Issuing a new currency in Iraq.. Implications and implementation challenge that is the title of the show
the guy on the left is an economist I believe it is Safwan Qusay
This is the video for the My FX Buddies blogpost
this is like the very first screenshot and I was able to translate it
Issuing a new currency in
Delete the zeros of the Iraqi dinar
Frequent calls and economic impacts
Central Bank Governor: Delete draft
Zeros of the Iraqi currency remain
Delete the zeros of the Iraqi dinar
Frequent calls and economic impacts
Central Bank Governor: Delete draft
Zeros of the Iraqi currency remain
Here is the transcript of the entire show done by Youtube not me
ok so these are just 2 economist and the show host but they say some pretty good stuff
Welcome, dear viewers, to a new episode of the Economy in a Week program. The talk is back
0:20
Again about the project to remove zeros from the Iraqi dinar and also issue a new currency. This
0:26
A procedure that several countries resorted to, including Turkey in 2005 and also Venezuela in
0:34
2021, but can this project be implemented, the project to remove zeros from the Iraqi currency during
0:40
Currently, countries usually resort to adding zeros to confront waves of inflation
0:46
and rising prices during periods of wars and crises, which of course lead to the erosion of the value of
0:51
the currency, so the deficit in government budgets is financed through the issuance of cash, but the defenders of
0:59
this idea pointed out that the large number of zeros weakened the Iraqi dinar against other currencies
1:04
As for economic experts They believe that deleting zeros requires restructuring the banking sector
1:12
First, improving the tax system, second, in addition to encouraging investments. The Finance Committee
1:20
Parliamentary indicated that the project will cost the state budget huge sums, as the size of
1:27
The printed money supply in Iraq is over 992 trillion dinars, while the one in circulation is
1:35
45 trillion dinars. So, the topic of deleting zeros and issuing a new currency, we will discuss it with our guest, but
1:44
After the next show [Music]
1:54
[Music]
2:15
Ya [Music]
2:28
[Music]
2:45
A
3:02
[Music]
3:10
[Music]
3:17
To talk to our viewers about this topic, we are joined from Baghdad by the academic and expert
3:22
Economist Dr. Safwan Qusay Dr. Welcome to the Economy in a Week program on Screen
3:28
Change Welcome Doctor If the project to delete zeros today from the uncle of our viewers
3:33
Dear ones, welcome Doctor The project to delete zeros from the Iraqi Umrah is it still
3:39
Existing, I mean every period we hear about this topic but we do not see anything on the ground
3:46
The reality of course from the theoretical point of view the project is still existing The truth is Iraq
3:51
Suffered after 1991 as a result of the economic blockade to
3:57
Weakness in the value of the Iraqi dinar and the previous governments resorting to the subject of printing
4:05
Money after 2003 This currency was changed
4:10
To a new currency and the old currency was withdrawn and this currency in circulation was issued currently
4:16
The subject is linked to several circumstances for sure, meaning the process of replacing the currency
4:23
And deleting the travels requires an environment to make such a decision The Central Bank and the government currently
4:32
It invests In attracting the monetary mass that you referred to, the 92 trillion or more, to
4:41
within the banking system, meaning the process of tracking the value of the Iraqi dinar requires knowing who
4:49
owns this Iraqi dinar, and therefore perhaps Dr. Talj today the Iraqi government will resort to
0:20
Again about the project to remove zeros from the Iraqi dinar and also issue a new currency. This
0:26
A procedure that several countries resorted to, including Turkey in 2005 and also Venezuela in
0:34
2021, but can this project be implemented, the project to remove zeros from the Iraqi currency during
0:40
Currently, countries usually resort to adding zeros to confront waves of inflation
0:46
and rising prices during periods of wars and crises, which of course lead to the erosion of the value of
0:51
the currency, so the deficit in government budgets is financed through the issuance of cash, but the defenders of
0:59
this idea pointed out that the large number of zeros weakened the Iraqi dinar against other currencies
1:04
As for economic experts They believe that deleting zeros requires restructuring the banking sector
1:12
First, improving the tax system, second, in addition to encouraging investments. The Finance Committee
1:20
Parliamentary indicated that the project will cost the state budget huge sums, as the size of
1:27
The printed money supply in Iraq is over 992 trillion dinars, while the one in circulation is
1:35
45 trillion dinars. So, the topic of deleting zeros and issuing a new currency, we will discuss it with our guest, but
1:44
After the next show [Music]
1:54
[Music]
2:15
Ya [Music]
2:28
[Music]
2:45
A
3:02
[Music]
3:10
[Music]
3:17
To talk to our viewers about this topic, we are joined from Baghdad by the academic and expert
3:22
Economist Dr. Safwan Qusay Dr. Welcome to the Economy in a Week program on Screen
3:28
Change Welcome Doctor If the project to delete zeros today from the uncle of our viewers
3:33
Dear ones, welcome Doctor The project to delete zeros from the Iraqi Umrah is it still
3:39
Existing, I mean every period we hear about this topic but we do not see anything on the ground
3:46
The reality of course from the theoretical point of view the project is still existing The truth is Iraq
3:51
Suffered after 1991 as a result of the economic blockade to
3:57
Weakness in the value of the Iraqi dinar and the previous governments resorting to the subject of printing
4:05
Money after 2003 This currency was changed
4:10
To a new currency and the old currency was withdrawn and this currency in circulation was issued currently
4:16
The subject is linked to several circumstances for sure, meaning the process of replacing the currency
4:23
And deleting the travels requires an environment to make such a decision The Central Bank and the government currently
4:32
It invests In attracting the monetary mass that you referred to, the 92 trillion or more, to
4:41
within the banking system, meaning the process of tracking the value of the Iraqi dinar requires knowing who
4:49
owns this Iraqi dinar, and therefore perhaps Dr. Talj today the Iraqi government will resort to
4:55
The Central Bank's path to automating transactions and moving towards Ronnie cards and so on
5:02
That is yes, it is the subject of financial inclusion, one of the government's tools in the subject of moving the monetary mass
5:11
Towards the banking system so that we know where this printed Iraqi dinar is, who owns it
5:17
This real dinar, interest rate policy and the possibility of
5:23
Moving interest rates, I noticed that the Central Bank raised interest rates to
5:30
Bal on fixed deposits, which contributed to withdrawing part of this monetary mass into
5:36
The banking system, so when we want to implement this procedure, we need to cancel the money
5:45
Paper money and convert it into money within the banking system within credit cards, and then we can
5:52
Think about this subject, but in the current period, any reference to this subject
6:00
It means that the Iraqis who own this free cash dinar are doing By replacing it
6:07
with other assets, this issue leads to weakening confidence in the value of the dinar, which is traded
6:15
on the boycott, meaning this issue, the issue of deleting zeros, is positively reflected in the issue of withdrawing
6:23
liquidity from people and the market, and thus going to Iraqi banks, the
6:29
Central Bank of Iraq specifically, until it is replaced, so people today are forced to replace
6:35
their old money with new money, and they are forced to go to the bank, thus replacing this
6:41
money or depositing it, perhaps at this time, means the withdrawal process
6:49
and and means getting rid of this printed money
6:54
needs a system, meaning it does not resemble suspicion, suspicion of the mass of money
7:00
in circulation, and tearing it up or destroying it and then replacing it with new currency requires that
7:09
we be careful about where this money came from Iraqi section of those who hold the dinar
7:17
The Iraqi is trying to launder money, meaning where did this Iraqi dinar come from, from this person
7:24
The problem is that there is a monetary mass outside the banking system, which may be drug trafficking, illegal trade
7:31
So when we say replacement at this time, it means allowing them to carry the dinar
7:38
illegal to enter circulation through replacement, so we need to track the movement
7:46
The Iraqi dinar also does not mean raising the prices
7:51
of goods because whoever owns a free dinar is certainly with
7:57
these events and with this news, he may resort to buying assets with this dinar, which leads to
8:05
an increase in the value of assets, so I think that the timing is not appropriate. The appropriate thing is to plan to add value
8:14
For this dinar, the dinar is well-printed, meaning it is not subject to
8:20
counterfeiting. The Central Bank is keen to replace damaged currency, but the tools of the Central Bank Banks
8:30
Iraq needs to be developed so that we encourage the dinar holders to enter the banking system
8:37
and re-inject this money into income-generating projects. Of course, we also need to spread the culture of
8:46
point of sale and credit cards and expand the subject of cash transactions from
8:54
Yes, track the movement of the dinar currently. The hard currency has been controlled, but the dinar
9:01
cash that is in circulation. We do not know who is the owner of the final dinar. The serial number available to
9:09
The Iraqi dinar when it enters the banking system, we know who is the person who withdrew this
9:16
paper currency and where he spent it so that we do not have a market for money laundering. Does the Iraqi government have
9:24
Today, Dr. Safwan, a specific and specific number for the monetary mass present in
9:30
Iraq from the local currency or does it not have this
9:36
The information means the truth of the monetary mass It rose from 45 trillion to 82 trillion
9:44
And you mentioned 92 or more, meaning in my estimation it is around 100 trillion, the level is supposed to
9:52
Transparency at the Central Bank is to announce the printed currency, of course, if we assume that it is 100
9:59
Trillion, the 100 trillion needs a dollar cover of no less than 65 billion dollars, which is
10:07
What the Central Bank has in addition to the gold reserve in addition to covering the debts
10:15
Internal and external debts, the cash issued by the bank was released
10:22
The Central Bank, yes, it was issued, but its recapitalization from
10:28
During internal borrowing, it leads to an increase in the liabilities on the Iraqi dinar, meaning the bank
10:35
The Central Bank does not only cover the value of the issuance, but it also covers the liabilities on the dinar
10:41
The current government is indebted to the banks Civil and also to
10:50
Pardon the government banks and internal debts of about 45 trillion as well as external debts
10:57
So when we say that the Central Bank has reserves of 113 billion dollars, it is enough to cover
11:05
The value of the issuances and internal and external debts, okay, great, so no problem today
11:10
So if the government wanted to take such steps today, I mean from the beginning of our conversation, Doctor
11:16
On this topic, we are talking about the negative side, the negatives that this carries or carries
11:22
The project, what about its positives with regard to the Iraqi economic situation if we want to delete today
11:30
Zeros, similar to many countries that faced economic crises, and there is a country that is not
11:35
Far from Iraq, which is Turkey, as you know, yes, the truth is the topic, meaning the positives
11:44
Certainly, from the accounting point of view, currently the numbers are, I mean, S12 I mean records
11:51
Accounting is not enough for numbers, big numbers, in facilitating the task of numbers, big numbers, for sure
11:59
It also needs to be narrowed down, the subject means the return of Iraqis to their memory in the seventies
12:06
and the eighties when one dinar was equal to 3.3 dollars, as is the Kuwaiti dinar, the riyal
12:15
Saudi, this means restoring confidence in the prestige of the dinar, so the subject has a positive side
12:23
But is the printed money mass issued by the Central Bank really inside Iraq
12:30
Is it with people who have the legitimacy to obtain this dinar, so I think we have to think
12:38
Balley, who is the holder of this dinar? Financial inclusion achieves this subject when it is
The Central Bank's path to automating transactions and moving towards Ronnie cards and so on
5:02
That is yes, it is the subject of financial inclusion, one of the government's tools in the subject of moving the monetary mass
5:11
Towards the banking system so that we know where this printed Iraqi dinar is, who owns it
5:17
This real dinar, interest rate policy and the possibility of
5:23
Moving interest rates, I noticed that the Central Bank raised interest rates to
5:30
Bal on fixed deposits, which contributed to withdrawing part of this monetary mass into
5:36
The banking system, so when we want to implement this procedure, we need to cancel the money
5:45
Paper money and convert it into money within the banking system within credit cards, and then we can
5:52
Think about this subject, but in the current period, any reference to this subject
6:00
It means that the Iraqis who own this free cash dinar are doing By replacing it
6:07
with other assets, this issue leads to weakening confidence in the value of the dinar, which is traded
6:15
on the boycott, meaning this issue, the issue of deleting zeros, is positively reflected in the issue of withdrawing
6:23
liquidity from people and the market, and thus going to Iraqi banks, the
6:29
Central Bank of Iraq specifically, until it is replaced, so people today are forced to replace
6:35
their old money with new money, and they are forced to go to the bank, thus replacing this
6:41
money or depositing it, perhaps at this time, means the withdrawal process
6:49
and and means getting rid of this printed money
6:54
needs a system, meaning it does not resemble suspicion, suspicion of the mass of money
7:00
in circulation, and tearing it up or destroying it and then replacing it with new currency requires that
7:09
we be careful about where this money came from Iraqi section of those who hold the dinar
7:17
The Iraqi is trying to launder money, meaning where did this Iraqi dinar come from, from this person
7:24
The problem is that there is a monetary mass outside the banking system, which may be drug trafficking, illegal trade
7:31
So when we say replacement at this time, it means allowing them to carry the dinar
7:38
illegal to enter circulation through replacement, so we need to track the movement
7:46
The Iraqi dinar also does not mean raising the prices
7:51
of goods because whoever owns a free dinar is certainly with
7:57
these events and with this news, he may resort to buying assets with this dinar, which leads to
8:05
an increase in the value of assets, so I think that the timing is not appropriate. The appropriate thing is to plan to add value
8:14
For this dinar, the dinar is well-printed, meaning it is not subject to
8:20
counterfeiting. The Central Bank is keen to replace damaged currency, but the tools of the Central Bank Banks
8:30
Iraq needs to be developed so that we encourage the dinar holders to enter the banking system
8:37
and re-inject this money into income-generating projects. Of course, we also need to spread the culture of
8:46
point of sale and credit cards and expand the subject of cash transactions from
8:54
Yes, track the movement of the dinar currently. The hard currency has been controlled, but the dinar
9:01
cash that is in circulation. We do not know who is the owner of the final dinar. The serial number available to
9:09
The Iraqi dinar when it enters the banking system, we know who is the person who withdrew this
9:16
paper currency and where he spent it so that we do not have a market for money laundering. Does the Iraqi government have
9:24
Today, Dr. Safwan, a specific and specific number for the monetary mass present in
9:30
Iraq from the local currency or does it not have this
9:36
The information means the truth of the monetary mass It rose from 45 trillion to 82 trillion
9:44
And you mentioned 92 or more, meaning in my estimation it is around 100 trillion, the level is supposed to
9:52
Transparency at the Central Bank is to announce the printed currency, of course, if we assume that it is 100
9:59
Trillion, the 100 trillion needs a dollar cover of no less than 65 billion dollars, which is
10:07
What the Central Bank has in addition to the gold reserve in addition to covering the debts
10:15
Internal and external debts, the cash issued by the bank was released
10:22
The Central Bank, yes, it was issued, but its recapitalization from
10:28
During internal borrowing, it leads to an increase in the liabilities on the Iraqi dinar, meaning the bank
10:35
The Central Bank does not only cover the value of the issuance, but it also covers the liabilities on the dinar
10:41
The current government is indebted to the banks Civil and also to
10:50
Pardon the government banks and internal debts of about 45 trillion as well as external debts
10:57
So when we say that the Central Bank has reserves of 113 billion dollars, it is enough to cover
11:05
The value of the issuances and internal and external debts, okay, great, so no problem today
11:10
So if the government wanted to take such steps today, I mean from the beginning of our conversation, Doctor
11:16
On this topic, we are talking about the negative side, the negatives that this carries or carries
11:22
The project, what about its positives with regard to the Iraqi economic situation if we want to delete today
11:30
Zeros, similar to many countries that faced economic crises, and there is a country that is not
11:35
Far from Iraq, which is Turkey, as you know, yes, the truth is the topic, meaning the positives
11:44
Certainly, from the accounting point of view, currently the numbers are, I mean, S12 I mean records
11:51
Accounting is not enough for numbers, big numbers, in facilitating the task of numbers, big numbers, for sure
11:59
It also needs to be narrowed down, the subject means the return of Iraqis to their memory in the seventies
12:06
and the eighties when one dinar was equal to 3.3 dollars, as is the Kuwaiti dinar, the riyal
12:15
Saudi, this means restoring confidence in the prestige of the dinar, so the subject has a positive side
12:23
But is the printed money mass issued by the Central Bank really inside Iraq
12:30
Is it with people who have the legitimacy to obtain this dinar, so I think we have to think
12:38
Balley, who is the holder of this dinar? Financial inclusion achieves this subject when it is
12:45
The dinar printed within the banking system, we are assured that the holder of this dinar is legitimate because
12:51
There are certainly those who bet even from neighboring countries on the Iraqi dinar, but outside the system
13:00
The banker when we say, "Ah, Dr. Safwan"
13:05
I mean, an Iraqi citizen who owns a local currency, an Iraqi dinar, how can he come or obtain
13:14
This Iraqi dinar, if it is not included in the data of the Central Bank of Iraq and the serial number, as I mentioned, is it counterfeit? I mean, is it
13:23
Printed outside the Iraqi government system
13:30
No, the truth is, there are no fears of such a thing, despite the counterfeiters' attempt to counterfeit
13:37
The value of the dinar or the printing of the dinar, but the Central Bank is keen to withdraw any counterfeit currency, but
13:44
When we say, for example, that there are exports from sanctioned countries to Iraqi territory in exchange for a dinar
13:52
Iraqi, is this dinar The Iraqi dinar that these countries have has been converted into foreign currencies or
14:00
is hoarded by some merchants from these countries. When we say replacement, it means that we have started
14:07
the process of financing these countries with a new currency. We need to make sure that the printed monetary mass
14:16
in the latest European printing presses is under control within the scope of
14:23
the Iraqi. There are some Iraqis who are fronts for companies or countries that are sanctioned. The problem is not
14:30
with the nationality of the holder of the dinar. The problem is where he got this dinar from. In order to be reassured that this
14:37
dinar is legitimate, we have to establish the issue of financial inclusion so that we can move later
14:46
to adding the value gradually and not directly. I mean, I tend not to delete the zero
14:54
or two zeros or three zeros, but rather to gradually enhance the value of the Iraqi dinar, meaning that the
15:01
central bank when it rises Dollar reserves by purchasing the Iraqi dinar, of course, from
15:07
During the increase in bank reserves or by replacing it with new financial instruments, thus reducing
15:15
the money supply and gradually the Iraqi dinar can recover, meaning there was
15:23
a plan promoted within the corridors of the Central Bank that the Ministry of Finance, if it could not fulfill
15:31
its internal debts, which are around 45 trillion, by transferring real estate ownership
15:38
to the Central Bank reserves or using the surplus of the Ministry of Finance to settle debts
15:45
the Interior, to raise the value of the dinar so that 1 dollar is equal to 1000 dinars and gradually
15:52
We can do this task without changing without changing the paper
15:59
Currency in circulation, yes, and I mean, does that affect the value of the currency, Dr. Safwan or
16:05
the amount originally existing When people delete a zero or two zeros or even three zeros, it means
16:12
The 000 dinar note is replaced if we delete three zeros it is replaced with a
16:20
Dinar note. Will the value of this amount be affected for people or not? The value of the value remains
16:26
The purchasing power is the same. No, the truth is definitely the purchasing power
16:33
For assets, it does not decrease by the same value as the dinar. That is, someone who owns, for example, a million dinars, it is replaced by
16:39
1000 dinars. The value of assets valued at a million will not
16:45
decrease by the same percentage. That is, for example, a property worth 500 million
16:52
A dinar is not sold. The owner of the property cannot sell the property for 500,000 dinars
16:59
So now, the decrease is sharp on the banknote and gradually on the rest of the goods until the subject
17:08
Profit is the subject of the difference between the selling price The costs cannot be reduced by the seller, for example, from
17:18
a million dinars or 500,000 dinars per day to 500 dinars, he cannot absorb this, so
17:25
usually does not decrease at the same rate as it decreases the value of the paper currency, yes, okay, if
17:31
Iraq wanted, meaning one day it decided to delete zeros from the Iraqi currency, Doctor
17:39
Based on what is determined how many zeros should be deleted from
17:46
the currency, meaning currently the Iraqi currency is linked to the US dollar, meaning the price
17:54
the fixed 1320 dinars is equal to 1 dollar, so if
18:00
a decision was not made to link the value of the Iraqi currency to the
18:06
US dollar, meaning and bye-bye, there may be reserves
18:12
to cover this decision by deleting the difference between the two prices
18:18
and compensating for it, meaning, for example, the Kingdom Jordanian The Jordanian currency is now pegged to the pound pound
18:25
The sterling is currently pegged at a fixed price level of 1320, so we must determine whether we are
18:33
doing an open market operation for the value of the dinar or a closed market and linking it in a unified manner with its currency
18:41
Specific Iraq does not have sources to support the value of the dinar so far other than oil revenues
18:48
We need economic diversification. We need to increase the transparency of the dinar holders in order to
18:56
we can remove the zeros and determine the fair value of the Iraqi dinar if, for example, the dinar
19:04
Iraqi is covered by oil, meaning one dinar, for example
19:09
is equivalent to one barrel or half a barrel. It is possible to link the currency to something specific, so it is determined from
19:18
during this thing with gold, with oil, of course, with revenues other than
19:24
oil, there will be a fair value for this dinar, and we can thus decide how much
Ratio
19:32
The reduction that we can resort to by deleting zeros, yes, based on data and reality
19:39
The Iraqi economy, Dr. Safwan, and as you mentioned, the Iraqi economy is based on sales
19:44
Oil, in light of this data, will Iraq succeed if it wants to delete some zeros today from
19:50
its local currency? You mentioned that there are proactive steps for any country that wants to delete
19:58
its zeros should be the first of them today, economic diversification, revenues from various sectors today
20:05
In light of this data in the Iraqi economy, even if we remain on the rentier economy, will it succeed
20:10
This idea, if it is not implemented, or will it actually
20:16
fail, meaning that the Central Bank is supposed to have a strategy in determining the value
20:21
fair for the Iraqi dinar, and where do we go with this value? Are we, for example, with integration with Turkey
20:30
with the Hashemite Kingdom of Jordan with the Gulf dinar In terms of the environment surrounding Iraq
The dinar printed within the banking system, we are assured that the holder of this dinar is legitimate because
12:51
There are certainly those who bet even from neighboring countries on the Iraqi dinar, but outside the system
13:00
The banker when we say, "Ah, Dr. Safwan"
13:05
I mean, an Iraqi citizen who owns a local currency, an Iraqi dinar, how can he come or obtain
13:14
This Iraqi dinar, if it is not included in the data of the Central Bank of Iraq and the serial number, as I mentioned, is it counterfeit? I mean, is it
13:23
Printed outside the Iraqi government system
13:30
No, the truth is, there are no fears of such a thing, despite the counterfeiters' attempt to counterfeit
13:37
The value of the dinar or the printing of the dinar, but the Central Bank is keen to withdraw any counterfeit currency, but
13:44
When we say, for example, that there are exports from sanctioned countries to Iraqi territory in exchange for a dinar
13:52
Iraqi, is this dinar The Iraqi dinar that these countries have has been converted into foreign currencies or
14:00
is hoarded by some merchants from these countries. When we say replacement, it means that we have started
14:07
the process of financing these countries with a new currency. We need to make sure that the printed monetary mass
14:16
in the latest European printing presses is under control within the scope of
14:23
the Iraqi. There are some Iraqis who are fronts for companies or countries that are sanctioned. The problem is not
14:30
with the nationality of the holder of the dinar. The problem is where he got this dinar from. In order to be reassured that this
14:37
dinar is legitimate, we have to establish the issue of financial inclusion so that we can move later
14:46
to adding the value gradually and not directly. I mean, I tend not to delete the zero
14:54
or two zeros or three zeros, but rather to gradually enhance the value of the Iraqi dinar, meaning that the
15:01
central bank when it rises Dollar reserves by purchasing the Iraqi dinar, of course, from
15:07
During the increase in bank reserves or by replacing it with new financial instruments, thus reducing
15:15
the money supply and gradually the Iraqi dinar can recover, meaning there was
15:23
a plan promoted within the corridors of the Central Bank that the Ministry of Finance, if it could not fulfill
15:31
its internal debts, which are around 45 trillion, by transferring real estate ownership
15:38
to the Central Bank reserves or using the surplus of the Ministry of Finance to settle debts
15:45
the Interior, to raise the value of the dinar so that 1 dollar is equal to 1000 dinars and gradually
15:52
We can do this task without changing without changing the paper
15:59
Currency in circulation, yes, and I mean, does that affect the value of the currency, Dr. Safwan or
16:05
the amount originally existing When people delete a zero or two zeros or even three zeros, it means
16:12
The 000 dinar note is replaced if we delete three zeros it is replaced with a
16:20
Dinar note. Will the value of this amount be affected for people or not? The value of the value remains
16:26
The purchasing power is the same. No, the truth is definitely the purchasing power
16:33
For assets, it does not decrease by the same value as the dinar. That is, someone who owns, for example, a million dinars, it is replaced by
16:39
1000 dinars. The value of assets valued at a million will not
16:45
decrease by the same percentage. That is, for example, a property worth 500 million
16:52
A dinar is not sold. The owner of the property cannot sell the property for 500,000 dinars
16:59
So now, the decrease is sharp on the banknote and gradually on the rest of the goods until the subject
17:08
Profit is the subject of the difference between the selling price The costs cannot be reduced by the seller, for example, from
17:18
a million dinars or 500,000 dinars per day to 500 dinars, he cannot absorb this, so
17:25
usually does not decrease at the same rate as it decreases the value of the paper currency, yes, okay, if
17:31
Iraq wanted, meaning one day it decided to delete zeros from the Iraqi currency, Doctor
17:39
Based on what is determined how many zeros should be deleted from
17:46
the currency, meaning currently the Iraqi currency is linked to the US dollar, meaning the price
17:54
the fixed 1320 dinars is equal to 1 dollar, so if
18:00
a decision was not made to link the value of the Iraqi currency to the
18:06
US dollar, meaning and bye-bye, there may be reserves
18:12
to cover this decision by deleting the difference between the two prices
18:18
and compensating for it, meaning, for example, the Kingdom Jordanian The Jordanian currency is now pegged to the pound pound
18:25
The sterling is currently pegged at a fixed price level of 1320, so we must determine whether we are
18:33
doing an open market operation for the value of the dinar or a closed market and linking it in a unified manner with its currency
18:41
Specific Iraq does not have sources to support the value of the dinar so far other than oil revenues
18:48
We need economic diversification. We need to increase the transparency of the dinar holders in order to
18:56
we can remove the zeros and determine the fair value of the Iraqi dinar if, for example, the dinar
19:04
Iraqi is covered by oil, meaning one dinar, for example
19:09
is equivalent to one barrel or half a barrel. It is possible to link the currency to something specific, so it is determined from
19:18
during this thing with gold, with oil, of course, with revenues other than
19:24
oil, there will be a fair value for this dinar, and we can thus decide how much
Ratio
19:32
The reduction that we can resort to by deleting zeros, yes, based on data and reality
19:39
The Iraqi economy, Dr. Safwan, and as you mentioned, the Iraqi economy is based on sales
19:44
Oil, in light of this data, will Iraq succeed if it wants to delete some zeros today from
19:50
its local currency? You mentioned that there are proactive steps for any country that wants to delete
19:58
its zeros should be the first of them today, economic diversification, revenues from various sectors today
20:05
In light of this data in the Iraqi economy, even if we remain on the rentier economy, will it succeed
20:10
This idea, if it is not implemented, or will it actually
20:16
fail, meaning that the Central Bank is supposed to have a strategy in determining the value
20:21
fair for the Iraqi dinar, and where do we go with this value? Are we, for example, with integration with Turkey
20:30
with the Hashemite Kingdom of Jordan with the Gulf dinar In terms of the environment surrounding Iraq
20:38
I think that if there is a thought to have a qualified trade volume because
20:48
we link the Iraqi currency to stable economies, such as the US dollar as the yen
20:55
the Japanese as the sterling pound or even the Chinese yuan through the Gulf currency, the currency
21:02
The unified Gulf needs a harmonious economic infrastructure
21:09
integrated that produces a kind of monetary integration
21:15
means that we do not think about adding value, but rather link this value to the economies of a system, of course this
21:23
the subject requires developing the tools of economic integration between these countries so that the value
21:30
of the currency corresponds to the value of the production of these countries and also imports
21:37
and thus we create a state of additional confidence in the Iraqi dinar, the Iraqi dinar in
21:43
the fifties was linked to the sterling pound The original point of the matter is to return to the pound
21:50
sterling and if there is another vision from the Central Bank to link the Iraqi currency
21:57
for example with the Gulf countries, we must start now to determine economic paths for integration so that
22:05
we have a specific time. I believe that the Gulf countries have postponed this matter more than
22:11
times 20 30 20 40 to have an Arab currency
22:17
unified or a unified Gulf currency, we defend the economies of these countries and support confidence
22:23
By keeping this currency, I want to thank you very much, Dr. Safwan Qusay, and you are the academic
22:29
and economic expert for all these clarifications. You were with us from
22:34
[Music]
22:41
Baghdad in our second file, dear viewers, the problem of fluctuating exchange rates and the collapse of the value
22:49
of the Iraqi dinar against the dollar The most prominent challenges facing the Iraqi economy
22:55
The reasons are different and the result is one, which is the purchasing power of low-income people and the stagnation of the markets
23:02
And negative effects, of course, on the Iraqi economy. After relative stability during the week and the weeks
23:09
past, the rise in the exchange rate has returned to the forefront again, and the Central Bank confirmed that
23:16
This rise is temporary because Iraq has a reserve of hard currency that enables it to achieve
23:24
balance. We will discuss more about this topic later
23:30
The report has become the stability of the dollar exchange rate against the dinar, the greatest wish of Iraqis for about
23:37
three years, due to the consequences and successive crises caused by the large price jumps that cast
23:45
their shadows on the markets in general and low-income people in particular, despite the measures
23:51
of the Central Bank to preserve the value of the Iraqi dinar and prevent the monopoly of hard currency from Before
23:57
Traders and speculators, but the crisis did not end, as the cause and instability did not subside
24:04
Its pace for a short period until it rises again, causing confusion for citizens and paralysis and stagnation in the markets
24:12
Between the electronic window and travelers obtaining dollars exclusively from airports
24:18
And forcing traders to deal in Iraqi dinars in their local transactions, the gap
24:24
between the official price set by the Central Bank and the parallel market price is still large in light of
24:30
The continued violations leading to the leakage of the currency to countries sanctioned by the Governor of the Central Bank, and during
24:37
His hosting by the Parliamentary Finance Committee, he indicated that what Iraq has of reserves
24:43
of hard currency is sufficient to achieve market balance, but he attributed the widening gap between the official price
24:49
and the parallel to illegal trade and its effects By withdrawing large amounts of currency in illegal ways
24:56
While a meeting with the American side was revealed in New York at the end of the month
25:01
current to discuss the file of the sanctioned banks and the aspects related to the external transfer process
25:08
Many factors control exchange rates, such as the increased demand for the dollar to finance imports
25:14
And the economic and political crises that burden citizens and require taking measures
25:21
And solutions that ensure the stability of exchange rates in the long term
25:30
For more, our viewers, on this topic, Dr. Ahmed Hal, Professor of Economics, joins us at
25:36
Al-Mustansiriya University, Dr. Welcome to the Economics in a Week program on the screen
25:45
Change, if Dr. We are talking about hosting the governor
25:50
The Central Bank in the Iraqi Council of Representatives. In your opinion, did the Central Bank of Iraq fail today
25:57
in managing the issue of the dollar exchange rate and also the sanctions on some banks Iraqi
26:07
In the name of God, the Most Gracious, the Most Merciful. Greetings to you, my dear brother, and to the viewers of Al-Taghyeer Channel
26:16
Your Excellency, welcome. The beginning of the exchange rate crisis is a succession and not a spur of the moment, but
26:26
It worsened after 2023 due to the implementation of the
26:31
US Federal Reserve platform and forcing the Central Bank to use this platform for transfers
26:39
Foreign Affairs. Many economic circles and many officials
26:45
Governmental, whether in the Ministry of Finance or the Central Bank or financial institutions
26:50
and economic specialists in the exchange rate issue believe that the platform will lead to pressure on
26:58
foreign transfers, but unfortunately during the year 2023 and 2024 after the growth
27:07
large with electronic payment cards and forcing society to use the payment card
27:14
electronic and forcing merchants And companies to use electronic payment in dinars
27:19
Iraqi and internal transactions also in Iraqi dinars and it did not work with these
27:24
methods but rather exacerbated the exchange rate crisis because many transfers through
27:31
these cards and electronic wallets as well as transfers launched by banks including
27:39
called direct transfer that occurs between the clearing house between internal banks some banks
27:45
internal and external banks did not work for example the closest example to the issue of inflation
27:53
sales at the central bank and this is something the prime minister himself mentioned that it means in the past
28:01
Before the position is available the prime minister said that
28:06
more than approximately 30% is correct that it means the transfer from these
I think that if there is a thought to have a qualified trade volume because
20:48
we link the Iraqi currency to stable economies, such as the US dollar as the yen
20:55
the Japanese as the sterling pound or even the Chinese yuan through the Gulf currency, the currency
21:02
The unified Gulf needs a harmonious economic infrastructure
21:09
integrated that produces a kind of monetary integration
21:15
means that we do not think about adding value, but rather link this value to the economies of a system, of course this
21:23
the subject requires developing the tools of economic integration between these countries so that the value
21:30
of the currency corresponds to the value of the production of these countries and also imports
21:37
and thus we create a state of additional confidence in the Iraqi dinar, the Iraqi dinar in
21:43
the fifties was linked to the sterling pound The original point of the matter is to return to the pound
21:50
sterling and if there is another vision from the Central Bank to link the Iraqi currency
21:57
for example with the Gulf countries, we must start now to determine economic paths for integration so that
22:05
we have a specific time. I believe that the Gulf countries have postponed this matter more than
22:11
times 20 30 20 40 to have an Arab currency
22:17
unified or a unified Gulf currency, we defend the economies of these countries and support confidence
22:23
By keeping this currency, I want to thank you very much, Dr. Safwan Qusay, and you are the academic
22:29
and economic expert for all these clarifications. You were with us from
22:34
[Music]
22:41
Baghdad in our second file, dear viewers, the problem of fluctuating exchange rates and the collapse of the value
22:49
of the Iraqi dinar against the dollar The most prominent challenges facing the Iraqi economy
22:55
The reasons are different and the result is one, which is the purchasing power of low-income people and the stagnation of the markets
23:02
And negative effects, of course, on the Iraqi economy. After relative stability during the week and the weeks
23:09
past, the rise in the exchange rate has returned to the forefront again, and the Central Bank confirmed that
23:16
This rise is temporary because Iraq has a reserve of hard currency that enables it to achieve
23:24
balance. We will discuss more about this topic later
23:30
The report has become the stability of the dollar exchange rate against the dinar, the greatest wish of Iraqis for about
23:37
three years, due to the consequences and successive crises caused by the large price jumps that cast
23:45
their shadows on the markets in general and low-income people in particular, despite the measures
23:51
of the Central Bank to preserve the value of the Iraqi dinar and prevent the monopoly of hard currency from Before
23:57
Traders and speculators, but the crisis did not end, as the cause and instability did not subside
24:04
Its pace for a short period until it rises again, causing confusion for citizens and paralysis and stagnation in the markets
24:12
Between the electronic window and travelers obtaining dollars exclusively from airports
24:18
And forcing traders to deal in Iraqi dinars in their local transactions, the gap
24:24
between the official price set by the Central Bank and the parallel market price is still large in light of
24:30
The continued violations leading to the leakage of the currency to countries sanctioned by the Governor of the Central Bank, and during
24:37
His hosting by the Parliamentary Finance Committee, he indicated that what Iraq has of reserves
24:43
of hard currency is sufficient to achieve market balance, but he attributed the widening gap between the official price
24:49
and the parallel to illegal trade and its effects By withdrawing large amounts of currency in illegal ways
24:56
While a meeting with the American side was revealed in New York at the end of the month
25:01
current to discuss the file of the sanctioned banks and the aspects related to the external transfer process
25:08
Many factors control exchange rates, such as the increased demand for the dollar to finance imports
25:14
And the economic and political crises that burden citizens and require taking measures
25:21
And solutions that ensure the stability of exchange rates in the long term
25:30
For more, our viewers, on this topic, Dr. Ahmed Hal, Professor of Economics, joins us at
25:36
Al-Mustansiriya University, Dr. Welcome to the Economics in a Week program on the screen
25:45
Change, if Dr. We are talking about hosting the governor
25:50
The Central Bank in the Iraqi Council of Representatives. In your opinion, did the Central Bank of Iraq fail today
25:57
in managing the issue of the dollar exchange rate and also the sanctions on some banks Iraqi
26:07
In the name of God, the Most Gracious, the Most Merciful. Greetings to you, my dear brother, and to the viewers of Al-Taghyeer Channel
26:16
Your Excellency, welcome. The beginning of the exchange rate crisis is a succession and not a spur of the moment, but
26:26
It worsened after 2023 due to the implementation of the
26:31
US Federal Reserve platform and forcing the Central Bank to use this platform for transfers
26:39
Foreign Affairs. Many economic circles and many officials
26:45
Governmental, whether in the Ministry of Finance or the Central Bank or financial institutions
26:50
and economic specialists in the exchange rate issue believe that the platform will lead to pressure on
26:58
foreign transfers, but unfortunately during the year 2023 and 2024 after the growth
27:07
large with electronic payment cards and forcing society to use the payment card
27:14
electronic and forcing merchants And companies to use electronic payment in dinars
27:19
Iraqi and internal transactions also in Iraqi dinars and it did not work with these
27:24
methods but rather exacerbated the exchange rate crisis because many transfers through
27:31
these cards and electronic wallets as well as transfers launched by banks including
27:39
called direct transfer that occurs between the clearing house between internal banks some banks
27:45
internal and external banks did not work for example the closest example to the issue of inflation
27:53
sales at the central bank and this is something the prime minister himself mentioned that it means in the past
28:01
Before the position is available the prime minister said that
28:06
more than approximately 30% is correct that it means the transfer from these
28:12
The 100% ratio is that 30% of the external transfer is correct and the rest is smuggling, meaning it is
28:18
the same and what he mentioned, but in fact he and many officials in the economic field
28:24
did not understand the real problem of the exchange rate. The real problem of the exchange rate has multiple dimensions, meaning
28:31
Today I do not want to exonerate the Central Bank and say that it is not the responsibility on
28:37
its shoulders nor Law No. 56 of 2004. The main goal of the Central Bank is to maintain
28:44
monetary stability. This is the first goal of the Central Bank, and after that the intermediate goals
28:50
and the final ones fall, but I remind you that there are multiple dimensions to the issue of the exchange rate and not one dimension
28:58
represented by monetary policy, but rather or let me remind you so that we do not leave this point this week
29:04
The interest Sunday the Central Bank sold $281 billion a thousand
29:12
281 million yes a dollar a million dollars and
29:18
The bank or two banks that own
29:23
95% of the platform through external transfers are only two banks 95% what are these two banks
29:33
The reasons what is the work of the rest of the banks what is their work what is their work is it that they work discounting transfers
29:38
The treasury and that means buying transfers from the Ministry of Finance as well
29:44
Loans are an initiative of the Central Bank and so on and this is a fact that does not develop the banking system and is reflected
29:49
On the real sector today, Monday, the Central Bank sold $279 million also one bank is the governor
29:58
Dominating this issue Tuesday $283 million and this is the largest largest sales for the bank
30:07
The Central Bank during this period, meaning during the current government, meaning it is assumed that the Prime Minister gave A clear plan and vision in the curriculum
30:16
The government, but it really did not control and was shocked by some things on Tuesday 283 million and on
30:25
Wednesday 274 and also on Thursday 69 total sales during the past week
30:32
One billion and 386 This means this amount is real if compared
30:41
With the invoices that came out of the platform and the goods corresponding to these invoices
30:50
We will find a huge difference between what entered Iraq of goods and services, meaning goods and services
30:58
It could be in kind and it could not be possible to be material and immaterial goods and services that
31:03
We mean by it games, but there must be a percentage and proportion, meaning always when they were talking about
31:11
This point, Doctor, is the role of the Customs Department in this matter, the Tax Department is also in this
31:19
The subject is if there is any import license given to any merchant or any bank
31:24
Imports a certain commodity from outside Iraq and you know that Iraq is based on imports by more than
31:30
90%, so here perhaps lies the biggest problem, so it must come with invoices or
31:38
official papers proving the value of these goods with what was taken from
31:46
dollars, our dear professor, let me explain to you, excuse me, that these sales
31:53
95% are not the real target, which is the merchant, meaning there are things that fall within the platform that we do not
32:00
know about the citizen, the Prime Minister himself does not know about them, he may know about them himself, the Prime Minister
32:06
Council of Ministers because there are technical things related to banking aspects and these
32:13
have orders and specialized technical issues
32:18
minutes so that it is easy to transfer large quantities of dollars and store these quantities in
32:27
a group of countries that control this dollar and Then this person or this bank or
32:34
this company sells this dollar through a black market clearing. Notice, the target
32:42
is the real one who sells the dollar, not benefiting from this dollar, but
32:48
benefiting from it from the black market. Yes, in this case, in this case, Doctor, when
32:55
when these parties obtain these large amounts in dollars and transfer them outside
33:00
Iraq by any means, meaning to transfer
33:05
legal or even illegal, unless it is disclosed to the Iraqi government or to the US Federal Reserve to know that this party
33:13
that transferred the dollar, then these banks were subject to
33:21
sanctions, no, no, they are them, they transfer legally. I will ask you how, how is it stored
33:29
invoices are a small group of traders, we call them the unorganized trade, trade
33:36
active inside This country needs dollars to finance imports, which means real trade
33:44
As for these traders, there are companies registered with the Ministry of Commerce that collect shipping bills
33:52
Large, meaning that if this trader applies to a bank or a bank that is not financing his internal trade, no
34:00
He gives dollars for the purpose of financing his internal trade, and this means that these traders constitute 70% of
34:09
Domestic trade, note that 70% of domestic trade constitutes
34:16
These people put pressure on the domestic market. Look, we are coming to convert 95 to 97% of this externally
34:26
Externally, yes, and this same amount did not match with customs due to the lack of a tag between the bank
34:33
The Central Bank and Customs are organizations. We said a long time ago that the problem is not related only to the Central Bank. There must
34:42
There must be financing and exemption for trade Interior for business owners
34:49
Small traders for a period of five years from the tax first, I until the exchange rate stabilizes from
34:58
The tax first, and until we reach the real target and what the bank needs only is
35:03
The one who controls this issue, we exempt from taxes for a period of five years and we exempt from fees for a period of five
35:12
years and we issue him a merchant card that enables him to easily import what he needs through his card
35:20
Electronic payment via the Internet and we impose on this merchant a shipping policy from customs that matches what is transferred to him
35:30
of the dollar and this merchant that I am talking about represents a large segment of small traders
35:38
And it represents great pressure on the exchange rate in this way, we can reduce the exchange rate level
35:44
And it could reach the forties, meaning it could reach 40, and this is an acceptable condition as long as Banks
35:52
The current one or two banks as well as a group of companies
The 100% ratio is that 30% of the external transfer is correct and the rest is smuggling, meaning it is
28:18
the same and what he mentioned, but in fact he and many officials in the economic field
28:24
did not understand the real problem of the exchange rate. The real problem of the exchange rate has multiple dimensions, meaning
28:31
Today I do not want to exonerate the Central Bank and say that it is not the responsibility on
28:37
its shoulders nor Law No. 56 of 2004. The main goal of the Central Bank is to maintain
28:44
monetary stability. This is the first goal of the Central Bank, and after that the intermediate goals
28:50
and the final ones fall, but I remind you that there are multiple dimensions to the issue of the exchange rate and not one dimension
28:58
represented by monetary policy, but rather or let me remind you so that we do not leave this point this week
29:04
The interest Sunday the Central Bank sold $281 billion a thousand
29:12
281 million yes a dollar a million dollars and
29:18
The bank or two banks that own
29:23
95% of the platform through external transfers are only two banks 95% what are these two banks
29:33
The reasons what is the work of the rest of the banks what is their work what is their work is it that they work discounting transfers
29:38
The treasury and that means buying transfers from the Ministry of Finance as well
29:44
Loans are an initiative of the Central Bank and so on and this is a fact that does not develop the banking system and is reflected
29:49
On the real sector today, Monday, the Central Bank sold $279 million also one bank is the governor
29:58
Dominating this issue Tuesday $283 million and this is the largest largest sales for the bank
30:07
The Central Bank during this period, meaning during the current government, meaning it is assumed that the Prime Minister gave A clear plan and vision in the curriculum
30:16
The government, but it really did not control and was shocked by some things on Tuesday 283 million and on
30:25
Wednesday 274 and also on Thursday 69 total sales during the past week
30:32
One billion and 386 This means this amount is real if compared
30:41
With the invoices that came out of the platform and the goods corresponding to these invoices
30:50
We will find a huge difference between what entered Iraq of goods and services, meaning goods and services
30:58
It could be in kind and it could not be possible to be material and immaterial goods and services that
31:03
We mean by it games, but there must be a percentage and proportion, meaning always when they were talking about
31:11
This point, Doctor, is the role of the Customs Department in this matter, the Tax Department is also in this
31:19
The subject is if there is any import license given to any merchant or any bank
31:24
Imports a certain commodity from outside Iraq and you know that Iraq is based on imports by more than
31:30
90%, so here perhaps lies the biggest problem, so it must come with invoices or
31:38
official papers proving the value of these goods with what was taken from
31:46
dollars, our dear professor, let me explain to you, excuse me, that these sales
31:53
95% are not the real target, which is the merchant, meaning there are things that fall within the platform that we do not
32:00
know about the citizen, the Prime Minister himself does not know about them, he may know about them himself, the Prime Minister
32:06
Council of Ministers because there are technical things related to banking aspects and these
32:13
have orders and specialized technical issues
32:18
minutes so that it is easy to transfer large quantities of dollars and store these quantities in
32:27
a group of countries that control this dollar and Then this person or this bank or
32:34
this company sells this dollar through a black market clearing. Notice, the target
32:42
is the real one who sells the dollar, not benefiting from this dollar, but
32:48
benefiting from it from the black market. Yes, in this case, in this case, Doctor, when
32:55
when these parties obtain these large amounts in dollars and transfer them outside
33:00
Iraq by any means, meaning to transfer
33:05
legal or even illegal, unless it is disclosed to the Iraqi government or to the US Federal Reserve to know that this party
33:13
that transferred the dollar, then these banks were subject to
33:21
sanctions, no, no, they are them, they transfer legally. I will ask you how, how is it stored
33:29
invoices are a small group of traders, we call them the unorganized trade, trade
33:36
active inside This country needs dollars to finance imports, which means real trade
33:44
As for these traders, there are companies registered with the Ministry of Commerce that collect shipping bills
33:52
Large, meaning that if this trader applies to a bank or a bank that is not financing his internal trade, no
34:00
He gives dollars for the purpose of financing his internal trade, and this means that these traders constitute 70% of
34:09
Domestic trade, note that 70% of domestic trade constitutes
34:16
These people put pressure on the domestic market. Look, we are coming to convert 95 to 97% of this externally
34:26
Externally, yes, and this same amount did not match with customs due to the lack of a tag between the bank
34:33
The Central Bank and Customs are organizations. We said a long time ago that the problem is not related only to the Central Bank. There must
34:42
There must be financing and exemption for trade Interior for business owners
34:49
Small traders for a period of five years from the tax first, I until the exchange rate stabilizes from
34:58
The tax first, and until we reach the real target and what the bank needs only is
35:03
The one who controls this issue, we exempt from taxes for a period of five years and we exempt from fees for a period of five
35:12
years and we issue him a merchant card that enables him to easily import what he needs through his card
35:20
Electronic payment via the Internet and we impose on this merchant a shipping policy from customs that matches what is transferred to him
35:30
of the dollar and this merchant that I am talking about represents a large segment of small traders
35:38
And it represents great pressure on the exchange rate in this way, we can reduce the exchange rate level
35:44
And it could reach the forties, meaning it could reach 40, and this is an acceptable condition as long as Banks
35:52
The current one or two banks as well as a group of companies
35:58
The I and B companies only control and monopolize the foreign exchange and give
36:05
great privileges for the foreign exchange. The exchange rate will rise later. In addition, whenever
36:13
government spending increases, the size of the budget increases, and oil prices rise, this will lead to a
36:22
very large increase in the exchange rate because we said at the beginning of the episode that the problem is the exchange rate.
36:30
It is only related to the Central Bank. It is related to the industrial sector, which is destroyed for us. Almost 70%
36:38
of Iraqi factories are destroyed. This pressure on government spending goes to imports, and whoever goes
36:44
to imports, we will put pressure on the domestic market that requested the dollar so that we can cover trade
36:51
The domestic market is only large traders and large companies with large capitals. They are first
36:58
They themselves also evade taxes because of the deception between them and the tax officials, meaning
37:05
There is A very large percentage of tax evasion and also taking out dollars or sending dollars to
37:15
abroad in exchange for goods and services that are not real, meaning there are goods and services that are not worth what came out of
37:22
the dollar and therefore there are figures controlling the issue of the currency or the platform, is this a fault
37:30
The government, Doctor, is this the fault of the government, meaning when you said a little while ago that there is a bank or a party
37:35
or two parties that we call it that control most of the sales of the currency auction in the bank today
37:42
The central bank, is this the fault of the government or the fault of the central bank or is the central bank selling
37:48
The countries of the dollar to which party today
37:54
Buying it from the legal aspect, the central bank tells you that I am what I receive a request from
37:59
The dollar is food until I reduce the gap between the official price and the price
38:05
the parallel, but this has become a national security problem And a social problem, I mean, and an economic problem
38:12
And a political problem that greatly affects the country. Who are we? The Central Bank is the only one who finances and feeds
38:19
The existing demand is one of the mistakes. Really, how can we finance
38:28
These imports, most of which are non-domestic imports
38:56
With a policy that imposes a tax on them that is less than the tax imposed on the same goods from the ports
39:04
Border from the south or from the air border ports. Okay, so in addition to
39:11
That, excuse me, regarding your question, in addition to the government, because this is considered one of
39:18
economic crimes. I mean, who is now prosecuting the government for its mistakes? I just want to know
39:24
I mean, who is prosecuting me because this 20% difference is a very big difference that is coming to bear On
39:31
The citizen means that among the goods, food goods are also high in price if you notice the reports of the Ministry
39:37
Planning, there are goods that constitute the food basket, the big thing
39:44
For the Iraqi citizen, their prices are also high, real estate prices are also very high
39:49
Inflation has increased, yes, inflation in general, so the problem does not lie in a shortage today, Doctor
39:57
The dollar in the Iraqi market, the Central Bank pumps dollars into the central market, but there are some
40:03
Procedures taken by the weak-willed or some merchants or some whales, call them what you want
40:09
Exploit the dollar and the price difference and go in the end to the black market if
40:17
We wanted today as a government
40:29
I mean, in fact, we said at the beginning that the methods are to reduce and raise the exchange rate and impose on
40:37
the citizen to deal in the dinar and impose on the citizen to take the card Electronic
40:43
I mean, these are issues, unfortunately, media issues that we can use as media
40:50
To cover up a very difficult problem, I mean, these are the tools that can be saved from using
40:58
The dollar based on the use of the dollar in the country, the problem is bigger than this can solve
41:04
These tools are sterile tools and have become a thing of the past, the government cannot solve the issue of the exchange rate
41:11
The exchange rate is this simple, if it wants two solutions, there are on the short-term and on
41:18
The long-term, first, the banks and the A&B companies are happy, of course, on these profits that
41:24
I mean, I don't see a specific bank increasing its profits or its assets, the assets increasing
41:31
From 500 billion to 5 trillion in five or six years, what is this business?
41:38
Shamad, depending on the auction of Uncle Doctor Of course yes, the dollar is the dollar and bonds
41:46
The Treasury, the interest on Treasury bonds and the Central Bank initiative loans, these are the three things that
41:52
The banks are supposed to do, and they are supposed to do a very large development work, finance projects
41:58
The industrial and agricultural projects are supposed to be exclusively financed by these banks, by working in the real sector
42:05
What made me leave 81 banks operating in the country, and these 81 banks benefit either from the auction
42:12
Currency or through the Central Bank's population initiative and through auctions and Treasury transfers
42:21
The American, even if it stopped and it has been working for very long years, meaning huge capital
42:29
The banks' money is one of the reasons for it, the government decisions that support these banks support them
42:36
To a large extent, but the banks did not produce a real economy, and this is the goal of
42:42
The bank and development in Iraq Back to the Ma'rouf issue, yes yes I said two solutions, two solutions
42:51
One on the short-term level, limit the 70% of foreign trade with trade facilities
42:59
The internal, excuse me, which concerns the owners or small traders, these coordinate with the Baghdad Chamber of Commerce
43:08
As I said, tax exemption, a merchant card, an import card, and so on
43:15
Details yes because in any case, first they bring in imports through tax evasion, they
43:22
are tax evaders, and second they come to pressure the market, they buy dollars, so they keep buying dollars
43:28
So that they can finance their foreign trade, this is on the short-term level, I give them credit facilities
43:34
Unlimited and I demand them
43:56
With a large-scale policy, meaning I make myself a branch of the bank branches, for example, TBI, a recognized bank
44:03
with it and it has a large correspondence It's easier for these
44:09
traders and then the other second solution which is in the short term
The I and B companies only control and monopolize the foreign exchange and give
36:05
great privileges for the foreign exchange. The exchange rate will rise later. In addition, whenever
36:13
government spending increases, the size of the budget increases, and oil prices rise, this will lead to a
36:22
very large increase in the exchange rate because we said at the beginning of the episode that the problem is the exchange rate.
36:30
It is only related to the Central Bank. It is related to the industrial sector, which is destroyed for us. Almost 70%
36:38
of Iraqi factories are destroyed. This pressure on government spending goes to imports, and whoever goes
36:44
to imports, we will put pressure on the domestic market that requested the dollar so that we can cover trade
36:51
The domestic market is only large traders and large companies with large capitals. They are first
36:58
They themselves also evade taxes because of the deception between them and the tax officials, meaning
37:05
There is A very large percentage of tax evasion and also taking out dollars or sending dollars to
37:15
abroad in exchange for goods and services that are not real, meaning there are goods and services that are not worth what came out of
37:22
the dollar and therefore there are figures controlling the issue of the currency or the platform, is this a fault
37:30
The government, Doctor, is this the fault of the government, meaning when you said a little while ago that there is a bank or a party
37:35
or two parties that we call it that control most of the sales of the currency auction in the bank today
37:42
The central bank, is this the fault of the government or the fault of the central bank or is the central bank selling
37:48
The countries of the dollar to which party today
37:54
Buying it from the legal aspect, the central bank tells you that I am what I receive a request from
37:59
The dollar is food until I reduce the gap between the official price and the price
38:05
the parallel, but this has become a national security problem And a social problem, I mean, and an economic problem
38:12
And a political problem that greatly affects the country. Who are we? The Central Bank is the only one who finances and feeds
38:19
The existing demand is one of the mistakes. Really, how can we finance
38:28
These imports, most of which are non-domestic imports
38:56
With a policy that imposes a tax on them that is less than the tax imposed on the same goods from the ports
39:04
Border from the south or from the air border ports. Okay, so in addition to
39:11
That, excuse me, regarding your question, in addition to the government, because this is considered one of
39:18
economic crimes. I mean, who is now prosecuting the government for its mistakes? I just want to know
39:24
I mean, who is prosecuting me because this 20% difference is a very big difference that is coming to bear On
39:31
The citizen means that among the goods, food goods are also high in price if you notice the reports of the Ministry
39:37
Planning, there are goods that constitute the food basket, the big thing
39:44
For the Iraqi citizen, their prices are also high, real estate prices are also very high
39:49
Inflation has increased, yes, inflation in general, so the problem does not lie in a shortage today, Doctor
39:57
The dollar in the Iraqi market, the Central Bank pumps dollars into the central market, but there are some
40:03
Procedures taken by the weak-willed or some merchants or some whales, call them what you want
40:09
Exploit the dollar and the price difference and go in the end to the black market if
40:17
We wanted today as a government
40:29
I mean, in fact, we said at the beginning that the methods are to reduce and raise the exchange rate and impose on
40:37
the citizen to deal in the dinar and impose on the citizen to take the card Electronic
40:43
I mean, these are issues, unfortunately, media issues that we can use as media
40:50
To cover up a very difficult problem, I mean, these are the tools that can be saved from using
40:58
The dollar based on the use of the dollar in the country, the problem is bigger than this can solve
41:04
These tools are sterile tools and have become a thing of the past, the government cannot solve the issue of the exchange rate
41:11
The exchange rate is this simple, if it wants two solutions, there are on the short-term and on
41:18
The long-term, first, the banks and the A&B companies are happy, of course, on these profits that
41:24
I mean, I don't see a specific bank increasing its profits or its assets, the assets increasing
41:31
From 500 billion to 5 trillion in five or six years, what is this business?
41:38
Shamad, depending on the auction of Uncle Doctor Of course yes, the dollar is the dollar and bonds
41:46
The Treasury, the interest on Treasury bonds and the Central Bank initiative loans, these are the three things that
41:52
The banks are supposed to do, and they are supposed to do a very large development work, finance projects
41:58
The industrial and agricultural projects are supposed to be exclusively financed by these banks, by working in the real sector
42:05
What made me leave 81 banks operating in the country, and these 81 banks benefit either from the auction
42:12
Currency or through the Central Bank's population initiative and through auctions and Treasury transfers
42:21
The American, even if it stopped and it has been working for very long years, meaning huge capital
42:29
The banks' money is one of the reasons for it, the government decisions that support these banks support them
42:36
To a large extent, but the banks did not produce a real economy, and this is the goal of
42:42
The bank and development in Iraq Back to the Ma'rouf issue, yes yes I said two solutions, two solutions
42:51
One on the short-term level, limit the 70% of foreign trade with trade facilities
42:59
The internal, excuse me, which concerns the owners or small traders, these coordinate with the Baghdad Chamber of Commerce
43:08
As I said, tax exemption, a merchant card, an import card, and so on
43:15
Details yes because in any case, first they bring in imports through tax evasion, they
43:22
are tax evaders, and second they come to pressure the market, they buy dollars, so they keep buying dollars
43:28
So that they can finance their foreign trade, this is on the short-term level, I give them credit facilities
43:34
Unlimited and I demand them
43:56
With a large-scale policy, meaning I make myself a branch of the bank branches, for example, TBI, a recognized bank
44:03
with it and it has a large correspondence It's easier for these
44:09
traders and then the other second solution which is in the short term
44:09
Traders and then the other second solution which is in the short term
44:15
I will create a sub-department within the General Authority of Customs and within the land border crossings
44:23
and the air and all the crossings and the northern ones in particular because there are companies that are coming to register in the north and have not paid
44:31
taxes to and are practicing their work in Baghdad and have not paid the tax to Baghdad, they pay it to the north
44:37
Consequently, the north and the region will not give the taxpayer as stipulated by the law
44:44
the budget, but the government will continue to finance the public expenditures in the region, this is on
44:49
the short-term level on the long-term level, impose on these banks that if you want, 44:55
banks, whether private, investment, industrial or agricultural, I will give you credit facilities
45:02
Very large if you finance me, for example, a factory for consumer goods that is coming It consumes it
45:10
And I made it self-sufficient in the industrial sector with these goods, meaning that I direct every bank to a specific industry
45:18
What will this do? This will limit imports because there is a commodity for a commodity
45:24
Foreign and with credit facilities, so it will reduce the level of total demand and thus the demand for
45:31
imports and then the demand for the dollar and then the demand for reserves at the
45:37
Central Bank, which is the prestige of the Iraqi economy, the truth is that international reserves if they decrease
45:43
Today the Prime Minister may be very lucky, but his results are really negative and we are here to monitor
45:51
the data and we are here to monitor the indicators and give him that we tell him these indicators are negative despite
45:56
the large economic and political presence that it enjoys, it was not able, unfortunately
46:03
to achieve very big results, for example, on the exchange rate level and the financial level Economics
46:10
Excuse me, my time is up, Dr. Ahmed Hall, you are a professor of economics at Al-Mustansiriya University. I want to thank you very much for your presence and for
46:16
these clarifications and information. Thanks also to you, our dear viewers, for following the episode
46:22
another next week, God bless you
n
46:31
[Music]
Traders and then the other second solution which is in the short term
44:15
I will create a sub-department within the General Authority of Customs and within the land border crossings
44:23
and the air and all the crossings and the northern ones in particular because there are companies that are coming to register in the north and have not paid
44:31
taxes to and are practicing their work in Baghdad and have not paid the tax to Baghdad, they pay it to the north
44:37
Consequently, the north and the region will not give the taxpayer as stipulated by the law
44:44
the budget, but the government will continue to finance the public expenditures in the region, this is on
44:49
the short-term level on the long-term level, impose on these banks that if you want, 44:55
banks, whether private, investment, industrial or agricultural, I will give you credit facilities
45:02
Very large if you finance me, for example, a factory for consumer goods that is coming It consumes it
45:10
And I made it self-sufficient in the industrial sector with these goods, meaning that I direct every bank to a specific industry
45:18
What will this do? This will limit imports because there is a commodity for a commodity
45:24
Foreign and with credit facilities, so it will reduce the level of total demand and thus the demand for
45:31
imports and then the demand for the dollar and then the demand for reserves at the
45:37
Central Bank, which is the prestige of the Iraqi economy, the truth is that international reserves if they decrease
45:43
Today the Prime Minister may be very lucky, but his results are really negative and we are here to monitor
45:51
the data and we are here to monitor the indicators and give him that we tell him these indicators are negative despite
45:56
the large economic and political presence that it enjoys, it was not able, unfortunately
46:03
to achieve very big results, for example, on the exchange rate level and the financial level Economics
46:10
Excuse me, my time is up, Dr. Ahmed Hall, you are a professor of economics at Al-Mustansiriya University. I want to thank you very much for your presence and for
46:16
these clarifications and information. Thanks also to you, our dear viewers, for following the episode
46:22
another next week, God bless you
n
46:31
[Music]
I like watching the videos to see the images so I have provided the video below
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