|
Search the Community
Showing results for tags 'demonstrations in front of the central bank'.
Found 1 result
-
Warnings of flooding the markets with dollars, which could cause an economic catastrophe Posted 6 seconds ago Warnings of flooding the markets with dollars, which could cause an economic catastrophe (iraqakhbar-com.translate.goog) news source /Iraq Today Agency Baghdad - Iraq today: Economists have warned of the consequences of expanding spending under the influence of an unprecedented rise in monetary reserves, and they rule out the return of the exchange rate to the old one due to financing problems. Professor of Economics, Nabil Al-Marsoumi, touched on the exchange rate crisis that will be present in writing the federal budget, and said in an interview with the official newspaper that “the reserves of the Central Bank exceed 99 billion dollars, which is the largest in its history, and therefore the problem is not in the supply of dollars, but rather the problem in bank transfers through The electronic platform established by the US Federal Bank with the Central Bank of Iraq,” noting that “this platform checks remittances and returns most of them while financing the country’s imports, which led to a significant decrease in currency auction sales to reach $120 million per day after it had exceeded $250 million.” . Al-Marsoumi added that “the current measures are ineffective in light of the increase in cash sales, which now constitute from 75 to 80% of the currency window sales, while it was no more than 10% two months ago, which led to an increase in dollar smuggling outside Iraq to carry out transfers to merchants and importers, which means Also, increasing the exchange rate and raising the prices of goods and services, “usually,” the continuation of sales in this way that there will be a crisis in the dinar that the state needs to cover its expenses amounting to $ 7 billion per month, and therefore the central bank will be forced to issue a new monetary currency, which means increasing the volume of the monetary mass and raising commodity prices. and services.” With regard to the return of the dollar exchange rate to the old rate, Al-Marsoumi explained that “returning to the old rate will cause the government to lose 40 trillion dinars from budgets when converting dollars into dinars at the old exchange rate, which will lead to a decrease in government revenues,” explaining that “in light of the high The big one in the 2023 budget, whose size reaches 180 trillion dinars, in light of the price of 1450 dinars, the deficit will reach 40 trillion dinars. In turn, economic expert Jaafar Baqir Alloush said, according to the newspaper, that “the return of the dollar to its previous price of 1118 dinars is purely wishful thinking,” noting that “the expenditures amounting to 180 trillion dinars will be worth 124 billion dollars.” Alloush added, "If the return to the previous price takes place, the expenditures will have amounted to 161 billion dollars, and the planned deficit will be approximately 50% of the budget value, meaning that implementing a budget in this way will cause a real disaster in the state's ability to fulfill its short-term obligations." The expert called for "working to control the rhythm of the dinar and dollar movement channels through transfer mechanisms and the method of monetizing demand and expenditures, because without that, a disaster will come and the poorest groups in society will be affected." For his part, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, explained to the newspaper, “There is a paradox in the economy today, between oil revenues that are the highest in the country’s economic history, which exceeded 116 billion dollars, and foreign reserves that touched 100 billion dollars, which is also the highest in the country’s financial history.” In addition to a surplus in the current account of the balance of payments, which may touch positive 15% of the gross domestic product, which is one of the large positive indicators indicating the strength of the country's external economic sector. And Saleh added, “All of this is an external restriction for the departments of compliance and international oversight of dollar payments that are responsible for the flow of dollars from the country’s foreign deposits to cover the requests of the private sector in its foreign trade, especially imports, which is a sign that occurs for the first time after the economic blockade in the nineties of the last century.” He stated that these procedures "come in light of the poor transparency of some of the Iraqi commercial community and its disclosure of its foreign trade in the dollar currency, which is the currency responsible for financing 85% of international trade, and because Iraq is located within the dollar area in its foreign trade."
