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Warnings of local currency printing


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Warnings of local currency printing

 

2020-04-22 
Warnings of local currency printing
 
 
 
 

Member of the Iraqi Economic Council, Ghadeer Al-Attar, warned of the danger of the government's support for some of the proposals to print local currencies outside the cover of the Iraqi Central Bank, while he presented a proposal to get out of the current economic crisis.

Al-Attar said in a statement that Alsumaria News received a copy of it that "printing the currency without a cover is a disaster and it contains great areas of corruption in addition to losing the national currency to its value in exchange for gold."
 
Al-Attar pointed out that "the issue is a dangerous adventure and the damage will be reflected in the middle class more than others," noting that " Iraq is able to cross this crisis and it is temporary, no matter how long it takes."
 
 
 
 
 
 
 
Al-Attar suggested that "the borrowings from the reserves of the Central Bank of Iraq be borrowed , provided that the payment be made as soon as the crude oil recovers in the global markets and the Corona virus crisis ends."
 
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Warnings of "dire consequences" for Iraq and demands for financial action to avoid "disaster"

 
 
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 04/22/2020 
 

Shafaq News / Deputy Ahmad Al-Jubouri called on the Iraqi Central Bank on Wednesday to compulsory lending from private banks with low oil prices in global markets and its impact on Iraq

Al-Jubouri said in a statement today that "the central bank must carry out compulsory internal borrowing from private banks participating in the auction sale of the currency."

He added, "The Ministry of Finance has also suspended funding for all projects for a year and diverted them to pay salaries, medicine, and food, while stopping dual and fake salaries, and restoring them, and working to separate the phantom aliens."

For his part, leader of the "wisdom" stream, Ammar Al-Hakim said that "what happened in the global oil market and the impact of major economies on its repercussions will reflect negatively on our national economy, which depends on the single rentier side in its financing and warns of dangerous consequences unless the repercussions of such tremors in the volatile oil market are not remedied. According to solid scientific plans that revitalize other resources to the national economy, such as agriculture, industry, investment and others. "

He continued, "These sectors have the ability to operate the Iraqi hand and contain the armies of the unemployed. They are able to support the local product and switch to self-sufficiency and then export and thus compensate for the losses resulting from fluctuating oil prices."

And increased talk in the recent days about the fate of salaries of employees and retirees in Iraq, which is estimated at millions after oil prices fell to low levels after a decrease in demand for it due to the outbreak of the Corona virus in most countries of the world.

Iraq’s economy is classified as a rentier economy, as it depends more than 90% of its imports on its oil and gas exports. Economists have previously warned against following this policy, but successive governments have ruled the country after 2003, unable to find appropriate solutions to multiple resources.

 

https://www.shafaaq.com/ar/اقتصـاد/تحذيرات-من-عواقب-وخيمة-على-العراق-ومطالبات-بالتحرك-المالي-لتفادي-الكارثة/

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"Its stability is necessary for Iraq" ... papers of cotton and linen origin rule the world

 

2020-04-22
"Its stability is necessary for Iraq" ... papers of cotton and linen origin rule the world
 
 
 

With its greenish color and distinctive texture stemming from the mixture of cotton and linen adorned with the image of Benjamin Franklin, one of the most prominent founders of the United States, the hundred dollars is an irresistible currency that governs the global economy and Iraq.

As soon as it vibrates up or down, the market, which is a safe haven in crises and disasters, is disturbed and indispensable.
However, the economic crisis that the world witnessed, including Iraq recently, due to the Corona virus and the significant drop in oil prices that did not lead to a significant rise in the price of the dollar, especially in Iraq, was attributed by some specialists to several reasons, including those related to the Central Bank policy regarding the sale of the dollar Including reasons related to the suspension of commercial activities.
 
 
Economic analyst Haider Badr said in an interview with Alsumaria News, "The stopping of economic activity in the country, especially commercial activity, has greatly limited the rate hike in the dollar," noting that "the central bank is currently conducting a policy of selling the dollar on certain days as soon as it hears the dollar rise through its auction. To limit this rise and to finance the very limited business. "
 

And Badr summers, "What we are seeing from a slight rise in the dollar prices is just speculation in the local markets for small traders dealing in the dollar."
 

As for the economic expert Dhargham Muhammad Ali, he says in an interview with "Alsumaria News", "The withdrawal of the dollar at the present time is a little due to the interruption of travel and treatment outside the country, and most of the personal transfers and the limited demand for it to finance the import, which in turn declined relatively, which represented a retreat from the value of The total demand for the dollar in the local market, which also reduced the importance of the decrease in the amount of dollars sold at the auction of the Central Bank of Iraq.

Ali notes that "if the conditions were normal, the market would need a much larger amount of dollars, which would have created a deficit of the dollar that the market needs and would create a black market that raises its price, but the lack of demand for it prevented that."

In turn, economist Mohamed Zwaini says in an interview with "Alsumaria News", that "the high dollar exchange rate in Iraq is often not long-term, in light of the Central Bank continuing to pump the currency," noting that "the Central Bank of Iraq has the ability to install The exchange rate of the dollar at any number it deems appropriate. "

He continues, "The bank did not resort to the policy of floating the currency, which is one of the main reasons for the stability of the dollar exchange rate and its failure to increase significantly," noting that "what we notice today is a fluctuation in the dollar prices due to the stopping of commercial activities in the country."

It is worth noting that the US dollar is the official currency in the United States of America and is equal to one hundred cents, and is denoted by the symbol USD or $, and the largest paper category currently is a paper valued at 100 dollars.

And the United States of America lifted the golden cap on the dollar in 1973, when French President Charles de Gaulle called for the exchange of what is available with the French Central Bank of American dollars in gold equivalent.

Since 1973, the real value of the US dollar has decreased about 40 times, and the US dollar includes five categories, one dollar, 5 dollars, 10 dollars, 20 dollars and 50 dollars, as well as the most famous category of 100 dollars.

All pictures printed on dollar denominations belong to prominent historical figures who have contributed to the great achievements of the United States, while American law prohibits the printing of personalities still alive on the American currency.
 
 
 
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Thanks Mary. 
noting that "the Central Bank of Iraq has the ability to install The exchange rate of the dollar at any number it deems appropriate

:twothumbs:

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