 08:38 |
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Banks are shops to exchange currency... and a valid appearance: 170 trillion dinars, an increase in budget revenues
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, said, Wednesday, March 2, .2022, that the rise in oil prices will increase the revenues of the general budget by 170 trillion dinars Salih told Al-Masala that if the average price of Iraqi exported oil reaches about $100 per barrel, the revenues of the general budget will exceed 170 trillion dinars, noting that this figure represents a large record revenue in the financial .and economic life in Iraq
He added that the increase in total revenues when it is outside the limits of financing expenditures approved in the budget or exceeds the limits of planned financing, is subject to the provisions of Article 19 / second of the effective Financial Management Law No. 6 of 2019 which states: When actual revenues exceed the estimates in the Federal General Budget Law for the year After covering the actual deficit, if any, the surplus is provided for use in the budgets .of the following years in a sovereign fund
He continued: In all cases, generating official reserves to be used for spending in the coming years through a sovereign savings fund managed according to the best international practices in managing and investing the official reserves of countries and benefiting from the investment returns of those official foreign reserves or disposing of them . .in financing the budgets of the coming years and achieving the so-called financial sustainability
And he went on: If the 2022 fiscal year ends without approving the budget and starting to spend at a rate of 1/12 of the actual current expenditures for the year 2022, the financial surplus will go to a fund or reserve account that represents the sovereign wealth in preparation, adding that the priority will go towards the sustainability of financing .investment projects that contribute to National income development and economic prosperity
He added that there is a major development that came in the effective Federal Financial Management Law that was amended in 2020, whereby governorates that did not benefit from their share of the allocation for investment projects were allowed to keep those allocations in the following year in a trust account to undertake the resumption of spending on approved investment projects in the following year Non-stop even in the event of delay in approving the .budget
He concluded his speech by saying: In addition to the foregoing and for the requirements of human and economic development and facing the problems of the standard of living, there are two issues that should be addressed from a financial point of view by adopting a draft law that, on the one hand, would help finance poor families, especially those covered by social care, and the other would run a package of new strategic projects that contribute In economic .growth and job opportunities and lead to the operation of the business sector without interruption
Oil prices continued to rise to levels not recorded in nearly a decade, while the European reference price of natural gas .recorded its highest price, due to the war in Ukraine, which continues to raise concerns about supplies
In this context, the former Parliamentary Finance Committee Chairman Haitham al-Jubouri revealed, on Wednesday, March 2, 2022, that the issue of the exchange rate is purely political auctions, noting that Iraq annually loses 9 trillion .dinars due to the lack of control over some outlets
Al-Jubouri said during a televised interview, which was followed by the obelisk, that the issue of the exchange rate is purely political bidding, and it is a government decision with a political cover, explaining that the Minister of Finance is .the owner of the proposal and his proposal because of the existence of a crisis and not out of a vacuum
He added: It was the option available at the time, and it was a necessary evil, stressing that the exchange rate should .not be a government decision
He added that 90% of banks are shops to change currency, noting that Iraq annually loses 9 trillion dinars due to the .lack of control over some outlets
CBI Update: Just a note:
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