After the "change" of the exchange rate, speculators empty the pockets of Iraqis in hours

 After the "change" of the exchange rate, speculators empty the pockets of Iraqis in hours

These are the articles I discussed on the My FX Buddies Podcast

After Iraq's exit from Chapter VII.. Al-Samarrai calls for an effective strategy for banking investment

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Today, Wednesday, the head of the Alliance of Azm Muthanna al-Samarrai called for .an effective strategy for banking investment after Iraq’s exit from Chapter VII

Al-Samarrai said in a tweet to him on his official account on Twitter, which was followed by (Baghdad Today), that "today, Iraq is liberated from the bondage of compensation that has burdened it for thirty years.

And trade to revive the economy .and get out of the stagnation state to developmen

A meeting brings together Al-Sadr with the leaders of the Sadrist bloc

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Today, Wednesday, the leader of the Sadrist movement, Muqtada al-Sadr, met with the head of the Sadrist bloc, Hassan al-Adhari, and his deputy, Hassan al-Kaabi, as well as the deputy speaker of Parliament, Hakim al-Zamili.    

Al-Zamili said in his blog, followed by “Nas” (February 23, 2022): “We were honored to meet with His Eminence, the Iraqi leader, the leader, Muqtada Al-Sadr (may God honor him) today, February 23, in Najaf, the honorable, blessed tenderness, and we listened to the instructions and advice of His Eminence in implementing the reform project and activating legislative tasks and oversight for the House of Representatives, and to provide all available capabilities to serve the honorable citizen.   

Today, Wednesday, the leaders of the Sadrist bloc held a press conference in Najaf province, regarding the dollar exchange rate, and hosting the Minister of Finance in Parliament.  

Deputy Speaker of Parliament Hakim Al-Zamili said in a press conference attended by a “Nass” reporter (February 23, 2022), that “more than 100 deputies signed the hosting of the Minister of Finance.”     

He added, “The rise in the dollar exchange rate did not benefit the state, and we pledge our people to proceed with the reform project.”     

For his part, the deputy head of the Sadrist bloc, Hassan al-Kaabi, said that “we are continuing to investigate the electricity file.”     

Al-Kaabi indicated that “the oil file is among our priorities, and the suspicions in the licensing contracts are clear.”

Al-Kazemi: Closing the compensation file is a new beginning to restore Iraq’s role through the vision of the state, not the absurdity of the non-state

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The Prime Minister, Mustafa Al-Kazemi, considered closing the Kuwaiti compensation file "a new beginning to restore Iraq's role."

Al-Kazemi said in a tweet on Twitter: "Iraq has succumbed to its efforts on the path of normal relations with its neighbors, brothers and the international community by closing the file of UN resolutions that resulted from the absurd adventures of the previous regime, and whose cruel price our people paid for 32 years."

He added, "It is a new beginning for Iraq to restore its role and presence through the vision of the state, not the absurdity of the non-state."

Yesterday, Tuesday, the UN Security Council unanimously issued a resolution officially ending the mandate of the “United Nations Commission on Compensation for Damage Resulting from the Saddam regime’s invasion of Kuwait in 1990,” after Baghdad paid the full sums owed to Kuwait, amounting to 52.4 billion dollars.

After the "change" of the exchange rate, speculators empty the pockets of Iraqis in hours

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In a short period not exceeding 48 hours only, currency speculators made millions of dollars, after they spread and exaggerated rumors about the government's attempt to change the dollar exchange rate in the current year 2022 budget to start large dollar purchases from citizens who were saving some of them to sell for fear From the loss, prices will rise again after the bank denied any change in the exchange rate.

On December 19, 2020, the Central Bank of Iraq officially announced the amendment of the foreign exchange rate (the US dollar) to 145,000 dinars for every $100, according to the state's general budget for the year 2021 approved by the House of Representatives.

As a result, according to specialists, the annual inflation in Iraq rose significantly, so that the prices of all materials and commodities in the Iraqi market rose significantly, which sparked a wave of strong resentment among the popular circles, as well as the objections of some interested in economic affairs.

 

Kick the start: Al-Sadr's call and Allawi's rejection

Economist Dergham Muhammad Ali told Shafak News Agency, "The tweets of the leader of the Sadrist movement, Muqtada al-Sadr, and his bloc's insistence on hosting the Minister of Finance and the Governor of the Central Bank created a feeling that the exchange rate change will take place within hours, so the majority went to sell with the absence of buyers, which contributed to reducing the purchase price of the dollar compared to the price of the dollar." the day before."

Ali adds that "the statements of the Governor of the Central Bank, who confirmed that there was no change in the exchange rate led to the rise of the dollar's value once again," stressing that "the issue is an issue of supply and demand that speculators exploited to make profits from this game."

Al-Sadr had made it clear in his tweet, on February 16, 2022, that "after the rise in the exchange rates of the dollar and its benefits and harms, its rise should absolutely not be an increase in market prices, especially with regard to important commodities that the people need in their daily life on the whole. Absolutely."

The Presidency of Parliament also decided, on February 17, 2022, to summon the Minister of Finance and the Governor of the Central Bank, in the dome of the House of Representatives immediately to talk about the dollar price file and the management of financial policy in Iraq, which was rejected by Finance Minister Ali Abdul Amir Allawi, and announced that he would request a vote of confidence in him. 

The situation escalated rapidly after the minister considered the summons as a result of the tweet of the leader of the Sadrist movement, to which the deputy speaker belongs, and that the entire process is unacceptable and should not be tolerated, which called on the first deputy speaker of the House of Representatives, Hakim Al-Zamili, to issue a request for the Public Prosecution to prevent travel against the right. The Minister of Finance, Ali Abdul-Amir Allawi, until he completes the requirements for his attendance at the House of Representatives to answer questions after that, he has the right to resign or stay.

Al-Zamili accused the Minister of Finance of transferring his losing experiences to the companies he managed abroad to Iraq, and he did not provide anything to the country, and contributed to the rise of Iraq's debts to 27 trillion dinars in just one year.

In light of this government-parliamentary escalation, the dollar’s prices fell in the local markets, accompanied by rumors indicating the government’s intention to reduce the price of the dollar, which led to citizens selling the dollars they had in their possession at prices that reached less than 141 thousand dinars for 100 dollars, after it was 148 thousand dinars for 100 dollar.

  

“Government’s inability to remedy the situation”

For his part, financial expert Hilal Al-Tahhan told Shafaq News that "the government did not properly address the results of the rise in dollar prices and left the citizen vulnerable to the rise in prices at a time when it was reaping the positives of this rise, which created negative reactions from the citizens," noting that "the government I used the shock method to deal with the conditions of the Iraqi economy."

Al-Tahhan points out that "what happened during the past week about reducing the dollar's prices has been exaggerated by currency traders in their favor in order to obtain gains as a result of reducing the dollar's prices and then benefiting from the financial differences when they rise."

  

Summoning is born fear

For his part, the head of the Baghdad Chamber of Commerce, Firas Al-Hamdani, confirms to Shafaq News Agency that "the Iraqi market is unstable, and there is no system and law that limits the dealer who works in currency from selling the currency at a certain number."

Al-Hamdani adds that "the confusion that occurred is represented in the request to summon the governor of the bank and the Minister of Finance, and the latter's failure to attend, which generated some merchants and companies with real fear of a drop in the dollar's price."

Al-Hamdani points out that "those who understand the Iraqi economy and the budget know that the dinar is priced in the 2021 budget and approved by the Parliament and the government, and therefore there will be no new exchange rate and it will come down in the sense that the citizen fears."

  

No intention to change the exchange rate

For his part, an authorized source in the Central Bank of Iraq confirmed on February 20, after a series of declines in the dollar exchange rate that the Iraqi market witnessed, that there are no intentions to change the current exchange rate, especially after the positive results it achieved during the past period.

The source stressed that "the discussions that took place during the hosting of the Governor of the Central Bank of Iraq in the House of Representatives emphasized the need for concerted efforts by all government institutions to improve the economic and living standards of the poor classes that were affected by the high rate of inflation." The rate change and that the central bank possesses sufficient foreign reserves to stabilize the current exchange rate."

  

Throwing the ball in the merchant's court

At a time when Finance Minister Muhammad Allawi refused to host him in the House of Representatives, the Ministry of Finance issued self-defense explanations about the exchange rate, indicating that the rise in dollar prices was not the reason for the rise in commodity prices in the country.

It indicated that the inflation in prices that occurred due to inflation is a global phenomenon that is not linked to the devaluation of the currency, as well as the exploitation of some importers and traders by imposing additional prices for the purposes of competition and making gains.

  

Prices under control

The financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirms to Shafak News Agency that "the monetary policy of the Iraqi state does not suffer from great price pressures despite the low exchange rate of the Iraqi dinar," noting that "prices are under control and inflation is still less than a decimal place."

Saleh explains that "the central bank's job is to fight the sharp and strong inflationary parties," noting that "the bank builds good reserves and achieves some stability within the economy."

Dollar prices remain captive to specialists and those in the central bank in assessing the country's financial condition, as long as the dollar is not subject to flotation.

Politician: Postponing The Federation Will Make The Scene More Complicated And Confusing

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Political analyst Hashem Al-Habboubi considered, on Wednesday, that the Federal Court postponed the pronouncement of the appeal decision against reopening the candidacy as the last chance for the political forces to reach an understanding, indicating that the decision to postpone was unnecessary and the court could have settled it today and that it would increase the scene more complicated and confusing.

Al-Haboubi said in a statement to "The Information", that "the decision on a constitutional issue to reopen the door for candidacy for the position of the republic or not should have been resolved today because the issue is related to the constitution and not previous cases in which there are accusations and evidence, and the issue is only considered whether the constitution permits or not."

He added that “the current electoral cycle can be described as the Federal Court cycle because the political forces went to it in every stray and incoming,” believing that “the court, by postponing it to the first of March, is to give another opportunity to the political forces for understanding, and this period is not enough, but will increase the scene more complicated and confusing.”

Al-Zamili: The Rise In The Dollar Exchange Rate Did Not Benefit The State

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The First Deputy Speaker of the House of Representatives, Hakim Al-Zamili, announced today, Wednesday, that more than 100 deputies signed to host the Minister of Finance, while noting that the high exchange rate did not benefit the state.

Al-Zamili said, in a press conference, which was followed by "The Information", that "Finance Minister Ali Allawi repudiated the legal and legal responsibility, and made false pretexts for not attending the House of Representatives."

He added, "The question to be directed to the Minister of Finance, about the reasons for the exchange rate in return for the increase in the prices of foodstuffs and commodities, and the harm of a large segment of the poor, people with special needs and those with limited income."

Al-Zamili stressed, “The Ministry of Finance is to find solutions and treatments for the ration card, increase vocabulary in it, social welfare salaries, and more inclusion for the poor and people with limited income, in addition to the need to support the Ministry of Health to provide treatments to patients,” noting that “the wrong financial policy of the current minister, burdened Iraq with debts as It doubled during 2020 and amounted to 40 trillion dinars, and Iraq borrowed about 27 trillion dinars in the same year, as the debt rose by 67% within one year.

He explained, "Changing the exchange rate is a matter of the Central Bank, and changing it by the Minister of Finance interferes with monetary policy," noting that "there is great corruption in the tax, customs and other departments of the ministry, and he was supposed to collect money from these to maximize revenues."

He pointed out that "the state did not benefit from those revenues, but went into the pockets of the spoilers, and a high percentage of the currency auction was acquired from some banks, so it is necessary to inquire about the issue of forged invoices and currency smuggling and everything related to monetary policy," noting that "a committee was formed under our leadership." And a number of members of the House of Representatives, who are specialized in fact-finding and scrutiny of all of the above.

He continued, "According to Article 61 of the Constitution, Article 27 Tenth, Article 30 First of the Parliament Law and Article 30, reform must proceed to combat corruption."

The Citizen And The Story Of The Dollar

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Many friends advised me, when I told them of my intention to write about the dollar, in the midst of the demands to reduce it against the Iraqi dinar, not to go into this part in the current situation, as boats got lost in the river of various opinions, between supporters and opponents, and these opinions were dominated by images of compliments and ( Attacks) according to the nature of the known tendencies and trends in the political street.

From my humble knowledge of sober and academic financial and economic studies, discussions with elite economists, and participation in conferences specialized in the economy, I was convinced that returning to the previous exchange rate of the dollar has major and dangerous repercussions (internally and externally) on the overall economic cycle in Iraq, as it confuses the work of local markets, and cancels the gains made by the current exchange rate,

Despite the good intentions that called for the return of the exchange rate to its previous era, and there is no doubt that they are intentions, aimed at breaking the dams of the rise in the prices of goods and materials related to the livelihood of the citizen, but the results in my opinion in the medium and long term will be a major obstacle on the path of economic advancement, and in providing structures Solid infrastructure that establishes a promising future, and weakens Iraq's credibility before the world.

The contradictory news, the different dialogues and propositions that bombard the citizen now and then in the media, regarding the dollar and the endless (will it decrease or stay?) made the citizen live with clear anxiety in his home, in his workplace, and when he is shopping and visiting, which is Anxiety that I fear could lead to a lack of objective and self-awareness. In this regard, I hope that the Central Bank of Iraq will hold on to its position, stop discussing this issue, and move towards issuing quick and capable government laws that will reassure and restore to the citizen what he lost of his resource and salary in the past period, by increasing the vocabulary of the ration ration and the stability of its dates, Increasing the number of those covered by social care, paying attention to hundreds of thousands of the unemployed, allocating easy amounts for them to help them live a decent life, activating the price of medicine in pharmacies, providing it in hospitals, and reducing unnecessary expenses for presidencies, ministries, and agencies, and other living matters, are the most important in the current stage. .

God darn the dollar!

What does Iraq's exit from "Article VII" sanctions mean? What Next?

What does Iraq's exit from "Article VII" sanctions mean?

I might post more  information  later  come  back later

What does Iraq's exit from "Article VII" sanctions mean?

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On Tuesday, Foreign Minister Fouad Hussein announced that Iraq had left Chapter VII procedures, after paying all of its financial obligations, while the State of Kuwait congratulated Iraq on exiting from Chapter VII of the United Nations, by completing the file for paying financial compensation.

Iraq’s final exit from Chapter VII, meaning many positives, and here we review the benefits of this historic decision, especially the economic and political benefits of this important step, as it will enable Iraq to recover its frozen funds, and end the tax paid by the people as a result of the practices of the previous regime.

Since 1990, Iraq has been subject to Chapter VII of the United Nations Charter imposed on it after the previous regime invaded the State of Kuwait in August of the same year. This chapter allows the use of force against Iraq as it constitutes a threat to international security, in addition to freezing large sums of its financial balances in banks. world to pay compensation to those affected by the invasion.

Legal Status

In terms of the legal situation, Iraq's exit from Chapter VII will restore its legal status in the international community, to what it was before Security Council Resolution No. 838 of 1993, which was issued as a result of the invasion of the former regime of the State of Kuwait.

It will also restore its absolute legal status in the international community, to what it was before Security Council Resolution No. 838 of 1993 as a result of the entry of the former regime into Kuwait, and that Iraq's fulfillment of its obligations calls on the United Nations to lift the guardianship of Iraqi funds frozen abroad, so that the Iraqi will return to its money and right It is a sign of hope that opens new horizons in dealing with the countries of the world in the areas of development and investment.” A

pivotal role

Iraq's exit from Chapter VII means that Iraq will expand its role among the countries of the world after its exit from Chapter VII due to its ability and efficiency at the political and diplomatic levels, as Iraq is ready to be the weight-bearing egg in global discussions and meetings, and it is the leader of the Arab countries in this regard.

Iraq is also different from the Arab countries in many military, cultural and political fields, and one of the first countries to renounce terrorism.”

financial breakthrough

In the same context, Iraq's exit from the provisions of Chapter VII, means liberation from economic determinants, which were the cause of delaying the provision of services to citizens.

And that Iraq’s salvation from the consequences of the provisions of Chapter VII is a departure from the economic determinants that were the reason for the delay in providing services to citizens and will enable Iraq to manage its affairs without any determinants that would be a reason for delaying the provision of services and infrastructure projects that all cities of Iraq need.

Full Sovereignty

Exiting Chapter VII means full sovereignty, because Iraq's survival under its control means remaining under the tutelage of the United Nations and the Security Council.

Iraq had been placed under this chapter on the grounds that it violated international security as a result of the wars of the former regime, and in short, exiting from Chapter VII means liberation from all political, economic and diplomatic restrictions and many other matters that develop the Iraqi situation externally and internally and its reflection on the introduction of investments into Iraq including It achieves a positive impact on the country's security and economy, according to what the Director of the Iraqi Center for Strategic Studies, Dr. Ghazi Faisal, told Tigris.

 

VN likely to be upgraded to an emerging market after KRX system installed

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The stock trading board inside the Hồ Chí Minh Stock Exchange (HoSE). 

Experts believe that once the KRX trading system begins official operations, many international organisations will re-evaluate the Vietnamese market to upgrade it to an emerging market.

Speaking at the Financial Street Talkshow last week, Dương Ngọc Tuấn, Deputy General Director of the Việt Nam Securities Depository (VSD), said that solutions for the new information technology system, T+0 day trading mechanism and other solutions to help upgrade the market will be implemented this year. In addition, new products, especially products for the domestic derivatives market, are allowed to develop. 

Tuấn also revealed the plan to submit to the Government the market development strategy project for 2021-2030, which sets out roadmaps for development in all aspects, helping market activities become more active and sustainable.

The KRX trading system, provided by South Korea’s bourse operator, the Korea Exchange (KRX), can handle 3-5 million orders per day, aiming to tackle system overloads which had troubled investors last year. It is expected to be completed and run in the first half of 2022 after a pause last year due to the COVID-19 pandemic.

Lê Chí Phúc, General Director of SGI Investment Fund Management JSC (SGI Capital), said that it is necessary to introduce the new KRX trading system soon, so all participants in the market can proactively make their own plans in product development, as well as attracting new customers.

“When the KRX system is officially put into operation, many international organisations will re-evaluate the Vietnamese market to upgrade it to an emerging market,” Phúc said.

Similarly, in its base scenario, VNDirect Securities Corporation said that if Việt Nam completes the implementation of the new trading system in the first half of 2022, the country’s market could be included on the MSCI (Morgan Stanley Capital International)’s watch list for upgrading to an emerging market in its annual market assessment in May 2023. Việt Nam may then be notified of its upgrade to emerging market during the MSCI annual market review in May 2024.

Meanwhile, in the optimistic scenario, VNDirect said that the FTSE (Financial Times Stock Exchange) may announce the inclusion of the Vietnamese stock market in the secondary emerging market group during its annual market review in September 2022.

Although it has not been officially recognised as an emerging market, the domestic market has achieved many criteria such as liquidity surpassing that of many other emerging markets in 2021, ranking only second in ASEAN after Thailand. Many large funds in the world specialising in investing in emerging markets have also begun to show up in Việt Nam, the leader of SGI Capital added.

According to Phúc, if other solutions are followed such as continuing to maintain and further improve asset quality, the prestige of the Vietnamese market will increase.

On the other hand, up to now, the criteria for organisations to evaluate updating Việt Nam into the emerging market category have reduced a lot. The remaining issues are only technical and will be solved, Tuấn said. 

On the foreign capital flows front, both Tuấn and Phúc agreed that the cash flow into the market recorded the strongest growth in more than two decades. Of which the majority was cash flow from domestic investors and lacked cash flow from foreign investors.

Although domestic investors in the past two years have played a leading role in the market, experts say that foreign capital flows cannot be ignored, because this is an essential factor for any stock market.

“Foreign capital inflows will bring great and potential financial resources,” Tuấn said. 

“The participation of major international investors will play a significant role in leading the investment trend, bringing a lot of experience and international practices to make the market more active and healthy.

Meanwhile, Phúc said Việt Nam needs both domestic and foreign capital flows to develop the market, as well as develop businesses. 

New technologies, the experience of foreign investors and international standards they bring into the market will help the country connect with the world in a more comprehensive way.

The Iraqi government is sticking to the dollar exchange rate against the Iraqi dinar

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The office of the Iraqi Prime Minister, Mustafa Al-Kazemi, confirmed on Tuesday that with the dollar's exchange rate against the Iraqi dinar, it will remain.
Today, Adviser to the Prime Minister for Economic Affairs, Mazhar Muhammad Salih, said that monetary policy is what determines the exchange rate according to the law of the Central Bank of Iraq, but unfortunately there have been many interventions, adding that the bank has an understanding and determination to maintain the stability of the Iraqi dinar exchange rate at its current price of 147 thousand Iraqi dinar for a hundred dollars.
He said that coordination between monetary policy and fiscal policy in a rentier country such as Iraq is very important, especially that the supporting reserves of the Iraqi dinar come from the Ministry of Finance.
Parliamentary calls were made to reduce the exchange rate of the dollar to 125,000 dinars for each category of one hundred dollars, as it was before it was raised in 2020 to protect the poor classes of society.

The Minister Of Foreign Affairs Announces Iraq's Exit From Chapter VII Procedures

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The Minister of Foreign Affairs, Fuad Hussein, announced today, that Iraq has exited from Chapter VII procedures after paying all the debts it owed to Kuwait.

Hussein said in his speech before the Security Council, and followed by “Earth News”, that “Iraq today turns an important page of its history that lasted for more than thirty years. Today begins a new page of Iraq’s diplomatic, political and economic history that enhances its regional and international role.”

He added, "There are clear indications that Iraq has fulfilled all its international obligations under the relevant Security Council resolutions, as it paid the last payment in accordance with its financial obligations and paid the full amount of compensation due to it, which is (52.4) billion US dollars, and is no longer required to pay any additional amounts of money in the future. or dealing with Chapter VII procedures.”

And he indicated that "the Iraqi government confirms that working with the United Nations Compensation Committee and your esteemed council was a successful model for multilateral work and enhances confidence in international mechanisms and procedures in settling crises, as Iraq continued to fulfill these obligations fully in accordance with the timetables and percentages approved by the Compensation Committee despite the difficult circumstances that have passed. It will take its role at the forefront of the world’s countries to confront the terrorist gangs of ISIS and recover cities from the organization’s control.”

He pointed out that "the Government of Iraq considers the full fulfillment of its international obligations towards the international community and the sisterly State of Kuwait as a major development that would strengthen Iraq's relations with its regional and international surroundings, and Iraq sought to complete this unique model of work, international effort and joint cooperation under the frameworks and mechanisms of the nations." United".

And he added, "Iraq, through its full fulfillment of its international obligations, highlighted an international legal and moral obligation on the international community and the United Nations, which is to remove Iraq from all Chapter VII procedures, preserve Iraq's rights and money and its international legal entitlements, and protect it from any future claims within the framework of the international effort led by the United Nations." .

 

Your Excellency Mr. Vasily, President of the Security Council, Your
Excellencies the distinguished members of the Council , may the
peace, mercy, and blessings of God be upon you…

I have the honor to begin my speech as a representative of my country, by congratulating the State of the Russian Federation for assuming the presidency of the Security Council for the month of February, wishing the Permanent Representative of Russia success in this endeavor. the mission.

I also extend my thanks and gratitude to the Kingdom of Norway for assuming the duties of managing the presidency of the Security Council for the past month.

As well as thanks and gratitude for the briefing given by the Chairman of the Board of Directors of the United Nations Compensation Commission.

Mr. President…

Today, Iraq turns an important page of its history that lasted more than thirty years, and a new page begins in Iraq’s diplomatic, political and economic history, a page that strengthens its regional and international role in proportion to its history and cultural weight on the map of the region and the world, as an effective state consistent with the aspirations and goals of the international community Iraq seeks to strengthen cooperation frameworks with the international community, led by the United Nations, considering that Iraq is one of the founders of this organization and the signatories to its charter on October 14, 1945, and in order to restore its role as an effective and responsible member of the international community.

Mr president …

According to the final report issued by the United Nations Compensation Commission, and the briefing given by the Chairman of the Committee's Board of Directors, and the clear indications it contained on Iraq's fulfillment of all its international obligations under the relevant Security Council resolutions, Iraq has paid the last payment in accordance with its financial obligations and paid in full. The amount of compensation owed by him, which is (fifty-two point four) billion dollars, through the United Nations Compensation Committee, which was distributed to (one point five million) claim from all categories of claims, and according to what was stated in that, and the wording of the paragraphs of the Council’s resolution was approved The security approved in this session, and as a reminder of all relevant Security Council resolutions, the Compensation Committee has fulfilled its mandate in full, and has completed consideration of any future claims on the issue of compensation, and Iraq is no longer required to pay any additional sums of money in the future, or deal with Chapter VII procedures.

In this context, my country's government affirms that working with the United Nations Compensation Commission and your esteemed council has been a successful model for multilateral action, a model that enhances confidence in international mechanisms and procedures in settling the crises that have afflicted and afflicted our world until today, and through this international mechanism and out of respect Iraq has fulfilled its obligations under the relevant Security Council resolutions and fully assumed its responsibilities, Iraq continued to fulfill these obligations in full in accordance with the timetables and percentages approved by the Compensation Committee, despite the difficult circumstances that Iraq experienced in the previous years of bearing the burdens and economic costs of fighting terrorism and taking its role at the forefront of the countries of the world To confront the terrorist gangs of ISIS and recover the cities from the organization’s control, the costs of the programs to return the internally displaced to their cities, the programs to restore stability, services, provide aid and the costs of reconstruction, which were accompanied by a significant decrease in the prices of global oil sales.

In this regard, the Government of Iraq considers the full fulfillment of its international obligations towards the international community and the sisterly State of Kuwait, as a major development that would enhance Iraq's relations with its regional and international surroundings, as well as the Iraqi-Kuwaiti historical relations, and move them to broad future horizons based on trust and equal bilateral relations. .

Mr president …

Iraq has sought to complete this unique model of work, international effort and joint cooperation under the frameworks and mechanisms of the United Nations, through its full fulfillment of its international obligations, which in turn highlighted an international legal and moral commitment to the international community and the United Nations, which is to remove Iraq from all procedures of Chapter VII, and to preserve Iraq’s rights, funds and international legal entitlements, and its protection from any future claims within the framework of the international effort led by the United Nations, based on the Charter of the United Nations, the rules of international law and the general principles of international law in justice and equity, which enhances confidence in these UN mechanisms. This is what we were keen to confirm and defended hard to include it in the UN Security Council resolution in cooperation with the (British) pen holder and the rest of the Security Council members. As this international effort will not have completed its success until after Iraq's legitimate demands are embodied and included in the UN Security Council resolution.

Mr. President…

My country’s government confirms, in light of the historical and legal vision that we have presented, that Iraq is looking forward in this regard and of great importance, for your esteemed council to assume its historical responsibilities, so that closing this file will reflect positively on Iraq in its regional and international relations, specifically with neighboring countries. Continuity is the lesson of matters in their conclusions, meaning that the success of work is always measured by its conclusions, results, outputs and positive repercussions on peoples and countries.

In conclusion… Allow me, Mr. President, to express our thanks and appreciation to you and the other members of the Council, and to the pen-holder, the esteemed British mission, which engaged in intensive negotiating rounds with the Iraqi mission, and to all the friendly countries that provided support to my country to overcome this historical era that was bitter for me. The peoples of the region, as well as our thanks and appreciation to the State of Kuwait, the leadership and people.

We congratulate the Iraqi people and their government for the termination of these international obligations, and for Iraq’s exit from the procedures of Chapter VII, and we extend our thanks and pride to those in charge of Iraqi diplomacy, especially the permanent Iraqi mission in New York for its tireless efforts in negotiations to include Iraq’s legitimate demands in the resolution, wishing continued prosperity, prosperity and progress for the people of Iraq and the peoples of the region and the world.

Thank you, Mr. President.

A deputy talks about a reason that prevents the return of the dollar exchange to its previous price

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Member of Parliament, Jamal Cougar, confirmed today, Tuesday, that the price of the dollar will not change during the coming period.

Cougar said in a press statement, "It is not within the powers of the political blocs to return the exchange rate, and they must not interfere in this matter because it is a specialized political and financial issue and not an issue of electoral promises."

He added, "The Central Bank and the Ministry of Finance confirmed that there is no change in the exchange rate, not only for this year, but may extend for three years."

Cougar added, "The new government may take action to change the exchange rate if it has a different viewpoint."

 

What Happens If The Dollar Sale Window Stops? .. An Economist Answers

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On Tuesday, the professor of economics at the University of Basra, Nabil Al-Marsoumi, expected the possible scenario in the event that the window for selling the dollar in Iraq was stopped.

Al-Marsoumi said, in a Facebook post, which was seen by / the information / that “the oil dollar that the Ministry of Finance sells to the Central Bank of Iraq, which is almost the only source of supply for the dollar in Iraq, and when the window for selling the dollar in the Central Bank stops, the dollar supply will drop to almost zero, which means Floating the Iraqi dinar.

He added, "The dinar exchange rate will roll down to very low levels that may reach the level of 4000 dinars against the dollar, i.e. to a lower level than the levels of the economic blockade in the nineties due to the large volume of imports in Iraq, which exceeds 40 billion dollars annually, and because the population today has increased By about 20 million people, and that people’s needs have varied and increased, and most of them come from abroad, and therefore the volume of imports has doubled several times compared to the time of the siege.”

He considered that “the call to abolish the currency sale window, which is the only supporter of the dinar exchange rate, is a kind of absurdity or economic adolescence at best, but what is required today is to regulate the foreign exchange market in Iraq and to confront the worsening cases of corruption in it, which amount to billions of dollars annually.”

Iraq gets rid of freezing its financial assets and takes a step towards exiting from Chapter VII Catch up for Feb 20 and Feb 21 22

 Iraq gets rid of freezing its financial assets and takes a step towards exiting from Chapter VII

Iraq gets rid of freezing its financial assets and takes a step towards exiting from Chapter VII

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Economic expert Ahmed Saddam confirmed today, Monday, that Iraq has got rid of the problem of freezing its financial assets after completing the payment of Kuwaiti compensation.

Saddam told "Earth News" that "Iraq will exit from Chapter VII after it has fulfilled all its international obligations, the latest of which is the payment of Kuwait's compensation amounting to 52.4 billion dollars."

He added, "This means that the Iraqi government has got rid of the problem of freezing its financial assets. In addition, completing the payment of compensation to Kuwait and removing Iraq from Chapter VII will give the impression that Iraq is now outside the framework of dangerous countries," noting that "this is a positive impact on Iraq's international reputation." And it has a positive impact on its economic reality.”

The Federation sets a date for the decision to run for the presidency of the Republic

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Today, Monday, the Federal Supreme Court set a date for the first session of the decision to run for the post of President of the Republic.

 

An NRT Arab correspondent stated, "The Federal Court will hold the first special session on February 23, regarding the Parliament's decision on February 8, 2022, regarding opening the door for candidacy for the position of President of the Republic."

Playing with the dinar as currency

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It is a dangerous beginning for the future of an Iraq that does not possess neither economic infrastructure nor any stable economic system. The manipulation of the value of the Iraqi dinar hastily and without any local or international consultation as a populist tool and a political mechanism to further establish the hegemony of a person or influence in an inappropriate time segment, exposes the future of Iraq to disaster.

Months ago, Iraq devalued its currency by 22% against the dollar, and the main reason was in order to be able to distribute salaries on time and every month, and in parallel with that, market prices began to rise in the same proportion; The citizen is the one who pays the tax, meaning that the employee pays the tax or the price twice.

By all economic and logical criteria, no matter how wrong the devaluation decision was and far from any economic arguments, if it was manipulated again and the value of the dinar was raised again, the mistake would be greater and worse.

Iraq was not suffering, not last year and now, from a cash crisis, but from the problem of corruption and the disappearance of billions of dollars. Iraq suffers from a problem of monetary and banking policy, the problem of allocating the large military and security budget that is disguised, official and unofficial, suffering from the problem of constantly buying weapons without any benefit and without planning, From the problem of personal and partisan whales, from the problem of buying counterfeit services such as electricity, these major and invasive problems are not addressed by depreciating and raising the price of the currency, but rather through reform and the process of radical, correct and continuous reform.

Most of the Iraqi leaders are ignorant in the economic aspect and should not imitate Turkey and Iran and say that they suffer from the problem of the currency and currency rate, and they have been around for years and continuous, no because this is called a corrupt and incorrect analogy, as they are two countries, with economic and industrial infrastructures, and export is the basis of their economy, not import. , and both of them do not have the same employees as Iraq, each person has a product except for the percentage of the unemployed in them. In these two countries, the hours of production in the private sector are very high, and in the public sector is much better than in Iraq, but in Iraq, the production period of working hours Eight does not exceed 20 minutes.

Every year in Iraq, a major and convincing economic lie emerges, which is to determine the rate of economic growth and write his name falsely in the ranks of the countries of the world. The lie lies in the fact that Iraq depends in the criterion of economic growth on the level of increasing the export of crude oil, and this is the opposite and contradictory with the standards of economic growth.

In conclusion, if Iraq compares itself to a country like Lebanon, it is better and closer to reality than it resembles the developed countries in the economic, political and social aspects.

Finally, I say that the political and populist play on fiscal and monetary policy will affect all funds and will not solve any problem or crisis.

And if the new cycle of government administration begins in this way, this means that the Iraqis are waiting for difficult years, as the dirt will only make them worse.

The Governor of the Central Bank responds to a parliamentary question regarding the price of the dollar

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The Governor of the Central Bank, Mostafa Ghaleb Makheeb, responded today, Monday, to the question of Representative Hadi Al-Salami regarding the dollar exchange rate, the circumstances and causes of the decision taken in it, as well as the results achieved through it since late 2020.

 here is some of the text

The Iraqi Parliament / Office of Representative Hadi Hassan Al-Salami, the esteemed

 What is a parliamentary question?

 good greeting..

 Your letter No. (34) on 2/1/2022, which came to us on 2/9/2022,

 We would like to state the following:

 1- The countries that follow the fixed exchange rate system consider the exchange rate policy as one of the strategic issues managed by the Central Bank in consultation with the concerned authorities in the government and according to the economic conditions.

 2- The Central Bank of Iraq follows the fixed exchange rate system, which is responsible for “setting the value of the dinar against
 dollar.

has been tampered with.  dollar.  The decision to change the official exchange rate on 20/12/2020 was a result of the economic and financial conditions that Iraq experienced during the year 2020, which are described below, and was at a direct request from the Ministry of Finance.  As well as the issue of changing the exchange rate with the International Monetary Fund, which supported the idea of ​​changing the exchange rate, which had been advised by the Iraqi government since the double shock in 2014.  In addition, consultations were held with the Iraqi government regarding changing the exchange rate, which generated convictions of the need to change the exchange rate at that time, and this was done by the Central Bank based on Article (1/4/a) of the Law

 The countries that follow the fixed exchange rate system consider the exchange rate policy as one of the strategic topics managed by the Central Bank in consultation with the concerned authorities in the government and according to the economic conditions.  The Central Bank of Iraq follows the fixed exchange rate system, which is responsible for determining the value of the dinar against

 Central Bank of Iraq No. 56 of 2004, the rate entrusted with the formulation and implementation of monetary policy in Iraq, including the foreign exchange policy of the Central Bank of Iraq.

For now, and this is the order that the Central Bank has done based on Article (1/4/a) of the Law

 Central Bank of Iraq No. 56 of 2004 The rate entrusted with the formulation and implementation of monetary policy in

 Iraq, including the foreign exchange policy of the Central Bank of Iraq.

 4- The reasons for changing the exchange rate of the dollar are as follows: a) The adoption of a low exchange rate of the dollar against the dinar has led to the inability of the local product to compete with imported goods.  The more cheap the dollar, the easier it will be for those who export goods to Iraq to sell them at prices lower than the prices that the Iraqi product can sell.  Over time, the Iraqi factories were closed and their products were replaced by imported goods.  Agricultural production has also been disrupted due to competition from imported products.  With this decision, the national product was granted a preferential advantage over the importer, equivalent to the rate of change in the exchange rate of about (23%). In fact, the competitiveness obtained by the national product will turn after a period (according to the extent of the flexibility of consumption of imported goods) to an absolute advantage, at which point the import from  Those commodities, when the real sector is active and achieves the advantages of mass production and the fixed costs of production are reduced, supported by what other economic policies provide.  The decline in public revenues due to the drop in global oil prices during the year 2020 as a response to the repercussions of the Corona pandemic and the global economic closure.  The price of one barrel reached about (20) dollars in 2020.  The exchange rate adjustment has contributed to the realization of additional resources for public finances.

 

Al-Rain clinic

 date number:

 NO :

 C) Due to the spending pressure and the finances resorting to borrowing, the internal public debt doubled from about (38) trillion dinars at the end of 2019 to (64) trillion dinars at the end of 2020, which was the result of the parliament’s legislation for internal borrowing laws, as the Ministry of Finance was transferred  With internal and external borrowing, the Ministry of Finance issued treasury transfers to government banks, which in turn discounted them to the bank

 Iraqi Central.  D) As a result of what was mentioned in paragraph (c) above, the balance of the currency issued for circulation increased from about (52) trillion dinars at the end of 2019 to (66) trillion dinars at the end of 2020.

 e) Against the background of the foregoing, the financial situation has become a serious threat to the position and adequacy of foreign reserves and to the ability of the Central Bank of Iraq to continue to defend the value of the currency and the previous exchange rate.  Therefore, adjusting the exchange rate was not to address the financial gap in financing, and this is not a decision related to it only or because of low oil prices, but it is a national strategic decision aimed at protecting our national wealth and the real productive sector.  Also, the idea of ​​adjusting the exchange rate is not a temporary decision, but rather an option that was put forward in our deliberations by the Financial Authority years ago, provided that the performance of public financial institutions, the most important of which are taxes and customs, should be modified.  What should the government and the Ministry of Finance address.  With

 E - The current exchange rate represents the price accepted by the Iraqi government to meet the increasing expenditures and reduce

 The deficit and the repayment of the internal public debt as well as the external debt.  Because the main source of public revenue
 he is

 

With the financial authority for years, provided that the performance of public financial institutions is modified, the most important of which are taxes and customs, as we have always believed that financial policy tools can be activated to excellent levels to support treasury resources,

 This is what the government and the Ministry of Finance should address.  E - The current exchange rate represents the price accepted by the Iraqi government to meet the increasing expenditures, reduce the deficit, and pay the internal public debt alongside external debts.  Because the main source of public revenue is the export of crude oil.  On the other hand, the current exchange rate contributes to an increase in local production, given that the prices of imported goods have become more expensive for the consumer, while locally manufactured goods have become less expensive.

 As stated at the beginning of our answer in the first paragraph.  6 - On the other hand, changing the exchange rate during short periods shows the local markets, threatens investment, creates economic stagnation and weakens confidence in the monetary policy and the value of the local currency. It also contributes to increasing speculation in foreign currencies and increasing their hoarding as a safe haven and store of value more than currency.

 local.  7- Setting up oil resources, whether in dinars or dollars, in the accounts of the Ministry of Finance.  Any differences are supposed to contribute to reducing the planned deficit.  It is possible to inquire from the Ministry of Finance about the answer to the last question mentioned

 In your book above.

 with respect.

 ے

 frightful conqueror

Representative Hadi Hassan Al-Salami’s question to the Governor of the Central Bank:

Al-Rain clinic

 date number:

 NO :

 C) Due to the spending pressure and the finances resorting to borrowing, the internal public debt doubled from about (38) trillion dinars at the end of 2019 to (64) trillion dinars at the end of 2020, which was the result of the parliament’s legislation for internal borrowing laws, as the Ministry of Finance was transferred  With internal and external borrowing, the Ministry of Finance issued treasury transfers to government banks, which in turn discounted them to the bank

 Iraqi Central.  D) As a result of what was mentioned in paragraph (c) above, the balance of the currency issued for circulation increased from about (52) trillion dinars at the end of 2019 to (66) trillion dinars at the end of 2020.

 e) Against the background of the foregoing, the financial situation has become a serious threat to the position and adequacy of foreign reserves and to the ability of the Central Bank of Iraq to continue to defend the value of the currency and the previous exchange rate.  Therefore, adjusting the exchange rate was not to address the financial gap in financing, and this is not a decision related to it only or because of low oil prices, but it is a national strategic decision aimed at protecting our national wealth and the real productive sector.  Also, the idea of ​​adjusting the exchange rate is not a temporary decision, but rather an option that was put forward in our deliberations by the Financial Authority years ago, provided that the performance of public financial institutions, the most important of which are taxes and customs, should be modified.  What should the government and the Ministry of Finance address.  With

 E - The current exchange rate represents the price accepted by the Iraqi government to meet the increasing expenditures and reduce

 The deficit and the repayment of the internal public debt as well as the external debt.  Because the main source of public revenue

 he is

With the financial authority for years, provided that the performance of public financial institutions is modified, the most important of which are taxes and customs, as we have always believed that financial policy tools can be activated to excellent levels to support treasury resources,

 This is what the government and the Ministry of Finance should address.  E - The current exchange rate represents the price accepted by the Iraqi government to meet the increasing expenditures, reduce the deficit, and pay the internal public debt alongside external debts.  Because the main source of public revenue is the export of crude oil.  On the other hand, the current exchange rate contributes to an increase in local production, given that the prices of imported goods have become more expensive for the consumer, while locally manufactured goods have become less expensive.

 As stated at the beginning of our answer in the first paragraph.  6 - On the other hand, changing the exchange rate during short periods shows the local markets, threatens investment, creates economic stagnation and weakens confidence in the monetary policy and the value of the local currency. It also contributes to increasing speculation in foreign currencies and increasing their hoarding as a safe haven and store of value more than currency.

 local.  7- Setting up oil resources, whether in dinars or dollars, in the accounts of the Ministry of Finance.  Any differences are supposed to contribute to reducing the planned deficit.  It is possible to inquire from the Ministry of Finance about the answer to the last question mentioned

 In your book above.

 with respect.

 ے

 frightful conqueror

 

The Parliamentary Development Institute holds a training course for new MPs

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The Parliamentary Development Institute, with international partners, held a two-day training course for new MPs in the areas of legislation and .oversight A statement by the institute, received by (Baghdad today), said that "the course is in cooperation with the International Partners Foundation for Governance, and under ".the auspices of Sirwan Abdullah, Secretary-General of the Council In his speech, he pointed out the importance of "the active participation of the representatives in the interactive workshop, which will increase the knowledge of the representative, which will help him to expand the information base, exchange ".experiences and benefit from the experiences of international parliaments

For his part, Saad Fayyad, Director-General of the Parliamentary Development Institute, expressed in his speech during the session his welcome to the experts in the International Partners Foundation for Governance and his appreciation for the trouble of traveling to Iraq despite the difficult circumstances and reaching the Parliament with the aim of providing their expertise in developing the capabilities and .skills of women and gentlemen of Representatives Fayyad pointed out that the methodology adopted by the Institute in its strategy in the field of development and training depends on motivating the representative to participate and attend interactive sessions, as it is an essential feature to provide information or experiences that may not be obtained from other parties, stressing the Institute's keenness to achieve this goal by benefiting from international experiences. patriotism and the development of work skills, in addition to the expansion of the use .of technology to provide specialized training

 

Fayyad pointed out that the partnership with the International Partners Foundation for Governance is based on a long history of cooperation with the House of Representatives that extends for about 14 years through its clear role in bringing about positive changes in the legislative and oversight fields, in addition to its contribution to training hundreds of cadres of the Council’s formations in various fields, which led to Acquiring new skills in parliamentary work, which motivates us in the Parliamentary Development Institute to perpetuate the momentum of cooperation to reach the desired goals in developing the work of the legislative institution, stressing the keenness of the Parliamentary Development Institute to make the most of this interactive workshop that will be held over two days and the information it provides will be provided by experts in
The field of enhancing and developing professional capabilities and adopting innovative and modern training mechanisms in providing information to new members of the House of .Representatives

The first day of the training course focused on budget preparation and economic .control 

f\eb 20 22

Exchange offices demand the central bank determine its position on the exchange rate: rumors confused the market

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The owners of exchange offices in Baghdad confirmed today, Sunday, that they have expanded the difference between buying and selling to ten figures, and while they demanded the Central Bank to determine its position on the process of changing the price of the dollar, an economist considered that the fluctuation in the price of the dollar led to a stagnation in the markets.

Muhammad Hussein, the owner of the Fez exchange office, said in an interview with Shafaq News Agency, "What is currently happening with regard to the process of buying and selling the dollar is just jurisprudence, even for the major stock exchanges, and these jurisprudence is driven by rumors that in turn confused the market," noting that "what is happening of dollar sales belong to the citizens. Those who fear that the dollar will fall more, and not the exchange companies, as a result of rumors that indicate a decrease in the dollar.”

He added, "Some companies have stopped and refrained from buying or selling operations, while some other companies are immunizing themselves by setting a difference of 10 digits (tiger) between selling in relation to the stock price and ten digits between buying in relation to stock exchange prices after it was limited to five. numbers".

for his part; The owner of Al-Yaqin exchange office said in an interview with Shafak News Agency; “There is great confusion in the processes of buying and selling the dollar, and this confusion affected the work as a result of the Central Bank selling the dollar to offices through auction at a price of 146000 dinars per 100 dollars, while what is currently available from the price in the markets is 144500 dinars per 100 dollars, which is less Much more than bank rates.

He pointed out that "the market will remain in a state of confusion as a result of the existence of these rumors," calling on "the Central Bank to speak publicly by defining its position on changing the price of the dollar or not, or determining a specific time for changing the price of the dollar."

for his part; The economic expert, Hilal Al-Tahan, said in an interview with Shafaq News Agency, "The calls to reduce the exchange rate led to fluctuation in exchange rates, and therefore there is no buying of the US dollar at the present time, and I expect that there will be more decreases, and those who own dollars are trying to sell the dollar in any way for fear of loss."

Miller added; "The fluctuation will lead to an economic stagnation in the market, and consequently, the buying and selling operations will decrease, not only the dollar, but even residential houses, lands, goods and services," noting that "the citizen is waiting for the matter to be finally resolved by the government through the 2022 budget."

He pointed out that "the increase in the dollar's exchange from 120 to 145 thousand dinars compared to 100 dollars during the 2021 budget and the use of the shock method in dealing with the conditions of the Iraqi economy had a great impact on the rise in prices in the markets, where the exchange rate rose by nearly 25 percent, but the prices of goods Some of them rose to 100 percent and even 150 percent," noting that "this is due to the greed of some merchants and the government's lack of control over the markets, which affected the poor and even middle class of employees."

Miller emphasized; That "the arrival of financial surpluses after the rise in the price of oil globally began, there were calls to reduce the exchange rate of the dollar, which are realistic and correct calls, as this rise cannot continue after most of the people were affected by that, with the improvement of the financial situation and a good economy for Iraq."

It is noteworthy that the exchange rates of the dollar witnessed a decrease with the presence of calls to reduce the prices of the dollar with the improvement and the rise in oil prices, so that the Baghdad Stock Exchange recorded this morning, Sunday, 14500 dinars against the dollar, and the owners of the exchange offices worked hard in selling the dollar and the lack of clarity about the government’s direction to reduce the price of the dollar or not.

Source: The dollar exchange rate will be reduced gradually if approved

link   are they considering this?

A parliamentary source said, on Saturday, February 19, 2022, that the meeting of the House of Representatives with the Governor of the Central Bank regarding the exchange rate of the dollar, resulted in the approval of reducing the exchange rate of the dollar, it will be gradually, step by step, so as not to affect the .market movement. And the citizen The source told the

Obelisk that changing the exchange rate in a sudden manner by about 135 thousand against $100 will have repercussions on the level of commercial and financial movement and on the citizen, who is difficult .to approve The parliament session was attended by deputies of the Sadrist bloc, some heads of blocs and a representative of .the state of law, while Finance Minister Ali Allawi was absent from attendance And the head of the Kurdistan Justice Bloc, Soran Omar, announced, on Saturday, the details of the session to host .the governor of the Central Bank in the Iraqi parliament

Omar, one of those present at the session, said that the governor of the Central Bank stressed during the session that the dollar exchange rate does not change, and that making an amendment to it requires changes and finding .solutions to a number of obstacles The governor added in the meeting, according to the post: We have 76 banks, while the banks in Iran and Turkey .do not exceed 30 banks in each of the two big neighboring countries The governor continued: Many banks do not have the required standards and obtained the license, including the .necessity of having 250 billion dinars as a guarantee Omar concluded his post by saying: The Governor of the Central Bank announced the formation of a fact-finding .committee on all matters related to the institution

The House of Representatives set, earlier, a date for a meeting with the Minister of Finance and the Governor of .the Central Bank in order to discuss the dollar exchange rate Earlier, the leader of the Sadrist movement, Muqtada al-Sadr, presented six proposals to control the repercussions .of the decision to change the dollar exchange rate

Deputy: The 2022 Budget Is Explosive

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On Sunday, State of Law Representative Firas Turki expected the 2022 budget to be explosive for several reasons.

Turki said in a statement to the "Information" agency, "The 2022 budget will be explosive in relation to previous years for several reasons, the most important of which is the increase in oil production, the increase in demand, and most importantly, oil prices will be between 60_70 dollars, figures that previous budgets did not witness."

He added, "Through our work as representatives of the people, we seek to monitor the next government and work to provide all life requirements such as electricity, water and a decent life for the citizen."

He pointed out that "the next government must provide all the requirements for a decent life, such as infrastructure, job opportunities, and others, as it has a very large budget."

It is noteworthy that the price of a barrel of oil exceeded $90 per barrel, especially in the recent period.

A member of the Finance Committee, Jamal Cougar, revealed, earlier, the possibility of approving the 2022 budget before the formation of the new Iraqi government.

The Central Bank of Iraq breaks its silence and reveals details regarding the dollar exchange rate

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 The Central Bank of Iraq considered, on Sunday, that positive results were achieved from the exchange rate of the US dollar against the dinar, warning of an “economic stagnation” in the event of its repeated change within short times without studying.

An authorized source in the Central Bank of Iraq issued a statement this evening, which was reported to Shafak News Agency, that the current exchange rate has achieved many positive results, the most prominent of which was reducing the state budget deficit to achieving a surplus at the end of 2021, and giving local producers and investors an important competitive advantage. With imported goods.

The source said that the repetition of changing the exchange rate within short times without a study from the concerned authorities leads to an economic recession, confuses the work of local markets, increases speculation on foreign currency, and squanders the gains made by the current exchange rate.

The source stressed that despite the rise in global oil prices of an unstable nature, there is no connection between this rise and the objectives and results of changing the exchange rate, indicating that the current rise in oil prices will enable the Iraqi government to rebuild the Iraqi economy correctly, and build financial buffers. Sufficient to face any future fluctuations in international oil prices.

On the other hand, the Governor of the Central Bank of Iraq, Mustafa Ghaleb Mokhif, praised the results of his meeting with members of Parliament yesterday, Saturday.

In a separate statement to the Central Bank, which was received by Shafak News Agency, the Governor of the Bank provided a full explanation of the Central Bank’s tasks, the mechanisms for buying and selling foreign currency, and the supervision of the banking sector.

The governor also presented, according to the statement, the justifications that necessitated the adjustment of the foreign currency exchange rate and the results that have been achieved and will be achieved in the medium and long term, indicating that the Central Bank is studying the issue of the exchange rate from its various aspects, and public financial institutions must perform their tasks in a complete manner to achieve all the objectives of the decision.

 Earlier today, Sunday, the owners of banking offices in Baghdad demanded that the Central Bank determine its position on the process of changing the price of the dollar.   

The exchange rates of the dollar (yesterday and today) witnessed a continuous decline amid political statements calling for the reduction of dollar prices with the improvement and rise in oil prices, and the owners of exchange offices worked hard in selling the dollar and the lack of clarity about the government’s direction to reduce the dollar price or not.

And yesterday, Saturday, the Iraqi Council of Representatives held a meeting headed by Hakim Al-Zamili, the first deputy speaker of the Council, to discuss the reality of the dollar exchange rate against the local currency.

The Governor of the Central Bank, Mustafa Ghaleb Mokhif, his deputy and a number of officials in the bank attended the meeting, while Finance Minister Ali Allawi and his ministry boycotted the meeting.

In his speech during the start of the meeting, Al-Zamili promised the Minister of Finance to question him under the dome of Parliament, and to issue a decision banning him from traveling outside Iraq.

It is noteworthy that the Central Bank of Iraq, on December 19, 2020, officially announced the amendment of the foreign exchange rate (the US dollar) to be 145,000 dinars for every $100, according to the state’s general budget for the year 2021 approved by the House of Representatives.

As a result, according to specialists, the annual inflation in Iraq rose significantly, so that the prices of all materials and commodities in the Iraqi market rose significantly, which sparked a wave of strong resentment among the popular circles, as well as the objections of some interested in economic affairs.

Nassif: The Meeting With The Governor Of The Bank And The Representative Of Finance Led To The Formation Of Two Economic Committees

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Representative of the State of Law coalition, Alia Nassif, confirmed, on Sunday, that a meeting of a number of representatives of political forces yesterday with the Governor of the Central Bank and a representative of the Ministry of Finance was to put pressure on restoring the dollar exchange rate, noting that the meeting led to the formation of two economic committees.

Nassif said in a statement to "Al-Maalouma", that "the meeting was successful, although the absence of the Minister of Finance generated some confusion, but the community decided to form two economic committees, the first to discuss with the Minister of Finance the economic feasibility and the other to follow up on the Central Bank."

He added, "Any decision taken to reduce or restore the exchange rate must be through the budget," noting that "the current exchange rate will remain as it is."

Nassif indicated that "the demand of the meeting was to reduce the exchange rate and make major governmental changes towards helping the citizen." 

Dollar exchange rates are falling again

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Today, 18:56

The dollar exchange rates continued to decline in local markets.

And the selling prices of the dollar recorded today, Sunday evening, 142,500 dinars per 100 dollars, while the purchase prices of the dollar were 142,000 dinars per 100 dollars.

It is noteworthy that the selling prices of the dollar were recorded on Sunday morning, 145,250 dinars per 100 dollars, and the purchase prices of the dollar were 145,000 dinars per 100 dollars.