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Justifications For Changing The "Iraqi Dinar" Exchange Rate


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CNN. Broadcasting With Justification From The Experts !     LINK Justifications For Changing The "Iraqi Dinar" Exchange Rate     9th October 2020 Iraq is

You don’t need to justified anything, just increase the dinar exchange rate and let it be subject to the forces of supply and demand.   Go open market economy  Go free dinar Go RV

The delay in salaries will be "repeated" .. The likelihood of escalating in economic circles and a proposal that will move Iraq to an economic "competitive" position in the world! 2020

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Great job as usual Thugster!!  Justification....give the citizens their wealth back!  Justification....Make Iraq Great Again!!  Oh, that one is taken!!! 😂  Anyway, back to number one...give the citizens their wealth back!!

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The delay in salaries will be "repeated" .. The likelihood of escalating in economic circles and a proposal that will move Iraq to an economic "competitive" position in the world!


2020-10-08
 
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Yes Iraq: Baghdad

 

Estimates and weights are rising, with the recurrence of the crisis of delaying salaries during the coming months after the difficult payment of salaries for the month of September and amid a series of complications and talk about bankruptcy, while the Iraqi street awaits the government's strategy in the white paper to reform the economic situation and how to address the financial crisis.

 

The crisis will repeat ... and we can move to a competitive economic ranks

The economic expert, Mahdi Douai, said that the delay in paying the salaries of employees in the country will be repeated, and while noting that the economic crises will be more severe in the future, he stressed the need for Iraq to move from the rentier economy to the diversified as a strategic solution for the future.

 

Douai, dean of the Faculty of Economic Administration at the University of Diyala, said, "The economy of Iraq in general depends for the most part on a rentier commodity (referring to crude oil, whose prices are determined according to the principle of supply and demand), meaning that the determination of prices is outside our control." A rentier economy in the world, its risks are greater and its capabilities in facing economic challenges are weaker. Therefore, the exposure of the country's economy to financial shocks will continue.

Douai added, "Iraq's transition from a rentier economy to a diversified economy is a strategic necessity by investing our capabilities in many sectors, including agriculture and industry, and achieving self-sufficiency, which will provide 3 positive and important things, which are the absorption of unemployment and the provision of hard currency, not to mention its repercussions in supporting the exchange rate."

The dinar will make the level of facing any setbacks stronger.

 

The Dean of the Faculty of Economics at the University of Diyala indicated that "the salary crisis will not be resolved as long as we depend on oil in a very large percentage to finance the country's budget," noting that "there are countries whose economic situation was worse than Iraq, including Rwanda, which decided to move to the stage of diversifying the economy Opening the doors to investment and tourism, to turn it into the 40th place in economic competitiveness around the world.

The economic expert advised, “the formation of economic committees supported by experts from Iraqi universities to develop future solutions for the national economy because immediate solutions will not be able to face crises, especially in light of the fluctuations in the energy sector and the emergence of Corona, not to mention the demographic explosion in Iraq and the rise of its population significantly. It calls for developing a long-term strategy for the national economy file.

 

For her part, a member of the Parliamentary Economic and Investment Committee, Nada Shaker Jawdat, said that the mismanagement and the lack of transparency in the current government and its predecessors, were the main reason for the financial crisis we reached, for which important segments of the Iraqi people paid for.

It indicated that "there are trillions of dollars that entered the state's treasury, and despite this, we did not find any investment project, building new hospitals or schools, or economic activity, or developing into agriculture, industry, or infrastructure, and despite this we do not know where these funds went and we did not find any accountability for any One of the corruption whales ”.

Jawdat added, "The current situation makes us need to focus on the next stage, find real solutions to the financial situation in the country and put in place correct plans to save the situation. The government has not yet controlled all the outlets and has not been able to force the Kurdistan region to hand over its financial obligations from the outlets." And imports of exported oil, as it did not address the issue of currency auction and did not find solutions to control customs and taxes. The communication file is still unclear, although it is considered one of the important sources of revenue in the world.

 

Jawdat emphasized, "The need to start a process of limiting a number of unnecessary ministries and bodies that burden the state treasury with its financial benefits and allocations and does not provide anything to the country in addition to reducing the social benefits of the three presidencies and transferring them to the state treasury with resolving the issue of aliens that we hear in the media without a real solution to it. “.

 

And she continued, "The continuation of this confusion and the failure to present actual plans equal to the scale of the crisis and in a professional and thoughtful manner. We will not see a glimmer of hope, and that the scene of salary delays will be repeated in the coming period because the government is unable to solve its problems, which need actual, bold and studied steps to overcome the crisis instead of prosthetic solutions." And resorting to loans that will be paid by the simple citizen.

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Iraq officially joins the European Bank membership and revealed its benefits

 
Iraq officially joins the European Bank membership and revealed its benefits
 
 
10/09/2020 15:26:38
 
 
The Ministry of Foreign Affairs announced that Iraq has officially joined the European Bank.
 
A statement of it stated that the Euphrates News Agency received a copy of it, "The relentless efforts of the Ministry of Foreign Affairs represented by the Embassy of the Republic of Iraq in London and the European Bank for Reconstruction and Development have resulted in the approval of the members of the Bank's Board of Governors for Iraq to join the Council, during the voting process witnessed by the work of the annual meeting For the Board of Governors, which will be held in London for the period 7-8 October 2020." He added, "Iraq’s formal accession to the bank’s membership will allow it to benefit from international banking expertise to develop the banking sector, and to obtain technical support and assistance that creates a suitable ground for investment."

The statement continued, "This common achievement has been secured despite the difficult circumstances imposed by the outbreak of Corona virus on various countries of the world, including Iraq. We hope that this step will be an introduction to joint action aimed at strengthening the private sector in Iraq to be able to compete and contribute to supporting development." Sustainable in the country." He pointed out that "on this occasion the embassy appreciates the efforts of the European Bank for Reconstruction and Development, especially the members of the Board of Governors, Secretary General Enzo Kwatruchuchi, and the staff of the Secretary General's office."


#######

Foreign Ministry announces Iraq's formal accession to membership in the European Bank    LINK

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21 minutes ago, NWGUY said:

Great job as usual Thugster!! 
Justification....give the citizens their wealth back! 

Justification....Make Iraq Great Again!!


:o 

 

image.jpeg.77137981879aaf09b4bd641f31b836b8.jpeg

 

:D  :D  :D 

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17 minutes ago, GreedyDinar07 said:

Do Anybody know where I can buy some more Dinars? Treasury Vault is on back order and SafeDinar is out of stock,

SafeDinar was out of stock a month ago and I kept checking every morning until more was available and I was able to purchase more. Though with everything happening the way it is now, maybe that has changed. 

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2 hours ago, GreedyDinar07 said:

Do Anybody know where I can buy some more Dinars? Treasury Vault is on back order and SafeDinar is out of stock,

 

I usually buy off of eBay and check the security features when they arrive. A lot of people, including myself, have had to sell on eBay during times of financial difficulty. I haven't had any issues with eBay, so that's my go-to source to buy more.

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In front of an unknown financial future ... a single solution agreed upon by Iraq's economists, which represents the point of "no return"


2020-10-09
 
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Yes Iraq: Baghdad

 

The recent economic crisis in Iraq, which reached the government deficit by paying salaries, has brought back enthusiasm to the economic experts in Iraq, to put forward what they have been saying for years, and in front of the closed roads and the "helpless" economic strategy that Iraq is following at the present time and recognized by the Ministry of Finance and the current government, A large number of Iraqi economic experts agree on a very important and necessary fate.

 

It is clearly known to everyone that the biggest cause of the current economic crisis and its effects on Iraq due to Corona, is the decline in oil prices as well as the reduction in oil sales according to the OPEC agreement, which easily shook the Iraqi economic entity within a few months, in a situation that makes Iraq, its sons and its money a hostage to the market mood Global oil prices and sudden conditions

 

From this standpoint, Iraqi economists agree on the need to exit from the "rentier economy", and to go immediately to the oil and non-oil industries, export, tourism and investment, and various other fields and sectors. Economists agree that their behavior and work in them will be linked to a boom in the Iraqi economy.

 

4 files will cause a boom in the Iraqi economy

Economic specialist Jamal Shaker said that the current economic crisis was formed as a result of the wrong economic policy of previous governments, indicating that exit from it requires an independent political decision.

Shaker said in press statements that the country's dependence on the rentier economy is wrong and it can be transformed into diversified by paying attention to religious tourism facilities and restoring life to factories that have been out of work for years and activating the investment economy by attracting capital owners and converting oil into industrial products, indicating that If these files were applied according to well-thought-out plans, a boom would occur in the Iraqi economy.

He added that Iraq possesses all the ingredients for economic advancement and prosperity, but external interference in the political decision prevents the progress towards achieving a strong economy through which the daily life requirements of the citizen can be secured and the return of confidence in state institutions.

 

Delay in salaries will be repeated .. The strategic solution is "simple"

For his part, the economist Mahdi Douai stressed that the delay in paying the salaries of the country's employees will recur, and while noting that the economic crises will be more severe in the future, he stressed the need for Iraq to move from the rentier economy to the diversified as a strategic solution for the future.

Douai, dean of the Faculty of Economic Administration at the University of Diyala, said, "The economy of Iraq in general depends for the most part on a rentier commodity (referring to crude oil, whose prices are determined according to the principle of supply and demand), meaning that the determination of prices is outside our control." A rentier economy in the world, its risks are greater and its capabilities in facing economic challenges are weaker. Therefore, the exposure of the country's economy to financial shocks will continue.

Douai added, "Iraq's transition from a rentier economy to a diversified economy is a strategic necessity by investing our capabilities in many sectors, including agriculture and industry, and achieving self-sufficiency, which will provide 3 positive and important things, which are the absorption of unemployment and the provision of hard currency, not to mention its repercussions in supporting the exchange rate." The dinar will make the level of facing any setbacks stronger.

The Dean of the Faculty of Economics at the University of Diyala indicated that "the salary crisis will not be resolved as long as we depend on oil in a very large percentage to finance the country's budget," noting that "there are countries whose economic situation was worse than Iraq, including Rwanda, which decided to move to the stage of diversifying the economy Opening the doors to investment and tourism, to turn it into the 40th place in economic competitiveness around the world.

The economic expert advised, “the formation of economic committees supported by experts from Iraqi universities to develop future solutions for the national economy because immediate solutions will not be able to face crises, especially in light of the fluctuations in the energy sector and the emergence of Corona, not to mention the demographic explosion in Iraq and the rise of its population significantly. It calls for developing a long-term strategy for the national economy file.

 

There is no deficit in the budget .. but in the monetary balance

The economist, Imad Abdul Latif, elaborated on conveying a "huge" opinion to what he described as his "professor", the economic expert, Dr. Ahmad Al-Buraihi, about the problem of the government's inability to pay the salaries of employees, and clarifying the confusion and confusion between the general budget, the cash budget, and the financial management crisis in Iraq.

Abd al-Latif, in his lengthy explanation followed by Yass Iraq, began by asking: “Is the“ problem ”of the government's inability to pay employees’ salaries a “fabricated”, “fabricated” and immediate problem that is being exaggerated in the short term .. and it is solvable in the long run Al-Taweel .. and that the monetary and financial institutions (and authorities) in the country know the causes and dimensions of this “problem” well, and know (and this is the important thing) that they are able to develop appropriate solutions for them, with the means and resources available to them?

 

He added, “About this question, my esteemed professor and the beautiful Iraqi mind, Dr. Ahmad Ibrihi Ali, answer the following:

The problem is not in salaries, as the current crisis can be managed with internal borrowing, and the Central Bank is helping government banks to perform this task, for the remainder of 2020 and 2021.

- The delay in the payment of salaries occurred due to obstacles of a coordination and procedural nature between the government and the parliament. And that it is easy to overcome these obstacles, and it is expected (logically) that salaries will not be late, nor should they.

- There is always fear of intimidation and confusion between medium and long-term goals, that is, between those goals related to development and diversification, on the one hand, and the ongoing management of financial and monetary operations on the other hand.

And here it is no secret for any Iraqi, or those familiar with the economic affairs of Iraq, that the general budget revenues, other than crude oil, appear to be non-existent, and that the financial sector is strange in its underdevelopment .. No taxes are sought, nor are bonds bought by the public .. What remains but borrowing from the banking system, and what remains other than auctions, satirical poems that do not work.

- There is an axiom that the deficit in Iraq is twin, or double, that is, a deficit in the balance of payments, and a deficit in the state's general budget. This occurs because oil exports are almost the only source of foreign exchange, which when the price collapses below the volume required to finance imports of goods, services and other payments.

- The problem of Iraq and the threat looming in the future is the potential deficit of the balance of payments, not the deficit in the state's general budget.

Emphasizing the need to prepare the cash budget (or management cash) as a basic element in managing public spending to avoid surprises and sharp changes, as much as possible, and also to regulate borrowing whose close relationship with the monetary policy and international reserves of the Central Bank is not hidden.

- The core issue in the monetary budgets in Iraq is the distinction, without ambiguity, between two systems of funds and inflows and outflows, namely: funds, resources and uses in foreign currency, and another in the national currency.

- Here, we must abandon the approach recognized in the Ministry of Finance, which is that resources and uses are the same, and are expressed in two currencies: a dinar and a dollar. The budget, according to the prevailing and influential perception in decision-making circles, is oil revenues in dollars that are mathematically translated into dinars and spent.

- This understanding was behind a lot of confusion, and was also a major reason for impeding the development proposals. This understanding is the truest expression of the reason for the split between the external balance of payments and the general budget in Iraq, in thinking and economic policy, and it is also one of the causes of theoretical ambiguity and neglecting the realistic difference between the necessities and implications of internal and external borrowing. (For more details, see Professor Ibrihi’s study, the task: “Budgets Cash to the government finance department, ”link is mentioned in the comments).

Hence the necessity to focus on building productive capacities destined for export. (Professor Ibrihi had previously presented (in his latest research) a brief proposal for an investment program for this purpose) .. And now also, here he is repeating his call to everyone who is keen on the future of children and grandchildren, to be a support and aid in order to focus awareness on an investment program to build Productive capacities for export, and that the government immediately commits to it.

The economy, any economy, is limited by two restrictions: the domestic productive capacity restriction, and the balance of payments restriction. As long as the economy does not approach the limits of production capacity, as is the case in Iraq, the explosion of inflationary waves is not afraid, regardless, yes, regardless of how the public budget deficit is financed.

- But the problem here lies in the restriction of the balance of payments, because the foreign exchange inflows into Iraq are less than the annual demand. Until now, the reserves of the central bank are still filling this deficiency between foreign exchange inflows and annual demand, and imports are still funded in the required volume..and this process (with the continuation of the low level of oil price) will reach its maximum limits .. Yes, it will reach its maximum limits if we remain We are unable to find solutions ... but not in 2021.

- Everyone (economists, or those concerned with economic affairs) should review the data of the World Bank (WDI) (World Development Indicators | DataBank) data ... as it will become clear to them that the percentage (or share) of manufacturing exports to total exports constitutes more than 70% The world level), and in the countries of East Asia and Germany, this percentage reaches 80%, then 90%.

Therefore, Professor Ibrihi suggests that 70% of the non-oil exports targeted in the investment program be from the share of the manufacturing industry, and the remainder from non-oil mining (including gas and agriculture), and that we have no other choice. As for the infrastructure, there are specific proposals for their development.

- With great regret, the members of Parliament, the government (including the Ministries of Planning and Finance), as well as economics professors, have insisted on defining the problem as a problem of deficit in the state budget, when in fact it is a problem of deficit in the balance of payments.

Mr. Ibrihi concludes his answer by stressing that the problem is not in salaries, nor in “monetizing debt,” but rather in distracting awareness from the necessity of economic growth through industrialization ... that miraculous historical process that made the civilization of this world.

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A legal expert demonstrates the validity of officials in state institutions to pay the salaries of their employees

 
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10:35 - 10/09/2020
 

The legal expert, Ali Al-Tamimi, explained the extent to which directors of departments and state institutions are able to disburse the salaries of employees, pointing out that salaries are spent in the event that liquidity is available in the concerned department, although the party responsible for the disbursement is the Ministry of Finance.

Al-Tamimi told / Al-Maaloumah /, that “the occupational work system in Iraq is based on the payment of salary every 30 days and it is adopted in most countries of the world, and stipulated by the civil service laws 24 of 1960 and the salary scale law 22 of 2008 and others, but if the delay is for matters An arrangement or inventory is okay, but the recurrence of the case violates these laws and can be challenged before the administrative court and obtained retroactively.

He added that "salaries come from the Ministry of Finance exclusively according to the financial allocations, and directors of the financial department in the ministries can if they have cash in the ministry's tanks, then they can pay the salaries."
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11 hours ago, DinarThug said:

CNN. Broadcasting With Justification From The Experts !
 

 

LINK

Justifications For Changing The "Iraqi Dinar" Exchange Rate

 

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9th October 2020


Iraq is going through very sensitive conditions, as the Iraqi economy faces a real challenge after the excruciating failure to find alternatives to selling crude oil, prosthetic solutions, and weak control over public expenditures, and with the absence of sovereign investment funds that secure additional imports and a portfolio to protect the future of generations, especially in times of crisis.

  • Aid request to pay salaries

Iraq today has reached a request for aid in order to pay the salaries of employees and retirees because what enters the treasury is not equal to less than half of what Iraq needs to cover salaries only, although the government has solutions if there is the will to improve the financial position and fill the budget deficit, by reducing public spending and controlling Wasted resources and support for the local industrial and agricultural product and other economic solutions, the most important of which is the central bank’s approach and monetary policy that restores the balance of the dinar’s price against the dollar in the daily auctions to sell the dollar by the Central Bank of Iraq, by raising the subsidy slightly from the exchange rate in a way that achieves the price change at a specific and studied rate To avoid the issue of inflation.

  • Taking into account international economic variables

Our constant demand for a change in the exchange rate was based on a realistic vision that included all aspects of international economic variables due to the decline in oil prices and the Corona pandemic, as well as the chaos of imports, the loss of control and control over the border outlets, the volume of counterfeiting, corruption and smuggling through unofficial outlets, all causing the Iraqi market to be violated. And dumping it with inferior and cheap commodities and preventing the upgrading of the local product, which requires a review of the monetary policy to curb this chaos and achieve tax and customs revenues equivalent to the volume of imports, which we and with us many experts and specialists in financial affairs believe that the exchange rate must change, provided that it is accompanied by a set of supportive measures and decisions, to control Expected inflation.

  • The failure of the previous administration of the Central Bank of Iraq

However, the previous administration of the Central Bank insisted on continuing with the policy of fixing the dinar’s price against foreign currencies, under the pretext that changing the exchange rate would reflect on high prices and inflation and harm vulnerable social strata and other justifications that do not get fat or rich from hunger. The continued sale of the currency at a fixed exchange rate by the Central Bank will lead to the bankruptcy of the state and the collapse of the economic system in conjunction with the decline in oil prices and the abandonment of a million barrels of its share for the benefit of others in these difficult circumstances the country is going through,

The assumption that the survival of this equation, which is in support of imports, industries and exports of neighboring countries, will lead to the accumulation of goods in exchange for a cheap dollar that the exporting countries benefit from at the expense of the Iraqi economy stopping. The basis on which we started by demanding a change in the exchange rate is the fact that the state is not fully in control of the imports of the border outlets, including those in the Kurdistan region,

 
  • Exchange rate change proposal

Therefore, we included the proposal to change the exchange by collecting tax and customs duties in advance from importers in the window of currency sale, and to clarify the matter, if we calculate the price of oil specified in the draft budget law at (56) dollars per barrel, meaning the rate of decrease is (15%), so the exchange rate is assumed ( 1300) dinars per dollar, and if (5%) was levied for the tax and (15%) for the customs fee and added to the exchange rate to become (1500) dinars per dollar, so we would have withdrawn the rug from the corrupt in the northern, western, eastern and southern outlets and we got On revenues from the state treasury, the monetary result to the state treasury every day is the sale of a dollar at a rate of (200) million dollars, and in the case of adopting the new exchange rate, it will be (60) billion additional dinars for each auction day, which is approximately (18) trillion dinars annually.

Conclusions:


First - Achieving revenues for the federal government’s treasury that exceeds (18) trillion dinars annually from the amount of tax and customs, with a price difference at least.

Second - Elimination of currency smuggling, as imports will be real and in the amount of transferable sums.

Third - ending the phenomenon of tax and customs evasion at the border crossings.

Fourth - the submission of all ports to the authority of the federal government and thus solve the problem of imports of goods and goods from the ports of the Kurdistan region because of the preference in terms of taxes and customs fees.

Fifth - ending all tax and customs exemptions for institutions and government departments and others.

Sixth - ending the phenomenon of the mediator in selling dollars and commissions of private banks, because dealing must be with the real importer and not with speculators, which will be reflected in the development of the export sector for local products and the creation of job opportunities.

Seventh - Streamlined flow of goods and goods from the border crossings.

We expect the new administration of the Central Bank of Iraq, which has taken positive steps to correct the previous paths and approaches, which are in line with the reform plan, more decisions to create a real banking sector, and we hope from them to study the ideas and proposals presented by our council that serve the public interest.

great find DT,Best article I've Seen in a long time. thank you

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