Experts suggest: the distribution of half salaries in dollars while reducing the rate of the dinar

[k98nights]

 

Experts suggest: the distribution of half salaries in dollars while reducing the rate of the dinar

01/11/2016

 

BAGHDAD / JD / .. proposed number of experts and specialists in the financial and economic affairs, up dollar exchange rate against the dinar to 200 000 dinars for $ 100, and the resort of the government to half the distribution of salaries of state employees in the currency of the dollar to absorb potential financial crisis in the country.

He said the financial expert on behalf of Hadi al-Tamimi, there are several proposals the government can take in order to get out of the potential financial crisis as a result of the continuing decline in oil prices, including the issuance of bonds to the public and to activate the productive sectors and support the private sector as well as a review of the price of the dollar against the dinar.

He said al-Tamimi told / JD / that since sales of Iraqi crude oil in the currency of the dollar means that the country's revenues in the currency of the dollar could increase its exchange rate against the dinar as a measure of my time to absorb the impending financial crisis, because there is a possible crisis in the event of low oil prices continued to below $ 30 because of adoption of Iraq almost entirely on oil revenues.

He noted that in the event of determining the dollar exchange rate to 200 000 dinars, compared to $ 100 would provide significant cash liquidity of the country, but this procedure can be temporarily any in the crisis period and after the improvement of the financial situation could reduce the dollar exchange rate against the dinar.

He called financial expert to invest part of the monetary reserves at the Central Bank in generating investment projects earnings to be another source of revenue for the state.

For its part, announced the economic and investment commission for parliamentary submit a proposal to the government to distribute 50% of the salaries of state employees in the currency against the dollar increased the dollar exchange rate against the dinar.

Said committee member Rep. Najiba Najib told / JD /: The Chairman of the Committee of Economy and Investment submitted a proposal to the government to cope with potential financial crisis, indicating that the proposal contains half the salaries of state employees distributed in the currency of the dollar with the increase in value of the dollar against the dinar to absorb the financial crisis.

She noted that the government will meet the Central Bank and the relevant parliamentary committees to agree on this proposal and its application.

The Finance Committee has confirmed the presence of a project to reconsider the dinar exchange rate against the dollar with the government and central bank.

He said the Commission's decision Haji Ahmed Rashid told / JD /: there is a legitimate taught by the Central Bank and the Council of Ministers, and the Finance Committee, to reconsider the dollar's exchange rate against the dinar.

He added that it is still a project under study and no decision, where they are studying Is Iraq could reconsider in the exchange rate, and whether it is in the Government's interest or detrimental to the citizen ?, noting that a review of the exchange rate would be the government's interest but hurt the citizens, as this will increase the exchange rate to runaway inflation, and an increase in commodity prices, stressing the need to take it into consideration and study of all aspects of the project, before making any decision.

Iraq is facing a financial crisis due to the sharp decline of oil, in terms of financial budget for this year with a total expenditure of more than 105 trillion deficit accounted for 22.8%. 

 

http://www.dananernews.com/News_Details.php?ID=6600

 

[Jaygo]

Can't decide if this is good or bad???

[k98nights]

Interviews and reports

Monday 11 January 2016 | 18:12

| Number of Views: 411

Experts in the economy: the most prominent of these solutions to tackle the financial crisis in Iraq

 

BAGHDAD / .. put the economic crisis faced by the Iraqi economy in the last third of the year 2015, the government in front of a sliding may result in an end to the collision with more than 4 million employees and retirees, particularly with regard to reduction of salaries under the name of "new peace" or any another name and campaign Limbering government and the abolition of many of the positions of sovereign and management proxy. .

 

In conjunction with the wave of popular anger of government performance, and demonstrations, and moving water reforms by reference in Najaf, last Friday, and claim to be reforms, "real", came Finance Minister Hoshyar Zebari's remarks, which are denied by the post, not the government's ability to continue to push forward employees' salaries during the next April, as a prick in extra feet Iraqi employee.

 

First oppositions and set off on a decision by the reduction of university professors, and who have expressed their categorical rejection to reduce the portion of their salary through large demonstrations, denounced the government to go towards reducing the monthly dues.

 

"Compensate for the lack of liquidity" process at a certain point and did not stop until it became the modern citizen, the first occupant, to take his share in the mode of expression cynicism once, and in a way ironic again, while others came as proposals, most notably a proposal "to grant parliament leave for an entire year without salary "for a few expenses.

 

Amid the presence of the fingers point towards the fact that the austerity measures announced by the government work out, may be "conditions" of the International Monetary Fund to lend to Iraq, nodded activists and economists specialists, they took the economic crisis seriously, by the possible reduction of the crisis and bridging the gap deficit in the 2016 budget year, which exceeded the 24 trillion dinars.

 

And he predicted the parliamentary finance committee member Majda al-Tamimi's government to take "measures" and described "a failure", to meet the fiscal deficit, the government, represented by the orientation towards reducing the rate of the dinar or mortgage oil.

 

She said Tamimi's "Eye Iraq News", that "the government is expected to tend to reduce the value of the Iraqi dinar against the dollar or mortgage Iraqi oil for decades to come," asserting that "these two options Sadharan the Iraqi economy and the citizen significantly."

 

But the trend is expected for the Government of the Central Bank found lookout, where the latter stressed that "the bank's board is the only body authorized according to the law determining the dinar exchange rate."

 

And is reducing the value of the dinar against the dollar, and a pledge of oil, economists expressed fears of government directed towards another proposal represents a reduction of pensions, and Parliament voted to approve the material contained in the budget of 2016 pertaining to the deduction of 3% of the employees and pensioners, and provides this article on the distribution of this deduction of 60% of the popular crowd and 40% of the relief to the displaced, another paragraph added to the budget.

 

Economic spokesman Antoine said for "Eye Iraq News", that "the government and the judge of Representatives decision to deduct part of the retirees and employees' salaries would have a negative economic returns and it will help increase the Iraqi market contraction," explaining that "Iraq is going through an economic crisis and a clear and thus Fastqtaa salaries though by relatively few, it will greatly affect the majority of Iraqi citizens who depend on salaries. "

 

When he proposed obtaining the debt of mobile phone companies and others as well as the application of the customs tariff would have saved the government large sums of money to be bigger than achieve deduct salaries to clog the fiscal deficit ", especially since the value of the indebtedness of the mobile phone companies have reached more than $ 400 million.

 

In addition to the above solutions, the Iraqi government stressed the need to go to the Iraqi industries and the development of the industrial and agricultural sector to ease the pressure on oil, which some dropped to the difficulty of the advancement of the domestic industry, which took decline gradually after 2003, until it became the "Made in Iraq" a number of anecdotes until the tomato paste tray.

 

The proposed other solution has walked away Iraqi map, down to the Arab and European countries, representing the levy Iraqi funds contraband, and foreign affairs, in addition to the cancellation of Mentvih economic agreements necessary, including the Baghdad agreement-Oman, and the judge to sell a barrel of oil at less than rolling the market price at $ 20, which will provide 200 thousand dollars a day for the Iraqi treasury, as opposed to "good neighbor" principle taken by Oman, and even Baghdad, for the continuation of the Convention concluded between the two parties.

 

"Forced savings" from the staff proposal also emerged within the possible suggestions, as well as "granting leave without pay", the last of which was represented by "giving Parliament an open leave without pay" to reduce costs, and benefit from the allocation of parliamentarians and the presidency of the House of Representatives in more directions necessary and reduce the number of protections, and reducing the number of members of the provincial councils in half, and the most unusual proposal may represent the distribution of salaries every 45 days, instead of the 30 followed.

 

In addition to the solutions to the many proposals submitted to the cabinet table, the last insists rely on external borrowing, excluding financial and the metal of the accounts of the Central Bank reserves, to confront the crisis, which now haunts the employee and the ruling alike, and highly influenced by degrees, because of saving it all of them. " black day "as described by the popular proverb.

 

Hussein Al-Attiyah

 

http://aynaliraqnews.com/index.php?aa=news&id22=51298

[Zcountess]

What kinda sense does this make ...?

[magawatt]

It pulls in many, many dinars which would increase in value should a positive RV occur with USD which would retain original value. Big upside for bank.

Edited January 11, 2016 by magawatt

[TQueezy]

Not good at all. They want to double the amount of dinars it takes per dollar. Currently around 100,000 dinars per 100 dollars. They want 200,000 per 100 dollars, making its value half as valuable. 

 

NOT GOOD

 

But they did say it was just a proposal and under study and it would be temporary if that path is taken. 

 

Who knows…

[Officiallytook]

Pull that dinar off the streets, then flip the switches ...

[jeepguy]

pay  in dollars  and dinars  ,   sure  looks like they are  trying too do 2 things ,   keep  economy rolling along , and  also  looks like  they are  dwindling  down in dinar notes ,   if they had  trillions in crap  dinar   they would pay  all  in dinars !    just me thinking !  

[ChuckFinley]

No worries here. This is a good thing. They have dollars to spend and they are pulling in the dinar. The less there is on the streets to better it is for the CBI.

[Adam Montana]

No worries here. This is a good thing. They have dollars to spend and they are pulling in the dinar. The less there is on the streets to better it is for the CBI.

 

That's what I was thinking too.

 

[djiboutikid]

He added that it is still a project under study and no decision, where they are studying Is Iraq could reconsider in the exchange rate, and whether it is in the Government's interest or detrimental to the citizen 

 

Read more: http://dinarvets.com/forums/index.php?/topic/214201-experts-suggest-the-distribution-of-half-salaries-in-dollars-while-reducing-the-rate-of-the-dinar/#ixzz3xAT2EfcM

 

Me likey! Study up, then RV!