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Reducing The Dinar Price And It’s Impact On The Iraqi Economy !


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CNN. Broadcasting A Member Of The Finance Committee While Bruce And Weegie Do The Chicken Little Dance ! 
 

 

 

Reducing the dinar price and its impact on the Iraqi economy

 


Wednesday 22 April 2020


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Engineer Mohamed Sahib Al Daraji

 

 

In light of the current economic conditions accompanied by government failure in managing the file of monetary and financial policies in Iraq, the issue of devaluation has emerged, which is the devaluation of the Iraqi dinar vis-à-vis the US dollar and other currencies in a deliberate and deliberate manner, noting that this differs from the change in the exchange rate that is subject to For the supply and demand process in the currency markets.

I looked at a period of time before a study prepared by the Central Bank on this issue and after scrutiny in this matter and many discussions with experts and specialists and I believe that Iraq needs such economic solutions at the present time I thought that I clarify a realistic point of view may contribute to the crystallization of a specific opinion among the decision-makers in this matter. In normal circumstances, this type of solution must be the last drug. Unfortunately, the country's economy is mismanaged, the absence of economic doctrine, the continued dependence on oil as a single source, and the exploitation of the economy as an electoral tool that has led to a near collapse in the economy whenever the price of oil decreases, and the failure of successive governments to support the product The industrial and agricultural patriotic pushed the specialists to resort to this kind of thinking.

I may agree with the study conducted by the Central Bank on many points that talk about the need to find other economic solutions other than reducing the value of the Iraqi dinar, but through experience and extrapolation of the Iraqi political situation I do not see on the horizon any ability of the owners of the solution and the contract to bring about a fundamental economic change because of the lack To truly understand the problem in Iraq and look at it from a single perspective, which may be factional, partisan, or personal.
Therefore, my article will focus on discussing a paragraph devaluing the local currency vis-à-vis foreign currencies and responding to factors that affect or are related to the reduction process. For the purpose of taking note of the topic from all sides, the factors associated with this reduction must be discussed. Among the most important of these factors are: -
 
First: the balance of payments
I do not think that Iraq has a strong position in the balance of payments because Iraq’s exports are only 99 percent oil. If we raise or delete the value of the exported oil and we calculate the balance of payments without it, Iraq’s position will be very negative. It is worth noting that the Central Bank study on the percentage of surplus in the balance of payments, which was estimated to be 5, is discussed. 75 percent of GDP for 2019, from the first two aspects in terms of whether to include the balance of oil exports or not and this balance changed by changing world oil prices. On the other hand, discussing a real and important question, which is how to calculate GDP in Iraq? What is the proportion of the value of oil exports in it? This question also applies to the proportion of foreign reserves available in Iraq, which is estimated at $ 70 billion, which represents 30 percent of GDP, according to the study. Here, the same problem lies, which is how to calculate the domestic product, and thus how to calculate the ratio of the adequacy of reserves in International Monetary Fund standards or other traditional measures, from It is clear that there is a deficit in the balance of payments because the balance of our payments depends on a very large percentage on oil and consequently the deficit, surplus or strong position depends on the global oil price, the amount of production and the amount of oil exported from Iraq, therefore the study that gave measures for 2019 Totally corrupted from the current year
 
Second: consumer prices
There may be an effect of the devaluation of the Iraqi dinar on consumer prices, but there are many positive aspects in this framework that can be benefited from and turn this challenge into a real opportunity to build an economic doctrine that fits the current political and social situation.
The rate of imports in Iraq is very large and the annual rate of amounts of hard currency that goes out of the country for the purpose of import is estimated at 48 billion dollars annually and in the case of reducing the price of the dinar, these imported materials will be more valuable in Iraqi dinars than their current value in the local market, which will lead to a decrease in demand On them, and here is the stall of the Persians to refute all allegations that are expected to be high in life due to the devaluation of the Iraqi dinar, because this reduction must accompany a set of economic measures that are supportive of it, the most important of which is controlling the prices of the value of food and fuel. In the imported consumables, which are considered a factor in the ruin of the country's economy, it can be addressed and accept a certain increase in the prices of some unnecessary luxury items.
Therefore, there must be packages in the application of this reduction in order to encourage the national product, and we can give a simple example in this framework. If there is material that we import from neighboring countries, and the value of this material was only one dollar, i.e. its value is 1,200 Iraqi dinars at present, and the cost of producing it is from Local raw materials may cost the owner of the Iraqi factory 1300 Iraqi dinars, so the local product cannot compete with the imported product price due to the relatively high value of the dinar, but if the value of this material is one dollar in light of the exchange rate of 1500 Iraqi dinars and the value of the local product remains for the same article 1300 Iraqi dinars It will be a pain The domestic product is cheaper than the importer at the local value and thus this will encourage the owners of factories or farms to produce locally and run the workforce and run the macroeconomic cycle again so this reduction will have a significant role in supporting the local product, and it was noted that the central bank study spoke about the extent of Provides local products As an alternative, here we say that the egg and chicken base must end in Iraq, meaning do we work in a local industry in order to stop the import or stop the import in order to encourage national production? I think that the time has come to break this rule and for the state to put an end to imports in order to encourage production and because capital is coward and factory owners will not risk their money in order to provide material that does not have a market or has no consumer or competing foreign producer at a lower price and the state must be firm and legalize the import in order to Factory owners are able to produce and make the local product a competitor. It is worth noting that there will be a specific time period in which some products will be less available in the markets, but I believe that the national product will soon fill the void and we will start a new phase of the Iraqi economy.
 
Third: the level of inflation
Iraq currently does not suffer any rise in the level of basic inflation; therefore, the effect of reducing the currency devaluation level in the basic inflation level will be limited, meaning that if we reduce the currency by 30 percent, the prices of some luxury items will increase by 12 percent, and this price increase can be addressed by moving the economy even if we have to Increasing nominal salaries and moving the wheel of the economy by pumping cash into the street to move some industrial, agricultural and construction sectors.
 
Fourth: Increasing economic growth and trade
The study prepared by the Central Bank on the effect of currency devaluation on increasing trade growth showed that the relationship between devaluation and the deficit of the trade balance and stimulating the national economy is a conditional and specific relationship with factors including:
A- The extent of the national productive capacity, technologically, financially or humanly, to manufacture the same goods imported from abroad with similar quality and at competitive prices and to replace them with national products.
I think that Iraq can achieve a return from this reduction in this framework, which we mean by the growth and trade framework, because Iraq’s exports are limited to only crude oil, the devaluation of its currency may increase its exports from other materials that encourage the national product, whether industrial or agricultural, to increase its production, specifically some Exportable materials so that there will be new non-oil dollar revenues that can be used as a hard currency to increase the domestic product of the homeland. Also, this reduction will increase and strengthen the local Iraqi industries to be able to compensate for imports. Therefore, reducing the value of the Iraqi dinar will reduce a large percentage of the import. Revenues and maintains the hard currency coming from selling oil inside Iraq and these amounts are transferred instead of sending them out of the country through the currency auction to pump them into the local market to move the economy wheel, the banks that operate with the currency auction and those behind it may be affected.
 
Fifth: The effects of reduction on vulnerable social groups
It is also known that the number of people dependent on the government for their income from employees, retirees and those covered by the social protection network is around 6 million citizens. If we take the average of five individuals per family, 30 million citizens depend entirely on their income for government support, and this represents 75 percent of the Iraqi people. The negative effects of this reduction on the purchasing power of this group are limited, because the cuts will have measures to support the ration card and an increase in the minimum salary for the job grades and the welfare network grants.
At the same time, the state must act as a food merchant in the sense that it imports food or provides it from local production and stores it and pushes it to the market at any time there is a deliberate raise in prices or a specific monopoly process, and thus there will be food security for these vulnerable groups and the state also works To support fuel and medicine and direct the general budget to the ration and medicine, and sterilize water and infrastructure.
As for other luxury goods, there is no harm in accepting the cost of some non-essential materials, for example, a mobile phone by 12 percent, or a rise in the price of perfumes, for example, 12 percent. 
للدولة.
On the other hand, I do not think that this reduction leads to an increase in government expenditures in general, but it may lead to an increase in the ration card expenditures, which do not represent 3 percent of the total general budget of the country. At the same time, you can benefit from the increase in revenues in the Iraqi dinar in other operating and investment expenses. By up to 25 percent, for example if the price of the dollar becomes 1500 Iraqi dinars.
At the same time, this reduction will have positive effects on the remittances of expatriate citizens from abroad for their families, so that the value of what they convert from hard currency into Iraq is greater than the present value and this leads to addressing the status of a particular class in front of the potential relative costly.
 
Sixth: The effect of the reduction in public debt
Iraq's foreign debt in foreign currency is about 23 billion dollars (except for pre-2003 debts of 41 billion dollars). The domestic debt in the dinar currency is around 40 trillion Iraqi dinars, including treasury transfers and bonds, and since 95 percent of the public budget depends on imports of oil that is sold In dollars, therefore, foreign debts will not be affected, either negatively or positively, by the devaluation of the Iraqi dinar, as they are receivables payable in US dollars.
As for the domestic or domestic debt, surely the reduction of the dinar’s rate will have a positive impact in the interest of the state, as the value of the local debt against the petroleum dollar. The state is limited to 7 billion dollars, and this indicates that the devaluation of the currency has a positive impact on public debt and thus strengthens the country’s economy without affecting the external debt by any negative impact and therefore there will be no negative impact on the Iraqi situation with the international community due to this reduction in Local currency value.
 
Seventh: The effect of reducing confidence in the national currency
I do not think (in my personal opinion) that this devaluation of the Iraqi dinar will affect the confidence of global markets and economies in the Iraqi local currency because this planned devaluation must accompany a set of economic decisions that are supportive of this devaluation and reduce its impact, whether on the internal or global economy in the Iraqi currency and the most important These reforms are to control the expected inflation, as we mentioned earlier through controlling food, fuel and medicine. The pressures of demand for the dollar may not escalate, but on the contrary, the local counterpart to the dollar unit may be more than before, so the process turns into a process. The dollar and try to keep Aa local currency, especially if we raised interest rates on deposits in local currency rates as a measure of the structural part of the decisions that must accompany the process of devaluation Vtkhvv thus the pressure on the dollar exchange rate.
The central bank study indicated the existence of the stability of the Iraqi dinar exchange rate for a number of years. In this context, I think that this stability is not real, but it is pressure on the dollar price by the country’s monetary policy, and therefore this stability as a result gave negative returns on the Iraqi economy, so stability can remain, but On another exchange rate that is less valuable than the current price.
If we note that the Lebanese experience has lasted decades for an exchange rate of 1500 that is stable but at a real price for the Lebanese pound while it is believed that the Iraqi dinar price on its current stability for the past years was not a real price but rather it was a price engineered by those responsible for the country’s monetary and financial policy, I mean Here is the central bank and the exchange rate is set in the annual general budget by the government and the finance committee in the Iraqi parliament.
 
Eighth: Monetary and Financial Policy
Before we get into the details of this factor, we must answer the following question: Do we expect Iraq to have a political ability to manage monetary and financial policy in the face of pressures that may result from reducing the price of the Iraqi dinar against the unit of the dollar? What determines this is the strength of the political administration in the country and the understanding of the political forces, the truth of the problem. The monetary policy tools represented in the interest rate, the discount rate, open market operations, etc. These can be controlled by coordination between the owner of the Iraqi money, which is the Ministry of Finance, and between the custodian of this money, which is the bank. The Central Council of Ministers shall be the judge and judge in the approximation of views between the owner and the governor. As for the fiscal policy, the government and parliament must collectively control expenditures and work to increase revenues (and we have talked a lot as others talked about how to increase revenues) in order to control m Suitable for the cash block in order to reduce the effects of inflation on the citizen.
We believe that the pessimistic view of financial and monetary management in Iraq must change. Otherwise, the situation will remain as it is. Yes, there is a big failure in managing these two files, but everything has an end and an end, and I think the time has come to end the failure of monetary and financial policy.

Ninth: The effect of reducing the dinar on the public budget
The general budget is revenue and expenditures, and since the main source of revenue for Iraq is oil sold in dollars, the reduction of the Iraqi dinar will certainly increase the revenue by the amount of the rate of the dinar, so when the price of one dollar is 1500 dinars instead of 1200 dinars, every billion dollars of oil revenue will be worth In the budget is one trillion and a half trillion dinars, compared to one trillion and two hundred billion dinars at the current exchange rate. This rise in revenues will have a clear and positive impact on the general budget. As for expenditures, I would like to refer here to the central bank’s report and discuss it again as He mentioned that the reduction will witness an increase in expenses due to the following points:
Government import of goods and services
This is beneficial because, as we said above, the government should be the first to reduce imports and depend on the local product, whatever the circumstances, and this is an opportunity to create a local economy and increase local production by increasing agricultural and industrial production and reducing imports.
-2 Paying the interest of the external debt
We have previously mentioned in this topic that external debt will not be affected by the dollar’s devaluation, but internal debt will decrease in value relative to the petroleum dollar.
3 - Foreign investments and contributions
This does not represent a significant percentage, it is also in dollars, and we are our resources in dollars, so this is considered beneficial as well.
4- Paying the oil related investments
Everyone knows that paying the dues of oil companies is my eyes with oil, so there is no relationship with the dollar or the dinar.
5- The ration card
I do not agree with the report of the Central Bank that stated that most of the ration card materials are imported. The ration card that must be developed currently depends on four main materials, which are rice, flour, oil and sugar, three of which are flour, oil and sugar purchased locally. Reducing the value of the dinar will save money for the ration card when purchasing These materials and the only material that is imported is rice, and in the same logic that we spoke in this article, the oil dollar will not be affected because Iraq sells oil in dollars and imports rice in dollars. In sum, the reduction of the dinar will affect the ration card positively.
6 - Social protection salaries
In the event that the dinar is reduced, the government should increase the social protection salaries with the same expected inflation rate, which is 12 percent. In this way, we remove the potential inflation effect from the socially vulnerable groups.
 
Conclusions:
In the end, gradually reducing the value of the dinar will have positive effects on the economy of the country, from which it can be taken advantage of, and other negative things that must be taken in advance to avoid them so that the gross product will be positive for the national economy and to avoid the expected economic shock.
The positives are as follows:
1- Encouraging the local agricultural and industrial product.
2- Stir the wheel of the country's microeconomics.
3- Employment of labor and absorption of unemployment.
4- Increasing the revenues of the general budget and reducing import expenditures.
Naturally, this measure will have negative effects, so the government must take a series of measures in parallel with this reduction, as follows:
1 - Stopping the currency auction to maintain the hard currency inside the country and that the dollar and other foreign currencies are sold and traded directly in the currency markets or through the stock market, in order to get a real price of the Iraqi dinar against the American dollar, and that the guarantor of the prices is the value of the available reserve The Central Bank of Iraq has hard currency.
2- Setting an import platform, stopping some imports, controlling customs outlets, supporting the tax system, and exempting the local product from income tax for a period of two years.
3- Building the budget on a fixed oil price for the operational budget and moving to the investment budget, directing the budget to salaries, purchasing the ration and medicines, and sterilizing water and the educational process only.
4- Delaying the dues of oil companies or paying them in kind outside OPEC's share.
5- Selling oil coupons locally, at the prevailing price now, and buying them a year later at the prevailing price then.
6 - Increasing nominal salaries by 10 percent, reviewing high allocations to achieve social justice, and increasing salaries of the social protection network by 12 percent
7 - The state imports commercial foodstuffs into the market and injects it into the ration program in the event of high prices. And activating the role of economic security and entering the competent government agencies to control the cash rhythm in the currency market and the markets for the sale of foodstuffs.
8 - Supporting fuel for transport and factories and giving high relative importance to Food industries .
9 - Pumping a hard currency to the exchange markets to maintain the price level of the Iraqi dinar, preventing the price from slipping so that its decrease exceeds 30 percent within two years.
10 - The Ministry of Finance issues the e-dinar for the purpose of collecting government revenues and fees due and what distinguishes them from being non-negotiable in the market as cash and thus we have reduced corruption in this aspect as well as the state's knowledge of the value of those imports quickly to be issued by a government bank and not through companies Eligibility.
In conclusion, such a procedure requires a courageous decision by statesmen who are able to manage a stage through which the world in general and Iraq in particular, statesmen who lead society and manage state institutions literally without paying attention to partisan or factional or electoral interests, but rather put the interest of Iraq first.
Member of the Finance Committee

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1 hour ago, DinarThug said:
Third: the level of inflation
Iraq currently does not suffer any rise in the level of basic inflation; therefore, the effect of reducing the currency devaluation level in the basic inflation level will be limited,


Lol - Don’t Let All Of The Recent News Leave U Totally ‘Shale’ Shocked ! :o 
 

 

The Number One And ONLY Reason Why Countries Ever Completely Reluctantly While ‘Kicking And Screaming’ Devalue Their Currency - Is Because Of Runaway Hyper Inflation ! ;) 

 

 

And As This Bureaucrat Even Spells Out In His Opinion Piece - Iraq ABSOLUTELY HAS NONE ! :wave: 

 


Next ...

 

:D  :D  :D 

 

 

The Clown Drops The Mic And ‘Accidentally’ Walks Into The Ladies Dressing Room ...

 

 :lmao:    :lmao: 

 

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And Here’s This Regarding The Price Of Oil ...

 

:D  :D  :D 

 

 

LINK

Economist: Iraq has maintained its selling price of oil despite the collapse of US crude

 

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19:09 - 04/23/2020
 
 

Economist Safwan Qusai confirmed on Thursday that Iraqi oil maintained the selling price at $ 20 despite the collapse of US crude, attributing the matter to selling Iraqi oil in three markets, most notably Asia.

Qusai said in a statement to the "information", that "Iraqi oil is sold in three markets, which are Asia, Europe and America, as the movement of the wheel of the economy in China has served Iraqi oil in maintaining its prices in a proportion not exceeding 20 dollars," noting that "American crude collapsed due to Not having a storage capacity for it.”

He added that "Iraq be affected by the collapse of American oil only 50%," noting that "the Chinese economy will return to normal within two months and there will be an increase in oil prices by approximately 40 dollars and the current crisis can be overcome."

Oil prices rose significantly during trading today, Thursday, after heavy losses incurred earlier this week.

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"In the end, gradually reducing the value of the dinar will have positive effects on the economy of the country,"

 

I have no idea if he even knows what he's talking about!  Sorry about the pink!  :)

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Regardless Of What Is Currently Transpiring In The Outside World ...

 

 

The SINGLE Biggest Long Time Ongoing Internal Economic Issue For Iraq - Is Corruption ! :o 

 

 

Which Fiddling With The Rate Won’t Effect ...

 

And This Guy Doesn’t Even Bother To Mention It In His Long Winded Bloviating Piece - As If It Doesn’t Even Exist ! :bananacamel: 

 


But Fortunately There’s Been Some Recent News About It ! ;) 

 

:D  :D  :D 
 

 

1 hour ago, DinarThug said:

70 warrants of arrest and recruitment were issued against
senior Iraqi officials

 

doc-p-341788-637226546901612342.jpg

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24 minutes ago, boosterbglee said:

Sorry about the pink!  :)


No Problem - I Can Totally Work With That Shade ! :o 

 

:D  :D  :D 
 

 

Btw, What’s Pink And Smells Like Red Paint ? :blink: 
 

 

 

Pink Paint ! :cisole:

:lmao:  :lmao: 

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Posted (edited)

What’s Pink And Smells Like A Floyd ? :o 

 

image.jpeg.89509698e763be2d9d26254e934212e7.jpeg

 

Btw - I Think That His Barber Shop In Mayberry Is Closed Due To The Quarantine ...

 

 

Goober Has Been Looking A Little Bit Shaggy Lately ...

 

:D  :D  :D 
 

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Economist: Employee salaries will not stop or decrease
due to oil prices

 

image.php?token=e2ed83a5ca0565e3d149eda7418edd92&c=2292541&size=
 
 
22nd April, 2020
 

The economic expert, Nasser Al-Kinani, confirmed today, Wednesday, that the salaries of employees in the Iraqi government will not stop during the next three months.

Al-Kanani said in a televised statement, "Iraq has local cash and has no shortage of it," noting that "the state must deduct part of the high salaries in order to get the amounts of help." He added that "some allocations for senior officials in the Iraqi government exceed 12 million dinars per month."

Kanani said that "what remains for Iraq from the price of selling oil is five dollars a barrel," pointing out that "there are resources in many Iraqi ministries which are not included in the state budget."
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China is among the losers of the collapse in oil prices

 

- 12 Hours Ago
 
 
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The People's Bank of China (the Central Bank) stopped opening new centers for oil futures contracts from yesterday to Wednesday until further notice, in light of the continued decline in oil prices. This led to panic among investors and companies, who take advantage of those centers in trading oil futures contracts and importing crude to the domestic market in the second largest economy in the world and the largest oil importer.

The Chinese central bank’s measure means that it will not maintain the “floor floor” it places for the oil price in future contracts, estimated at about $ 40 a barrel, compared to Brent crude. The reason for the panic between the institutions and the dealers with whom the Central Bank sells these "centers" is that they will lose a difference in excess of half the price of a barrel.

It is true that China has increased its crude purchases to fill its strategic and commercial stocks, but there is not much spare capacity anyway. Unless the manufacturing market and domestic demand recover, the Chinese economy will not need more crude oil for a while.

Then there are the losses that the Chinese oil companies hope for, especially PetroChina, which will have to reduce its investments, perhaps layoffs and halt expansion projects.

Factory prices drop

There is a false perception that is echoed in some comments on the historic decline in oil prices, especially American light crude, and that it is in favor of consumers who will buy the main source of energy that moves their economy at a low price, which reduces the cost. But the reality is that this unprecedented collapse harms the entire global economy, and all parties to energy markets, producers and consumers.

The most important indicator is the drop in factory production prices, which last month witnessed a decline of 1.5 percent and is expected to reach 5 percent. Although oil prices are not included in the calculation of the rate of inflation in China, its impact on many sectors means that falling prices will resonate in manufacturing, fuel, petrochemical, packaging, transportation, and other prices.

This will put additional pressure on the Chinese central bank to lower the interest rate again, after lowering it slightly on short and medium term deposits. Many economists suggest that the People's Bank of China will have to cut interest by as much as half a percentage point as prices fall.

This downward trend comes to factory production prices and the prices of many commodities, at a time when the Chinese government has made a monetary easing in the economy that was supposed to lead to high inflation, or at least its stability.

A number of economists expect the decline in product prices to increase in the second half, which means that the effect of the government’s monetary easing to help companies and businesses is lost. And those precursors depression in the second largest economy in the world, its impact not only on the local market, but will also resonate in the economies of the world, especially European economies that are already shrinking.

Analysts expect the PMI in China to drop by 4 to 6 percent, if the average oil price is in the range of $ 20 to $ 40 a barrel. This is in addition to expectations that the deficit in China will increase to 8 or 9 percent of GDP.

All of these indicators make China benefit from low oil prices completely non-existent. On the contrary, it increases the decline in product prices, and thus puts a burden on the industrial sector, which mainly works for export. With the decline in demand in the world for Chinese products due to the contraction of the economy in most parts of the world, the low cost of production (oil prices: energy for manufacturing, packaging, transportation ... etc) leads to flooding the market at a time when there is no strong demand.

The worst-case scenario if oil prices continue to fall so for several months, that the recession will not be limited to China, but will lead the entire global economy to a recession, or at least a long-term recession.

Ahmed Mostafa

Independent Arabic

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China and the future of the global economic system

 

- Two Days Ago
 
 
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The unfair relationship by America and Europe towards developing countries, over decades, raises the ceiling of ambition among not few people from these countries, that after the Corona pandemic, the world witnesses a tangible change in the map of the global economic system, so that America or Europe is not In control of the wealth of the rest of the world.

Analyzes usually suggest that there is a prospect for China in the prospective world economic order, at the expense of America and the West. But what is strange is that the owners of this wish from developing countries in general and the Arab countries in particular, do not talk about their place and their role in this system, and what will they offer? Will their position in this prospective system be exploited by China, as America and the West have done before, or will they seek to have a role in preserving their resources, economic capabilities, and political conditions, and that they be an added value to the global economy, and not dependent on it, as they have been since Over a century.

Some people talk about China, its economic ability, its management of the Corona crisis, and its standing against America for years on issues of free trade, and other global economic issues.

We must take into account that, after every major global crisis, the world is experiencing significant changes, and we can monitor what China gained after the global financial crisis in 2008, some of the advantages that have been established from its global economic position, such as considering its currency in the reserve basket in a fund International monetary, and considered within the currencies considered in the basket of foreign exchange reserves for the rest of the world.

Moreover, entering China into an experience that is considered a symptom of the World Bank is a big step in light of strategies to change the balance of power, which is the experience of the Asian Infrastructure Bank, which was established by China with a capital of 100 billion dollars, with the participation of many countries in its establishment, and several European countries accepted its membership. .

Capitalist globalization

It is known so far, that China is a communist country in terms of its political system, and does not recognize political pluralism or the exchange of power through elections, but since the end of the seventies fought a new experiment on the economic side, it sought to implement fully the capitalist economy, and expanded all its energy to obtain an organized membership world Trade.

The figures in the World Bank database indicate the tremendous development witnessed by China in light of capitalist economic integration in light of globalization, in 1980 its GDP was $ 191 billion, while in 2018 this output reached $ 13.6 trillion, becoming the second country at the level of The world, according to this indicator, is after America.

The second indicator in which China was raised in the shadow of capitalism is its share of foreign direct investment, as its share in 1980 was only about $ 57 million, and it jumped in 2018 to $ 203 billion. As for the cumulative balance of these investments in China and its map, there is another hadith.

The third indicator that we address about the main benefit of China from capitalist globalization is its share of commodity exports, which was $ 18 billion in 1980, increased to $ 2.4 trillion in 2018.

Hence, China has built its economic wealth and political position over the past four decades in the light of the capitalist economy, and for this reason we have found it vigorously defending freedom of trade over the past three years because the issue is related to its interests, not an ideological bias of capitalism, and the mouthpiece of China’s strategy was, "Wherever there is an interest, there is no consideration for ideology," she says.

The new map

The new map is still not formed, but there is a certainty among large segments, that change is coming, and China may have a great place in it, but the question is: Will China abandon capitalism? Of course not, as we mentioned, it was the interest that pushed a communist country to plunge into the sea of capitalism, so that its GDP would double, its share of merchandise exports would increase, and it would be a bastion for attracting foreign direct investment.

The administration does not require that China abandon capitalism. Rather, the economic and social changes worldwide after Corona will be one of the problems facing China. Many countries will review the rules of work in globalization systems in trade, industry and investment.

Thus, the challenge for China will be its position in the global export arena and its ability to attract foreign direct investment, as was the case before Coruna.

China, for three years, has been advocating within the G20 economic and other international groupings for freedom of trade and the removal of customs barriers imposed by America, but after Corona, China will face similar behaviors to US behavior by many countries, in order to find jobs For their children, and every country will work to make investments for its own children within it, as long as it can.

After Corona, the role of China may change from exporting goods to exporting technology, to overcome the obstacles of commodity trade and the challenges it poses, but it will require new competition, in front of China from two sides: First, strive seriously to absorb the surplus of its workforce, which is absorbed by the export industries . The second is the superiority of America and Europe in producing and exporting technology. This will take some time for China to move ahead in this field over America and Europe.

The expected change in the world economic system, after Corona, may not happen in the short term, but in the medium and long term, the change will have emerged, and the economic powers are seeking to start a new phase of conflict, to prove influence, or to share interests.

Some think that the upcoming change will be an easy task for China, or for other economic powers that want to be the maker of the expected global economic system. Addressing the negative effects of Corona at the economic and social level will take time, in addition to that it will impose duties on those wishing to top the front of the system Global economist.

Aid issues, and the call to drop the interest of debt from the developing and least developed countries, will be test balloons for adults who want to control and manage the economic maps of the world. And China may not be better off its position on these issues than America and Europe have done before.

In conclusion: China will not assume an advanced position on the map of global economic powers, or its overcoming of America as the largest economic power in the world is easy. Rather, there will be many challenges, inside and outside China, that may delay China some time to reach its goals in this regard.

It can also be emphasized that China will not overthrow capitalism as an economic system during the coming period. In light of this system, it built its global economic power. Rather, one of the problems for China will be to maintain capital rules in trade and investment. On the other hand, Beijing does not have an economic ideology that it can present to the world as an alternative to capitalism, while stressing that I am not a capitalist.

Abdul Hafiz Al-Sawy

New Arab

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Currency printing ... as part of Iraq’s solutions to its collapsed economic crisis

 

 

09:16 24.04.2020

 

Iraq stands before five solutions, including one with a catastrophic outcome to face the local and international financial crisis, following the drop in oil, and the high prices of currency and minerals, after the outbreak of the Corona virus, which causes the disease (Covid 19).

The financial crisis destined for the collapse in Iraq was reflected in the reality of citizens of low and middle income to merchants and owners of money, following the embargo, and the stoppage of business due to the pandemic of the new Corona that made the price of oil cheap , in exchange for a sharp rise in hard currency, gold, food prices, and protective supplies that It has become a commercial commodity sold on the market

The salaries of many Iraqi state departments have been delayed for more than 10 days for the second month in a row, with large debts arranged for citizens who have sought to borrow sums from relatives and acquaintances, clogging the heavy days of the embargo, in conjunction with the arrival of the month of Ramadan, which increases the buying turnout


Sputnik" documented the exchange rates of the dollar and gold, in light of the stifling economic crisis hitting Iraq at the current circumstance, as the exchange of $ 100 ranged between 119,400 Iraqi dinars, on the stock market, currency auction, and 124 to 126 thousand in the markets.

 

And the price of the yellow metal "gold" increased to 295 thousand Iraqi dinars per weight "equivalent to 5 grams", for the importer from Europe, especially the Italian, who is considered the most expensive among them because it is hand-formed "hand made" with charming strange shapes whose beauty does not match anyone, and five thousand, and ten thousand less For jewelery of Turkish, Gulf, and local manufacturing Iraq

The gold market has witnessed almost non-existent demand for women due to the rise, which is considered the first of its kind in the history of the country, except for vectors to exploit the crisis to sell their jewelry without loss, but no jeweler opened his shop to buy the user in order to avoid incurring financial losses more exacerbating his crisis

In order to take the crisis to stability in light of the low oil prices on which the Iraqi budget depends, a member of the Finance Committee in the Iraqi Parliament , Deputy of the Kurdistan Islamic Union bloc, Jamal Kujer , revealed in a special statement to correspondent "Sputnik" Iraq, today, Friday, April 24, For proposals put forward by some economic experts from the government and outside to save the country from the economic crisis

Cougar stated that one of the options put forward by some economists is to print the currency, but it was not accepted by the central bank, because that would lead to a dilution of the currency, each printing should be in return there either for gold or bank reserves

He added: "Iraq does not have a large bank reserve, or gold, and therefore any printing that will affect the value of the currency, and accordingly the bank did not agree with the economic experts' proposal when discussing liquidity to cover the salaries of employees for the month of April, and after that, because the options are limited due to the global recession, and the stone, The prohibition is due to the Coruna epidemic. "   

 

Other solutions

Cougar drew attention to other proposals made by experts to solve the salary crisis and the economic meltdown, namely: either going to the bank reserve, or selling property and state real estate, or resorting to severe accountability for political money and taking it by force and we do not have a strong government that does this .. he said

He continued: "What remains of the solutions before the Iraqi government, in addition to bank reserves, printing currency, political money, and accounting for the corrupt, go to internal borrowing because the external do not know who are the countries that will lend us in this situation of the global financial crisis."

A member of the Parliamentary Finance Committee, a member of the Kurdistan Islamic Union bloc, explained that internal borrowing, for example, in the general federal budget for 2019 is our borrowing from the General Retirement Authority, there are institutions that have balances, as well as banks and companies that have large sums that can give some projects at high prices to some investors and postpone Pay it after two, three or five years

The member of the Finance Committee, Representative Jamal Cougar, revealed in an interview to our correspondent, in the middle of last March, that the drop in oil prices had a negative impact on the general federal budget, adding a deficit of about 50%, because the estimated price of the specified barrel was 56 or 55 dollars, And every dollar falls from the price of oil, the federal budget for Iraq will lose about one billion and 315 million dollars within a year if the situation remains like this

Iraq faces in the current circumstance, an economic crisis, from low oil sale prices, and the deterioration of its federal budget, which may affect the future negatively on all sectors, and on the one hand, the Corona risk, which is still recording injuries among Iraqis

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Dr.. Mazhar Muhammad Salih *: Reflections on the Economic History of Recession and Recession in the United States of America


04/23/2020


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Dr.. Mazhar Muhammad Salih *: Reflections on the Economic History of Recession and Recession in the United States of America


Monetary Policy during the Great Depression 1929

The continuous deflation and sharp decline in the general level of prices during the Great Depression made the real interest on liquid wealth to be the highest possible, and this generated what is known as the liquidity trap and exacerbated the problems of recession when the US GDP decreased in half and unemployment increased to 33% From the American workforce, Keynesian economic policy in the United States resorted to a principle called New Deal during the Roosevelt era, which was to adopt the role of expansionary fiscal policy that worked to expand effective demand or effective total spending through public works policy and generate new opportunities for Hypocrisy or disbursement, which in turn generates a derivative and double demand within an economy that has helped to advance idle resources, trigger the cycle of production, income, use, and fight unemployment.

One of the mistakes of monetary policy in 1929 was that it did not use its expansionary means, such as quantitative easing, QE, which should have been followed, as was the provision of loans with low interest, almost zero in the economic crisis of the twenty-first century through the role of the central banks, expansion and deduction of securities with less liabilities and granting loans. The banks themselves are similar to what happened (during the global financial crisis 2008 and beyond) as deposits received only a nominal (negative) interest to encourage individuals to spend consumer and investment. This is what Japan and the Eurozone have done. Likewise, America, which made interest close to zero on deposits, all of this comes in two ways: The expansion of the real interest due to the increase in the purchasing power of the monetary wealth is something that increases the degree of spending contraction and its decrease as a demand force due to (liquidity trap) because the real interest rate gives an implicit return on the result of retaining the liquid cash (held) and it is better than in-kind investment and then Generation of a positive implicit wealth effect due to inflation and high currency value, which causes the continuation of the depression requires countermeasures, which is the negative nominal interest to be paid as a negative reward to the financial surplus (that is, taking from it). The second is the necessity of providing credit at zero or close interest costs in order to broadcast economic activity at the lowest costs and raise the forces of demand and its high levers to investors as deficit powers but willing to invest in spending.

In fact, this is the essence of the failure of monetary policy in 1929 to rescue the western economy. John Keynes, in his famous book, adopted the general theory that he embodied in his book published in 1936. It is a flexible fiscal policy that maximizes demand or effective spending to run the economic cycle, and Keynesians have been called Fiscalists, not Numismians.

Reflections on the recession and the recession after the second war

On the southern wing of Blair's house, President Harry Truman, whose term spanned between 1945 and 1953, has taken a temporary office next door to the White House, where he was asked: What is the difference between recession and recession in the economy? Does it really mean that stagnation means a cold and recession means a long-term chronic disease?

Truman smiled silently in his secret, asking before answering: “It seems to me that economic matters are moving in a new course after the second war ended, and away from the concerns of the economic recession, I have to pave the way for our country to move away from the recession and its difficulties in multiplying unemployment and declining prosperity.” Here, the president paid attention to the impact of the question, to answer immediately: “Recession is when your neighbor loses his job opportunity, and a depression is when you yourself lose your job opportunity.”

Economic stagnation means a deterioration in GDP growth and extends for two consecutive seasons, which calls on central banks to reduce interest to stimulate demand for goods, services and investments together, and then stimulate growth and reduce unemployment levels while the economy reaches stages of recession when the decline in economic growth exceeds three Chapters or more. The depression marks a sharp drop in aggregate spending and output together. As a result, financial market records fall, many companies go bankrupt, and unemployment rates rise among workers.

Here, governments go to adopt incentive programs by expanding the areas of government spending and allowing the money supply to expand. But the mystery remains, why was President Truman asked about the difference between the terms recession and recession? At the end of the first war in which Truman was a soldier, he began working in the market with a partner in a used store, but in 1921 suffered a loss that resulted from the recession that hit the country at the time, and Truman was unable to pay his debts until 1934.

The strangest thing is that at the end of World War II and upon his assumption of the presidency, America moved turbulently from the war economy to a peace economy stumbling with some stagnation, which coincided with the mass demobilization of old soldiers, as well as the slowdown in weapons factories and their layoffs of thousands of workers. With this, the president's fears increased that the country would slide into an economic recession, similar to the Great Depression in 1929.

Finally, the White House was renovated in 1948, on the day engineering reports indicated that the President's residence had become worn out after 130 years of construction, forcing President Truman to take the southern wing from (Blair's House) adjacent to the White House. By objective coincidence, my host took me to Blair's house in the spring of 2015 to brief me on President Truman's southern flank, and I then looked at the table the president had occupied and went on secretly, saying: "Here, the distinction was really made between stagnation and recession."

(*) Academic economic researcher and financial advisor to the Iraqi government

Copyright reserved for the Iraqi Economist Network. Republishing is permitted provided the source is indicated. April 23, 2020

 

To download the article in PDF format, click on the following link

Dr. Appearance of Mohamed Saleh - Contemplaries in the Economic History of Recession and Recession in the United States of America - Edited

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Planning: Iraq consumes goods and goods valued at 50 billion dollars annually

 

 
Time: 4/23/2020 19:52:52  
 
 
Planning: Iraq consumes goods and goods valued at 50 billion dollars annually
  

 

{Baghdad: Al Furat News} 

 

 

 

The Ministry of Planning announced today, Thursday, that Iraq’s consumption of goods has reached $ 50 million annually.


The ministry’s spokesman, Abdul Zahra Al-Hindawi, said: “The National Food Security Project in Iraq was launched as part of a development plan, considering that annually there is a large monetary block descending on the Iraqi street, which is represented by salaries {600} trillion dinars, which is equivalent to more {55} billion dollars. annually".

He added, "Also, 32% of Iraqi families' spending goes to provide food, therefore this number is calculated from 60 trillion, which will reach 15 billion dollars. It can be invested at home instead of going abroad." He explained, "This money will go towards supporting agriculture in Iraq and increasing its contribution." GDP in advanced proportions, based on the possibilities it possesses. "

Al-Hindawi added, "We have very good capabilities in Iraq, with 52 million dunums of arable land, and what is exploited of them is 10 million dunums. Iraq also has good water resources," revealing "adding a million dunums to the agricultural plan in the desert of Najaf and Samawah, relying on well water." .

He explained that "the food security project aims to enforce the law, set borders and determine import to protect the local product," noting that "the idea is not born today and support to the agricultural sector exists within the development plan and the government program since the Minister of Agriculture took office in 2019."

And Al-Hindawi added, "We started to implement the plan and paid off, as the contribution of agriculture reached 7% after it was 2%. Today, as a result of this plan and the ban, Iraq has not experienced any crisis in agricultural crops in the presence of 25 local products available that will cover the local need, and there are other steps, perhaps in the coming months we will be exported to overseas barley crop by 850 thousand tons , in addition to other agricultural crops, eggplant , pomegranates, dates and other ".anthy  
Wafa Fatlawi

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Prof. Abdul-Hussain Al-Anbuge *: Presentation of the book marked “Excessive exchange rate ... repression of the local product, in support of the importer”


04/24/2020
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Prof. Abdul-Hussain Al-Anbuge *: Presentation of the book marked “Excessive exchange rate ... repression of the local product, in support of the importer”

He says John Mainrd Keynes "The practitioners of economic activities who think themselves modernists from any intellectual influence of prisoners are mostly economic ideas from bygone eras, and the insane power of crazy ideas deriving half old academics ."

How big you are, the owner of the Kenzi school, which created a great intellectual turn in the economy after you rebelled against a huge intellectual legacy represented by the classical school, which contains a lot of logical reasoning. Your condolence, at least, that those who attacked you had studied economics intellectually, schools, and saturated with the market mechanism and the invisible hand and limiting the functions of the state to being a guard and knowing the price system and complete competition and many others and attacking you with the logic of the economy, so what can I say in my country Iraq and most of its institutions met Sadia is devoid of any economic person, or at the very least, a person who studied the principles of economics, and I do not say go deeper into the models of total balance, analysis of elasticities, responses, and economic measurement models. In my country, all of his economic decisions are made by doctors, engineers, chemists, physicists, religious scholars, and politicians, and only economists are absent from them, because they are

You are fortunate, Mr. Keynes, at least, because there is a language of specialization with your opponents and agreed upon vocabulary to define it. As for me, I am forced to deal with people from the era of Robinson Crusoe in 1659, who were stranded on an empty island in the heart of the sea alone, and he seemed thinking about how to provide his basic needs that Keep it alive to begin knitting economic thinking as if in primitive times.Those who are with me, Mr. Keynes, are likewise, mobilizing their essence to devise innovative solutions from their shortcomings because they did not read the theories and solutions that fill millions of economic books. Those with me are ignorant. If we accept that every ignorant person is not in his jurisdiction, and if it were to be ignorant, the problem would be simpler. But ignorance, in two ways, once because they do not realize that they are ignorant, they seek help from someone who understands, and once because it is combined with personal interests that have permitted all methods leading to wealth at the expense of the homeland, so illegitimate marriage has become between power and money, we have only children, ideas of lame, lame solutions, truncated projects and retreats Sustainable.

This book wants to shed light on monetary policy in one of its most important tools which is (the management of the Iraqi dinar exchange rate) that distorted administration that has boosted the rentier of the Iraqi economy and by extension boosted the sovereignty of the foreign product and devoted the defeat of the domestic product in the context of rapid steps that may not be free from external agendas in solidarity with Ignorance and corruption, whether according to the method of entrapment without knowing it is stupidity or according to the method of collusion knowingly it is (conspiracy) or that it is without knowing it is (disregard) or that there are pressure and coercive forces for economic decision-makers it is (failure), or the three together, in a political process whose poles are inconsistent Everyone sells his loyalty for the price J acceptable to himself, because they simply naive not aware of the strengths of the Iraqi economy does not know how to harness them, but do not know how to negotiate even with international organizations on them, thereby exacerbating the economic and unemployment deflation persisted in the arrest of industrial and agricultural production machine in favor of the foreign product and enter into the phenomenon of Sleeping economy (Sleeping

And when the monetary policy in the instrument (the exchange rate) contradicts the fiscal policy in its tax part, especially the customs that is supposed to seek to protect the local product, then this absurdity in the vision and economic decision will have a binding effect on real economic development, since how two policies in one country support both Competitors together (the local product) and (the foreign product) at the same time, rowing in opposite directions keeps the ship stalled or it is heading towards the strongest, and the strongest in Iraq as will be seen through the chapters of this book is to support the foreign product through the overvalued exchange rate in it.

The importance of the book in your hands, my love, comes from the importance of finding alternative sources of financing in light of the financial crisis and the decline in oil revenues and submission to the global market crises and political battles, and that it links the contradictions between the financial and monetary policies in a way that makes their actions go to waste and wastes opportunities for development in Iraq and opportunities to exit from Rentier monism of the economy and its structural imbalance, as well as the fact that the book identifies glitches and attempts to quantify them, allowing the reader to find comparative tools that are easy to understand.

Maintaining the management of oil revenue in the same manner as it has been for decades means keeping the government sector dominant, and it means keeping non-oil revenues declining and the tax base shrinking and will not allow increasing tax revenues at all, and the excessive exchange rate in it achieves a direct loss in financing the public budget and a recession factor To the economy, and biting into the protectionist efforts of the customs policy.

From this standpoint, the book carries on itself the task of going into an unfamiliar way, diagnosing glitches and disbeliefs with all the dysfunctional institutional mechanisms and structures and conducting comparative analyzes with the experiences of similar countries in order to get out of the hegemony of what he called Keynes the old economists and the scum of intruders from non-specialists, and trying to escape from the mafia grip Personal interests and the quagmires of corruption, this task that my voice has been talking about for a decade without success and for which it has borne a lot of threat at times and marginalization sometimes, I put it in the hands of young generations of economists and graduate students, perhaps they come out of misleading politicians I welcome spaces for reflection and stronger citizen for change, and here I will be a fair witness and from within the event on an era in which the political decision and political interests were governed by the objective economic decision and contradicting it in the directions and therefore Iraq remained without development and without employment and the revolution of the hungry and the unemployed may erupt at any time, and here A quote from the mayor must be cited Mr. Tariq Amer, who led the policy of abandoning the exchange rate support to the pound, saying, " I will not be happy if the exchange rate of the pound is high while the factories are successful and not working ."

 

The feasibility of reducing the dinar exchange rate and getting rid of the currency auction

 

The exchange rate of the Iraqi dinar has an unrealistic value raised by pumping billions of dollars into the currency auction, amounting to (445) billion dollars for the period 2005-2017, during which the Central Bank dispelled a lot of foreign exchange reserves, and achieved a direct loss in financing the state's general budget estimated at billions of dollars if The exchange rate of one dollar = 1500 dinars, and the difference between the floating dinar exchange rate and the current official exchange rate provides net protection for the imported foreign product that bites all the protective efforts that may be provided by timid customs tariffs, which made the Iraqi production sector stalled and the commercial sector In a prosperous economy that boosted the rentier economy, adopting a gradual managed float to reduce the dinar’s exchange will generate commendable inflationary pressures that are exacerbated by expectations at first, but they soon decline with the extent of the flexibility and response of the production system as idle factories and abandoned farms operate because they are not currently competitive, and can For actions

(*) Adviser to the Prime Minister for Economic Affairs since 2005 until now

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Governmental advisor: Iraqi oil falter due to buyers shortcomings


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04/25 2020 03:24:46

 
Shafaq News /
Mazhar Muhammad Salih, the economic advisor to the Prime Minister, Adel Abdul-Mahdi, stated on Saturday that some Iraqi buyers are reluctant to supply oil due to the saturation of global markets with crude stocks.

Saleh told Shafaq News, "There are two issues that make up the difficult oil equation in Iraq: The first relates to Iraq’s commitment to the OPEC agreement that the commitment is a real-world issue and not an option for this because there is a global oil glut on two levels. The first oil market is saturated with oil stocks that exceeded the storage capacity in the world because of The world's transportation and industry cupboards have stopped because of Corona and the supply still exceeds demand by about 30%. "

He added that "the second level is that the oil supply to Iraq itself suffers from a problem in its stability. The supply in some of the main demand markets is being faltered by the shortcomings of some buyers and the international economic reason itself."

Saleh added, "As for the second party of the difficult oil equation, which is currently undertaken by the oil administration to achieve the necessary and equitable solutions due to the growing separation between the amount of oil that is paid to international foreign companies (in kind), that is, the cost of developing oil fields (which are fixed-value costs mostly) and between The value of the oil paid itself to settle the dues and settle it, which is condescending or low in value (i.e. according to the currently low oil prices for fixed development costs), which requires compensation in double quantities, and Iraq is under production, the stability of development costs and the deterioration of prices will lead to depriving Iraq of quantities that Production large pay to address fixed costs and creating a gap detrimental financing of public finances. "

The advisor indicated to the Iraqi government that "the difficult oil equation is truly two-fold, whose center is the contradiction between the drop in global oil prices and the loss of additional quantities of crude oil to pay fixed value receivables. This is a matter of high attention on the part of the oil and financial authorities in Iraq to search for greater solutions. General budget resources and find a solution to the oil equation. "

The Iraq Oil Report website, which specializes in following up Iraqi oil news, said that Iraq will face major technical and financial complications when it begins to reduce oil production in support of the OPEC agreement to withdraw nearly 10 million barrels per day from the market to counter the decline in crude oil prices.

According to the site, Iraq will not be able to meet the agreement to reduce its share only through agreement with international companies that manage oil fields, and it is expected that it will face difficult negotiations with those companies, given the provisions of contracts that protect companies in such circumstances.

Iraq has committed to reduce its oil production by up to 23 percent starting next month, which will affect the current production, which averages about 4.5 million barrels per day.

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22-04-2020 12:07 PM
 

The Economic Council warns the government against implementing the proposal to print local currencies

 

image.php?token=0b0329526e428962e934237cfbf76b3f&c=2433507&size=
 

 

Baghdad / news

 

On Wednesday, a member of the Iraqi Economic Council, Ghadeer Al-Attar, warned of the danger of the government supporting some proposals to print local currencies outside the central bank's cover.

Al-Attar said in a statement received by "Al-Akhbariya", that "printing the currency without a cover is a catastrophe and there are great areas for corruption in addition to losing the national currency to its value in exchange for gold."

He added that "the subject is a dangerous adventure and the damage will be reflected in the middle class more than others", indicating that, Iraq is able to cross this crisis and it is temporary, no matter how long it takes.

Al-Attar suggested that "the debt of reserves in 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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World Bank: Iraq’s economy will shrink by 7.5% in 2020

 

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04/25/2020

 

Economy News _ Baghdad

 

Experts predicted Standard Chartered Bank, on Saturday, that the Iraqi economy faces a contraction in gross domestic product for 2020 by 7.5 percent, as a result of signing the agreement (OPEC +) and the Corona pandemic that hit the country

The British bank, which belongs to the London-based multinational banking and financial services company, had previously forecast a 2.1 percent growth in Iraq

The British Bank builds its forecasts for the Iraqi economy based on its oil exports, local currency exchange rates against the dollar and non-oil imports

In a study on the economy after the Corona pandemic, the bank said, "We now expect Iraq’s GDP to shrink by 7.5 percent in 2020 against our previous growth forecast of 2.1 percent"

"Our classification (for the Iraqi economy) is based on both the signing of the OPEC agreement + and the deeper recession in the non-oil sector in light of the turmoil related to Corona, as well as the social unrest," he said

And the British bank raised its expectations regarding the deficit of the financial account and the current account to 13 percent and 11 percent of the gross domestic product after it had previously expected it to be 10 percent and 8 percent, respectively, for the (OPEC +) agreement

Standard Chartered suggested that Iraq would face difficulties in facing the prolonged decline in oil prices without external support, pointing out that this means that the country may return to borrowing from the International Monetary Fund

The bank’s report indicated that borrowing now for Iraq is not possible, and linking an agreement with lenders with the formation of a new government in Iraq

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Iraq announces regional and Arab interest in purchasing its agricultural and animal products

 

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 04/25 2020 06:09:05

 

Shafaq News / 

 

 

The head of the Parliamentary Committee on Agriculture, Water and Marshlands Salam Al-Shammari announced an increase in the regional and Arab demand to purchase local agricultural and animal products.

Al-Shammari said in a press statement today that Iraq, after achieving most of the local crops and agricultural products, the export process became something available in light of the national desire to increase revenues.

He added that the ration card will witness during the coming period a full national sufficiency in materials supplied to citizens in addition to increasing its materials to suit the conditions of the current stage.

Al-Shammari said that the existing crops and products imported in the local markets are part of joint agreements for certain periods and to enhance relations with different countries.

The peasants, farmers, owners of fields and hatcheries are assured of their production, which will find its market locally, regionally and Arably, especially as Iraqi crops and products have their external market, no matter how late their export is due to known conditions.

The Iraqi government seeks to enhance food security and maximize economic resources in the country in light of the sharp decline in crude oil prices in global markets.

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.

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Baghdad discloses the volume of Iraqi oil exports to East Asia

 

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26th April, 2020


The Prime Minister’s Advisor for Economic Affairs, Mazhar Muhammad Salih, revealed on Sunday the volume of Iraqi oil exports to East Asian countries.

Saleh told Shafaq News, "The world economy will improve after the end of the Corona crisis in East Asia, especially as the Republic of China is the largest importer of crude oil in the world."

He added that "Iraqi oil exports 80% of them go to China, India and East Asian countries, while 20% of the remaining exports go to Europe, America and other countries," stressing that "China imports approximately 22% of Iraqi oil exports."

On the import of China and India from world oil, Saleh said, "China imports daily 10 million barrels per day, in addition to India, it also imports 5 million barrels per day."

The Iraqi government seeks to enhance food security and maximize economic resources in the country in light of the sharp decline in crude oil prices in global markets.

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 resource

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6 hours ago, TOMINVEGAS said:
I would be somewhat happy with 27 cents like the Saudi Riyal exchange rate
 
 
1 Saudi Riyal equals
0.27 United States Dollar
 
 
 

Anything over ZERO

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