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Al-Maliki: The devaluation of the dinar may have catastrophic effects

yota691

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yota691 Grand Master

yota691

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20 December, 2020 | 4:00 pm   -   Readings: 14 views
 
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Iraqi position network
 

The leader of the State of Law coalition, Nuri al-Maliki, warned today, Sunday, of serious catastrophic consequences that may lead to the collapse of the general situation, after the devaluation of the Iraqi dinar, this came during his tweet.

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yota691 Grand Master

yota691

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 2020-12-20 08:29
 

Shafaq News / The head of the State of Law Coalition, Nouri al-Maliki, warned on Sunday of the "serious catastrophic" repercussions that threaten to destroy the state and society due to the devaluation of the local currency, demanding that the government have a role in protecting the citizen, which will result from this measure.

Al-Maliki said in a tweet on his Twitter account, and Shafaq News followed him, "If the devaluation of the Iraqi dinar is a step to address the economic crisis and fill the deficit in the budget, but the question remains, what are the government's measures to protect the citizen."

He stressed that the government "must take into account the citizen's living conditions from manipulation and exploitation that will affect his life directly, the impact of devaluing the dinar."

Al-Maliki warned of "dangerous catastrophic consequences that may lead to the collapse of the general situation and the destruction of the state and society structure if not accompanied by direct intervention by the government and its security and economic agencies."

Yesterday, Saturday, the Central Bank of Iraq announced, in a statement received by Shafaq News, the reduction of the value of the Iraqi dinar against the American dollar to reach “1450 dinars per dollar, the price of buying foreign currency from the Ministry of Finance, and 1460 dinars per dollar, the price of selling foreign currency to banks, and 1470 dinars. Each dollar has the price of selling foreign currency to the public.

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yota691 Grand Master

yota691

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1 hour ago, 8th ID said:

Sadr opened his mouth too the other day.

Since you brought it up 8th ID
Thanks
 
20 December, 2020 | 4:36 PM   -   Readings: 120 views
 



Iraqi position network
 

 

The Al-Fateh Alliance, led by Hadi Al-Ameri, revealed on Sunday the party that nominated the governor of the Central Bank, Mustafa Mukhaif, while confirming that the first deputy speaker of Parliament, Hassan Al-Kaabi, is preventing a frightening interrogation.

The leader of the coalition, Muin Al-Kazemi, said, “Central Bank Governor Mustafa Mekhaif is the candidate of the Sadrist movement (the Saeron Alliance), and talking otherwise is unrealistic, and the first deputy speaker of Parliament, Hassan al-Kaabi, prevents a frightening interrogation, despite the insistence of MPs from the blocs. A different political ”.

And Al-Kazemi said that "raising the exchange rate of the dollar came for the benefit of some private banks of influential entities and personalities, and this benefit will be at the expense of the citizens, as everything will rise with this significant rise in the dollar exchange rate."

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6ly410 Grand Master

6ly410

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Iraq news now

Nuri al-Maliki comments on the collapse of the Iraqi dinar against the dollar

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Independent Press Agency
News source / Independent Press Agency

The Independent / - The head of the State of Law coalition, Nuri al-Maliki, warned of dangerous catastrophic consequences that could lead to the collapse of the general situation and the destruction of the state and society structure due to the devaluation of the dinar.

Al-Maliki wrote in a tweet on the Twitter platform, “If the devaluation of the dinar is a step to address the economic crisis and fill the deficit in the budget, the question remains, what are the government's measures to protect the citizen and take into account his living conditions from manipulation and exploitation that will affect his life directly, after the devaluation of the dinar, which are the effects ”

The devaluation of the dinar against the dollar, which officially entered into force today, was met with popular criticism and by some MPs, especially some if the markets witnessed an increase in the prices of imported and local foodstuffs.

The post Nouri al-Maliki comments on the collapse of the Iraqi dinar against the dollar appeared first on the Independent Press Agency

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6ly410 Grand Master

6ly410

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Iraq news now

Haider al-Abadi: The devaluation of the Iraqi dinar is a war on the poor

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Independent Press Agency
News source / Independent Press Agency

 

The Independent / - A coalition of "victory" led by the former Iraqi prime minister, Haider al-Abadi, considered the devaluation of the Iraqi dinar and the reduction of the citizen's income a "war" against the poor and those with limited income.

A press release by the coalition stated: “We reject the devaluation of the Iraqi dinar and reduce the citizen’s income, which will not address the crisis at the foreseeable level.

The coalition held: "The government and the political forces supporting this step are responsible for what will result from societal economic collapses that affect the social and living structure of the citizens."

He added, "These measures and the continuation of irresponsible spending in a corrupt, flabby and chaotic bureaucratic environment, amid modest infrastructure and services that are the mainstay of economic, industrial and agricultural activities will lead to unfortunate results."

On Saturday, the Iraqi Minister of Finance, Ali Allawi, announced the reduction of the Iraqi dinar exchange rate against the dollar, to reach 1450 dinars per dollar.

Yesterday, our correspondent in Iraq reported that a state of anger had occurred in social networking sites due to the low exchange rate of the Iraqi dinar against the dollar.

The post Haider Al-Abadi: The devaluation of the Iraqi dinar is a war on the poor appeared first on the Independent Press Agency

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Jaygo Community Regular

Jaygo

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35 minutes ago, Dandy1 said:

Malaiki is right. The IQD should have equal value to the USD. May I suggest around 1 to 1? I think this is brilliant on the part of Kazemi. Now he has the support system" rel="">support of Malaiki and Sadr to raise the exchange rate.

Kazemi doesn’t need support from Malaiki or Sadr. CBI changes the rate not Kazemi. 

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8th ID Rising Star

8th ID

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You know, maybe this is an attempt to make Kazemi look bad. @yota691, didn’t you post an article yesterday or the day before where it tied the CBI governor to the Sadr movement? I know I thought it was kinda odd when I read it, but with these roaches coming out now, maybe it’s not. Just thinking about it now.

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6ly410 Grand Master

6ly410

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ERBIL, Kurdistan Region — Iraqi demonstrators took to protest epicenter Tahrir Square on Monday to air their discontent after a government decision to devalue the country's currency.

Hundreds of protesters returned to Tahrir Square, the point of origin for anti-government protests that spread across central and southern Iraq in October 2019, this time demanding that the government reverse its decision to decrease the value of the Iraqi dinar against the US dollar.

“We are here to get rid of corruption,” one protestor in Tahrir Square told Rudaw’s Halkawt Aziz.

“The increase in the value of the dollar is a colonial plan against the people of Iraq, we want the price to return to normal," the protester said. "They bring us crisis after crisis without letting us breathe.”

“Look at the street and look at these people," another protester said. "These militias have taken all the money for themselves.”

The Tahrir Square protesters were met with a heavier than usual security force presence, Aziz told Rudaw English from the scene.

"Even though the protesters are planning to stay the night, it is highly unlikely that the security forces will allow them to do so," Aziz added.

The Central Bank of Iraq announced on Saturday that it would be devaluing the country’s currency in an effort to combat a liquidity crisis and bring in much-needed cash.

According to a statement published by state media outlet Iraqi News Agency (INA), the Central Bank will sell the dinar to the country’s finance ministry at 1,450 Iraqi dinars per US dollar. The public will be able to purchase the dinar at 1,470 Iraqi dinars, and other banks at 1,460 Iraqi dinars.

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),” Sadr tweeted.

In alignment with the widespread backlash to the devaluation decision, the Iraqi parliament’s Economy and Investment committee announced the need for dollar prices to be returned to their previous level.

“We, as members of the parliament believe that the exchange rate of dinar for dollar should be returned to 120,000 dinars per 100 dollars. or slightly more,” committee member Falah Khafaji told Iraqi state media on Monday. “This devaluation will effect the poor in the country, and they will be the people hurt by it the most.”

On Monday evening, $100 cost approximately 136,000 dinars at money exchange offices in Erbil

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6ly410 Grand Master

6ly410

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Minister of Finance are far from the citizen and reality

 
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Information / Special ...

On Monday, the Parliamentary Economic and Investment Committee considered the government’s policy and Finance Minister Ali Abdul Amir Allawi, regarding the economic crisis, as far from the citizen and reality.

Committee member Nada Shaker said in a statement to "the information", that "raising the price of the dollar against the Iraqi dinar is a matter that greatly affects the livelihood of people with limited income and poor groups of society." “.

She added that "the Minister of Finance, Ali Abdul Amir Allawi, is acting far from the citizen and all the revolutions he took to solve the crisis negatively affect the citizens," indicating that "government reform is an economically wrong approach."

The Parliamentary Economic Committee confirmed, yesterday, Sunday, that the government of Prime Minister Mustafa Al-Kazemi is unable to address the current financial crisis.

The Minister of Finance announced, earlier on the day before yesterday, Saturday, to raise the exchange rate of the dollar against the Iraqi dinar, confirming that all appointments will be stopped in the budget for next year

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6ly410 Grand Master

6ly410

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The government is waging a war against the Iraqi citizen and there is great anger in Mesopotamia

 

MP Nada Shaker Jawdat said today, Monday, that the Iraqi government is waging a war against the citizen through the financial policy it announced.

In an interview with Al Ahed News, Jawdat said, "There is great anger in the Iraqi street at the government's move to raise the price of the dollar, and that these measures affect the livelihood of simple people."

"Why is the simple citizen always the one who pays the price?" Shaker asked. Indicating that this is due to their mismanagement and corruption

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3n1 Experienced

3n1

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2 hours ago, Spartakus said:

Maliki is for a 1to1 now but when he was in power with a much better economy he stopped it from happening this is really a typical politician and a thief.

 

.... and one cant forget trying to arrest the wisest financial mind Iraq has had at the CBI who is now chairman of monetary policy of the Bank of England .... we wait 

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6ly410 Grand Master

6ly410

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Economy News • Iraq News Now

Adel Abdul-Mahdi comments on changing the exchange rate of the dollar and makes several proposals

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Iraqi Media News Agency
News source / Iraqi Media News Agency

 

 Former Prime Minister Adel Abdul-Mahdi commented, on Monday, regarding the change of the dollar exchange rate that the current government recently made, while he presented several proposals to get out of the economic crisis afflicting the country.

Abdul Mahdi said in a post on his Facebook page, followed by (Iraqi Media News Agency ) , which included the following:

The exchange rate, treasury and budget crisis

1- The asset is historically in currency, it is a commodity. People exchanged their goods and services for the goods and services of others.

2- Markets expanded, goods and services increased, and it is no longer practically possible to deal as commodity for commodity. So people turned to commodities that are easy to carry, preserve and fragmentation, so they were metal goods. A coin was born of gold, silver, copper, etc., which bears its value with its value.

3- Transactions increased, so people began to keep their gold or minerals in houses, and issue a document or certificate of the value of their mineral assets of gold and silver. Banks and banknotes covered with storage, reserves or metal cover were born, and they became the “equivalent” in which the values of goods, services, business, etc. are balanced. .

4- Financial houses or banks noticed that people who deposit gold or silver with them do not withdraw their money at once, but rather that the bulk of it saves it, which allowed it to issue banknotes without having a real cover. That is, it invests the money of others, and achieves profits for itself that far exceed the profits of the commissions that it collects from depositing money with it.

5- Economic life has evolved further as the understanding and experience has developed among households, banks, governments and states, that is, everyone who represents the monetary authority is that the lesson is not with the metal but in the transactions of goods and services produced and traded by people. And that the currency is only an "equivalent" that has become acceptable to people, for what is equivalent to the value of these transactions. And the duty of the monetary authority is to issue papers equivalent to the need for streamlining and good circulation of goods and services. If you issue more, there will be inflation, and if you issue less, there will be deflation. Or what “Al-Maqrizi”, son of the fifteenth century, called “money boom” for the first, and “money depletion” for the second, with the large number of sultans at that time blocking the deficit of their coffers by using “Al-Kaghad” as a pledge to pay, or what we today call securities.

6- Commodity or metal currency carries its value with it, so people are reassured about it. As for paper money, confidence in it must be generated in order for it to stabilize and become an essential tool for trading. People will be happy if they wake up one day and find that the value of their currency has risen, and this is a small matter, but they are often shocked and sad when they wake up one day and find that the value of their currency has decreased, and consequently their assets and real purchasing power have declined. In addition to that, the markets and economic activities, especially the medium and long term, need to stabilize the value of the currency in order for people to offer to deal with it and not with others.

7- In sum, the currency reserve or its cover which was in the past a “previous” condition for the issuance of paper currency has developed in recent decades - especially after the abandonment of the gold standard according to “Bretton Woods” after World War II and also at the beginning of the seventies after the dollar departed from gold. To the possibility of it becoming a true "subsequent" for the issuance or offer of the currency. The reserve or the cover has been gradually transformed in most of it into a hypothetical state and into ratios and equations to determine the size of the currency supply, which should meet the need for the movement of production and circulation of goods and services. Not every issued monetary unit necessarily has its equivalent in real reserves. Numerous theories and practices emerged that go to abstraction and assumptions rather than to remain automatically committed to reserves and their values. Banks and monetary authorities began issuing currency in its various forms and granting banking and credit facilities without cover or corresponding reserves. Some of these issues are justified and legitimate, and some are unjustified and unlawful.

8- Justified and legitimate because it brings benefits if he goes to the world of transactions and produces more goods and services that will bridge the gap between the reserve or default cover with the monetary mass and the currency supply, then the balance that was disturbed will return after a period of time. It is like deferred and urgent payment, which are the focus of the value of the work presented.

9- It is unjustified and unlawful, so it brings harm if it goes to speculation, enrichment, usurious tendencies, collecting money and excessive unbridled inflation, without all of this being matched by real work and production of goods and services, so the gap between the size of goods and services and the supply of currency increases, so crises occur and the currency’s value collapses as it collapsed before 2003. Rather, people lost confidence in them and dealt with foreign currencies that they trusted more. So we have a "Rank Xerox" dinar, the Swiss dinar, the dollar, the Turkish lira, the Iranian riyal, and so on, which cost us a lot before we restore confidence to the dinar and unify all transactions and national accounts accordingly.

10- In Iraq, despite the claims of the entirety of our systems that we went through during the current and previous century, that we have liberated and liberated our national currency, but we are still working with old practices when the dinar was linked to the pound sterling, that is, our currency is not linked to the production of all the goods and services that we produce, but rather is linked to a cover, Today, the dollar basically, which the Central Bank has reserves estimated at the beginning of 2020, is approximately $ 67 billion, which puts Iraq in third place in the Arab world, and gold bullion (we have 96.3 tons of it and are ranked 35 globally and fifth in the Arab world). The reason for this is that we are an oil rentier country, and oil is sold in dollars. Therefore, our reserves, which are the main indicator of our cash issuances, depend on what we have mainly dollars or foreign coins, or what we buy and store of gold, must be sufficient for at least half a year of necessary imports for the country according to International Monetary Fund Equations.

11- The budget depends on that, and the economy depends on that, and the salaries, rights, and entitlements of farmers and contractors all depend on that. In short, the markets as a whole depend on that. When the blockade was imposed and oil exports stopped, the dinar fell from 0.333 dinars per dollar to 3,000 dinars per dollar. And when oil prices decrease or our exports decrease, everything retreats and an equivalent national economy does not stand in front of it that can overcome the crisis and avoid its repercussions, and protect the national currency, which is a basic address of sovereignty and independence.

12- That is why we structured the International Monetary Fund or structured ourselves in front of the Monetary Fund according to this fatal equation, which has no way out if we do not address the monetary reality with the economic reality. The monetary truth became absolutely stifling and a barrier to economic reality. While the correct view is that the economy is the basis, not currency or cash. And that the currency should be serving the economy and not vice versa.

13- That is why our economy continued to adopt the cash economy, with great wealth standing outside the banks, afraid of arbitrary measures to make these funds closer to the spread of corruption and to hoarding them for investment, launching expanded production cycles and achieving progress and sustainable growth. That is why the so-called Narrow Money or paper currency remained the basis, so bills of exchange and digital and electronic currency disappeared, rather the use of instruments decreased, savings retreated, and most of the currency became outside the banking cycle, so the real mechanisms of saving and investment were absent with it, and the credit role of the banks as financiers of projects disappeared, and not Her only concern is currency speculation to achieve profits.

14- In recent years, oil resources are 40-60 billion dollars annually, and the gross national product is 5-6 times this number, meaning there is an important part of the gross national product, or national income, or the total production of goods and services produced nationally, whether based on oil resources Or non-oil.

15- Here we can make a breakthrough to move the economy and support the national currency and reduce the risks of absolute dependence on foreign currency, by encouraging the state, and with its direct and indirect guarantees, for means of payment in the so-called Broad Money (M2, M3, M4) that is currently almost frozen And practically uninvested. When activating these trends and granting them confidence and protection, we will provide large liquidity needed by the economy, treasury and budget, which will be covered and paid off by the expansion of economic activities.

16- We say frozen because part of the liquidity that will be provided by increased facilities in the "broad currency" will come from the goods and services produced outside the oil resources, which will later bridge the gap between the currency supply and its cover or reserves.

17- But for success in that, there are conditions that seem possible and the economic authority can adopt them with relative ease, provided the minds accept them. In Iraq, there is an important "effective demand" caused by the large number of spending, which is now being met through imports and the increasing need for foreign exchange. In Iraq, there is experience and productive capabilities that have been disrupted by wars, blockades, and erroneous rentier and non-rentier economic trends. Especially in the needs of which the "marginal tendency to consume" (the predominance of essential consumer spending) is an essential element. This "effective demand", most of which is for people with limited income, can be financed initially by "broad currency" and by direct and indirect sovereign guarantees, even if they do not have cover or initial reserves corresponding to them. Under certain conditions, the demand here can move the subsequent national production that will bridge the gap, restore the balance, and make the "broad" national currency in exchange for or equivalent additional goods and services.Thus, activities, production, markets and employment move, and a new expanded production cycle is created that feeds the economy and helps to increase reserves, finance the treasury and the budget with more national currency and fulfill what the guarantees sought to achieve, thus reducing dependence on foreign exchange (mainly the dollar) and increasing the proportion of the non-oil sector output in output National gross.

18- As for the conditions, they are to make the establishment of small, medium and large enterprises, individual and collective, national and foreign, and to grant permits and facilities a priority in front of which all unjustified anomalous obstacles will recede, so that philosophy is the priority of starting and not restraining. There are many legal, bureaucratic, societal, political, intellectual and formal obstacles, both internal and external, that only serve to increase extortion, holidays and corruption. And attention to outputs as a priority and criterion for success in contracts and business, and to provide the necessary inputs, whether in government contracts or private projects. And the protection of production and producers, whether through protection measures whenever possible, or by encouraging and promoting the product, providing financial assistance, allowances, exemptions and support, and all that is required to succeed in that

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