Economist: speculators and exchanges manipulating the dollar and it will affect the markets and citizens

[6ly410]

Iraq news now

The Council of Ministers issues an explanation regarding the exchange rate of the dollar in the budget

Posted 3 hours ago

https://iraqakhbar.com/2810663

News source / Iraq Today Agency

News source / Iraq News Agency today

Baghdad - Iraq today:

The Iraqi Council of Ministers said, on Thursday, that the exchange rate of the dollar contained in the draft budget law, proposed by the Ministry of Finance.

An official source told the Council that this proposal will be discussed in the next session of the Council, in addition to other items, and it is subject to amendment.

And earlier today, the draft budget law was published, which included the exchange rate of the Iraqi dinar at 145 thousand dinars, compared to 100 dollars

After that, the Kifah Stock Exchange recorded 136,000 dinars, compared to 100 dollars.

This prompted the Finance Committee to hold an emergency meeting this afternoon. He said that it was to discuss the reasons for the high exchange rate of the dollar, and to discuss the leaked draft of the 2021 Budget Law.

 

[6ly410]

18 minutes ago, 6ly410 said:

On the other hand, there is information about discussions with the International Monetary Fund to reduce the value of the dinar against the dollar, and there may be a green light from the bank to adjust the exchange rate,

 

[bkeiller]

Is this a manufactured crisis or just simply greed?

Are the banks sucking up dinar to reduce the supply of chunky money?

Nothing like a good panic to move a lot of money around?

Questions! Questions!

[3n1]

2 minutes ago, bkeiller said:

Is this a manufactured crisis or just simply greed?

Are the banks sucking up dinar to reduce the supply of chunky money?

Nothing like a good panic to move a lot of money around?

Questions! Questions!

 

thought that as well , panic to dump the devaluing iqd for usd before they get nothing for their iqd in hiding but then the above article stated they are going to try and print their way out of it getting more iqd in circulation ( not good ) imo .....

 

" launching an initiative of $ 3 trillion to support system" rel="">support low-income people, doubling the hard currency supply in the market

[3n1]

28 minutes ago, 6ly410 said:

For his part, the Governor of the Central Bank said that the bank “is ready to launch a package of measures that will achieve a shifting balance in the exchange rate for the year 2021, such as launching an initiative of $ 3 trillion to support system" rel="">support low-income people, doubling the hard currency supply in the market, and increasing interest rates on the Iraqi currency deposited in banks. “.

 

 

interesting so is the CBI stating there is only 3 trillion in the currency supply currently where's all the other 50 trillion or so some say is out and that's the reason they state why the iqd cant rv / ri , to much for iraq to cover .... we wait

[Spartakus]

The CBI's measures mentioned above have nothing in them for us investors. 

[WheresmyRV?]

34 minutes ago, 6ly410 said:

 

I like the way you think 6L!

[DinarDavo]

So much for all the "exchange rate" discussion....   

[horsesoldier]

God dang !! Ya gotta love this High Drama !!!! The powers that be know exactly what’s what, as they whip ( whip it good ) this up to fever pitch: everyone else is running in circles ( one sandal nailed to the floor ), tearing their hair out in a wonderfully orchestrated “ Sky is Falling “ scenario.

 

 

[6ly410]

Economy News • Iraq Today

A looting of the Iraqi people ... a deputy talks about the catastrophic impact of the high exchange rate of the dollar

Posted 3 hours ago

https://iraqakhbar.com/2810928

News source / Noon Agency

News source / Noon Agency

A member of the Parliamentary Economic Committee, Representative Nada Shaker Jawdat, spoke on Thursday about the impact of raising the dollar’s exchange rate on employees ’salaries, while describing the rise in the exchange rate of the dollar against the dinar as“ a plunder of the Iraqi people, ”she said.

Jawdat said that she is "surprised by the silence of the Presidency of Parliament on what is happening in the economy file, especially the recent high exchange rates of the dollar and its negative repercussions on ordinary citizens, because all food prices will rise."

She added, "The recent rise in the exchange rate of the dollar and the fall of the Iraqi dinar have made fantastic profits for some banks," stressing that "the state does not have any authority over the markets that will be subject to speculation by influential forces that are important to the general situation."

A member of the Parliamentary Economic Committee indicated that "raising the dollar exchange rate will lead to a catastrophic effect in reducing the value of employees' salaries by a third, or 33 percent," according to the Baghdad website today.

Regarding the 2021 budget, Shakir confirmed that "the budget has not yet reached the parliament, and all the leaks published in the media are incorrect."

And bank experts' expectations indicate the possibility of returning the exchange rates of the dollar against the Iraqi dinar to its previous state in the event that measures are taken to control the market.

"According to our experience in the banking sector for more than 30 years, the exchange rate in the local market will not return to the barrier of 1180 or 1190 dinars for one dollar," banking expert Abdul-Hussein Al-Mandheri said in a televised statement.

He added that "the exchange rate may stabilize again up to 1210 or 1220 dinars against one dollar," indicating that "the central bank pumps cash from the dollar into the market and through the currency auction from the hard currency reserves it has."

He pointed out, "On the other hand, there is information about discussions with the International Monetary Fund to reduce the value of the dinar against the dollar, and there may be a green light from the bank to adjust the exchange rate, and we believe that the proposals for reducing it are the ones that caused the recent jump in the price of the dollar against the dinar."

He pointed out that he conducted a calculation that sets the exchange rate at 1200 dinars against the dollar, instead of the current price sold by the bank, estimated at 1182 dinars, and got a difference of 900 billion dinars annually, which enters the treasury if the central bank continues to sell 200 million dollars per day in a currency auction.

And he indicated that "in the event that an exchange rate of 1500 dinars is adopted against one dollar, then it means covering the financial deficit with the budget and also an increase in revenues, but on the condition that the state reinforces support for some basic materials and prevents price increases in order to prevent the impact of reducing the value of the dollar on the poor segments."

The exchange rate of the dollar jumped to 1,370 dinars, after the leak of an initial copy of the 2021 budget, and its exchange rate was set at 1450 dinars to the dollar.

The draft law included the federal budget (initial version), setting the dollar exchange rate on the basis of 1450, which is equivalent to 145 thousand per 100 dollars, and restricting all actually realized revenues as final revenues to the state treasury account.

The budget stated that the number of state employees is 3.25 million, including (682 thousand employees in the Kurdistan region), salaries 41.5 trillion dinars, other salaries 6 trillion, retirement 20 trillion, social security 9.6 trillion, interest on debt loans 4,6 Trillions, offshore loan payments: 6.8 trillion.

The project also included the reduction of all allocations granted to employees of all government departments financed centrally and independently, according to the percentages specified against each of them and granted to them by virtue of laws in force and decisions of the Council of Ministers and came as follows:

(Risk allowances 50%, hospitality 20%, exceptional 20%, sustenance 33%, certificate 50%, lump sum, 40%, special 60%, university service 60%).

The bill also stipulated raising the price of fuel (gasoline) from 450 dinars per liter to 540 dinars per liter.

The budget authorizes the Minister of Finance to fill the actual deficit in the budget according to the amounts indicated in the sources mentioned below:

1- Issuing treasury transfers, 2- Issuing national bonds to the public, 3- Issuing bonds and treasury transfers to government banks, to be debited with the Central Bank of Iraq, 4- Loans from commercial banks, 5- Issuing foreign bonds, 6- Borrowing from international financial institutions, 7- Borrowing with the guarantee of international export guarantee institutions.

The budget indicates that all loans, bonds, transfers and project contracts financed by loans will be exempt from taxes and customs fees for ongoing and new projects, including the loan granted by the World Bank to the Ministry of Finance for the PFM contract project for the years 2016, 2017, 2018 and 2019.

The 2021 budget obliged federal ministries and entities not associated with a ministry and all governorates to cover their needs of local products, including private sector products that have an added value of more than (20%).

The draft budget concluded that the Council of Ministers may not issue any decisions that include granting an advance to any ministry or entity not linked to a ministry without having allocations for it in the general budget approved during the fiscal year.

The project included the suspension of all cabinet decisions and laws in force that allow the centralized state departments to dispose of the revenues collected through them for the purposes of operating expenses, and their revenues are transferred as final revenues for the account of the state's public treasury, including the state's public treasury's share of the profits of public companies and self-financed bodies and departments.

The fiscal deficit in the budget reached (58260763114) one thousand dinars (fifty-eight trillion two hundred sixty billion seven hundred and sixty-three million one hundred and fourteen thousand dinars), and in the case of excluding all arrears, indebtedness, and foreign and domestic loans that will finance investment projects amounting to (23229017817) one thousand dinars (three Twenty trillion two hundred twenty-nine billion and seventeen million eight hundred and seventeen thousand dinars).

The indebtedness represented by the internal and external debt installments reached (14761959590) one thousand dinars (fourteen trillion seven hundred and sixty-one billion nine hundred and fifty-nine million five hundred and ninety thousand dinars)

[6ly410]

Urgent

The economist Ahmed Saddam Dijlah: The rise in the exchange rate of the dollar will lead to an increase in commodity prices

Posted 6 hours ago

https://iraqakhbar.com/2810714

News source / Tigris Channel

News source / Dijla Channel

The economist Ahmed Saddam Dijlah: The rise in the exchange rate of the dollar will lead to an increase in commodity prices

[6ly410]

Iraq news now

Baghdad Chamber of Commerce clarifies the exchange rate of the dollar and the reasons for its increase locally

Posted 5 hours ago

https://iraqakhbar.com/2810600

News source / NR TV

News source / NR TV
Digital Media NRT
On Thursday, the Baghdad Chamber of Commerce assured merchants and citizens of the stability of the dollar exchange rate against the dinar in the coming days , confirming that the accelerating waves of news and rumors generated anxiety in the Iraqi market.

The Chamber's Board Chairman, Firas Rasul Al-Hamdani, said in a statement today (December 17, 2020) followed by Digital Media NTT, that "the exchange rate of the US dollar will return to stability in the coming days," calling on the Iraqi government to "prepare a proactive plan to organize The process of monetary stability of the Iraqi currency against the dollar, through a plan organized by the competent authorities of advisers and expertise in the financial field .

He added, "The events, the accelerating waves of news, speculation and rumors have generated anxiety within the Iraqi market," noting that "the specialized committees in the country are able to maintain the stability of the exchange, especially since the 2021 budget is still a draft under discussion and study

 

[Longtimelurker]

Maybe the plan is to cause massive protests in the streets until they storm the Greenzone and demand what is owed to them? What the Iraqi government is doing now sounds like the opposite of the demands the protesters demanded a year ago. 

 

If you look around the world, you'll see massive protests everywhere. People might need to realize that we control the governments, the governments don't control us and if we stand united, we take pack the power. 

 

Could be a lesson that we need to learn?

 

Maybe its being staged..

Edited December 17, 2020 by Longtimelurker

[6ly410]

It started with cutting salaries and reducing them ... a political game that the government is playing to put pressure on citizens economically

https://alahadnews.net/144569/خاص-بوكالة-العهد-نيوز/

Author: ahad7 On 12/17/2020 - 7:55 PM 140

Political analyst Abbas Al-Ardawi revealed a game practiced by the government to put economic pressure on the Iraqi citizen.

Al-Ardawi said in an interview with Al-Ahed News today, Thursday, that “What is happening is a series that started with cutting salaries and then reducing them to economically pressure the citizen.

"This indicates a state of political pressure, as there are indications of printing the currency without legal cover and manipulating the prices of the dollar, which are all dangerous indicators and will increase the economic injection," he added.

And that "what is happening is an attempt to pressure towards collapse, and it is one of the means that the current government deals with

[Dinarrock]

On 12/17/2020 at 1:23 PM, 6ly410 said:

Iraq news now

In the end, one of them will be settled .. Experts expect two rates to exchange the dollar against the dinar - urgent

Posted 3 hours ago

https://iraqakhbar.com/2810645

News source / Baghdad today

News source / Baghdad today

Baghdad Today - Baghdad

Bankers 'experts' expectations indicate that the exchange rate of the dollar against the Iraqi dinar may return to its previous level in the event that measures are taken to control the market.

"According to our experience in the banking sector for more than 30 years, the exchange rate in the local market will not return to the barrier of 1180 or 1190 dinars against one dollar," banking expert Abdul-Hussein Al-Mandheri said in a televised statement.

He added that "the exchange rate may stabilize again up to 1210 or 1220 dinars against one dollar," indicating that "the central bank pumps cash from the dollar into the market and through the currency auction from the hard currency reserves it has."

He pointed out, "On the other hand, there is information about discussions with the International Monetary Fund to reduce the value of the dinar against the dollar, and there may be a green light from the bank to adjust the exchange rate, and we believe that the proposals for reducing it are the ones that caused the recent jump in the price of the dollar against the dinar."

He pointed out that he conducted a calculation that sets the exchange rate at 1200 dinars against the dollar, instead of the current price sold by the bank, estimated at 1182 dinars, and got a difference of 900 billion dinars annually, which enters the treasury if the central bank continues to sell 200 million dollars per day in a currency auction.

And he indicated that "in the event that an exchange rate of 1500 dinars is adopted against one dollar, then it means covering the financial deficit with the budget and also an increase in revenues, but on the condition that the state reinforces support system">support for some basic materials and prevents price increases in order to prevent the impact of reducing the value of the dollar on the poor segments."

The exchange rate of the dollar jumped to 1,370 dinars, after the leak of an initial copy of the 2021 budget, and its exchange rate was set at 1450 dinars to the dollar.

And (Baghdad Today) Agency, Thursday (17 December 2020), obtained a `` preliminary copy '' of the draft federal budget bill for the year 2021, which included setting the dollar exchange rate at 1450, and reducing employee allocations.

The bill included setting the exchange rate of the dollar on the basis of 1450, equivalent to 145,000 dollars per 100 dollars, and restricting all actually generated revenues as final revenues for the account of the state treasury.

The budget stated that the number of state employees is 3.25 million, including (682 thousand employees in the Kurdistan region), salaries 41.5 trillion dinars, other salaries 6 trillion, retirement 20 trillion, social security 9.6 trillion, interest on debt loans 4,6 Trillions, offshore loan payments: 6.8 trillion.

The project also included the reduction of all allocations granted to employees of all government departments financed centrally and independently, according to the percentages specified against each of them and granted to them by virtue of laws in force and decisions of the Council of Ministers and came as follows:

(Risk allowances 50%, hospitality 20%, exceptional 20%, sustenance 33%, certificate 50%, lump sum, 40%, special 60%, university service 60%).

The bill also stipulated raising the price of fuel (gasoline) from 450 dinars per liter to 540 dinars per liter.

The budget authorizes the Minister of Finance to fill the actual deficit in the budget according to the amounts indicated in the sources mentioned below:

1- Issuing treasury transfers, 2- Issuing national bonds to the public, 3- Issuing bonds and treasury transfers to government banks, to be debited with the Central Bank of Iraq, 4- Loans from commercial banks, 5- Issuing foreign bonds, 6- Borrowing from international financial institutions, 7- Borrowing with the guarantee of international export guarantee institutions.

The budget indicates that all loans, bonds, transfers and project contracts financed by loans will be exempt from taxes and customs fees for ongoing and new projects, including the loan granted by the World Bank to the Ministry of Finance for the PFM contract project for the years 2016, 2017, 2018 and 2019.

The 2021 budget obliged federal ministries and entities not associated with a ministry and all governorates to cover their needs of local products, including private sector products that have an added value of more than (20%).

The draft budget concluded that the Council of Ministers may not issue any decisions that include granting an advance to any ministry or entity not linked to a ministry without having allocations for it in the general budget approved during the fiscal year.

The project included the suspension of all cabinet decisions and laws in force that allow the centralized state departments to dispose of the revenues collected through them for the purposes of operating expenses, and their revenues are transferred as final revenues for the account of the state's public treasury, including the state's public treasury's share of the profits of public companies and self-financed bodies and departments.

The fiscal deficit in the budget reached (58260763114) one thousand dinars (fifty-eight trillion two hundred sixty billion seven hundred and sixty-three million one hundred and fourteen thousand dinars), and in the case of excluding all arrears, indebtedness, and foreign and domestic loans that will finance investment projects amounting to (23229017817) one thousand dinars (three Twenty trillion two hundred twenty-nine billion and seventeen million eight hundred and seventeen thousand dinars).

The indebtedness represented by the internal and external debt installments reached (14761959590) one thousand dinars (fourteen trillion seven hundred and sixty-one billion nine hundred and fifty-nine million five hundred and ninety thousand dinars

Too funny Carrello here you go an article that talks about a 1500 exchange rate! I absolutely believe all of these are to scare the citizens into bringing in all their mattress money dinars to exchange them for dollars beforehand since the CBI has never been able to get them off the streets! This is absolutely huge for us as investors but sucks for the Iraqi citizens as it does basically screw them. But yes if they do make it 1500 then drop the zeros we are at a $1.50 which works or me!!

[Laid Back]

7 minutes ago, Dinarrock said:

Too funny Carrello here you go an article that talks about a 1500 exchange rate! I absolutely believe all of these are to scare the citizens into bringing in all their mattress money dinars to exchange them for dollars beforehand since the CBI has never been able to get them off the streets! This is absolutely huge for us as investors but sucks for the Iraqi citizens as it does basically screw them. But yes if they do make it 1500 then drop the zeros we are at a $1.50 which works or me!!

Agree with you Dinarrock,

Scare the people with a devaluation,

Let them bring their dinars and buy dollars

Delete the zeros 

RV

Purchasing Power

 

Dollarize .... RV equal or higher than the dollar...... Dedollarize

 

 

 

[Rolf777]

The CBI is under control of the global CB-System and we know, who owns this construct . . .

 

We can be sure, that they will do, whatever their plan is, to act according to their own selfish interests,

not for the sake of some Iraki Dinar Investors and when they will act in our behalf, then only

to make great profit now and in future . . .

 

But this comment will be erased anyway . . .  or ?

[Carrello]

1 hour ago, Dinarrock said:

Too funny Carrello here you go an article that talks about a 1500 exchange rate! I absolutely believe all of these are to scare the citizens into bringing in all their mattress money dinars to exchange them for dollars beforehand since the CBI has never been able to get them off the streets! This is absolutely huge for us as investors but sucks for the Iraqi citizens as it does basically screw them. But yes if they do make it 1500 then drop the zeros we are at a $1.50 which works or me!!

 

No, not really, Dinarrock. My comment was on process and what CBI and others have said they were planning for the IQD for years: Delete zeroes and then revalue. Process. 

 

I used 1500 as an "example" as you can see if you reread my comment. 

[Jaygo]

49 minutes ago, Rolf777 said:

The CBI is under control of the global CB-System and we know, who owns this construct . . .

 

We can be sure, that they will do, whatever their plan is, to act according to their own selfish interests,

not for the sake of some Iraki Dinar Investors and when they will act in our behalf, then only

to make great profit now and in future . . .

 

But this comment will be erased anyway . . .  or ?

You spelled Iraqi wrong. Just sayin... 

[yota691]

The high exchange rate of the dollar is a matter of concern to the citizen and the legislature

Thursday 17th December 2020 43

 

 Baghdad: Morning 

 

 

Yesterday, Wednesday, the dollar exchange rate in all governorates of Iraq reached 129 thousand and 500 dinars against one hundred dollars, at a time when the Central Bank set the dollar exchange rate at 1190 dinars per hundred dollars.

The Parliamentary Economic and Investment Committee attributed the reasons for the high exchange rate of the dollar against the dinar in the local markets to the decline in the cash reserves at the Central Bank to 46 billion dollars.

A member of the committee, MP Hamid al-Mousawi, explained in a press statement that the high exchange rate of the dollar against the dinar is a matter of concern to the citizen and the legislative authority, pointing out that “Parliament is unable to interfere with the policy of the Central Bank,” indicating that “the statements of the Minister of Finance regarding changing the exchange rate in the paper Al-Bayda led to an increase in the price of the dollar in the local markets. He indicated that the monetary reserves at the Central Bank during the war against ISIS amounted to $ 65 billion, and $ 5 billion was withdrawn from it by the Al-Abadi government.

Indicating that the current cash stock reached 46 billion dollars. He continued, that oil sales from 2003 to 2018 amounted to 970 billion dollars, pointing out that the banks entering the currency auction are linked to well-known political parties.

[yota691]

Experts: speculator rumors raised the dollar's exchange rate

Wednesday 16 December 2020 87

 

 Baghdad: Hussein Thahab-Shukran Al-Fatlawi 

 

Two experts in financial and economic affairs confirmed that the continued sales of the central bank of dollars undermines the methods of speculators in the dollar, as the sales achieve great financial benefits, as a result of the high exchange rates in the local market, which are affected by the rumors released, and the source of it is speculators, at a time when there are no trends To reduce the value of the Iraqi dinar.

The exchange rates have been witnessing for days a clear confusion that led to the raising of the exchange rate to 1,300 dinars against one dollar, then it gradually retreated, amid the assurances of experts and specialists that the dollar sales were not affected and that this confusion is within controlled rates, and that it will return to its normal rates. During the coming period, the judgment on the extent of its effects on the economy can now be postponed, "according to experts."

 

Confidence in dinars

Vice President of the Businessmen Union Basem Jamil Antoine said: "The rise in exchange rates in the local markets is the result of the behavior of speculators, and the spread of rumors that reduce confidence in the Iraqi dinar, which had a major role in increasing the demand for the dollar, which led to raising the exchange rates to levels that are not The citizen sees it as normal. " 

 

The value of the dinar

Stressing that "the speculators have a large chunky cash block that invested in buying the dollar in order to achieve large profits, but the Iraqi Central Bank's continued sale of dollars has proven to everyone that there are no tendencies to reduce the value of the dinar, and that the matter was subject to the behaviors of speculators, who adopted the rumor that raised from Exchange rates, "expecting that" the coming period will witness a return of exchange rates to normal rates. " 

Antoine pointed out that "the Central Bank of Iraq and international organizations specialized in financial affairs do not agree on any directions to reduce the value of the Iraqi dinar against the dollar," indicating that "Iraq's revenues will increase with the rise in crude oil prices in global markets, and that the price of a barrel by one dollar means that One trillion dinars reduces the annual budget deficit. " 

 

Foreign currency

The financial expert, Dr. Ahmed Abrihi told Al-Sabah that "the price of the dollar depends on the Central Bank's sales of foreign currency, and it is very well known to those interested in economic affairs. If the sales are less than the demand, the exchange rate rises in the market above the official price, now this is what is happening which led to its rise." Or its fluctuation, and this indicates the role of speculators within. "

 

Its effect is limited

Abrihi pointed out that "the difference is still limited and not large between the market price and the official price, and the difference is not large and did not last for long, so its impact is limited and unstable and does not leave chaos and its effects cannot be judged."

Stressing that "the repercussions of the exchange rate are the first to be affected by imported goods, not domestic goods, which is also unstable in the current situation, which results in postponing judgment on its effects on the Iraqi economy as a whole."

[bkeiller]

This sounds like a spoonful of salt before the spoonful of sugar helps the medicine go down!?

Sorry for incepting the tune into this ... heheheheh!

[Half Crazy Runner]

18 hours ago, horsesoldier said:

as they whip ( whip it good )

I always appreciate a good ‘80s music reference 😁👍🏻 🎶 

[horsesoldier]

Just now, Half Crazy Runner said:

I always appreciate a good ‘80s music reference 😁👍🏻 🎶 

Interesting decade for music wasn’t it. A lot of great memorable tunes, huh.

[6ly410]

Economist: Iraq is on the verge of an economic disaster due to the continued high exchange of the dollar

10:59 - 12/18/2020https://www.almaalomah.com/2020/12/18/510714/

The information / special
between the economic expert, Ihssan Al-Kinani, said that the government will enter the country in an economic disaster, due to the continued high exchange rate of the dollar without government control, pointing out that political parties impede control of the exchange rate.
"The dollar exchange rate is controlled by private banks that own large sums of money and operate in currency auctions and are not subject to the central bank's controls," Al-Kinani said to / the information.
He added that "some political parties control the private banks and control the exchange rate of the dollar, and their influence may impede the imposition of supervision or control by the central bank on the rest of the banks."
He stressed that "the government's disregard for this rise in the exchange rate will enter the country into an economic disaster, especially since Iraq imports everything in the market and does not depend on a national industry at all." 25 n