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After it was officially set at 1450 dinars to the dollar ... the Minister of Finance expects the exchange rate in the market


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After it was officially set at 1450 dinars to the dollar ... the Minister of Finance expects the exchange rate in the market

 

599 Policy 2020/12/19 16:18 Baghdad Today -

Baghdad Finance Minister Ali Allawi expected, on Saturday 19-12-2020, the closest selling price to the local market after adopting the price of 1450 dinars per dollar in the 2021 budget. The minister said in an interview with Al-Iraqiya TV that "the Ministry of Finance will issue a statement at a later time to raise the exchange rate to 1450 dinars to one dollar." He added that "the price of the dollar set at 1450 will be the approved price of selling from finance to the central bank, and the margin that the central bank will add will not be large and may reach 1490 dinars against the dollar, which is the closest to the market price." And that "Parliament, the Parliamentary Finance Committee and the heads of the blocs have knowledge of the direction the government is taking." He added, "We will stop the appointments, and there is an exception for those that took place at the end of last year and early 2020," stressing that "the 2021 budget is reformist and no one can deny that." And he announced that an agreement had been reached with Kurdistan on the 2021 budget, indicating 'n' the existing delegation is discussing its allocations for the year 2020. Earlier, a member of the Parliamentary Finance Committee, MP Abd al-Hadi al-Saadawi, confirmed that the Iraqis will witness a near shock in which a new and large rise in the dollar exchange rate will occur. "The Central Bank of Iraq will raise the exchange rate of the dollar to 1450 Iraqi dinars on Sunday," Al-Saadawi said in a televised interview, which she followed (Baghdad Today), indicating that "what was leaked from the Ministry of Finance Thursday from a copy of the 2021 budget encourages traders to control the exchange rate." He added that "most of the money that goes out from the auction selling the currency comes out with false invoices claiming to buy things while the currency is smuggled out by buying unrealistic materials." And on the border crossings, a member of the Finance Committee indicated that "the state does not control the financial policy, and the evidence is that it does not control the ports that enter prohibited materials or outside specifications." Al-Saadawi stressed that "the government should take the initiative to agree with neighboring countries (Syria, Iran and Turkey) to stop dealing with 14 illegal outlets in the Kurdistan Region."

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Speculators should learn how to do the math on these exchanges. Please let me help. The value of IQD was 1 USD = 1190 IQD, or 1 IQD was worth (1/1190)USD or $0.00084. As of today, the value of the din

The people will lynch every member of government if they don't reverse this move quickly.  They won't have to wait until June to vote them out.   Politicians, by nature, frown on this.  Ther

All I can say let it play out and see what happens. More to this then what ink on paper .. and Good Morning DV

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 2020-12-19 08:02
 

Shafaq News / On Saturday, the Iraqi Minister of Finance announced his intention to issue a statement to raise the exchange rate of the dollar, stressing at the same time to "stop appointments" in the country.

 

Finance Minister Ali Allawi said, according to the Iraqi News Agency, "We will issue a statement to raise the exchange rate of the dollar to 1450 dinars to one dollar."

 

He added that "the price of the dollar set at 1450 dinars will be the price approved for sale from the Ministry of Finance to the Central Bank," explaining that "the central bank will add a margin to the specified price, and it will not be large and may reach 1490 dinars per dollar."

 

And between "we will stop the appointments and there is an exception to those that took place at the end of last year and early 2020."

 

The Minister of Finance continued, "Parliament and parliamentary finance and the heads of the blocs have knowledge of the direction the government is taking."

 

He pointed out that "the budget for 2021 is reformist, and no one can deny that."

 

The exchange rate of the dollar rose in the Baghdad markets, on Saturday, December 19, 2020.

 

The Shafaq News Agency correspondent said that the Central Kifah Stock Exchange in Baghdad recorded, today, 136,800 Iraqi dinars against 100 US dollars, while Al-Harithiya Stock Exchange in Baghdad recorded 136,800 dinars against 100 dollars.

 

On the other hand, it recorded in the Central Al-Kifah Stock Exchange in Baghdad last Thursday afternoon 131500 Iraqi dinars for 100 US dollars.

 

Our correspondent indicated that the buying and selling prices also increased in the exchange shops in the local markets in Baghdad, where the selling price reached 138,000 Iraqi dinars, while the purchase prices reached 136,000 dinars per 100 US dollars.

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The Minister of Finance sets the date for the budget to arrive in Parliament

 

157 Policy 2020/12/19 16:30 amm Baghdad today -

Baghdad The Minister of Finance, Abdul Amir Allawi, said today, Saturday (December 19, 2020), that the budget for next year may reach Parliament within a week. Allawi said, in an interview with a number of media, which will be broadcast later, that "the budget is the beginning of reform, and there will be other steps in the future to implement the white paper." "We got the support of all the major countries, the IMF and the World Bank for the reform paper," he added. The minister added that "the 2021 budget may reach Parliament within a week." The minister said, "The Ministry of Finance will issue a statement at a later time to raise the exchange rate to 1450 dinars to one dollar." He added that "the price of the dollar set at 1450 will be the approved price of selling from finance to the central bank and the margin that the central bank will add will not be large and may reach 1490 dinars against the dollar, which is the closest to the market price." And that "Parliament, the Parliamentary Finance Committee and the heads of the blocs have knowledge of the direction the government is taking." He added, "We will stop the appointments and there is an exception for those that took place at the end of last year and early 2020," stressing that "the 2021 budget is reformist and no one can deny that." And he announced that an agreement had been reached with Kurdistan on the 2021 budget, indicating 'n' the existing delegation is discussing its allocations for the year 2020.

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The information / Baghdad ..

The Minister of Finance, Ali Allawi, announced Saturday. Raise the exchange rate of the dollar against the Iraqi dinar, confirming that all appointments will be stopped in the budget for next year.

Allawi said, in statements carried by the official news agency, that "we will issue a statement to raise the exchange rate of the dollar to 1450 dinars to one dollar," adding that "the price of the dollar set at 1450 dinars will be the price approved for sale from the Ministry of Finance to the Central Bank."

He continued that "the appointments will be stopped and there is an exception to the one that took place at the end of last year and the beginning of 2020," pointing out that "Parliament and Parliamentary Finance and heads of the blocs have knowledge of the direction the government is taking."

He pointed out that "the central bank will add a margin to the specified price," noting that "the margin that the central bank will add will not be large and may reach 1490 dinars per dollar." Ended 25 S.

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Information / Special ...

The Parliamentary Finance Committee revealed, on Saturday, the government's intention to declare bankruptcy early next year, indicating that it had resorted to the exchange rate of the dollar to avoid declaring bankruptcy.

"The current government has failed in all steps to save the country from the financial crisis as a result of the failed financial policy that it followed," a member of the Parliamentary Finance Committee, Abdul Hadi Al-Saadawi, said.

He added, "The government was intending to officially declare bankruptcy at the beginning of 2021," noting that "the government took steps to take for the affected citizen to avoid bankruptcy."

Al-Saadawi said that "one of these steps is to raise the price of the dollar against the Iraqi dinar," noting that "it is my solution, and the Iraqi dinar will be harmed by it."

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The information / Baghdad ..

The economic expert, Abdul Rahman Al-Mashhadani, confirmed, on Saturday, that the leakage of the draft budget, including the proposal to raise the exchange rate of the dollar is intended and has two goals, likely to increase the exchange rate for the next year to reach 160 thousand dinars in the local market if the parliament approved the government's proposal.

Al-Mashhadani said in a statement to / the information /, that “the leakage of the budget bill that includes the government’s proposal to raise the exchange rate of the dollar is intended and has two goals. The first is to feel the pulse of the street and the second is to benefit speculators and influential people from the price difference.”

He added that "raising the dollar exchange rate will burden citizens and people with limited incomes, and will harm their economic condition, through the high prices of foodstuffs and other necessary commodities."

Al-Mashhadani suggested, "The rise in the exchange rate for the next year to reach 160 thousand dinars in the local market if Parliament approves the government's proposal." End / 25 AD

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On Saturday, Minister of Finance Ali Allawi announced the raising of the dollar exchange rate to 1450 dinars to the dollar, while indicating that the appointments would be stopped.

Allawi said in a statement carried by the official agency and followed by Alsumaria News, "We will issue a statement to raise the exchange rate of the dollar to 1450 dinars to the dollar," indicating that "the price of the dollar set at 1450 dinars will be the price approved for sale by the ministry to the central bank."
 
 
He added, "We will stop the appointments, and there is an exception for those that took place at the end of last year and early 2020," noting that "the budget has not leaked, and I categorically deny this."
 
Allawi stressed that "the parliament and the parliamentary finance and the heads of the blocs have knowledge of the direction the government is taking," explaining that "the 2021 budget is reformist and no one can deny that."
 
Allawi added that "the central bank will add a margin to the specified price," explaining that "the margin that the central bank will add will not be large and may reach 1490 dinars per dollar."
 
 
The Minister of Finance stated that "the budget may reach Parliament within a week," adding, "We have reached an agreement with Kurdistan on the 2021 budget, and the current delegation is discussing its allocations for 2020."
 
He stressed, "We have obtained the support of all major countries, the International Monetary Fund and the World Bank for the reform paper," noting that "the budget is the beginning of reform, and there will be other steps in the future to implement the white paper."
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After the Minister of Finance spoke ... the dollar’s price rose to 1,400 dinars
  
{Baghdad: Al Furat News} The exchange rate markets recorded 1400 dinars per dollar, after the Minister of Finance's statements regarding the government's approach, with the knowledge of Parliament, towards raising the dollar exchange rate to 1450

Raghad Daham

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3 minutes ago, stanleypower said:

These announcements are coming from the Minister of Finance. Doesn’t the CBI set the exchange rate??

You are correct, but the Budget has a different rate from what was leaked..

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  •  Time: 12/19/2020 17:03:27
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Officially .. The Central Bank of Iraq announces the adjustment of the foreign currency exchange rate {extended}
 

During the last months of this year, intense deliberations took place with the Prime Minister, Minister of Finance and the Legislative Authority, regarding the economic situation in general and the financial crisis that the public finances are going through due to low oil prices and production, and the economic and health challenges.
The Board of Directors of the Central Bank held a number of meetings, some of which hosted the Minister of Finance for the same purpose.
The Central Bank of Iraq would like to show the following:
1- The structural distortions in the Iraqi economy impoverished public finances and restricted the ability of reform sought by the government and the Ministry of Finance. It is not a coincidence that the financial situation is this bad, nor is it the product of the current or the previous year, but unfortunately it took root more than a decade and a half ago due to the policy leadership of the economy and the preference for political thinking and the priorities of politicians over economic thought and development priorities and the rules of the relationship between economic policy on the one hand and fiscal and monetary policies On the other hand ... the fiscal policy lagged behind, and the monetary policy was busy repairing the outputs of the confused fiscal policy.
2- The subordination of the economic and financial policy to the aspirations and concerns of politicians resulted in the last acceptable models of financial management in Iraq, and the role of that administration was limited to the distribution of oil resources to life-sustaining requirements such as salaries and operational requirements, and the Ministry of Finance did not address its roles and leadership in economic affairs. In addition to the fact that it lacked many economic and financial information that could facilitate it and the decision-maker in the country to direct short and medium-term goals. This calls for an active approach to build economic and financial databases that facilitate decision-making and serve forecasts.
3- Because of all these conditions, the Central Bank had no choice but to intervene on more than one occasion to support public finances and save critical public spending requirements .. However, this does not mean that these interventions remain open without restrictions or endings.
4- On the other hand ... the Central Bank understands the difficulties facing the reform intentions that the government is intending to undertake, but this does not prevent any steps that the monetary authority can take with effective steps to carry out reforms that inevitably affect the institutions of the financial authority, especially the effective collection institutions. Customs, taxes, and other public collection institutions, and that spending be leaned and rationalized, all of which depends on the political will of the supreme state institutions that support the direction of the financial authority to achieve this.
The government needs to support the vulnerable groups that will inevitably be directly affected, especially by any measure to change the exchange rate.
5- The legislative authority will have an important role in supporting the direction of the Central Bank to adjust the foreign currency exchange rate, as failure to take such a decision may make us forced to take difficult decisions that may put Iraq in a situation similar to what happened to neighboring countries.
It should also be emphasized here that this change (reduction) in the value of the Iraqi dinar will be one-time only and will not be repeated, and the Central Bank will defend this price and its stability with the support of its foreign reserves, which are still at solid levels that enable it to do so.
6- The financial crisis that Iraq was exposed to due to the Corona pandemic and the resulting deterioration in oil prices and the decline in oil revenues, this led to a large deficit in the general budget and forcing the Ministry of Finance to borrow from banks and re-deduct them with the Central Bank in large sums, in order to pay salaries And meeting other spending needs related to services provided to citizens, and the continuation of the current exchange rate, which is not in any way commensurate with the rates of exchange rates in other countries, has become a major obstacle to conducting real development and enhancing competitiveness for local production, which prompted the Central Bank to think seriously about responding to financing requirements. Budget at the exchange rate that allows providing adequate resources to cover these needs and ensure the smooth payment of salaries and the critical requirements of government spending, and in order for the bank to avoid depleting its foreign reserves, which represent the main financial leverage for monetary stability in Iraq,And his keenness to support the public finances, as he is the advisor to the government and responsible for keeping its accounts.
Based on the foregoing, the Central Bank of Iraq decided to amend the foreign currency exchange rate as follows:
 
1450 dinars per dollar The price of buying foreign currency from the Ministry of Finance
1460 dinars per dollar The price of selling foreign currency to banks
1470 dinars per dollar The price of selling foreign currency to the public
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Today, Saturday, Finance Minister Ali Abdul-Amir Allawi announced the suspension of appointments, while revealing an exception for appointments made at the end of last year and early 2020.

Allawi said in a statement, that "the ministry will issue a statement to raise the exchange rate of the dollar to 1450 dinars to one dollar," noting that it "will stop appointments, and there is an exception for appointments that took place at the end of last year and the beginning of 2020."

He added that "the Kurdistan region exports its oil at prices less than SOMO oil by 5 to 7 dollars," noting that "the ministry has reached an agreement with Kurdistan on the 2021 budget, and the current delegation is discussing its allocations for the year 2020."

He continued that "the Ministry of Finance did not leak the budget, and I categorically deny this," explaining that "Parliament and Parliamentary Finance and heads of the blocs have knowledge of the direction you are taking."

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2020-12-19-17.06.10-1000x540.jpg

Officially, the Iraqi Central Bank announces in a statement to amend the foreign currency exchange rate

Alayam2020-12-1900

 

 

Baghdad/

The Central Bank of Iraq announced, on Saturday, the adjustment of the foreign currency exchange rate.
"During the last months of this year, intensive deliberations took place with the Prime Minister, the Minister of Finance and the Legislative Authority, regarding the economic situation in general and the financial crisis that the public finances are going through due to low oil prices and production, and economic and health challenges," the official statement said.
He added, "The Board of Directors of the Central Bank also held a number of meetings, in some of which were hosted by the Minister of Finance for the same purpose."
The Central Bank stated the following:
1- The structural distortions in the Iraqi economy impoverished public finances and restricted the ability of reform sought by the government and the Ministry of Finance. It is not a coincidence that the financial situation is this bad, nor is it the product of the current or the previous year, but unfortunately it took root more than a decade and a half ago due to the policy leadership of the economy and the preference for political thinking and the priorities of politicians over economic thought and development priorities and the rules of the relationship between economic policy on the one hand and fiscal and monetary policies On the other hand ... the fiscal policy lagged behind, and the monetary policy was busy repairing the outputs of the confused fiscal policy.
2- The subordination of the economic and financial policy to the aspirations and concerns of politicians resulted in the last acceptable models of financial management in Iraq, and the role of that administration was limited to the distribution of oil resources to life-sustaining requirements such as salaries and operational requirements, and the Ministry of Finance did not address its roles and leadership in economic affairs. In addition to the fact that it lacked many economic and financial information that could facilitate it and the decision-maker in the country to direct short and medium-term goals. This calls for an active approach to build economic and financial databases that facilitate decision-making and serve forecasts.
3- Because of all these conditions, the Central Bank had no choice but to intervene on more than one occasion to support public finances and save critical public spending requirements .. However, this does not mean that these interventions remain open without restrictions or endings.
4- On the other hand ... the Central Bank understands the difficulties facing the reform intentions that the government is intending to undertake, but this does not prevent any steps that the monetary authority can take with effective steps to carry out reforms that inevitably affect the institutions of the financial authority, especially the effective collection institutions. Customs, taxes, and other public collection institutions, and that spending be leaned and rationalized, all of which depends on the political will of the supreme state institutions that support the direction of the financial authority to achieve this.
The government needs to support the vulnerable groups that will inevitably be directly affected, especially by any measure to change the exchange rate.
5- The legislative authority will have an important role in supporting the direction of the Central Bank to adjust the foreign currency exchange rate, as failure to take such a decision may make us forced to take difficult decisions that may put Iraq in a situation similar to what happened to neighboring countries.
It should also be emphasized here that this change (reduction) in the value of the Iraqi dinar will be one-time only and will not be repeated, and the Central Bank will defend this price and its stability with the support of its foreign reserves, which are still at solid levels that enable it to do so.
6- The financial crisis that Iraq was exposed to due to the Corona pandemic and the resulting deterioration in oil prices and the decline in oil revenues, this led to a large deficit in the general budget and forcing the Ministry of Finance to borrow from banks and re-deduct them with the Central Bank in large sums, in order to pay salaries And meeting other spending needs related to services provided to citizens, and the continuation of the current exchange rate, which is not in any way commensurate with the rates of exchange rates in other countries, has become a major obstacle to conducting real development and enhancing competitiveness for local production, which prompted the Central Bank to think seriously about responding to financing requirements. Budget at the exchange rate that allows providing adequate resources to cover these needs and ensure the smooth payment of salaries and the critical requirements of government spending, and in order for the bank to avoid depleting its foreign reserves, which represent the main financial leverage for monetary stability in Iraq,And his keenness to support the public finances, as he is the advisor to the government and responsible for keeping its accounts.
Based on the foregoing, the Central Bank of Iraq decided to amend the foreign currency exchange rate, as follows:

1450 dinars per dollar The price of buying foreign currency from the Ministry of Finance
1460 dinars per dollar The selling price of foreign currency to banks
1470 dinars per dollar The price of selling foreign currency to the public

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1603827641_1599381131_59de6c8f-fa3d-4ef1

Yes Iraq: Baghdad

 

Today, Saturday, the Central Bank of Iraq settled the final debate over the exchange rates of the dollar to determine the 1460 selling price in the currency window.

The bank said in a statement, which Yass Iraq received a copy of, that “during the last months of this year, intense deliberations took place with the Prime Minister, the Minister of Finance and the Legislative Authority, regarding the economic situation in general and the financial crisis that the public finances are going through due to low oil prices, production and challenges. Economic and health. ”

He added, “The Board of Directors of the Central Bank also held a number of meetings, in some of which were hosted by the Minister of Finance for the same purpose.
The Central Bank of Iraq would like to show the following:
1- The structural distortions in the Iraqi economy are what impoverished public finances and restricted the ability of reform sought by the government and the Ministry of Finance. It is not a coincidence that the financial situation is this bad, nor is it the product of the current or the previous year, but unfortunately it took root more than a decade and a half ago due to the policy leadership of the economy and the preference for political thinking and the priorities of politicians over economic thought and development priorities and the rules of the relationship between economic policy on the one hand and fiscal and monetary policies On the other hand ... the fiscal policy lagged behind, and the monetary policy was busy repairing the outputs of the confused fiscal policy.
2- The subordination of the economic and financial policy to the aspirations and concerns of politicians resulted in the last acceptable models of financial management in Iraq, and the role of that administration was limited to the distribution of oil resources to life-sustaining requirements such as salaries and operational requirements, and the Ministry of Finance did not address its roles and leadership in economic affairs. In addition to the fact that it lacked many economic and financial information that could facilitate it and the decision-maker in the country to direct short and medium-term goals. This calls for an active approach to build economic and financial databases that facilitate decision-making and serve forecasts.
3- Because of all these conditions, the Central Bank had no choice but to intervene on more than one occasion to support public finances and save critical public spending requirements .. However, this does not mean that these interventions remain open without restrictions or endings.
4- On the other hand ... the Central Bank understands the difficulties facing the reform intentions that the government is intending to undertake, but this does not prevent any steps that the monetary authority can take with effective steps to carry out reforms that inevitably affect the institutions of the financial authority, especially the effective collection institutions. Customs, taxes, and other public collection institutions, and that spending be leaned and rationalized, all of which depends on the political will of the supreme state institutions that support the direction of the financial authority to achieve this.
The government needs to support the vulnerable groups that will inevitably be directly affected, especially by any measure to change the exchange rate.
5- The legislative authority will have an important role in supporting the direction of the Central Bank to adjust the foreign currency exchange rate, as failure to take such a decision may make us forced to take difficult decisions that may put Iraq in a situation similar to what happened to neighboring countries.
It should also be emphasized here that this change (reduction) in the value of the Iraqi dinar will be one-time only and will not be repeated, and the Central Bank will defend this price and its stability with the support of its foreign reserves, which are still at solid levels that enable it to do so.
6- The financial crisis that Iraq was exposed to due to the Corona pandemic and the resulting deterioration in oil prices and the decline in oil revenues, this led to a large deficit in the general budget and forcing the Ministry of Finance to borrow from banks and re-deduct them with the Central Bank in large sums, in order to pay salaries And meeting other spending needs related to services provided to citizens, and the continuation of the current exchange rate, which is not in any way commensurate with the rates of exchange rates in other countries, has become a major obstacle to conducting real development and enhancing competitiveness for local production, which prompted the Central Bank to think seriously about responding to financing requirements. Budget at the exchange rate that allows providing adequate resources to cover these needs and ensure the smooth payment of salaries and the critical requirements of government spending, and in order for the bank to avoid depleting its foreign reserves, which represent the main financial leverage for monetary stability in Iraq,And his keenness to support the public finances, as he is the advisor to the government and responsible for keeping its accounts.
Based on the foregoing, the Central Bank of Iraq decided to amend the foreign currency exchange rate, as follows:

1450 dinars per dollar The price of buying foreign currency from the Ministry of Finance
1460 dinars per dollar The selling price of foreign currency to banks
1470 dinars per dollar The price of selling foreign currency to the public

 

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Yes Iraq: Baghdad

 

The Ministry of Finance is preparing to officially announce the application of the new exchange rate of 1450 dinars to the dollar, which was considered an alternative to the deduction of salaries, as the reduction of the dinar will lead to a "hidden" deduction from the salary due to the devaluation.

Finance Minister Ali Allawi said in televised statements, "We will issue a statement to raise the dollar exchange to 1450, while indicating that there are no appointments in the next year except for those announced at the end of this year."

Reducing the exchange rate to 1450 dinars per dollar, with salaries remaining unchanged, will reduce the real income for the whole community, that is, the purchasing power will decrease at the same rate as the reduction in the exchange rate, and this is known as the monetary illusion, meaning that the employee remains getting the same income, with purchasing power Less, in other words: keeping cash income unchanged and reducing real income (purchasing power).

The reduction will be 23%, meaning that the salary will lose 23% of its value, so the actual salary will be only 77% of the real figure.

Meaning, when you want to know the value of the salary when applying the reduction, then it is multiplied by the number 0.77, so the salary of 600 thousand dinars, its real value is 462 thousand dinars, and the salary of one million dinars, its real value is 770 thousand dinars, and so on.

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31 minutes ago, yota691 said:

All I can say let it play out and see what happens. More to this then what ink on paper :lol:.. and Good Morning DV

Its easier for them to try and fool you and make you fold your cards and turn them in. Then it is to pay after the true revaluation is revealed. Smoke & Mirrors 

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4 minutes ago, yota691 said:
%D8%AF%D9%88%D9%84%D8%A7%D8%B1-1.jpg?res

Yes Iraq: Baghdad

 

The Ministry of Finance is preparing to officially announce the application of the new exchange rate of 1450 dinars to the dollar, which was considered an alternative to the deduction of salaries, as the reduction of the dinar will lead to a "hidden" deduction from the salary due to the devaluation.

Finance Minister Ali Allawi said in televised statements, "We will issue a statement to raise the dollar exchange to 1450, while indicating that there are no appointments in the next year except for those announced at the end of this year."

Reducing the exchange rate to 1450 dinars per dollar, with salaries remaining unchanged, will reduce the real income for the whole community, that is, the purchasing power will decrease at the same rate as the reduction in the exchange rate, and this is known as the monetary illusion, meaning that the employee remains getting the same income, with purchasing power Less, in other words: keeping cash income unchanged and reducing real income (purchasing power).

The reduction will be 23%, meaning that the salary will lose 23% of its value, so the actual salary will be only 77% of the real figure.

Meaning, when you want to know the value of the salary when applying the reduction, then it is multiplied by the number 0.77, so the salary of 600 thousand dinars, its real value is 462 thousand dinars, and the salary of one million dinars, its real value is 770 thousand dinars, and so on.

Much Appreciated Yota for all you do, and hopefully you have a wonderful holiday with your family. 

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Now it time to drop the zero...

 

 

 
10308.jpg
Central Bank of Iraq building
  

 Banks


Economy News - Baghdad

Economy News publishes the text of the Central Bank of Iraq’s statement on the change of the dollar’s exchange rate, and it says:

During the last months of this year, intense deliberations took place with the Prime Minister, the Minister of Finance and the Legislative Authority, regarding the general economic situation and the financial crisis that the public finances are going through due to low oil prices and production, and the economic and health challenges.

The Board of Directors of the Central Bank held a number of meetings, some of which hosted the Minister of Finance for the same purpose.

The Central Bank of Iraq would like to show the following:

1- The structural distortions in the Iraqi economy impoverished public finances and restricted the ability of reform sought by the government and the Ministry of Finance. It is not a coincidence that the financial situation is this bad, nor is it the product of the current or the previous year, but unfortunately it took root more than a decade and a half ago due to the policy leadership of the economy and the preference for political thinking and the priorities of politicians over economic thought and development priorities and the rules of the relationship between economic policy on the one hand and fiscal and monetary policies On the other hand ... the fiscal policy lagged behind, and the monetary policy was busy repairing the outputs of the confused fiscal policy.

2- The subordination of the economic and financial policy to the aspirations and concerns of politicians resulted in the last acceptable models of financial management in Iraq, and the role of that administration was limited to the distribution of oil resources to life-sustaining requirements such as salaries and operational requirements, and the Ministry of Finance did not address its roles and leadership in economic affairs. In addition to the fact that it lacked many economic and financial information that could facilitate it and the decision-maker in the country to direct short and medium-term goals. This calls for an active approach to build economic and financial databases that facilitate decision-making and serve forecasts.

3- Because of all these conditions, the Central Bank had no choice but to intervene on more than one occasion to support public finances and save critical public spending requirements .. However, this does not mean that these interventions remain open without restrictions or endings.

4- On the other hand ... the Central Bank understands the difficulties facing the reform intentions that the government is intending to undertake, but this does not prevent any steps that the monetary authority can take with effective steps to carry out reforms that inevitably affect the institutions of the financial authority, especially the effective collection institutions. Customs, taxes, and other public collection institutions, and that spending be leaned and rationalized, all of which depends on the political will of the supreme state institutions that support the direction of the financial authority to achieve this.

The government needs to support the vulnerable groups that will inevitably be directly affected, especially by any measure to change the exchange rate.

5- The legislative authority will have an important role in supporting the direction of the Central Bank to adjust the foreign currency exchange rate, as failure to take such a decision may make us forced to take difficult decisions that may put Iraq in a situation similar to what happened to neighboring countries.

It should also be emphasized here that this change (reduction) in the value of the Iraqi dinar will be one-time only and will not be repeated, and the Central Bank will defend this price and its stability with the support of its foreign reserves, which are still at solid levels that enable it to do so.

6- The financial crisis that Iraq was exposed to due to the Corona pandemic and the resulting deterioration in oil prices and the decline in oil revenues, this led to a large deficit in the general budget and forcing the Ministry of Finance to borrow from banks and re-deduct them with the Central Bank in large sums, in order to pay salaries And meeting other spending needs related to services provided to citizens, and the continuation of the current exchange rate, which is not in any way commensurate with the rates of exchange rates in other countries, has become a major obstacle to conducting real development and enhancing competitiveness for local production, which prompted the Central Bank to think seriously about responding to financing requirements. Budget at the exchange rate that allows providing adequate resources to cover these needs and ensure the smooth payment of salaries and the critical requirements of government spending, and in order for the bank to avoid depleting its foreign reserves, which represent the main financial leverage for monetary stability in Iraq,And his keenness to support the public finances, as he is the advisor to the government and responsible for keeping its accounts.

Based on the foregoing, the Central Bank of Iraq decided to amend the foreign currency exchange rate, as follows:

1450 dinars per dollar is the purchase price of foreign currency from the Ministry of Finance

1460 dinars per dollar the selling price of foreign currency to banks

1470 dinars per dollar is the selling price of foreign currency to the public

We ask the Almighty to take the hand of our country and our people because of the goodness, goodness and honor that it contains.

The Central Bank of Iraq

December 19, 2020

 
 
Number of observations 15   Date added 12/19/2020
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