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5 hours ago, Longtimelurker said:

I've seen where they leave the 0s out of the figure. When they said 120 for every 100 usd, it meant to read 120,000 for every 100 usd. This could be different than what I've seen in the past, who knows.

 

I agree. If past were precedent, the paragraph from the article I posted would not hold true.

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2 hours ago, screwball said:

Unless speculation served a purpose?

Well, that secondary senario would possibly lead to their “plan B,” which Adam described a while back which involved a float.  Maybe that’s why that economist? In I think yesterday’s article said a float would not work

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8 hours ago, Longtimelurker said:

I've seen where they leave the 0s out of the figure. When they said 120 for every 100 usd, it meant to read 120,000 for every 100 usd. This could be different than what I've seen in the past, who knows.

That was my first thought as well. I re-read it about 5 times. Still, I’m hoping!!! This could be amazing 🥳💰🤞🏻🙏🏻

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Central Bank: The dollar is fixed, and our reserves are good

Monday 19 October 2020 145

Central Bank: The dollar is fixed, and our reserves are good
 
  Baghdad: Morning
 
The Central Bank confirmed, yesterday, Sunday, the stability of the dollar exchange rate against the Iraqi dinar, indicating that its foreign currency reserves are "very good."
The bank said in a statement: "The statements that have spread recently regarding the reduction of the Iraqi dinar exchange rate against the dollar represent the viewpoint of those who stated it and do not represent the official position of the Central Bank. This was accompanied by a number of rumors launched by speculators, which temporarily affected the price."
He added that «the exchange rate is fixed and has not changed, and that the bank’s monetary policy is clear and transparent, noting that its foreign currency reserves are very good according to all international indicators, in a way that enables it to overcome the current crisis the country is going through.
The Central Bank called on the media to "exclusively approve the sources of the Central Bank in this regard
Edited by 6ly410
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The government is considering a proposal to reduce salaries by 50%
 
11982.jpg
 
 
 
https://economy-news.net/content.php?id=22312
 

Economy News - Baghdad

The proposal to reduce the value of the Iraqi dinar against the dollar is still one of the solutions proposed to secure the salaries of employees and retirees and social care for the remaining months of the current year .

The government has also begun to study other proposals, most notably the abolition of salary allocations or reducing salaries to 50 %.

Surprisingly, the dollar’s exchange rate rose three days ago in the stock market and local markets, before gradually declining again during the past few hours .

The circumstances of the financial crisis and the collapse of oil prices in global markets and the repercussions of the Corona virus pandemic prompted Mustafa Al-Kazemi's government to review the financial policy in Iraq in order to overcome the financial distress threatening the Iraqi economy .

The appearance of Muhammad Saleh, the financial advisor to the Prime Minister, explains the reasons for the high exchange rate of the dollar during the past two days, saying that "the monetary market in Iraq is sensitive and affected by economic and political information and news, which is reflected in the demand and supply process for the dollar ."

Saleh, who is an advisor who has accompanied the third prime minister since 2014, added, "We are a cash payments community that does not deal in instruments or bank transfers. Therefore, this (monetary) policy has affected the supply and demand for the dollar," adding that "the lack of revenues from foreign currency due to low oil prices in Global markets were met by an increase in the purchase of the dollar, and this is the reason for the high exchange rate of the dollar in the markets . "

Saleh explains that "90% of the foreign currency window in the Central Bank is foreign remittances to finance foreign trade to the private sector, and 10% of it is for the cash dollar that the bank sells to banking companies, banks, and areas of market feeding ."

The government consultant estimates that "the stock of foreign currency that people have (not deposited in banks or banks) ranges between (7 to 10) billion dollars, and thus these large numbers are affected by rumors, news and information may also cause an increase in the exchange rate ."

For his part, the Central Bank explained that the recent statements regarding (lowering the exchange rate of the Iraqi dinar against the dollar) represent the viewpoint of those who stated it and do not represent the official position of the Central Bank, and this was accompanied by a number of rumors launched by speculators, which affected the price (temporarily). ). "The exchange rate is fixed and unchanged, and its monetary policy is clear and transparent. Knowing that the reserves of foreign currency are very good according to all international indicators, in a way that enables them to overcome the current crisis that the country is going through." The statement called on the media to "approve the sources of the Central Bank exclusively in this regard ."

During the past few hours, the exchange rates of the dollar fell against the Iraqi dinar in the main stock market and local markets .

On the other hand, the economist Majid Al-Suri shows that "one of the paragraphs in the white paper sent by the government to Parliament indicates an intention to study the possibility of raising the value of the dollar exchange rate while preserving the monetary policy and fixing the value of the dinar." ".

"The meaning of devaluation is to reduce the value of salaries indirectly, and all incomes that enter the Iraqi people, and it will also affect people with limited incomes and the classes of the poor through the rise in commodity prices ."

He explains that, "If the value of the dinar is reduced by 25%, the prices will be multiplied by a factor of about 40 to 50%," noting that "the white paper did not explicitly say that the exchange rate would be reduced, but rather said that among the measures that can be We resort to reducing the exchange rate . "

The picture confirms that "the government has not submitted a direct proposal calling for the reduction of the value of the dinar, but one of the proposals adopted by the government in its white paper is to reduce the exchange rate of the Iraqi dinar against the dollar." The white paper sent by the government to Parliament proposes imposing a reduction in wages and salaries from 25% of GDP, which will decrease to 12.5% within three years, and reforming the pension fund so that it is not linked to the budget and pension salaries are paid directly from the fund. It also called for reducing financial support for state-owned companies by 30% every year for three years, reducing total government support from 13% of GDP to 5% within three years, and restructuring the public salary scale by stopping new recruitment and replacement operations in The public sector, setting a ceiling for employees ’salaries in a manner that achieves fairness and reduces differences, and applying income tax to employee allocations, incentives, bonuses, and others .

The economist says that one of the reasons for the exchange rate rise is "irresponsible statements that dealt with the issue that the government will move towards reducing the exchange rate," adding that "other things that contributed to the increase in the price of selling the dollar are the lack of political or security stability, which led to the rise in the price." The dollar and commodities . "

The economic expert touched on the solutions that the government will pursue to overcome its financial crisis, saying that "the government has several options to solve the financial crisis, including fighting corruption and reducing operating expenses by canceling all salary allocations, which are estimated at more than (15) trillion dinars out of (28) trillion dinars in total. Salaries of employees in the Iraqi state. " He continues that "the government's actions in the year 2019 led to an increase in the size of salaries, which rose from 40 trillion dinars to more than 50 trillion dinars," explaining that "reducing allocations and large salaries will save very large funds amounting to more than (15) trillion dinars ."

He adds that "among the solutions or options presented is to reduce operating expenses and reduce salaries over three years from 25% of GDP to 12.5, meaning that the reduction is around 50%," believing that "this measure will save large parts of the Iraqi people." From the price inflation crisis. " He points out that "among the proposals put forward is also to increase financial resources from non-oil, such as ports and direct and indirect taxes, and to activate the public, private and mixed sectors, and to activate industry and agriculture, which will lead to employment of manpower and thus will lead to an increase in taxes ."

He adds that "among the proposals presented to the central bank, which it rejected is to raise the exchange rate," noting that "this option is one of the last options that the central bank may resort to in the absence of other solutions to address the financial crisis ."

Citing the Iraqi newspaper Al-Mada

 

 
Number of observations 85   Date of addendum 10/19/2020
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1 hour ago, 6ly410 said:
The government is considering a proposal to reduce salaries by 50%
 
11982.jpg
 
 
 
https://economy-news.net/content.php?id=22312
 
 

Economy News - Baghdad

The proposal to reduce the value of the Iraqi dinar against the dollar is still one of the solutions proposed to secure the salaries of employees and retirees and social care for the remaining months of the current year .

 

The government has also begun to study other proposals, most notably the abolition of salary allocations or reducing salaries to 50 %.

 

Surprisingly, the dollar’s exchange rate rose three days ago in the stock market and local markets, before gradually declining again during the past few hours .

 

The circumstances of the financial crisis and the collapse of oil prices in global markets and the repercussions of the Corona virus pandemic prompted Mustafa Al-Kazemi's government to review the financial policy in Iraq in order to overcome the financial distress threatening the Iraqi economy .

 

The appearance of Muhammad Saleh, the financial advisor to the Prime Minister, explains the reasons for the high exchange rate of the dollar during the past two days, saying that "the monetary market in Iraq is sensitive and affected by economic and political information and news, which is reflected in the demand and supply process for the dollar ."

 

Saleh, who is an advisor who has accompanied the third prime minister since 2014, added, "We are a cash payments community that does not deal in instruments or bank transfers. Therefore, this (monetary) policy has affected the supply and demand for the dollar," adding that "the lack of revenues from foreign currency due to low oil prices in Global markets were met by an increase in the purchase of the dollar, and this is the reason for the high exchange rate of the dollar in the markets . "

 

Saleh explains that "90% of the foreign currency window in the Central Bank is foreign remittances to finance foreign trade to the private sector, and 10% of it is for the cash dollar that the bank sells to banking companies, banks, and areas of market feeding ."

 

The government exchange ratein taxes ."

 

He adds that "among the proposals presented to the central bank, which it rejected is to raise the exchange rate," noting that "this option is one of the last options that the central bank may resort to in the absence of other solutions to address the financial crisis ."

 

Citing the Iraqi newspaper Al-Mada

 
Number of observations 85   Date of addendum 10/19/2020

He adds that "among the proposals presented to the central bank, which it rejected is to raise the exchange rate," noting that "this option is one of the last options that the central bank may resort to in the absence of other solutions to address the financial crisis ."

 

Change of tune? 😳😁

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27 minutes ago, horsesoldier said:

“ Smokey Mirrors “


U Just Need To Know How To Handle Urself Like ‘The Weeg’ ! :o 

 

image.gif.e494c4b91d9d5ef4f25fc6ea5a0d06d3.gif

 

:D  :D  :D 

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Delayed employee salaries have caused the dollar to rise

Monday 19 October 2020 112

Delayed employee salaries have caused the dollar to rise
1
  Baghdad: Mustafa Al-Hashemi 
 
Economists believe that the white paper presented by the government includes radical reforms to the rentier economy, noting that it has defined a clear economic vision for the government to move towards activating the productive sectors, diversifying the country's non-oil resources and achieving sustainable development, while they called for adding some proposals that would maximize the state’s financial resources.

The markets witnessed during the past week a noticeable increase in the price of selling the dollar on the Kifah Stock Exchange, ranging between 127 and 130 thousand dinars for one hundred dollars, while a specialist in financial affairs saw that this increase is temporary, as it is related to the delay in paying employees' salaries for more than a month, which prompted speculators and hard currency traders To take advantage of this situation to raise the exchange rate of the dollar against the dinar.
At the same time, the Central Bank confirmed that the recent statements regarding (lowering the exchange rate of the Iraqi dinar against the dollar) represent the viewpoint of those who stated it and do not represent the bank’s official position. This was accompanied by a number of rumors released by speculators, which affected the price (temporarily). ).
 
exchange rate
The bank announced in a statement, which Al-Sabah received a copy of, that “the exchange rate is fixed and has not changed, and that the bank’s monetary policy is clear and transparent, noting that its foreign currency reserves are“ very good ”according to all international indicators, enabling it to overcome the current crisis it is going through. Country".
The bank "expressed its hope that the media would approve the sources for the central authority exclusively in this regard." In turn, banking advisor Ammar al-Samarrai stated that “the rise in the dollar’s exchange rate over the past few days comes as a natural result of the impact of circumstances, news and general conditions,” stressing that this rise in the dollar’s price is temporary and will return to its normal rates, but it will take several days.
 
Supply and demand
Al-Samarrai added to “Al-Sabah” that “this rise will continue until the supply and demand gap in the market shrinks,” stressing “the importance of not acquiring the dollar and dealing with it in buying and selling, in small transactions, and relying on the dinar in daily commercial dealings, because that will reduce the demand for it. Width increases ”.
Indicating "the need to support the dinar in this economic stage that Iraq is going through, in a way that would relieve the shoulders of those with limited income and the poor segments of society."
He stressed that "the central bank is a solid institution capable of dealing with such imbalance, and that Iraq is a rich country and its revenues from oil exports have not been cut off from it despite the fluctuation of the price of a barrel globally," stressing that prices will return to their normal rates after a period of time.
 
Effect of circumstances
As for the economic researcher Ammar Haider, he said that "such an imbalance in the exchange rate is possible as a result of the circumstances the country is going through," stressing that "this reality had previously gone through Iraq after stabilizing the dollar exchange rate during the years 2012 and 2013."
Haidar pointed out that "the high price of the dollar in Iraq is related to the economic threats and concerns that the country may be exposed to due to regional conditions and fears of the outbreak of conflicts in the region that may have repercussions on the country."
He explained that "Iraq is an oil-producing country and that the news reported by various media has created a state of unjustified panic among Iraqis." 
Pointing out that the market is now controlled by the central bank, and that some weak souls are taking advantage of the situation to raise prices, which creates a state of general confusion in the exchange rates locally.
 
 
 
Edited by 6ly410
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