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The Iraqi citizen complains about the high prices, despite the wealth of the state treasury
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Returning the iraqi dinar exchange rate to the previous rate is an economic disaster and a strategic economic mistake
During the past week, rumors spread widely in the foreign exchange market, promoted by speculators and some politicians who are not specialized in the economy for narrow purposes and interests, taking advantage of the negotiations to form the new government and tickling the feelings of the public with low incomes.
Those who suffered from high prices for foodstuffs and other basic materials and high rates of inflation. Therefore, we noticed that the currency market was affected by rumors, which led to a slight and temporary rise in the dinar, which was maintaining its stability at the level of the announced price and the target of the Central Bank for several months.
The important thing here is whether there is a higher economic interest in changing the exchange rate and returning it to its previous rate, and what are the benefits and damages in the event of the change. Will the citizens who were affected by the price hike benefit and was the exchange rate change the main reason for the suffering of citizens with low incomes?
The process of raising the value of the local currency will certainly not lead to a significant decrease in prices, because the economic principle confirms (the flexibility of prices in the rise is limited in the decrease) and because the rise in prices was the main reason for it being its rise globally due to the effects of the Corona pandemic, the closure of the global economy and the Russian-Ukrainian war, and this refutes the allegations Some politicians are looking for the interests of their parties. The process of changing and returning to the previous price will lead to high costs borne by the economy and catastrophic damages that will be borne by citizens due to the problems that will occur in the internal commercial and financial transactions among them and to financial and economic problems that will put pressure on the inter-relations with the countries of the world.
Therefore, it is necessary to study economically the expectations of taking any decision on the exchange rate, including the decrease in the central bank’s reserves and their adequacy, the ratio of external and internal debt to the gross domestic product, government spending and its relationship to the growth of oil revenues and the growth of GDP, and the rate of price response to exchange rate changes,
In addition to the redistribution of individual income and national income, and the absence of a financial depth that represents the government’s reserve due to the absence of a sovereign fund, and therefore the Iraqi economy will be affected by the expected global stagflation, and the government has not paid what it owes to the Central Bank of internal debt despite the abundance that has been achieved due to high prices Oil, which will prevent the central bank from saving the economy from collapse in the event of expected crises, especially if reserves decline due to the expectation of a drop in oil prices in the future.
Therefore, it is not easy to target the current exchange rate in a country whose sources of income depend on (oil revenues, which are the source of the dollar in Iraq), so our economy suffers from a structural financial deficit. We do not have a comprehensive economic reform vision with clear and specific features. Therefore, changing the exchange rate does not guarantee economic stability in the current circumstance.
Therefore, caution must be exercised when making any decision related to the issue of the exchange rate. According to the effects and repercussions of the economic reality in our country, which suffers from challenges, repercussions, economic and financial crises, and a structural and systematic defect in the management of the economy and money, the central bank cannot bear it alone because its role is clear, specific and independent, focused on stimulating the economy according to the tools and applications of monetary policy and other economic sectors, activating the real economy and diversifying sources of national income. And leaving the unilateral economy, relying on oil as a major resource.
Therefore, those who criticize the Central Bank should return to the Central Bank’s statement in which it set the new exchange rates on December 2020, in which it explained with high transparency the reasons and rationales for determining the price and what measures it will take and what other parties should take in order to maintain the stability of the new rate because the Bank It is not possible to work alone without an economic and financial methodology coordinated with the public finances supported by the Central Bank in accordance with the tasks and objectives stated in Law No. 56 of 2004. Because of these combined conditions, the Central Bank had no choice but to intervene on more than one occasion to support public finances and save critical public spending requirements.,
The Central Bank understands the difficulties facing the government's reform intentions, but this does not preclude from tying any steps that the monetary authority can take to effective steps to carry out reforms that inevitably affect the institutions of the financial authority, especially the effective collection institutions, customs and taxes, and public collection institutions. the other, and that spending be rationalized and rationalized, and all of this depends on the political will of the higher state institutions that support the financial authority’s directions to achieve this.
It requires the government's direction to support the vulnerable groups that are inevitably directly affected. By activating non-oil economic sectors, stimulating and revitalizing the economy, completing owned investment projects, and employing the unemployed
And support the private sector, and this will inevitably contribute to raising the value of the Iraqi dinar and not modifying it politically.
*Economic and banking consultant
Parliamentary Finance Member: The Central Bank does not intend to reduce the price of the dollar
link another day and more talk about the exchange rate
Member of the Parliamentary Finance Committee, Nermin Maarouf, confirmed on Wednesday that the Central Bank of Iraq has no intention to change the dinar exchange rate against the US dollar.
And she said in a press statement received by Shafak News Agency, "The bank revealed, through a report it recently published, that it will never adjust the exchange rate of the dinar against the US dollar during the current period," warning that "such a step and in any country was causing a loss of confidence in the citizen." The market movement is weak, and traders and capital owners are cautious, fearing loss and protecting their capital.
She added, "The decision to reduce the exchange rate of the dinar against the dollar, which was taken a year ago, led to market disruption and instability, and the rise in commodity prices, but Iraq was able, in return, to raise its foreign currency reserves to 90 billion dollars, not to mention gold, as well. He was able to pay off his accumulated debts.
Earlier, a number of members of the Iraqi Council of Representatives demanded the inclusion of a vote on restoring the exchange rate of the US dollar against the Iraqi dinar to its previous official rate.
It is noteworthy that the Central Bank of Iraq, on December 19, 2020, officially announced the amendment of the foreign currency exchange rate (the US dollar) to be 1450 dinars, instead of 1200 dinars, for every 100 dollars, 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 has risen significantly, so that all prices of materials and goods in the Iraqi market have risen significantly, which has sparked a wave of strong resentment among the popular circles, as well as the objections of some interested in economic affairs.
The Securities and Exchange Commission begins training the cadres of the custodian banks
The Securities Commission and the Iraq Stock Exchange started a training program for the owners of Iraqi banks that participated in the custodian of one of the Arab banks.
The Executive Director of the Iraq Stock Exchange, Taha Ahmed Abdel Salam, said in a statement to the official agency followed by (Al-Oula News): “Theoretical and practical training on the activity of the custodian in the Iraqi Stock Exchange - the Custudian Bank custodian for a number of employees of an Iraqi bank was licensed during the month. The past and for a number of employees of the Securities Commission and the Iraq Stock Exchange (ISX), the training takes place in one of the Arab banks for the period from October 24-26.”
Abdul Salam added, “It was part of the training program to review the activity of the Dubai Financial Market (DFM) on October 25, which included a meeting between the Executive Director of the Iraq Stock Exchange and the CEO of the Dubai Financial Market Company and a dialogue about the proposed training plans to raise the skills of workers in various activities and plans Another is related to acquiring practical knowledge of recent activities that were associated with the approval of the Securities Commission during the current year.”
Dollar prices in the market are lower than its price in the Central Bank auction
The exchange rates of the US dollar against the Iraqi dinar stabilized today, Wednesday, in the main stock exchange in the capital, Baghdad, while it decreased in the banking markets to approximately the official rate in the Central Bank, while the purchase price fell below the bank rate.
Al-Kifah and Al-Harithiya Central Stock Exchange in Baghdad recorded this morning 145900 Iraqi dinars for 100 US dollars, which are the same prices recorded on Tuesday morning.
Buying and selling prices decreased in banking shops in the local markets in Baghdad, where the selling price amounted to 146,500 Iraqi dinars per 100 US dollars, while the purchase prices reached 145,500 Iraqi dinars per 100 US dollars.
In Erbil, the capital of the Kurdistan region, the dollar prices witnessed an increase, as the selling price reached 146,400 dinars per 100 US dollars, and the purchase price reached 146,300 dinars per 100 US dollars.
This decline in dollar prices is affected by statements issued by deputies regarding the trend to change the dollar exchange rate, despite the repeated denials of the Central Bank.
Mobilizing the exchange rate change faces “fierce” objections from specialists
The Iraqi Council of Representatives is mobilizing to change the dollar exchange rate during the next government to be formed by Muhammad Shiaa Al-Sudani, at a time when this step was rejected and disapproved by economic specialists.
A number of members of the Iraqi Council of Representatives demanded the inclusion of the voting paragraph on restoring the exchange rate of the US dollar against the Iraqi dinar to its previous official rate.
A member of the Parliamentary Integrity Committee, Hamid Al-Shiblawi, said, according to an official document, entitled “Reducing the dollar exchange rate,” that “due to the repercussions of the rise in the dollar’s exchange rate against the dinar, which negatively affected the economic situation of the Iraqi family, which burdened the citizen, especially those with limited income, we, the members In the attached list, we ask the Presidency of the House of Representatives to include a paragraph to reduce the dollar exchange rate and gradually return it to the previous exchange rate within the work schedule of the next session in the public interest.
The list showed the signatures of 40 deputies so far.
Economist Ahmed Al-Hathal describes the results of this campaign that “speculators benefit… and those with low incomes are harmed,” noting that “officials and governments, whoever they are, should leave the issue of the exchange rate and sanctify the value of their national currency at the present time, and any deputy” is a newborn in the economy. “That he does not reap its political fruits because of the exchange rate.”
He added, "Now that the markets are experiencing a recession, even the one who has (100 dollars) is now speculating with it, although its quantity was low, but the statements led to pessimistic expectations that confused the markets. The Central Bank today sold the least amount of internal cash (17) million dollars due to the decrease in demand." And the impact of the increase in supply by the hoarded dollar, and this is of course due to media statements by officials, as well as previous promises to the government in charge.”
For his part, the economic researcher, Mortada Al-Azzawi, says that “reducing the exchange rate of the local currency (despite the rise in the real exchange rate) is a dangerous process, because its success requires certain measures, some of which are to protect the poor (the state worked with them to some extent) and other measures to benefit from them to advance and diversify the economy. And this is what the state has not done in a real way until this moment, unfortunately), but the reduction remains a familiar policy that many countries around the world have worked with, and it has often yielded positive results over time.
He explained, "As for re-raising the exchange rate, it is a measure not universally recognized and harmful to the national economy, and it is known that raising the local currency rate does not help at all in achieving economic growth because it reduces international competitiveness."
He continued: “With regard to the situation of the poor, they have actually been affected by the devaluation of the exchange rate, but the defect is not the exchange rate itself, but rather the defect in the redistribution of wealth, and it must be ensured that the poor receive a certain minimum income in their national wealth through direct cash subsidies and other programs. “.
Al-Azzawi points out that “in the countries of the world, this process is carried out through taxes imposed on the activity of the private sector, but in our country, the situation is completely different,” addressing the responsible authorities to “they took advantage of the exchange rate difference achieved to bring about real economic development in the country, as it is better for citizens, especially the poor.” Instead of trying to create a kind of temporary illusory luxury that will disappear with the first collapse of oil prices.”
The Iraqi citizen complains about the high prices, despite the wealth of the state treasury
The Iraqi citizen complains about the high prices of food commodities despite the availability of liquidity in the state treasury, and according to government data, inflation rates in Iraq increased by 5.3 percent last September compared to what it was during the month of September 2021, According to the latest official statistics.
The high rate of inflation, which coincides with the decrease in purchasing power, despite the financial abundance witnessed by the Iraqi state treasury due to the rise in oil prices, is accompanied by warnings of observers and specialists in economic affairs that the continued rise in inflation may lead to a new wave of protests in the country.
The official spokesman for the ministry, Abdul-Zahra Al-Hindawi, said that the reason for the rise in inflation came as a result of the rise in the prices of a large part of food.
Economic researcher Hamza Al-Hardan said that Iraq was affected by the global crisis left by the Corona pandemic, supply problems and the increase in prices globally due to the Russian war on Ukraine.
The Iraqi citizen complains about the high prices of food commodities despite the availability of liquidity in the state treasury, and according to government data, inflation rates in Iraq increased by 5.3 percent last September compared to what it was during the month of September 2021, according to the latest official statistics .
The high rate of inflation, which coincides with the decrease in purchasing power, despite the financial abundance witnessed by the Iraqi state treasury due to the rise in oil prices, is accompanied by warnings of observers and specialists in economic affairs that the continued rise in inflation may lead to a new wave of protests in the country.
The official spokesman for the ministry, Abdul-Zahra Al-Hindawi, said that the reason for the rise in inflation came as a result of the rise in the prices of a large part of food.
Al-Hardan said that Iraq was affected by the global crisis caused by the Corona pandemic, supply problems and the increase in prices globally due to the Russian war on Ukraine.
He added that what is in the market are imported products that are directly affected by the value of the local currency against the dollar and the absence of market control and the lack of real work to control prices, stressing the importance of increasing local production, preventing monopoly, and working to increase supply further to contribute to lowering prices.
Member of the Finance Committee in the Iraqi parliament, Ahmed Al-Saffar, believes that the state, after 2003, does not have any economic and financial policy to confront inflation, and that the national economy is fragile and weak due to its primary dependence on oil revenues only.
Al-Saffar indicated that successive governments cannot do anything in the absence of monetary and financial policies, criticizing the role of the Central Bank, whose work is now limited to the currency sale window and other issues that do not achieve a balance between the monetary and financial sides.
Regarding the capabilities of the government charged with headed by Muhammad Shia Al-Sudani, Al-Saffar stressed that this government has a good program, but its provisions were talked about by all former heads of government, but they did not achieve anything from it, because of the partisan and sectarian quotas that exist in the Iraqi state.
Al-Saffar ruled out that the Sudanese would bring about any change or progress on the economic level due to the existing political interventions, imposing wills and parties’ interventions in the work of the government and the preparation and legislation of the budget, as well as the misdistribution of ministries based on sectarian and partisan basis, which leads to worse economic conditions than the years previous.
And the International Monetary Fund, in its latest report, suggested that the annual general inflation of Iraq would reach more than 4 percent this year, according to the security and political events in the region, in addition to the Corona pandemic and then the Russian war on Ukraine.
Parliamentary Finance clarifies the fact that the dollar price has changed during the current period
A member of the Parliamentary Finance Committee, Nermin Maarouf, confirmed, on Wednesday, that there is no intention of the Central Bank of Iraq to change the exchange rate of the dinar against the US dollar.
Maarouf said in a press statement, which was followed by Mawazine News Agency, that "the bank revealed, through a recently published report, that it will never adjust the exchange rate of the dinar against the US dollar during the current period," warning that "such a step and in any country was causing a loss of The citizen’s confidence, the weak market movement, and the treatment of traders and capital owners with caution, fearing loss and protecting their capital.
She added, "The decision to reduce the exchange rate of the dinar against the dollar, which was taken a year ago, led to market disruption and instability, and the rise in commodity prices, but Iraq was able, in return, to raise its foreign currency reserves to 90 billion dollars, not to mention gold, as well. He was able to pay off his accumulated debts.
It is noteworthy that the Central Bank of Iraq, on December 19, 2020, officially announced the amendment of the foreign currency exchange rate (the US dollar) to be 1450 dinars, instead of 1200 dinars, for every 100 dollars, according to the state’s general budget for the year 2021 approved by the House of Representatives.
An economic expert: The cost of returning the dinar to its old price against the dollar will be very high
The expert in the financial affairs, Salam Sumaisem, ruled out the return of the dollar exchange rate to its previous price of 1180 dinars, noting that the cost of returning the dinar to its old price against the dollar will be very high.
She said in a statement to the National Iraqi News Agency / NINA / that "the cost of returning the dinar to its old price against the dollar will be very high, especially since the reduction mechanism will not be as fast and flexible as the previous rise."
Sumaisem confirmed that "what is now rumored by influential parties is for the purpose of political propaganda or for the purpose of speculation by reducing the price of the dollar to get it at a cheap price from the public and then return it."
And the dollar exchange rate in the local market recorded an unprecedented decline, reaching 1450 Iraqi dinars.
Advice from an expert to the “dollar depreciation” decision makers: hold it and do not confuse the market
The Iraqi financial and economic expert, Hilal Al-Taan, provided, on Wednesday, advice to decision makers regarding the possibility of reducing the price of the US dollar against the dinar during the coming period.
Al-Taan told Shafaq News Agency, "The rise in the price of the dollar during the 2021 budget came as a result of the drop in oil prices and imports became insufficient to pay salaries and operating expenses, and therefore the state became obliged to raise the exchange rate for the purpose of covering salaries and other expenses," noting that "with the rise in prices of Oil and financial abundance and the increase in the central bank’s reserves to 87 billion dollars, it is now possible to consider reducing the exchange rate of the dollar.”
Al-Taan added that “the dollar’s exchange rate in the event of a reduction cannot be returned to what it was, which is 120 thousand dinars for 100 dollars, but to reduce it in an orderly manner, the reduction would reach 135,000 dinars, so that there is no major shock in the market, as happened previously when The central bank raised the dollar exchange rate from 120 thousand to 145 thousand dinars for 100 dollars, which confused the market and harmed the poor classes.
Al-Taan pointed out that "reducing the exchange rate of the dollar is not through the statements of members of the House of Representatives and non-specialists, and it cannot be manipulated, but rather proves the exchange rate within the general budget for 2023."
Earlier, a number of members of the Iraqi Council of Representatives demanded the inclusion of a vote on restoring the exchange rate of the US dollar against the Iraqi dinar to its previous official rate.
It is noteworthy that the Central Bank of Iraq, on December 19, 2020, officially announced the amendment of the foreign currency exchange rate (the US dollar) to be 1450 dinars, instead of 1200 dinars, for every 100 dollars, according to the state’s general budget for the year 2021 approved by the House of Representatives.
Saudi Arabia establishes 5 companies targeting an investment of $24 billion in countries including Iraq
Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Prime Minister, Chairman of the Council of Economic and Development Affairs and Chairman of the Board of Directors of the Public Investment Fund announced today, Wednesday, that the Public Investment Fund has established (5) regional companies aimed at investing in several countries, including Iraq.
These companies target investment in Jordan, Bahrain, Sudan, Iraq, and Oman, after the launch of the Saudi Egyptian Investment Company last August. The value of the targeted investments will reach 90 billion riyals (24 billion US dollars). into investment opportunities across various sectors.
According to the official Saudi Press Agency "SPA", the companies will invest in several strategic sectors, including, but not limited to, infrastructure, real estate development, mining, health care, financial services, food and agriculture, manufacturing, communications and technology, and other sectors. The strategy.
She explained that the establishment of the five new companies will develop and strengthen the investment partnerships of the Public Investment Fund and its portfolio companies, and the Saudi private sector for many investment opportunities in the region, which will contribute to achieving attractive returns in the long term, and develop aspects of cooperation of strategic economic partnerships with the private sector in every country. of the aforementioned countries.
The announcement of the establishment of the new companies comes in line with the strategy of the Public Investment Fund to search for new investment opportunities in the Middle East and North Africa, which support building long-term strategic economic partnerships to achieve sustainable returns, which contributes to maximizing the fund’s assets and diversifying the Kingdom’s sources of income. In line with the goals of Vision 2030, according to the agency.
A government comment on the decline in the dollar exchange rate during the past days
The financial and economic advisor to the Iraqi Prime Minister, Mazhar Muhammad Salih, commented today, Wednesday, on the decline in the exchange rate of the US dollar against the dinar during the past days.
Saleh told Shafaq News Agency, "The decline came as a result of rumors about the intention to raise the Iraqi dinar exchange rate, which caused panic among some to get rid of what they had of foreign exchange, which is a harmful speculative act and falls under the rumor factor or the so-called colored market information."
The financial and economic advisor to the Iraqi Prime Minister added that "this information is not pure, the goal is to buy dollars at a cheaper price from those holders affected by the impure colored information in order to achieve profits or quick gains."
The exchange rates of the dollar in the Iraqi markets have decreased since last Wednesday, until the main exchange rates amounted to less than 145,000 dinars for every $100.
Specialists, via Shafaq News Agency, attributed the decline in dollar prices in the Iraqi markets to "rumors and speculators", and explained that the rumors circulated about the new government's intention to reduce the price of the dollar and the possibility of returning it to its old price prompted citizens to sell their dollar banknotes, which led To the occurrence of a large supply compared to the demand in the local markets.
Today, Wednesday, a member of the Parliamentary Finance Committee, Nermin Maarouf, confirmed that the Central Bank of Iraq has no intention of changing the exchange rate of the dinar against the US dollar.
Earlier, a number of members of the Iraqi Council of Representatives demanded the inclusion of a vote on restoring the exchange rate of the US dollar against the Iraqi dinar to its previous official rate.
It is noteworthy that the Central Bank of Iraq, on December 19, 2020, officially announced the amendment of the foreign currency exchange rate (the US dollar) to be 1450 dinars, instead of 1200 dinars, for every 100 dollars, 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 has risen significantly, so that all prices of materials and goods in the Iraqi market have risen significantly, which has sparked a wave of strong resentment among the popular circles, as well as the objections of some interested in economic affairs.
The Association of Private Banks explains the reasons for the slight decline in dollar prices
even he is getting in on it hmmmmm
The Association of Private Banks announced, today, Wednesday, that the return of dollar prices will negatively affect the economy, noting that the slight decline in the exchange will not reduce the prices of materials in the markets.
The economic and banking advisor in the association, Samir Al-Nusairi, told the official agency, which was followed by (Al-Oula News), that "the current little decline in the dollar exchange rates is a kind of confusion practiced by speculators in the currency trading market, by exploiting rumors to achieve narrow interests."
Al-Nusairi added, "This decline confuses the stability of the market, which is supported by the Central Bank, because the process of raising the value of the local currency will not lead to a significant decrease in prices, because the economic principle confirms (the flexibility of prices in the rise is limited in the decrease)."
He stressed that "the process of changing and returning to the previous price of the value of the dollar against the Iraqi dinar, will lead to high costs borne by the economy, in addition to catastrophic damages that will be borne by the citizen because of the problems that will occur in the internal commercial and financial dealings between them, as well as financial and economic problems that will put pressure on the inter-relations with Countries of the world".
The Central Bank of Iraq confirmed, earlier, that there was no intention to change the exchange rate, and called on citizens and all stakeholders to preserve the value of their money and stay away from what is rumored in the media.
A blessing or a curse? .. An expert explains the possibility of reducing the dollar and its repercussions on the internal debt
Today, Wednesday, the economic expert, Nasser Al-Kinani, explained the economic repercussions in the event that a decision was taken to return the .dollar to its previous price against the dinar Al-Kinani told (Baghdad Today), "Returning the price of the dollar against the dinar at the present time will cause major economic problems that are not in the country's ".interest
He added, "It is difficult to restore the exchange rate due to the commitments and debts of the state to the private and public sectors, as well as accounting transactions between state departments, as well as debts between people, as this will result in major ".problems
Al-Kinani continued, "The Iraqi market has stabilized on the current exchange rate," noting that "any change will cause confusion in the market and prices may return to rise, as the poor class at the present time is not significantly affected by the rise in the ." ".price of the dollar, since prices are stable, especially agricultural crops He pointed out that "those who demand the return of the exchange rate have political goals, not economic ones, because he did not give importance to the problems resulting ".from this decision
The political arena has recently witnessed calls from various parties demanding the return of the US dollar's exchange rate against the Iraqi dinar, while the dollar's exchange rates dropped significantly this week in the .country's stock exchange and local exchange transactions
Economic Center: Citizens fell victim to speculators and statements that confused the dollar market
Today, Wednesday, the Iraqi Political Economic Center accused the statements of "non-specialists" in the economic field and political tensions of being behind the fluctuation of the dollar's price and confusing the situation in the market, calling on citizens not to be drawn into rumors launched by speculators to push them to sell the dollar at a lower price than the official .one
And the director of the center, Wissam Hadmal Al-Helou, said in a statement that (Baghdad Today) received a copy of it, that “the price of the dollar will not change suddenly and suddenly, and it is linked to the budget,” noting that “the Central Bank has repeatedly confirmed that there are no intentions to change the price of the dollar, and it is the only institution responsible for setting the price of the dollar.” exchange and according to the assessment of global markets, the economic situation around the world, .and commercial and financial dealings with specialized international institutions He added that "the 2023 budget needs months before its approval between sending it from the new government and discussing it in the House of Representatives before voting on it, and the decision to change the exchange rate is not easy and requires ".political consensus and economic advice to prevent repercussions on the Iraqi economy He pointed out that "what is happening today in the local markets is speculation by spreading rumors and false news to push citizens to sell the dollar at a price below the official exchange rate. Its official sources are represented exclusively by the Ministry of .Finance and the Central Bank
A number of deputies recently issued statements and mobilizations to change the dollar’s exchange rate and return it to its previous price, which caused the dollar’s prices to drop in the market, which was attacked by economists and considered that these statements are in the interest of speculators and caused losses to citizens who own the dollar .currency
Economist: The drop in the dollar exchange rate against the dinar is an exceptional case
link and here's another one ...
The economic expert, Hashem Al-Habboubi, attributed, on Wednesday, the reason for the decline in the exchange rate of the dollar against the Iraqi dinar in the local stock exchange to the anticipation of the vote on the ministerial cabinet, explaining that the decline is an exceptional case and will return as it was a few days ago.
Al-Haboubi said in a statement to “Information” that “the drop in the exchange rate of the dollar against the Iraqi dinar on the local exchange from 147 thousand dinars per 100 dollars to 145 thousand was caused by anticipation of the vote on the cabinet and the submission of a parliamentary request to re-exchange the dollar to 120 thousand dinars per 100.” dollar".
He added that "this case of decline is exceptional and the exchange rate will return to what it was a few days ago," noting that "the central exchange rate is from the policy of the central bank and it is not easy to manipulate the price because the Iraqi economy is currently built on an exchange rate of 1460 dinars per dollar, and if this is done, the decline will be gradual".
It is noteworthy that the stock market for buying and selling hard currency witnessed a decline during the past two days, as the exchange rate of the hundred dollar denomination reached 145,000 dinars.
Advice from an expert to the “dollar depreciation” decision makers: hold it and do not confuse the market
The Iraqi financial and economic expert, Hilal Al-Taan, provided, on Wednesday, advice to decision makers regarding the possibility of reducing the price of the US dollar against the dinar during the coming period.
Al-Taan told Shafaq News Agency, "The rise in the price of the dollar during the 2021 budget came as a result of the drop in oil prices and imports became insufficient to pay salaries and operating expenses, and therefore the state became obliged to raise the exchange rate for the purpose of covering salaries and other expenses," noting that "with the rise in prices of Oil and financial abundance and the increase in the central bank’s reserves to 87 billion dollars, it is now possible to consider reducing the exchange rate of the dollar.”
Al-Taan added that “the dollar’s exchange rate in the event of a reduction cannot be returned to what it was, which is 120 thousand dinars for 100 dollars, but to reduce it in an orderly manner, the reduction would reach 135,000 dinars, so that there is no major shock in the market, as happened previously when The central bank raised the dollar exchange rate from 120 thousand to 145 thousand dinars for 100 dollars, which confused the market and harmed the poor classes.
Al-Taan pointed out that "reducing the exchange rate of the dollar is not through the statements of members of the House of Representatives and non-specialists, and it cannot be manipulated, but rather proves the exchange rate within the general budget for 2023."
Earlier, a number of members of the Iraqi Council of Representatives demanded the inclusion of a vote on restoring the exchange rate of the US dollar against the Iraqi dinar to its previous official rate.
It is noteworthy that the Central Bank of Iraq, on December 19, 2020, officially announced the amendment of the foreign currency exchange rate (the US dollar) to be 1450 dinars, instead of 1200 dinars, for every 100 dollars, according to the state’s general budget for the year 2021 approved by the House of Representatives.
3 Billion dinars won by speculators and lost by citizens as a result of selling their dollars for licenses.. Rally to sue MPs who confused the market
It is known that during the past days, the exchange rates of the dollar decreased significantly and continuously until the purchase price of the exchange shops from citizens reached the dollar, at a price of 1455 dinars to the dollar. From reducing the price of the dollar and returning it to 1200 dinars to the dollar during the coming period.
These fears came as a result of the deputies’ statements that confused the markets, which prompted economists to open fire on the deputies who accused them of helping and increasing the profits of “speculators” as they caused the dollar to be offered in the market at a low price and to be bought by the citizen, before the dollar price returned to its real price in the days The coming time is when everyone realizes that the dollar will never change, and the demand for the dollar will rise again, which may raise it to 1485 dinars to the dollar, so that the citizen who sold his dollars will lose 30 dinars per dollar, and the speculators and exchange owners profit in return.
The economic researcher, Mustafa Abu Dhaif Allah, says that the fool is the one who sold his dollars because of the deputies’ campaign to reduce the price of the dollar, noting that “the banks and exchangers (speculators) are very thankful to the deputies who signed and say we have finished the Iraqi dinar that we own and we have bought all the dollar in the market, and the time has come. Let's sell our dollars, at a profit margin of 4-5%.
Addressing the citizens who sold their dollars at low prices these days, Abu Dhaifallah said that they had lost 3-5% of your dollars, so you should file a lawsuit against every deputy who participated in this deal, noting that “from the last hours of today’s date, the price hike continued The dinar against the dollar.
On the other hand, the economic researcher, Mortada Al-Azzawi, said that “anyone who exchanged his dollars and lost part of his money during the previous days should go to complain about these MPs who participated in speculation through their statements in reducing the exchange rate.”
Cash sales of dollars per day in the Iraqi market are estimated at about 30 million dollars on average, which means that the citizens who sold with a price difference of 30 dinars per dollar due to the decline and offer their dollars for sale in a large way in the market, which led to a decrease in prices, they lost about one billion dinars per day, and while it continued The decline is due to the offer to sell the dollar in a large way for about 3 days, which means that the loss of citizens amounted to 3 billion dinars, and at the same time, speculators gained 3 billion dinars due to this crisis and the confusion in prices caused by the statements of representatives about the reduction of the exchange rate.
Kurdistan Finance increases the amount of pocket allocations
The Ministry of Finance in Kurdistan Region issued a decision on Wednesday regarding pocket allocations.
The ministry said in a statement that, "It was decided to raise the pocket allocations from 20 thousand Iraqi dinars to 30 thousand Iraqi dinars per day."
The statement added, "This decision will enter into force on the date of its issuance and will be published in the Kurdistan Gazette.
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