CBI News 12/21/2020

[mally2]

17 minutes ago, Snatcher said:

I don't know why but every time someone says they've been here since such and such time I always check when they join site. Says you joined January 2017?

Not that it matters but I used to be mally, or amal, cant remember. Thats why its mally2. Some technical problem or forgotten password. I bought my first dinar sometime around 08 and have been getting news here since the days of kaperoni passing out pizza slices in chat.

[DWS112]

An article written by a staff member from Reuters.com was recently posted by @6ly410

The last words at the bottom of the article are: ($1 = 1.45 Iraqi dinars)

Thanks to @6ly410  for a great find! Maybe this is the next step!

 

 

Edited December 22, 2020 by DWS112

[DinarDavo]

15 minutes ago, DWS112 said:

An article written by a staff member from Reuters.com was recently posted by @6ly410

The last words at the bottom of the article are: ($1 = 1.45 Iraqi dinars)

Thanks to @6ly410  for a great find! Maybe this is the next step!

 

 

 

I saw that as well but it didn't seem to fit the rest of the narrative in the article.... ???

[Laid Back]

2 hours ago, Dinarrock said:

LB did you see the article out this morning already where prices have already gone up in the market from 10-20%!! So the dinar has devalued by 22% and inflation has gone up just for food close to the same! So are you saying the citizens will allow this to go on for up to a year? Inflation will go through the roof long long before then there is no way they can keep this rate low for even a month IMO!!

Dinarrock, Thanks for your input

Yes, I saw the article this morning where prices have already gone up. Is the reaction of the market (inflation) created by the devaluation of the dinar.

Also the gas prices are going up by 20% from 450 to 540 dinars per liter.

People are getting angry by the government decision.

 

Like a said before, I think the temporary fix will last less than 12 months

 

One week, One month or One quarter is less than 12 month

 

I always prepare for the worst case scenario expecting the best.

 

Go RV

Go 2021

Go $1:1

 

[davis411]

2 hours ago, Snatcher said:

I don't know why but every time someone says they've been here since such and such time I always check when they join site. Says you joined January 2017?

Me

lets check

 

[Longtimelurker]

3 hours ago, Snatcher said:

I don't know why but every time someone says they've been here since such and such time I always check when they join site. Says you joined January 2017?

Ive been here for about 10 years but never joined until i couldnt read posts unless i did. 

[Carrello]

With all the horrific things. going on in the world today, and you have the time to be checking on members sign-up dates, you need a hobby and some gratitude.

Edited December 22, 2020 by Carrello

[Sage449]

Sorry for getting my oar in the boat here - most folks that indicate they've been involved (own) dinar since the early to mid 2000s mean owned it, not been a member on Dinarvets.com. I've owned since 2005 or 2006 I think, but been a member since maybe 2010, right before Christmas I joined. Have thoroughly enjoyed it and majority of people on the site. Always a couple of lemons but ya just make lemonade.  

[yota691]

A central bank advisor determines its orientations regarding the exchange rate and the possibility of changing it again

 

17,867 Sweeteners 2020/12/27 15:52 Baghdad Today -

Baghdad Ihssan Shamran, the advisor at the Central Bank of Iraq, determined the bank’s orientations regarding the exchange rate and the possibility of changing it again. "The Central Bank monitors the exchange rates and tightens this in order to prevent instability and jumps in the exchange rate, and there is no intention of the Central Bank to adjust the exchange rate at a higher value to the dollar against the dinar," Shamran said in a televised interview. He pointed out that "the increase in the exchange rate took place only once, and if it was in a gradual manner, there would have been instability, an unstable price, and concern among merchants and citizens." And that "there are people and banks that have monopolized the dollar after raising the value of its exchange with the aim of speculation, but what happened is that its price has decreased and this is convenient for the central bank because it insisted on changing the price for one time and in a non-gradual manner to create reassurance among the public." He pointed out that the central bank is independent, but it is part of the financial and monetary administrations of the state. It must appoint the state and have previously entered due to late salaries. He advised the state to borrow. Yesterday, a member of the Economic Committee in the House of Representatives, Nada Shaker Jawdat, confirmed, on Saturday, that there is a parliamentary tendency to request an exchange rate adjustment for a reason related to 3 million Iraqi citizens. Jawdat told (Baghdad Today), "The Iraqi Contractors Union, which represents a large sector in the country, and one of dozens of sectors affected by the increase in the dollar exchange rate, confirmed in our meeting with them that 3 million workers will lose their jobs due to the increase in the exchange rate, and expose them to great losses as a result." that". She added, "The rise in the dollar exchange rate pushed all prices up, including the raw materials in which local industries operate," indicating that "support for the local industry comes through a road map that enters in multiple stages and not through a sudden decision such as raising the dollar and making prices flame in the markets." . And she continued that "the House of Representatives will press towards discussing the possibility of modifying the exchange rate file after the arrival of the federal budget law."

[yota691]

A central bank advisor criticizes the Ministry of Finance: shortening it prevented a 25% increase in the budget

 

1,627 Policy 12/28/2020 23:15 Baghdad Today -

Follow-up Ihssan Shamran, a counselor at the Central Bank of Iraq, talked about the contribution of raising the exchange rate by supplying the state budget with at least one trillion dollars in 2021, while noting that there is a failure by the Ministry of Finance to prevent the state budget from increasing by 25%. "It is expected that the Ministry of Finance will sell the Central Bank 42 billion dollars during the year 2021, and this will increase the state's resources due to the exchange rate difference of about 11 trillion Iraqi dinars," Shamran said in a televised interview. He added, "Iraqi agriculture will be the first to benefit from raising the exchange rate, because it will reduce import and encourage the farmer to sell at a profitable price because the import did not make him competitive and make the foreign product cheaper because of the previous exchange rate." He believed that "the problem of the outlets, the control of influential people, and the entry of goods without merchandise, will be solved by raising the exchange rate, because the exporter and the merchant will not be able to sell at a normal price, because the costs will be more, and thus merchants will lose and will not be encouraged to import." And he talked about the Ministry of Finance's failure to prevent the increase of budget funds by saying, "The Ministry of Finance was late in many of its duties in enforcing and implementing the law in the establishment of customs, taxes, and if they worked effectively, they would save resources of up to 25% of the state budget. Matters should not remain unbridled indefinitely." ". He revealed that the Ministry of Finance provided two reasons for raising the exchange rate of the dollar against the dinar, while noting that the Iraqi dinar is strong and will not collapse according to two international standards. In the same interview, he said that there was "a dialogue between the Central Bank and the Ministry of Finance with the International Monetary Fund to raise the exchange rate to 1450 dinars against the dollar to improve the performance of public finances." He added, "There are two reasons provided by the Ministry of Finance to raise the exchange rate during its discussions with the Central Bank. The first is the decline in the state's resources due to low oil prices, and the second reason is to create competition in the Iraqi economy that allows national production to be strong in front of the foreign commodity. On the other hand, the vulnerable classes must be supported with a fund and a special account." To support them with financial grants. " Regarding concerns about the collapse of the value of the dinar against the dollar due to a change in the exchange rate, Shamran said, "According to international standards, the Iraqi dinar is a strong currency, because there is a reserve of funds in the Central Bank that exceeds 60% of the source for trading as a condition for considering it strong and this is the first criterion for its strength." He added, "International standards stipulate that the currency should be strong and not collapse, that there should be reserves that secure 6 months of foreign trade, and the current reserves of the bank secure 26 months."

[SocalDinar]

Iraq devalues dinar to boost economy, factory production

The Central Bank of Iraq cuts the value of the dinar against the dollar in the context of policies to address Iraq's economic crisis.

 

 

 

 

 A man carrying a package walks past Iraqi riot police security forces standing guard outside the Central Bank of Iraq headquarters along Rashid Street in the center of the capital, Baghdad, on Dec. 22, 2020. Hundreds of angry Iraqis protest in several cities against a currency devaluation that has slashed their purchasing power amid a pandemic-fueled economic crisis. The Central Bank of Iraq at the weekend devalued the currency by over a fifth against the US dollar, officially re-pegging the dinar at a bank rate of 1,460 to the greenback.  Photo by AHMAD AL-RUBAYE/AFP via Getty Images).

Salam Zidane

 

 

Economy and trade

Dec 30, 2020

The Central Bank of Iraq devalued the dinar against the US dollar by 18.5% as a measure to counter the financial crisis caused by the coronavirus pandemic, the drop in oil prices in the global market and the increase in Iraqi government spending on salaries.

According to the Iraqi Central Bank, the new exchange rate is 1,460 dinars, down from 1,182.

In an interview with local media on Dec. 19, Finance Minister Ali Allawi explained that the dinar devaluation does not aim to bridge the financial budget but rather to stimulate the economy. This step will support the private productive sectors and create a shift in the economic policy from reliance on import to reliance on production and export. He indicated that the exchange rate of the dollar in Iraq was very high, causing local production great challenges and rendering it unable to compete with foreign products.

Allawi indicated that the vulnerable societal groups will be receiving financial subsidies allocated in the 2021 budget to face the repercussions of devaluation. He warned the Iraqi Central Bank's foreign currency reserves would have been depleted within six months if the dollar exchange rate remained unchanged and state employees' spending not reduced. The budget deficit for 2021 will be 100 trillion dinars, he noted.

The minister said the increase in subsidies to the poor and vulnerable categories aims to mitigate the effects of the recession. He also pointed out that Iraq is working with the World Bank to expand the scope of the Social Fund for Development to more than $1 billion and to provide support to the agricultural sector at an amount of $5 trillion annually.

 

This is the first time the government's vision aligns with the vision of the Central Bank of Iraq. The former Central Bank governor, Ali Mohsen Al-Alaq, refused the idea of changing the exchange rate of the dollar as a useless solution. Now, the Parliamentary Finance Committee has joined the Central Bank in the devaluation of the dinar.

In a press statement, the Central Bank of Iraq said the structural distortions in the Iraqi economy impoverished public finances and restricted the ability of reform due to the economic policy leadership and the primacy of politicians' priorities over the economy and its stability. The Central Bank noted that the devaluation will be a one-time measure and will not be repeated. The Central Bank intends to defend the new rate and peg it against the dollar with the support of its foreign reserves, which are still at solid levels that enable it to do so.

The governor of the Central Bank, Mustafa Ghaleb, stated that the Central Bank is ready to launch a package of measures that will achieve a comfortable balance in the exchange rate for 2021. These include launching an initiative of 3 trillion dinars to support people with limited incomes, doubling the availability of hard currency in the market and increasing interest rates on bank deposits in the Iraqi currency.

Meanwhile, the Parliamentary Finance Committee voiced its support for the devaluation measure. Committee member Jamal Kojar told Al-Monitor, “We supported the devaluation since the economic situation is collapsing.” It should be noted that the budget deficit for 2021 is about 70 trillion dinars ($58 billion) out of a total budget amounting to 156 trillion dinars ($107.5 billion).

Kojar argued that the political system is facing a major collapse that requires the next government to fight corruption. There are some 200,000 to 300,000 fictional employees in addition to some 300,000 people who earn more than one salary from the state. Around 90% of the border outlets' revenues revert to corrupt entities and economic facilities affiliated with political parties.

The government did not only devalue the dinar and reduce the salaries of employees, but it also imposed more taxes to cover a growing budget gap amid a rise in the poverty rate to more than 34%, which further cripples vulnerable groups.

For his part, Abdul Rahman al-Mashhadani, a professor of economics at The Iraqi University, told Al-Monitor that a majority of goods in the market are imported and prices will rise, indicating that the poor class will be harmed in light of quasi-cancellation of the ration card.

He argued that the decision to devalue the dinar came at inappropriate timing. He argued that the decision to devalue the dinar came at inappropriate timing, explaining that “The economy is in recession, and now the situation will take a turn to the worse.

The Iraqi government faces significant challenges. More than 6 million Iraqi employees receive salaries exceeding 60 trillion dinars ($50 billion) annually, while hundreds of thousands of job seekers are staging protests across the country. Meanwhile, the private sector is unable to create new jobs because of the large number of imported products from neighboring countries such as Turkey and Iran. This pushed the government to devalue the dinar in a bid to uplift local production, find jobs for the unemployed in factories and halt the drain of foreign currency to neighboring countries.

Read more: https://www.al-monitor.com/pulse/originals/2020/12/iraq-economy-dinar-dollar.html#ixzz6i7gmfyHP

[PhillyDinar]

I feel like its been way too long since we have had any solid iron clad updates on the progress for iraqi and its potential to RV... 

 

Are there truly no positive or inspiring events taking place to be shared on this topic?

 

I saw the dip in value by 22% and read that it was mainly due in part to poor economic policies over the last decade...

 

They also go on to say that is is the LAST time they will ever devalue its currency (which says to me they still plan to grow and increase the value) but still would love to see what everyone is seeing, hearing, feeling and or knowing about the lack of any iron clad updates as of late...

 

Source for my claims:

Abcnews.go.com/international/wireStory/iraqs-central-bank-devalues-dinar-22-amid-public-74819699

 

 

Iraq's central bank devalues dinar by 22% amid public anger
Iraq's central bank says it will devalue the national currency, the Iraqi dinar, by over 20 percent in response to a severe liquidity crisis brought on by low oil prices

By SAMYA KULLAB Associated Press
December 19, 2020, 1:17 PM
• 4 min read

FILE - In this Oct. 21, 2020 file photo, people shop at old Basra market, Iraq. A leaked draft of Iraq's state budget has spurred panic as it confirmed the government's intentions to devalue the national currency, the Iraqi dinar, and cut salaries to

 

The Associated Press
FILE - In this Oct. 21, 2020 file photo, people shop at old Basra market, Iraq. A leaked draft of Ira...Read More
BAGHDAD -- Iraq's Central Bank on Saturday announced it will devalue the Iraqi dinar by over 20 percent in response to a severe liquidity crisis brought on by low oil prices, a measure that has sparked public outrage as the government struggles to cover its expenses.

Riot police were dispatched outside the central bank headquarters in central Baghdad prior to the announcement in the event news of the devaluation sparked protests. A leaked draft of the state budget law for 2021 caused furore on the Iraqi street last week as it confirmed plans to devalue the dinar.

The new rates represent a dramatic reduction from the previous official rate of 1,182 IQD. It is the first reduction in exchange rates that the Iraqi government has made in decades.

In a statement, the Central Bank set the new rate for the dinar, which is pegged to the U.S. dollar, at 1,450 IQD when selling to the Iraqi Finance Ministry. The dinar will be sold to the public at 1,470 IQD and to other banks at 1,460 IQD.

The devaluation raised the prospects of the dinar weakening further on the street. The rate has already risen to 1,400 IQD per U.S. dollar on Saturday, up from 1,300 IQD last week, at currency exchange agents.

“I stopped exchanging currency,” said Abo Abed, who works at a currency exchange in the Karrada neighborhood of the capital. He turned away a customer with a $100 bill, saying he could only sell at the old rate of 1,300 IQD. “Who knows, tomorrow it could be 1,800 IQD.”

Since an oil price crash earlier this year, Iraq has been grappling with an unprecedented liquidity crisis. The crude-exporting country has had to borrow from the bank’s dollar reserves to pay the nearly $5 billion in monthly fees for public salaries and pensions. Oil revenues, which account for 90% of the budget, have brought in an average of $3.5 billion.

Efforts to introduce reforms have been met with opposition and to date, the government has been borrowing internally to foot state bills.

A devaluation would give oil-rich Iraq, which imports nearly all of its goods, more dinars in hand to make urgent payments. But setting a new rate has been a delicate balancing act to satisfy the government's needs for liquidity without impacting the average Iraqi.

The Finance Ministry is responsible to allocate salary payments to public workers, the largest working force in Iraq and among the most disgruntled by the new currency measures.

The bank justified the devaluation saying it was the product of “intense deliberations” with the prime minister, finance minister and lawmakers, and stressing the reduction in the dinar's value would be a one-time occurrence.

“It must be emphasized here that this change (reduction) in the value of the Iraqi dinar will be one-time only and will not be repeated,” the statement said. “The Central Bank will defend this price and its stability with the support of its foreign reserves,” which it maintained are still at stable levels.

The bank blamed poor economic policies over the last decade. It said it had “no choice but to intervene” as poor economic planning and fiscal policies from Iraqi politicians have reduced Iraq to a crude-exporting state with the bulk of state expenditures going toward paying a bloated public sector.

The devaluation drew the ire of public sector workers. Many fear a weakened dinar, as well as plans proposed in the budget to cut salaries and impose taxes, will amount to pay cuts.

While taking a step toward austerity, the proposed state budget for 2021 also calls for record spending projecting a deficit of nearly $40 billion. A Cabinet session to vote on the law was postponed to Sunday.

From there, it will be voted on by lawmakers, a challenging task as the cuts are considered wildly unpopular ahead of next year's nationwide elections.

“It will be very difficult (to pass),” said lawmaker Sarkawt Shamseddine. “In order to to convince MPs to vote for this big bill the government has to show it has other plans ... to increase revenues. That's the strategy.”

Prime Minister Mustafa al-Kadhimi called for early elections to take place one year earlier than scheduled on June 2021, in line with demands of anti-government protesters.

[olivesman]

1 hour ago, PhillyDinar said:

I feel like its been way too long since we have had any solid iron clad updates on the progress for iraqi and its potential to RV... 

 

Are there truly no positive or inspiring events taking place to be shared on this topic?

 

It sounds like you haven't been reading Adam's updates. There's a TON of good stuff going on. Go to the chat forum and check out the updates and his links.

[PhillyDinar]

1 hour ago, olivesman said:

It sounds like you haven't been reading Adam's updates. There's a TON of good stuff going on. Go to the chat forum and check out the updates and his links.

Thank you, i havent been getting the emails for the updates.