An Economist Explains The Reason For The Fluctuation Of The Dollar Exchange Rate, Despite The Cessation Of Most Commercial Transactions !

[DinarThug]

The Iraqi dinar is falling apart: Corruption and Corona are jumping in dollars

- 

3 Hours Ago

The turmoil in the Iraqi dinar exchange rate against the dollar recently led to negative effects, which directly affected the business sector and commodities in the markets, which led to the loss of confidence of dealers and investors in the monetary authority.

The decline of the dinar came after the Central Bank of Iraq stopped its activities related to pumping liquidity in foreign exchange to meet the needs of banks and their customers, as it was pumping an average of 140 million dollars or more per day to maintain the value of the currency and support its stability, and stopping the pumping of liquidity led to a jump in the exchange rate of one dollar from 1200 to 1280 Iraqi dinars, amid warnings of the continuation of this rise due to the curfew imposed by the authorities as part of the procedures to face the outbreak of the Corona epidemic.

In the midst of the financial crisis experienced by the world in general and Iraq in particular in light of the collapse of oil prices and the large deficit in the budget for 2020, the government faces great economic challenges, most notably the difficulty that the central bank can maintain the value of the dinar against the dollar because of the corrupt control of the auction of selling currency, according to What officials and economists see.

In an interview with "The New Arab," an official in the caretaker government said that "the central bank cannot maintain the value of the Iraqi dinar against the dollar by continuing to pump the hard currency to the market, because of the lack of public revenues due to weak demand for oil and the decline in its price." That "the central bank will have to legalize the sale of the currency for a certain period until oil prices rise again."

And Iraq, the second largest producer of crude oil in the Organization of Petroleum Exporting Countries (OPEC), with an average daily production of 4.5 million barrels per day.

The official, who preferred to remain anonymous, added that "continuing to hold auctions to sell currency and pump tens of millions of dollars per day to preserve the value of the dinar leads to great risks for the country's economy, and it is better for the central bank to cancel the currency auction and install its local currency, since most of the beneficiaries are Of these auctions are not businessmen and merchants, but banks, banks and private sector companies dominating the market, a large part of which has been transferred out of Iraq.

He pointed out that the central bank has succeeded in recent years in achieving the stability of the dinar exchange rate and improving it in relation to the dollar and other currencies by stabilizing the price of the local currency and defending it, but the current collapse in oil prices, and consequently, the country's financial returns are completely different from the crises of past years.

According to the official, "There are daily discussions to reach a road map that enables the country to maintain an acceptable exchange secret of the dinar against the dollar."

The central bank sells between 140 and 160 million dollars to public and private companies and banks, as part of a plan adopted since 2004 to control the exchange rate of the dinar and prevent its collapse in the market. The central bank only allows companies and limited banks to enter the auction and buy dollars, amounting to less than 50 banks and financial companies that are licensed by the central bank, all of which are private or private.

For his part, Professor of International Economic Relations at the Iraqi University, Abdul Rahman Al-Mashhadani, said in an interview with "The New Arab" that "canceling the currency auction is very difficult, because the goal of the currency window is to finance imports in the private sector."

According to Al-Mashhadani, 90% of the country's consumer needs are secured by import by the private sector, which means that canceling the currency auction will lead to a major disruption in the prices of imported goods.

Al-Mashhadani stressed that "the currency auction is a drain on foreign exchange due to its association with prominent political figures," pointing out that 15% of Central Bank sales through the auction go as money laundering in various ways and methods and are transferred outside of Iraq.

He pointed out that the best way for the central bank to follow is to legalize the sale of hard currency as much as possible to maintain the value of the dinar and foreign exchange reserves.

For its part, Ayat Muzaffar, a member of the Iraqi parliament from the "victory" coalition led by former Prime Minister Haider al-Abadi, attributed the causes of the economic collapse and the value of the dinar against the dollar to the wrong financial policies pursued by the Adel Abdul-Mahdi government.

Muzaffar said, in an interview with the "New Arab", that "bad management and fiscal policy floundering the head of the caretaker government, Adel Abdul Mahdi, and its indiscriminate spending on the state budget, is one of the main reasons that led to the economic collapse of Iraq, and to an unprecedented financial deficit is expected to It is, if oil prices continue to decline, about 80 trillion dinars.

She explained a member of the Iraqi parliament that the central bank spent a large part of the cash reserve for the purpose of stabilizing the dinar price against the dollar, which led to the depletion of the cash reserve, and then the central bank will lose over time its ability to maintain the par value of the dinar.

She added that "the confusion in the government's performance seemed clear when the head of the crisis cell spoke about the possibility of Iraq resorting to printing the currency", noting that the printing of the currency is based on three reasons, either that there is a frayed currency to print as a substitute for it, or because of an economic recovery that is printed An easy amount until there are surplus sums that increase the demand for goods and services so that the producers increase the production.

As for the other reason, according to Muzaffar, the printed currency must be equal to the national product, while stressing the need to preserve the monetary reserve of the central bank through its reliance on a flexible policy that takes into account the emerging political and economic conditions of the country.

And at the end of last March, the rapporteur of the Parliamentary Finance Committee, Ahmed Al-Saffar, said that "the central bank reserves reached 87 billion dollars, and it does not include cash and foreign currency only, but it includes gold bars."

Ammar Hamid

New Arab

link

[DinarThug]

"Corona" and movement restrictions .. "Winning season" for some controls: Does the high price difference for materials go to "extortionate" security personnel?

 

2020-04-13

 

 

 

Yassin Iraq: Baghdad

 

Perhaps "Corona" and its decisions, which were to prohibit roaming and restrict the human and commercial movement between countries and governorates inside Iraq, opened the spring of "sustenance" to some members of the security forces and control, after they became controllers of movement and movement from one place to another.

Since the beginning of the Corona crisis, the crisis cell and the relevant authorities have placed restrictions on the movement of travelers and commercial traffic, except that they have excluded what concerns the daily food and food for citizens, and have allowed the passage and movement of wheels carrying food and vegetables to prevent a crisis that leads to scarcity of materials and high prices.

However, with the exceptions, some security elements and the controls on the borders of the governorates took advantage of the authority granted to them to control the movement of transport and trade, to “make money” by blackmailing the owners of trucks and wheels loaded with vegetables, fruits and other food.

 

Husham Alhashimi هشام الهاشمي

 

✔@hushamalhashimi

 

الغائب الطوعي وقيادات العمليات ووزارة الداخلية، هل يعلمون بذلك؟!

Husham Alhashimi Hisham Al-Hashimi ✔ @ hushamalhashimi voluntary absenteeism and operational leaders and the Ministry of Interior, do they know about that ?!

VIDEO LINK

4:01 AM - Apr 13, 2020

 

Perhaps this "suspicious activity" explains the reasons for the high prices of foodstuffs, vegetables and fruits in some vegetables stores incomprehensibly, as the lens of "Iraq Iraq" went to inquire about the reason for the high prices of certain foodstuffs and vegetables.

video link

The owners of the vegetable shops attributed the high prices to the “lack of the commodity” and the restriction of their entry due to some controls, which clearly explains the effects of the activities of some security elements in the controls and the blackmailing of the owners of vegetables, which causes scarce materials in the markets, or high prices due to what is taken from "Unofficial taxes" pay merchants and truckers to raise the prices of items to offset what is taken from them in the control.

link

[DinarThug]

Waiter - Put This On The Pope’s Tab Please !

 

     

 

 

LINK

The Pope calls for canceling the debts of the poorest countries

 

 

 

04/12/2020 14:59:08

 

 

Pope Francis called today, Sunday, to “reduce” or “cancel” the debts of poor countries and alleviate the international sanctions imposed on some countries, calling for Europe’s solidarity in the face of the emerging Corona virus.
 

In his Easter message he read at St. Peter's Basilica devoid of worshipers in the shadow of domestic stone, the Pope wished, "the easing of international sanctions that prevent the countries subject to them from providing adequate support to their citizens" and called for "international solidarity by reducing if not canceling debts" That weighs heavily on the budgets of the poorest countries."

Pope Francis called for an "immediate and comprehensive" ceasefire in the ongoing conflicts in the world to confront the new outbreak of the Corona virus.

The Pope prayed that "those who bear responsibility in conflicts should have the courage to support the call for an immediate and comprehensive cease-fire all over the world."

[DinarThug]

5 minutes ago, DinarThug said:

The Pope calls for canceling the debts of the poorest countries

 

 

04/12/2020 14:59:08

Yo Snap - That Was Really Fast ! Umbertino And The Vatican Must Have Some Major Pull !  

 

     

 

 

Report: G20 plans to suspend payments of debt of poor countries

 

 

 

 

 April 13, 2020 02:24 PM

 

Mubasher: A recent report stated that the Group of Twenty countries is planning to provide a moratorium on the payment of bilateral government loans to low-income countries, as part of a plan of action aimed at tackling the Corona pandemic and avoiding a debt crisis in emerging markets

A report published by the "Financial Times", quoting an official from the Group of Twenty nations, whose identity was not disclosed on Sunday, indicated that this initiative would lead to stopping the payment of sovereign debts for about 6 or 9 months

The debt deferral delay period - which is to be finalized at the group's finance ministers meeting this week - is also likely to extend until 2012, in line with the will of the International Monetary Fund and the World Bank

The two international institutions have recently called for debt relief for the 76 poorest countries around the world

The move would be part of an action plan to help countries grappling with the Koruna epidemic, and also aim to avert a scenario of debt crunch in emerging markets

The report stated that what is needed immediately is to give these countries the space in order not to be concerned about cash flows and debt servicing and to use these funds for their urgent needs

Concerns about debt sustainability have accumulated for many low-income countries that borrowed heavily in the years after the 2008 global financial crisis, but they currently lack the resources to deal with the economic problems caused by the "Covid-19" virus

LINK

 

 

Edited April 13, 2020 by DinarThug

[Floridian]

47 minutes ago, DinarThug said:

The bank added, "The bank used advanced modern technology for this platform, and employees should take advantage of this electronic technology to obtain the advance."

 

Yes, everybody get used to "electronic technology",  you're going to need it pretty soon.

 

[Floridian]

11 minutes ago, DinarThug said:

Waiter - Put This On The Pope’s Tab Please !

 

     

 

 

LINK

The Pope calls for canceling the debts of the poorest countries

 

 

 

04/12/2020 14:59:08

 

 

Pope Francis called today, Sunday, to “reduce” or “cancel” the debts of poor countries and alleviate the international sanctions imposed on some countries, calling for Europe’s solidarity in the face of the emerging Corona virus.
 

In his Easter message he read at St. Peter's Basilica devoid of worshipers in the shadow of domestic stone, the Pope wished, "the easing of international sanctions that prevent the countries subject to them from providing adequate support system" rel="">support to their citizens" and called for "international solidarity by reducing if not canceling debts" That weighs heavily on the budgets of the poorest countries."

Pope Francis called for an "immediate and comprehensive" ceasefire in the ongoing conflicts in the world to confront the new outbreak of the Corona virus.

The Pope prayed that "those who bear responsibility in conflicts should have the courage to support system" rel="">support the call for an immediate and comprehensive cease-fire all over the world."

 

Here it comes!  Global reset!

 

[Floridian]

14 minutes ago, DinarThug said:

April 13, 2020 02:24 PM

 

The debt deferral delay period - which is to be finalized at the group's finance ministers meeting this week - is also likely to extend until 2012, in line with the will of the International Monetary Fund and the World Bank

 

 

Extend until 2012 ???????

[DinarThug]

1 minute ago, Floridian said:

Extend until 2012 ???????

Likely A Typo - It’s Probably A 2 Year Deferral Until 2022 !  

 

     

[Floridian]

1 minute ago, DinarThug said:

Likely A Typo - It’s Probably A 2 Year Deferral Until 2022 !  

 

     

 

Thanks, Thugs.  😊

[DinarThug]

Trump on the Oil Reduction Agreement: A Great Deal for All

 

 

 

 April 13, 2020 11:28 AM

 

 

Mubasher - Sally Ismail: US President Donald Trump praised the historic agreement reached by the "OPEC +" coalition, after strong mediation between Saudi Arabia and Russia against the backdrop of the outbreak of the price war between the two countries

Trump wrote in a tweet on his personal account, "Twitter", on Sunday that the OPEC + major oil deal has already been reached

President Trump decided last week to intervene between Moscow and Riyadh in order to return to the negotiating table to stop the price war, which caused a sharp drop in crude prices

The US president said that this agreement would save hundreds of thousands of energy sector jobs in the United States

 

He continued, "I would like to thank and congratulate the Russian president and the Saudi king"

After days of negotiations and discussions, the Organization of Petroleum Exporting Countries and non-OPEC crude producers approved a historic agreement to cut supplies over the next two years

Oil supplies are expected to be cut by the OPEC + coalition by about 9.7 million barrels per day in May and June

The production cut will be reduced to 7.7 million barrels per day from next July until the end of 2020, followed by a reduction of 5.8 million barrels per day in the period from the beginning of next year to April 2022

The group of 23 countries is scheduled to meet again on June 10 to determine whether additional steps are needed

 

LINK

[DinarThug]

26 minutes ago, Floridian said:

Yes, everybody get used to "electronic technology",  you're going to need it pretty soon.

When Their Electricity’s Working !  

                   

[DinarThug]

Analysis .. The Federal Reserve continues to use all the cards of the game

 

 

 

Mubasher - Sally Ismail: Federal Reserve Chairman Jerome Powell's speech, in addition to another package of measures by the central bank, reinforces the view that officials continue with the policy of "doing everything necessary"

The policy comes to prevent financial and credit market pressures from compounding the economic turmoil caused by the "Covid-19" virus, according to New York's chief economist Hims Knightley during an analytical view published by the Dutch bank blog "ING"

Do whatever it takes

The Federal Reserve announced that it will expand its toolkit further by announcing a $ 2.3 trillion package , which includes providing loans to small businesses and local and state bonds at the state and county levels to help get rid of the economic turmoil caused by the "Covid-19" epidemic

We also heard directly from Federal Reserve Chairman Jerome Powell during a live broadcast on the importance of fiscal policy working alongside monetary policy at the present time in the crisis

Powell argues that the direct responsibility of the Federal Reserve lies in "providing some degree of facilitation and stability ... and by using our tools to ensure that the eventual recovery will be as strong as possible"

In this regard, the Federal President focuses on the political measures of reducing the interest rate and buying assets in an attempt to protect financial markets in order to provide stability for the financial system and support the flow of credit in the economy

Toolbox size increases constantly

In addition, Powell stressed the importance of the emergency lending force, which includes measures announced on Thursday to support small businesses and local governments

With support amounting to about $ 75 billion in US Treasury capital, the Fed will buy up to $ 600 billion in small business loans and create local debt facilities by providing about $ 500 billion in loans backed by about $ 35 billion in Treasury capital

The Fed will also expand the credit facilities for the previously announced primary and secondary market and the asset-backed securities loan program "TALF" from the era of the global financial crisis by as much as $ 850 billion, with support of $ 85 billion of the Treasury’s capital

This would allow the purchase of more securities backed by various assets (such as student loans, auto loans, and lending operations made through the Small Business Association)

According to the Fed, this will increase credit flows to families and companies through capital markets

After reaching $ 2.3 trillion, the Fed put in place the details of the $ 350 billion lending fund designed to provide loans to small businesses so they can keep employment and pay salaries

This was initially announced in the trillion-dollar financial package with the Fed’s assistance to banks by providing credit to qualified financial institutions that provide loans while obtaining loans as collateral at a nominal value, allowing dependency on banks to remove them from their balance sheet

This would enhance incentives to participate in plans and reduce opportunities to restrict borrowing in other areas

Powell stressed that the Fed only has lending powers, but it does not have spending powers and cannot give money, adding that there will be many different types of entities that need direct financial support rather than a loan they may struggle to pay off

Nevertheless, the Fed will continue to use its powers to lend aggressively and proactive and serious steps until it is confident that the recovery path is being pursued vigorously

The long road to recovery

On the economic outlook, Jerome Powell notes that the United States is moving toward a "very high unemployment rate ... with alarming speed," but when the economic recovery takes place it will be strong

The Fed President believes that monetary policy is in good shape, and that they will not consider changing interest rates for the next few months

And we do not expect - the investment bank - to see a change in the US interest rate for at least 12 months

While there is evidence that the threat of the virus may have begun to recede, the United States still has a long way to go from fully reopening the economy to a further distance from returning to "business as usual"

We will closely follow how Austria and the Czech Republic will get rid of the closures, and we must be aware of the risk that HIV cases will rise again, bringing back the possibility of renewing closings, as in Singapore this week

Our main expectation - ING Group - is that we will start to see a renewed process of resumption of work in the United States from mid-May, but that part of it will continue to involve some form of social divergence with more stringent testing

This means that job opportunities for millions of workers who have been laid off from work, especially in the entertainment, hospitality, retail and transportation sectors, will remain somewhat limited, and the declining unemployment rate will be a slow process

We should also be aware of the risks that a large number of companies will not succeed in overcoming this crisis, despite the mechanisms of supporting the Federal Reserve and the government, in addition to many companies that will need restructuring

And if the failure of companies increases the volume of bad loans, this will reflect negatively on the banks and could harm the availability of credit, which limits the scope of a strong economic recovery

Given this background, we initially expect that the economy will contract by more than 12 percent at the height of the decline compared to a contraction of about 4 percent recorded during the global financial crisis, with expectations that the lost GDP will not be fully restored until mid-2022

LINK

[DinarThug]

1 minute ago, DinarThug said:

We will closely follow how the Czech Republic will get rid of the closures,

They’ll Probably Use Cancelled Czech’s !  

 

     

[DinarThug]

The Ministerial Council for Economy holds its seventh session, headed by the Minister of Finance

Monday 13, April 2020 19:27 | Economic

 

 

 

 

Baghdad / Nina /

 

Deputy Prime Minister for Economic Affairs and Minister of Finance Fuad Hussein presided over the seventh session of the Ministerial Council of Economy meeting.

During the session, according to a statement of the Minister of Finance office, several decisions were taken regarding the agricultural reality of the country, including exporting the barley crop or using it for domestic purposes to support the livestock breeders in order to support the farmers and breeders segment.

The council also took decisions regarding the Basmaya complex project in order to develop successful solutions to complete the project because of its importance in providing housing units for citizens.

On the other hand, the Ministerial Council followed up the mechanism of providing financial grants to citizens who were affected by the curfew from people with limited incomes.

The Council examined the mechanisms and solutions needed regarding the decline in oil pricesand recent decisions issued by OPEC and its impact on the state budget for the year 2020.

The session was attended by the Ministers of Trade, Agriculture, Labor and Social Affairs, the Governor of the Central Bank of Iraq, advisers to the Prime Minister and the representatives of the Ministries of Finance, Planning and Oil.

The session was also attended by Dr. Salem Chalabi, Adviser to the Prime Minister, Dr. Hussein Al-Wasiti, Agricultural Adviser to the Council of Advisors, Dr. Mahdi Al-Qaisi, Advisor to the Ministry of Agriculture and general managers in the ministries of finance, trade and agriculture. End 3

LINK

[tigergorzow]

DT Thanks,  Truly appreciate the "Super Articles"....😁😁👍👍

[DinarThug]

22 hours ago, DinarThug said:

Triple phone conversations between Putin, King Salman and Trump

 

Sunday 12, April 2020 22:19 | Economic

 

Baghdad / Nina / 

Russian President, Vladimir Putin, held a trilateral phone conversation today, Sunday, with the Saudi monarch, King Salman bin Abdul Aziz, and the American President, Donald Trump

LINK

 

The Kremlin: Putin and Trump are able to bridge differences and engage in constructive dialogue

 

The world  ,   04/12/2020 11:13  

 

 

Baghdad - Iraq today:

 

Kremlin spokesman Dmitry Peskov considered that Russian President Vladimir Putin and American Donald Trump can overcome differences between their two countries and enter into constructive dialogue when necessary.

Peskov's statement came in the context of an interview he gave to the Russian Channel One and said: "The two presidents are able, at appropriate times, to dismiss existing strategic differences and to conduct a very constructively tactical dialogue."

He added: "They fully understand each other and realize the fact that there is no alternative to the steps and mutual understandings, as evidenced by the last two phone calls between the two presidents, as this understanding was evident between the two parties."

Peskov stressed that relations between Russia and the United States are still tense because of Washington's adherence to old stereotypes about Russia.

He said: "We are not talking here about any warming in bilateral relations, and even the frequent phone calls between the two presidents do not mean that we are witnessing changes in Washington's visions on the practical level, especially from our point of view."

Peskov stressed that the obsession with Russian phobia is still a dominant position in Washington until now, and continued: "Russian phobia remains the master of the situation and has become a necessary thing for government officials and politicians in the United States as the military uniform."

LINK

[ChuckFinley]

On 4/13/2020 at 3:03 PM, DinarThug said:

Waiter - Put This On The Pope’s Tab Please !

 

     

 

 

LINK

The Pope calls for canceling the debts of the poorest countries

 

 

 

04/12/2020 14:59:08

 

 

Pope Francis called today, Sunday, to “reduce” or “cancel” the debts of poor countries and alleviate the international sanctions imposed on some countries, calling for Europe’s solidarity in the face of the emerging Corona virus.
 

In his Easter message he read at St. Peter's Basilica devoid of worshipers in the shadow of domestic stone, the Pope wished, "the easing of international sanctions that prevent the countries subject to them from providing adequate support system" rel="">support to their citizens" and called for "international solidarity by reducing if not canceling debts" That weighs heavily on the budgets of the poorest countries."

Pope Francis called for an "immediate and comprehensive" ceasefire in the ongoing conflicts in the world to confront the new outbreak of the Corona virus.

The Pope prayed that "those who bear responsibility in conflicts should have the courage to support system" rel="">support the call for an immediate and comprehensive cease-fire all over the world."

 

Seems like he has the G20 ear. 

[lsenatus9]

I have not post here in a long time.

 

What happened to Yota?

[nannab]

Family matters. He did pop in to say hello.

46 minutes ago, lsenatus9 said:

I have not post here in a long time.

 

What happened to Yota?

 

[DinarThug]

55 minutes ago, lsenatus9 said:

What happened to Yota?

Someone Else Also Asked Yesterday ...  

 

 

On 4/20/2020 at 3:45 PM, DinarThug said:

He’s Been Taking Care Of His Parents And Periodically Posting A Few Articles Here !  

 

     

 

 

 

 

On 3/2/2020 at 6:31 AM, yota691 said:

Hey DV and Good Morning everyone Hope all is well. Sorry for the abrupt departure from posting the news, Life been changing and somewhat harsh around here in my parts. Been dealing with Family health issue. (Parents). As I have for quite some time, but things took a turn for the worse in Dec and still dealing with today, it everyday. I would like to Thank those folks that have reach out in Private message and those that have commented in threads and those that have keep my Family in Prayers. I appreciate you and your Prayers and I Thank the Lord even threw the Storms.