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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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Iraq today

Minister of Finance: The salaries of employees will not be affected and changing the exchange rate will not affect people with limited incomes

Posted 17 seconds ago
News source / Noon Agency
8-1608407456.jpg
Noon Agency
News source / Noon Agency
The Minister of Finance, Ali Abdul Amir Allawi, spoke today, Saturday, about the reasons that led to the increase in the exchange rate, indicating that the move to raise its price will not affect those with limited income.

Finance Minister Ali Allawi said, in a televised interview with a number of media outlets, that "in the event that the exchange rate is not changed, the Central Bank's reserves will be implemented after 6 months," adding that "Iraq suffers from a high exchange rate for the dollar that weakens the ability of Iraqi goods to compete." .

He pointed out that "reducing the exchange rate encourages the private sector to produce and export," noting that "the exchange rate adjustment is part of reforms for the Iraqi economy within the 2021 budget."

He noted that "the Iraqi product faced a great challenge and inability to compete," noting that "changing the exchange rate helped the rise of Egyptian exports, for example."

He said, "It is not correct that the person with limited income is the most affected by the change of the exchange rate," noting that "the poor groups will not be affected by the change in the exchange rate because the value of housing rent and the food basket will not change unless they buy imported things."

He added that "the most affected are the travelers and those who deal in imported goods."

And that "the poor groups will be supported in the 2021 budget."

Regarding the effects of this change, Allawi indicated that "the positive effect of changing the exchange rate will be through encouraging Iraqi industry and providing job opportunities," adding that "Iraq is a consumer country and we want to change the reality by changing the exchange rate first."

He pointed out, "Iraqi markets are flooded with foreign goods, and policies must be implemented to encourage the local product."

Regarding the trend towards reducing the salaries of employees, the minister said that "employee allocations will be reduced, but they will not affect or affect all employees, and salaries have not been affected," noting that "there are exaggerated allocations for some categories of employees."

He warned that "120% of the budget goes to employees' salaries, and that the cost of retirement will increase by 40% in the 2021 budget

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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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Iraq today

Advisor Al-Kazemi: This is how the increase in the dollar’s exchange rate will affect people with limited incomes

Posted a minute ago
News source / Noon Agency
8-1608407778.jpg
Noon Agency
News source / Noon Agency
The Prime Minister’s Adviser for Financial Affairs, Mazhar Muhammad Salih, revealed today, Saturday, the effects of changing the exchange rate of the dollar against the dinar and how all groups are affected, especially those with limited income.

The official news agency quoted Saleh as saying, “The lowering of the exchange rate in a rentier economy like Iraq is directly related to financing the state’s public budget and represents, in essence, an inflationary financing method, that is, buying a cheap dinar issued by the Central Bank with government oil revenues in dollars. Or the high value foreign currency to fill part of the deficit in the general budget equivalent to the reduction percentage.

He pointed out that “the reduction carries positive effects for holders of real wealth with foreign assets, such as the rich in dollars or owners of foreign assets such as gold, cars and others, and the added value here is an increasing emergency wealth due to the change in government policies in its favor, and although the local market itself is not affected (in a way). Direct) by discounting because it can transfer the price or value burden on the consumer or the final buyer at once (as a transitional inflation tax), with the exception of temporary problems related to contracts between dealers, term sales, debts and mutual obligations.

He added, "This does not mean that there has been no contraction in the demand for goods and services in the market, especially goods with high flexibility in demand for them, including luxury or leisure goods." "Flooding in the market that suppressed the local product due to the lack of imports from it."

And he continued, “It remains the most affected person from the lowering of the exchange rate and in all cases with limited income and the poor and vulnerable groups in society, as the purchasing power of their incomes in the local currency will decline by a decrease in the external value of money due to the rise in prices, especially the necessary imported commodities, which are low elasticity in demand, such as food and necessities Medicines are what requires a government program to compensate those affected by the poor, vulnerable and low-income classes.

Before that, the Minister of Finance, Ali Abdul Amir Allawi, spoke today, Saturday (19 December 2020), about the reasons that led to the increase in the exchange rate, indicating that the step of raising its price will not affect those with limited income.

Finance Minister Ali Allawi said, in a televised interview with a number of media outlets, that "in the event that the exchange rate is not changed, the Central Bank's reserves will be implemented after 6 months," adding that "Iraq suffers from a high exchange rate for the dollar that weakens the ability of Iraqi goods to compete." .

He pointed out that "reducing the exchange rate encourages the private sector to produce and export," noting that "the exchange rate adjustment is part of reforms for the Iraqi economy within the 2021 budget."

He noted that "the Iraqi product faced a great challenge and inability to compete," noting that "changing the exchange rate helped the rise of Egyptian exports, for example."

He said, "It is not correct that the person with limited income is the most affected by the change of the exchange rate," noting that "the poor groups will not be affected by the change in the exchange rate because the value of housing rent and the food basket will not change unless they buy imported things."

He added that "the most affected are the travelers and those who deal in imported goods."

And that "the poor groups will be supported in the 2021 budget."

Regarding the effects of this change, Allawi indicated that "the positive effect of changing the exchange rate will be through encouraging Iraqi industry and providing job opportunities," adding that "Iraq is a consumer country and we want to change the reality by changing the exchange rate first."

He pointed out, "Iraqi markets are flooded with foreign goods, and policies must be implemented to encourage the local product."

Regarding the trend towards reducing the salaries of employees, the minister said that "employee allocations will be reduced, but they will not affect or affect all employees, and salaries have not been affected," noting that "there are exaggerated allocations for some categories of employees."

He warned that "120% of the budget goes to employees' salaries, and that the cost of retirement will increase by 40% in the 2021 budget

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10 minutes ago, 6ly410 said:

Iraq today

Advisor Al-Kazemi: This is how the increase in the dollar’s exchange rate will affect people with limited incomes

Posted a minute ago
News source / Noon Agency
8-1608407778.jpg
Noon Agency
News source / Noon Agency
The Prime Minister’s Adviser for Financial Affairs, Mazhar Muhammad Salih, revealed today, Saturday, the effects of changing the exchange rate of the dollar against the dinar and how all groups are affected, especially those with limited income.

The official news agency quoted Saleh as saying, “The lowering of the exchange rate in a rentier economy like Iraq is directly related to financing the state’s public budget and represents, in essence, an inflationary financing method, that is, buying a cheap dinar issued by the Central Bank with government oil revenues in dollars. Or the high value foreign currency to fill part of the deficit in the general budget equivalent to the reduction percentage.

He pointed out that “the reduction carries positive effects for holders of real wealth with foreign assets, such as the rich in dollars or owners of foreign assets such as gold, cars and others, and the added value here is an increasing emergency wealth due to the change in government policies in its favor, and although the local market itself is not affected (in a way). Direct) by discounting because it can transfer the price or value burden on the consumer or the final buyer at once (as a transitional inflation tax), with the exception of temporary problems related to contracts between dealers, term sales, debts and mutual obligations.

He added, "This does not mean that there has been no contraction in the demand for goods and services in the market, especially goods with high flexibility in demand for them, including luxury or leisure goods." "Flooding in the market that suppressed the local product due to the lack of imports from it."

And he continued, “It remains the most affected person from the lowering of the exchange rate and in all cases with limited income and the poor and vulnerable groups in society, as the purchasing power of their incomes in the local currency will decline by a decrease in the external value of money due to the rise in prices, especially the necessary imported commodities, which are low elasticity in demand, such as food and necessities Medicines are what requires a government program to compensate those affected by the poor, vulnerable and low-income classes.

Before that, the Minister of Finance, Ali Abdul Amir Allawi, spoke today, Saturday (19 December 2020), about the reasons that led to the increase in the exchange rate, indicating that the step of raising its price will not affect those with limited income.

Finance Minister Ali Allawi said, in a televised interview with a number of media outlets, that "in the event that the exchange rate is not changed, the Central Bank's reserves will be implemented after 6 months," adding that "Iraq suffers from a high exchange rate for the dollar that weakens the ability of Iraqi goods to compete." .

He pointed out that "reducing the exchange rate encourages the private sector to produce and export," noting that "the exchange rate adjustment is part of reforms for the Iraqi economy within the 2021 budget."

He noted that "the Iraqi product faced a great challenge and inability to compete," noting that "changing the exchange rate helped the rise of Egyptian exports, for example."

He said, "It is not correct that the person with limited income is the most affected by the change of the exchange rate," noting that "the poor groups will not be affected by the change in the exchange rate because the value of housing rent and the food basket will not change unless they buy imported things."

He added that "the most affected are the travelers and those who deal in imported goods."

And that "the poor groups will be supported in the 2021 budget."

Regarding the effects of this change, Allawi indicated that "the positive effect of changing the exchange rate will be through encouraging Iraqi industry and providing job opportunities," adding that "Iraq is a consumer country and we want to change the reality by changing the exchange rate first."

He pointed out, "Iraqi markets are flooded with foreign goods, and policies must be implemented to encourage the local product."

Regarding the trend towards reducing the salaries of employees, the minister said that "employee allocations will be reduced, but they will not affect or affect all employees, and salaries have not been affected," noting that "there are exaggerated allocations for some categories of employees."

He warned that "120% of the budget goes to employees' salaries, and that the cost of retirement will increase by 40% in the 2021 budget

So in this article he is saying that increasing the dinar exchange rate won’t hurt Iraq because they need to change from being an importer to an exporter. Only the items that are imported will raise in price so they need to switch to exporting...

 

This is Iraq, not China.. hello!!!! Iraq has to import just about everything but oil and oil is traded in the petro dollar so it doesn’t really pertain to an export for the dinar.. How is Iraq going to magically start exporting everything overnight? This is total bs. Why would a nation that needs to rebuild and buy raw materials in mass qtys (import) decide to change their exchange rate so they pay more for the materials they need??? That’s like me going to Best Buy to buy a $500 TV and the day before deciding I want to pay $700 for the same TV instead.. Anyway, this can’t be happening. If these idiots actually increase the dinar exchange rate it is either by stupidity, or a mean plan that severely hurts the citizens and is unsustainable.. ridiculous!! Ok rant over!!

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Legal: The rise of the dollar to 145,000 violates the constitution and the International Covenant

18a2308669e075d383e7b415f19d9447?s=26&r=Author: ahad7 On 12/19/2020 - 8:03 PM 144

https://alahadnews.net/145195/العراق/محليات/

The expert in legal affairs, Ali Al-Tamimi, confirmed that the rise in the dollar exchange rate to 1450 in the budget law violates the Iraqi constitution and the Charter of the International Covenant and can be challenged.

Al-Tamimi said, “Rising the dollar exchange rate to 1450 violates articles 30 and 31 of the Iraqi constitution, which require the state to provide a free and decent life and a suitable income, and also this procedure violates Articles 23 and 26 of the International Covenant on Civil and Political Rights, which are obligatory for all countries in the world that are members of the United Nations organization abide by.

He added, “Also, the Central Bank Law, according to its Law No. 56 of 2004, is an independent body under Article 3 of this law and also the Central Bank’s instructions for the year 2017, and thus it determines the exchange rate. He read.

He continued, "This law can be challenged if it is legislated by Parliament before the Federal Court. Parliament can not agree to enact this law and return it to the government for an amendment because Parliament can do so constitutionally as it represents society

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Finance: The government will take measures to offset the consequences of the exchange rate adjustment on the poor

Economie

https://www.alsumaria.tv/news/اقتصاد/367377/المالية-الحكومة-ستتخذ-تدابير-لتعويض-عواقب-تعديل-سع

 

Finance: The government will take measures to offset the consequences of the exchange rate adjustment on the poor

 

The Ministry of Finance announced, Saturday, that the government will take measures to offset the negative consequences of the exchange rate adjustment on the poor.

A

"The government will take measures to compensate for the negative consequences of adjusting the exchange rate on the poor," the ministry said, in an explanatory statement on the exchange rate.

 

"Changing the exchange rate will help draw up a more sustainable budget and give the government more capabilities to support a segment with limited income," she added.

Regarding the effect of the exchange rate on the prices of imported goods, the ministry emphasized, "Some imported commodity prices will rise once to compensate for the exchange rate adjustments. The exchange rate adjustment should encourage the growth of local alternatives to imports and in a timely manner that will lead to price stability."

The Central Bank of Iraq announced, on Saturday, that the dollar exchange to the public will be 1470 dinars per dollar

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43 minutes ago, 6ly410 said:

Iraq suffers from a severe economic crisis as a result of the government's repeated failures to address the crisis, amid high rates of corruption

 

all the while Iraq produces more oil now than ever in their history ... go figure 

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4 hours ago, Dinarrock said:

Why are you not happy with it?? You should be ecstatic with the news especially if you have read the many posts and threads on this today! HUGE HUGE HUGE NEWS!!!  Again the only reason possible for them to do this is to bring in as much dinar mattress money as they can right before the RV!! The CBI has never been able to get the citizens to do this before no matter what they have done. This move is meant to absolutely scare the citizens into exchanging their dinar for dollars before they do this, I bet the banks have been packed their the past couple of days!! You should also know that by dropping the rate by 22% will lead to increased inflation which will make it even worse for all the citizens that have been protesting and rioting! So do you think they will keep this rate very long?? The answer is No, they may only keep this rate for a few days up until I say On or before Jan 6th but preferably on Jan 1st! Everyone knows at 1190 that is grossly undervalued period for the wealth of this country so now they are going to make it even worse I say no way this is a play to get as much dinar off the streets right before they RV!!

Time will tell.

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The Central Bank announces the devaluation of the dinar to 1,470 per dollar

 
  Baghdad: Morning 
 
Yesterday, Saturday, the Central Bank issued an important statement announcing the reduction of the value of the Iraqi dinar against the US dollar, pledging that the reduction would be one-time only and would not be repeated.
In the statement, the Central Bank stated 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 general economic situation and the financial crisis that the public finances are going through due to the decline in oil prices and production, and the economic and health challenges.
He added, because of 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, that does not mean that these interventions remain open without restrictions or endings.
And he continued, in the statement, we understand the difficulties facing the reform intentions that the government is heading 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 and taxes, And other public collection institutions, and that the tunnels are being minimized and rationalized. 
The central demanded the government to support vulnerable groups that will inevitably be directly affected, especially by any measure to change the exchange rate, pledging that this change (reduction) in the value of the Iraqi dinar will be one-time only and will not be repeated, and it will defend this price and its stability with the support of its foreign reserves that are still at levels Discreet enables him to do so.
He pointed out that the continuation of the current exchange rate, which is not in any way compatible with the exchange rates of other countries, has become a major obstacle to real development and the promotion of competitiveness for local production, which prompted the Central Bank to think seriously about responding to the requirements of financing the budget at the exchange rate.
The Central Bank decided to adjust 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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1 hour ago, blueskyline said:

Why 1450 ? ...... I looked at the CBI site. Still showing 1190 to the USD . I read the other exchanges . The euro (EUR) is listed as 1 EUR to 1450.491 IQD .....I'm not insinuating anything at all . But for me . Thats one Heck of a Coincidence 

 

 

I noticed that too.  I was wondering if the dinar is going to be pegged to the Euro now, instead of the dollar.  

 

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2 minutes ago, Longtimelurker said:

1 USD = .82 EURO

 

I won't even attempt to figure it out, I'm just going by the Forex Exchange Rates chart for VISA.  

At the moment, they are showing 1 IQD = 06846 Euro, and 1 Euro - 1,455.2396 Dinar.

So, I'm wrong.  We won't get .68 Cents, we will get .68 Euro (if this all comes to pass).

How much is .68 Euro in Dollars?  I'm lousy at math.

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This is what I'm looking at:

 

Give 1 IQD, Get Euro

 

https://ferates.com/converter

 

Sorry, the page goes back to dollars and euros.  Put this in - Give 1 IQD, Get Euro and you will see that it says IQD = 0.6846 Euro.  If you reverse it - Give 1 Euro, Receive IQD you get 1,455.2396 Dinar.

Edited by Floridian
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ERBIL, Kurdistan Region — Iraq’s central bank announced on Saturday that it would be devaluing the country’s currency in an effort to combat a national liquidity crisis and bring in much-needed cash to the government’s coffers. 

According to a statement published by state media Iraqi News Agency (INA), the Central Bank will sell the dinar to the country’s Finance Ministry at 1,450 IQD per 1 USD. The public will be able to purchase the dinar at 1,470 IQD, and other banks at 1,460 IQD.

The devaluation of the Iraqi dinar is a step taken towards reform and creating a “financial balance” and will revive the economy, said Iraq’s Minister of Finance. 

“There are other problems the economy is facing, but correcting the currency value is a part of the solution, and a very important part of improving the economy,” Ali Allawi said at a press conference in Baghdad on Saturday evening, describing the decision as a necessary sacrifice. “There is no magical wand to increase state income by 50% and magically decrease spending.”

The minister also claimed that people are overreacting over the devaluation, because Iraq “has been suffering from a high currency value.”

Allawi said that if the devaluation did not take place, “there is a high chance that the central bank reserves will be completely consumed” after roughly six months.

A draft of the state budget law for 2021 leaked on Thursday sparked fury among Iraqis, revealing plans to devalue the dinar.

On Saturday, riot police were dispatched outside the Central Bank headquarters in central Baghdad prior to the devaluation announcement, fearing an attack and the eruption of protests, reports the Associated Press. 

Iraq is facing a financial crisis due to the coronavirus pandemic, the plunging of oil prices and consequent decline in much-needed revenue for the state. The Ministry of Finance has been borrowing from its bank to pay salaries and meet other spending needs. 

Devaluing the currency would help the government attain much-needed cash and cope with its responsibilities, but will decrease the purchasing power of ordinary Iraqis.

Influential Shiite cleric Muqtada al-Sadr voiced his skepticism of the measure’s ability to alleviate public suffering.

“The Central Bank and all other banks are prisoners of corruption and corruptors. The government and parliament must seek specialized methods to end this and liberalize it immediately. It is not sufficient (to float the currency),” tweeted the leader. 

The federal government announced in October a series of economic reforms titled “the White Paper,” falling in the realms of oil, electricity, agriculture, schools, and limiting waste and corruption - but it has yet to be implemented.

The chairman of Iraq’s Advisory Council, Farhad Alaadin, has on several occasions stated that Iraq’s reform effort will be “problematic,” as it includes many reform measures that will affect the status quo of a number of political parties. 

“The political crisis in Iraq is linked to three issues, namely power, money and corruption. We are working to address the crisis from an economic standpoint, and with a bold decision to overcome the obstacles of corruption and money,” said Iraqi Prime Minister Mustafa Kadhimi during a Saturday special cabinet session on the federal budget of 2021, according to the Prime Minister’s media office. 

“Either we correct the situation or we laugh at people,” he added.

 

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