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To the executive branch to the central bank of Iraq


PrehistoricMan
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Here’s The Latest From The Dulaimi Tsunami Swami ! :o 

 

:D  :D   :D  

 

 

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The manipulation of the exchange rate and the decline of the real income of the vast majority of the Iraqi people
 

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Books / Al-Dulaimi Star

 

20/02/2021

 

To employees, retirees, merchants and earners. To the professors of Iraqi universities and institutes. To the public and professional organizations, civil society organizations, students and women.

Raise your voice to the authority on the necessity to reduce the value of the national currency, the dinar, towards the dollar, to 1125 dinars per dollar, for a period of only 6 months, and after that the return to the previous exchange rate of 1119 for the citizen

The price of one barrel in the budget of humiliation, slavery and poverty has been set at about $ 42, and today the price of one barrel of crude oil has reached about $ 65 a barrel, so the difference between the two prices is $ 23 and during the year and assuming the price of oil is stable, it means new financial revenues that enter the Ministry of Finance / Abdul Amir Allawi The savage and extremist liberal has about 23 billion dollars, and this is double the amount obtained by the Al-Kazemi government, Allawi, due to the devaluation of the national currency of the dinar in favor of the dollar, more than double, not to mention other financial revenues that enter the government, you have 850 billion dollars in Western / American banks According to the statement of the former US Secretary of State, border outlets, taxes, you have the problem of aliens, double salaries, fake projects, arms contracts and prison contracts ....

It is not logical that the employee, the retired, the trader and the earner bear the burdens of ignorance and error ... .. successive governments, including the Al-Kazemi / Allawi government, from having an income tax deduction, the decrease in the exchange rate of the Iraqi dinar towards the US dollar and an insane rise in prices ... .. food and medicine commodities and durable goods ... ... and the result is catastrophic for the majority of the 99% of the Iraqi people, as the real income has decreased to 99% between 45-50%, and this will result in poverty, unemployment, destitution, financial and administrative corruption, and organized crime ... so these are some ((achievements)) of the excessive neoliberal approach in Its brutality and aggression against the poor, the needy and the oppressed in favor of the ruling mafia junta are the directives of the International Monetary Fund and the World Bank, and this was done with the approval of the leaders of the parties, blocs and political currents influential today in power from all three sectarian components.

Hear the people of Saeron’s statements (We will not allow the budget to pass unless the exchange rate remains at 1450, to secure the country's needs and for fear of the economy’s collapse. They say the budget does not pass unless the dollar stays 1450, and they swear by the Lord of the Worlds, for his dead body will pass the budget). ( Transported).

## The demand for the dismissal of the Minister of Finance, the Minister of Planning and the President of the Central Bank of Iraq, because they have implemented the directives of the leaders of the parties, blocs and political currents that are influential today in ruling from the three sectarian components, as well as the directives of the International Monetary Fund and the World Bank, and in the event of failure to respond to the demands of the Iraqi people on the Iraqi people and their political forces Patriotic, progressive, and leftist leaders should demand the dismissal of the Al-Kazemi government and hold the corrupt accountable in it.

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6 hours ago, Uckiller said:

Tq @Theseus for your great explaination..

what i mean was the original article in arabic..

from what i understand..

He wrote how they can achieve 1:1

 

Delete 3 zero as

1000iqd to 1iqd..

1 000 000 to 1000.

then after that 1iqd equal to 1usd..

 

Imo..if they really want this kind of transformation..

it should be done long ago since lop for me doesn't need delete 3 zero and economic growth

wasting  ah if 

1 usd = 1new iqd = 1000 old iqd

 

Sound like just as cosmetic.. not increase purchasing power

 

 

 

 

How many USDs does 1 IQD currently equal?

 

If they revalue to 1 USD to 1 IQD (1:1), how many USDs would 1 IQD equal?

 

What is the difference between the two (subtract the two amounts) ? 

 

If the resultant value is larger than the current value of the IQD then it is an increase in purchasing power for the Iraqi.

 

If the resultant value is less than the current value of the IQD then this results in less purchasing power for the Iraqi.

 

Tip: If you subtract the larger number from the smaller, you will have to negate (multiply by -1) the value.  

 

 

Edited by Theseus
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dinarbeleiver

  • IQD IS STOCK IN IRAQS BRIGHT FUTURE
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1 hour ago, dinarbeleiver said:

I’m gonna slap you with my Marshall stick you cheeky clown.
 

Hope your well bro and also where is that sandfly ?

 

He’s Probably Going “Banana’s” Back At His Home In The Philippines With His Wife And Kids After Presumably Finishing His Tour ! B) 

 

DV Used To Be His Outlet When He Was On Base In Afghanistan - But Whenever He Would Go On Leave Back Home We Wouldn’t Hear From Him For Several Weeks Until He Got Back On Base ! ;) 

 

But It’s Great To See U Make A Cameo Flyby My Cheeky British Brother ! :cheesehead:
 

Btw - I Can’t Remember What Role It Was That U The Chimpanzee Played On ‘The Brady Bunch’ ? :blink:

 

Were U Alice’s Boyfriend After Sam The Butcher ? :o 
 

(insert ‘banana’ or ‘meat’ joke here)

 

:D  :D  :D 

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On 2/19/2021 at 1:59 AM, PrehistoricMan said:

3 - A new exchange rate is required for the Iraqi dinar towards the US dollar, which is one dinar equals one US dollar. This requires deleting the three zeros, for example, the 1000 dinars become Iraqi dinars, and the million dinars (1,000,000) one thousand Iraqi dinars (1000), and according to the new exchange rate 1000 dinars equals 1000 US dollars, and this is in the interest of the Iraqi citizen and economy as a first stage and work in the future to return a new exchange rate Each dinar equals $ 3, as it was previously.

too bad and sadly, there is no article ( response ) directly from the governor of the cbi about approving and implementing the proposal written by this author regarding a new exchange rate 1:1. because i am curious to know what the governor of the cbi is going to do next regarding this proposal.

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4 minutes ago, RV MY DINAR 3USD said:

too bad and sadly, there is no article ( response ) directly from the governor of the cbi about approving and implementing the proposal written by this author regarding a new exchange rate 1:1. because i am curious to know what the governor of the cbi is going to do next regarding this proposal.

If he did, every Yahoo in the world would jump on the Iraqi Dinar like it was Gorilla Glue......that would more than likely bring down the rate of which is now planned. I'll wait.....okay, pun intended.....I have no choice but to wait....

Suddenly 

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6 minutes ago, Flamtap said:

If he did, every Yahoo in the world would jump on the Iraqi Dinar like it was Gorilla Glue......that would more than likely bring down the rate of which is now planned. I'll wait.....okay, pun intended.....I have no choice but to wait....

Suddenly 

thanks. you are right. i haven't thought about that.

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Here’s The Latest From The Swami ! :o 
 

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The risk of political and economic confusion and its impact on the future of Iraq — the 2021 budget is a model

 

 Wednesday 24th February 2021

 
 
 
First ... the move by the Al-Kazemi / Allawi government to raise the exchange rate of the US dollar against the Iraqi dinar to 1145, which no government has made since the US occupation of Iraq until today. The national government is really the one working to strengthen the national currency, the dinar for the benefit of the Iraqi people and the economy. The possible and available means because the strength of the national currency means the strength of the economy and also the power of the state, not working otherwise.

Secondly ... the goal of the Minister of Finance, the President of the Central Bank of Iraq and the Minister of Planning ... is to raise the exchange rate of the US dollar is ((to address)) the fiscal deficit of the state budget for the year 2021, and this failed and scientific step aimed at obtaining 12 trillion dinars as new revenue for the government budget, Likewise, raising the exchange rate of the US dollar is in the interest of whales and dinosaurs of financial and administrative corruption in order to buy the assets of the state at a low price, and it is also in the interest of the leaders of the parties, blocs and political currents that are influential today in power, and this was only after the approval of the leaders of the parties, blocs and political currents influential today in Iraq.

Third .. Let our Iraqi people and their national, progressive and leftist political forces know about the real and imminent danger, which is that the budget for 2021 is an illogical budget, a budget for impoverishment, humiliation, starvation, oppression and misery for the vast majority of the Iraqi people, which is the budget for selling Iraq by divulging in accordance with the budget provisions, in Article 38, Article 47, and Article 41-42. This is what some deputies announced publicly at a press conference.

Fourth .. The Al-Kazemi government and his finance minister, according to the directives of the International Monetary Fund and the World Bank, have prepared a budget for the extermination and impoverishment of 99 percent of the Iraqi people, which is a budget with a class content biased in favor of whales and dinosaurs of financial and administrative corruption and with the guidance and approval of the leaders of the abhorrent quota system, and without the approval of the leaders of the ruling regime When neither Al-Kazemi nor his finance minister was able to prepare this black and unfamiliar budget and because of that, the exchange rate of the US dollar towards the national currency of the Iraqi dinar was raised to 1450, which constituted a real disaster for employees, retirees, merchants, earners, university professors and Iraqi institutes, as well as led to a recession Terrifying and frightening in the internal market movement and spreading chaos and anxiety among the vast majority of the Iraqi people.

Fifthly, why did the Al-Kazemi government and his finance minister not think that the financial deficit is not addressed at the expense of those with limited incomes. Rather, they must look for the main reason, which is the spread of the virus of financial and administrative corruption in the authority from the highest peak of power to the lowest, the theft of the Iraqi people's wealth and the organized sabotage of sectors Productivity and service, and the almost complete collapse of the education sector and all its educational stages, not to mention the real disaster in the health sector, the absence of services, including electricity and water, and the absence of appointments for graduates except (by) with a (green notebook) …… ..,

Sixthly, does Finance Minister Abdul Amir Allawi, who implements the directives of the International Monetary Fund and the World Bank, do not know about the following:

** The ration card allocations for the period 2004-2020 amounted to about 82 billion dollars, and money was spent on electricity for the same period between 70-100 billion dollars, according to the statements of some MPs.

** Annually, natural gas is burned at a value of $ 18 billion, and the value of oil derivatives that are sold in the Iraqi market of petrol ... Between 18-20 trillion dinars, is this included in the state budget? And does Al-Kazemi / Abdul Amir Allawi not know that the land, sea and air border outlets during 12 years have achieved financial revenue for the state by about 450 billion dollars, and in the best case, about 10 percent of this revenue enters the state, as for the rest of the years …… ?.

** Does the Al-Kazemi government and his finance minister do not know about the fake projects that cost them about $ 288 billion, not to mention the salaries of aliens, double-wages, the Prisoners, Martyrs and Rafhawen Foundation, and the outlet for the sale of foreign currency by the Central Bank of Iraq and for the benefit of a limited number of private banks that work for the benefit of regional powers, namely In the tens of billions.

** Is the government of Al-Kazemi / Allawi not known about the quantities of oil that are smuggled daily, weekly, monthly and annually, arms contracts and prison contracts, where are the final accounts since 2004-2020, where is the fate of the 2014, 2020 budget, smuggling of the Iraqi people's wealth that ranges between 850-trillion A dollar while it is outside Iraq in regional and international countries that work in the interest of the economies of these countries. The dangerous policy is the policy of flooding Iraq with foreign debts and its impact on the economy and future generations. The Al-Kazemi / Allawi government annually pays about $ 5 billion in interest for loans.

## Is all this scientific, inhuman and illogical hype in order to get 12 trillion dinars by raising the exchange rate of the US dollar, and forget about the other financial revenues from ministries and public and private government agencies ... ..? Where is the national and principled, where is the social and economic justice in the Iraqi society?

Seventh ... The Sairun group claim that they are defending the poor, the needy, the persecuted, retired and employed ... The party who walked says: ((We will not allow the state's general budget to pass, except in the event that the exchange rate of the US dollar remains at 1450 to secure the country's needs and for fear of the national economy from collapse ????????????????

Eighth ... We remind our Iraqi people and their patriotic, progressive and leftist political forces with the saying of Che Guevara ((O those on the threshold of hunger, revolt, for bread does not come to kneel)). This chaos in the economic, social, political and security fields ... is caused by the nature of the ruling regime in Iraq, and its main reason lies in the economic and social basis of the ruling regime today in Iraq, which is the private ownership of the means of production. Unfair and in this regard, the great leader of the world proletariat Lenin asserts, "Hell will remain on the earth as long as private ownership of the means of production remains ...))

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It’s Another Appearance From The Great Salami Swami ! :o 

 

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Dismissal of the most failed finance minister, Abdul Amir Allawi

 
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17:11 - 02/28/2021 - Books / Najm Al-Dulaimi ...
 
 

Dismissal of the most failed finance minister, Abdul Amir Allawi

Dismissal of the most failed Central Bank of Iraq president,

** Demanding the abolition of deductions firstly called taxes on the salaries of employees and retirees.

** Abolishing the exchange rate of the US dollar 1450 and returning to the previous exchange rate of 1120.

** Demanding the removal of Haitham al-Jabouri and Majida al-Tamimi ... From the Parliamentary Finance Committee because they are working against the interest of the vast majority of the people and their negative stance on setting the US dollar exchange rate of 1450, which constituted a humanitarian catastrophe for the Iraqi people, i.e. 99 percent of the people are affected by the decision of the executive and legislative authority.

## \ In the event that the demands of the Iraqi people are not met, the vast majority of the people will boycott the upcoming parliamentary elections.

: A legitimate question?

Why does the Wisdom Movement and Sarkar bloc insist on keeping the exchange rate of the US dollar at 1450 ??? !!!

We believe that your position is against the interest of the vast majority of the Iraqi people, including employees, retirees, earners, merchants, peasants, national intellectuals, students, women, professors of Iraqi universities and institutes, and in the event of failure to respond to the demands of the Iraqi people, the vast majority of the Iraqi people will boycott the upcoming parliamentary elections. The goal is clear: to buy state assets at a low price, after enriching with the US dollar and the Iraqi dinar. The experience of the Russian Federation for the period 1992-1999 is similar to the experience of occupied Iraq.

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Wednesday 25th February 2021

The Euphrates Center discussed: the causes and repercussions of the double economic shock in Iraq

A report issued by the Al Furat Center for Development and Strategic Studies, which was prepared by a group of academics specializing in economics 
https://annabaa.org/arabic/economicreports/26280

Wednesday 25th February 2021

 

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Participants:

Dr. Amer Omran Al-Mamouri - University of Karbala.

Dr. Abbas Fadel Resan - Ahl Al-Bayt International University.

Dr. Hussein Ahmad Al-Sarhan - Al Furat Center for Development and Strategic Studies

Dr. Ihab Ali Al-Nawab - Ahl Al-Bayt International University.

The researcher has his son Shimon Shlimon - head of research at the Central Bank of Iraq.

Researcher Haider Mortada Ali - writer in the field of economic policies

Contents:

Foreword.

The first axis: the causes and repercussions of the double economic shock.

The second axis: ways out of the double economic shock.

Recommendations.

Foreword:

Iraq began with an economic shock in 2003 when it adopted the transformation in a sudden and in one go, from central planning to the market economically, and it seems that this matter has become a system that Iraq runs on (the system of shocks and not the shock of the system).

Apart from the narration of previous shocks, the current double economic shock that Iraq was exposed to in terms of causes and potential repercussions, as well as the necessary proposals to avoid the occurrence of shocks, can be addressed and discussed with specialists after briefly presenting them.

Due to the Iraqi economy's excessive dependence on the state and oil, in conjunction with the weak investment environment, the reluctance of the private sector to invest, the failure to create job opportunities, and the increase in the armies of unemployment, which was a fertile environment for increasing the electoral balance in exchange for providing job opportunities in the country (disguised unemployment), the state became in a financial position. Be envied.

Because the financial deficit rose starkly (by 107%) from 28 trillion dinars in 2019 to 58 trillion dinars in 2021, by virtue of increasing public expenditures from 133 trillion dinars in 2019 to 150 trillion dinars in 2021 (before the amendment) in exchange for a decrease in public revenues from 105 One trillion dinars in 2019 to nearly 92 trillion dinars in 2021.

The matter changed after the amendment was made, as the deficit increased and reached 71 trillion dinars, and public expenditures rose to 164 trillion dinars, compared to an increase in public revenues to 93 trillion dinars, but with a lower rate than the increase in public expenditures. Therefore, the deficit increased by a greater percentage after the amendment was made, and the matter is still in the hands of the legislative authority. In particular, the Finance Committee is currently conducting intensive discussions with the executive authorities to determine its financial needs precisely.

In order to save money and address the critical financial situation, the state resorted to monetary and financial policies in one go and simultaneously in the 2021 budget, where the state announced a reduction in the value of the Iraqi dinar to be sold by 1,450 instead of 1182 to the central bank, 1460 to banks and 1,470 to the public at the level of monetary policy, and to reduce employee compensation At the very least, which represents the engine of the economic cycle at the present time; Large proportions at the level of fiscal policy.

In the sense that Iraq was subjected to a double economic monetary and financial shock, as the devaluation of the Iraqi dinar, which was implemented directly in conjunction with the reduction of compensation for employees by a large percentage that is still under discussion under the dome of Parliament and had a media impact, led together to the decline of economic activity due to the state of ambiguity and apprehension. About the future.

This shock, without a doubt; It did not happen without the existence of reasons that prompted its occurrence, and it will certainly have repercussions that extend into the future, perhaps negative or positive, or both, and this requires analyzing the causes of the shock and the means of salvation from its negative repercussions.

The first axis - the causes and repercussions of the double economic shock

There are many reasons that contributed to the occurrence of the double economic shock, which can be addressed as follows:

First - the ill-considered transformation and the absence of an economic vision

It is known that the process of economic transformation in Iraq after 2003 was not a deliberate, planned and smooth process, but rather it was caused by an external political and military factor, i.e. the policy of forced change or what is known as a sudden strong shock that eliminated all the capabilities, constituents and institutions of the state in Iraq, as the occupation strategy was focused On the destruction of all of the above, rebuilding it and arranging it again according to a new liberalism to destroy Iraq and empty it of all its capabilities, especially since Iraq did not possess a clear economic system, before 2003, as the talk about a central economic system planned is just an illusion. A mixture of multiple styles subject in their application to the philosophy, mood and interest of the political system, and that the shift from this volatile and virtually unclear economic stereotype was not towards a market economy whose theoretical features were not mature and whose application was not clear because it was not linked to a national will, but rather it was linked to the curriculum and interests of the occupier.

Therefore, the claim of an economic transformation in Iraq is just heresy and an exaggeration in the media rhetoric, as what is happening is an attempt to leave multiple unclear patterns towards a new system that is more chaotic and hazy, as we did not see on the ground any shift towards a market economy as the Iraqi economy is still within the stage An unplanned chaotic transition due to the lack of a clear economic philosophy that simulates the nature and conditions of the Iraqi economy, from which a feasible economic system emerges that harmonizes and simulates the economic and social configuration in Iraq with the need for the process of rebuilding the state and its institutions to be a process prior to any economic transformation process, because the transformation is in the shadow of chaos. Instability is pushing towards destructive chaos that prolongs the transition phase characterized by a distorted economic system incubating for corruption that leads to waste and waste of resources with the impasse in development and the loss of development opportunities.

Therefore, we are facing a hybrid and distorted economy that is almost completely dependent on oil rent, which is the basis for the continuity and sustainability of economic and life conditions, and deepened economic and financial chaos, misallocation of resources, lack of a clear economic vision to manage the Iraqi economy and the continuous confusion in economic policies from this imbalance, despite Of the financial surpluses that were achieved during the years of financial ease, the Iraqi economy remained reeling under a large volume of debt, up to $ 130 billion in 2018, which opened the door wide for international financial institutions to impose their agenda in managing the economic file in Iraq under the headings of restructuring and reform ...

Therefore, what happened recently of government measures under the so-called white paper consistent with the prescription of the International Monetary Fund and the draft budget of 2021 and the decision to reduce the exchange rate, which has sparked widespread controversy in Iraqi society, represents a walk on the same analysis previously mentioned, especially since most of the measures that have been applied or wanted Its application represents shocks that deepen the imbalance and deepen the wounds, especially since what is happening has not been studied and the economic and social effects of its application have not been studied and that the arguments that were announced for the purpose of diversifying the economy and getting out of the financial impasse are weak and contradictory with each other ...

Second - austerity measures instead of incentives

Most countries, due to the Corona pandemic, and to get out of its shock, followed incentive policies to revive the economy, but the measures in Iraq reinforced the shock with other shocks more harmful than the pandemic to the economy, so demand was targeted by reducing spending on salaries and wages, imposing taxes and reducing real income through devaluation and in The supply side, the procedure for raising the exchange rate under the pretext of raising the competitiveness of the local product will lead to a decline and contraction of local products because most of them depend on importing production requirements from abroad, which will be affected by the rise in the exchange rate, which makes the production cost high, which will push towards higher prices and loss of competitiveness, which will also be affected. By raising taxes and reducing subsidies, which will inevitably lead to a contraction of domestic commodity production.

What gives the treatment by reducing the exchange rate to competitiveness, it should be gradually consistent with the growth of the production base, but if the purpose is to finance the budget deficit, this procedure does not add more than 10 trillion dinars, which will be eroded due to the high import bill and in light of the reciprocal relationship between the budget deficit and the current account .. Therefore, the government's actions by raising the exchange rate, reducing salaries, increasing taxes, and raising subsidies will push towards the so-called phenomenon of stagflation, which will have devastating effects on the Iraqi economy, which will deepen the problems of the Iraqi economy and threaten social peace.

Third - Stopping production, widespread corruption and breaching the independence of the Central Bank

The basis of the problem was in the economic and financial policy through the complete cessation of the productive base in the first and the expansion of unjustified spending on the other hand, in addition to the embezzlement of state funds by various means in what is known as corruption, which is a focal point in this problem.

But ignoring the decision-maker and his mistake in diagnosis and going towards finding solutions and remedies using monetary policy by the government specifically, and its breach of the independence of the central bank created a problem and created a bigger crisis instead of finding appropriate solutions, and this situation will continue due to the deliberate error in diagnosis and submission to the disastrous IMF prescriptions.

As resorting to currency devaluation as a rebellion against the independence of the monetary authority and in implementation of the government's desire represents an escape from addressing the rampant financial and administrative corruption at the border crossings, and the actual customs revenues of up to 12 billion dollars, but what enters the budget does not exceed one billion dollars, so it was the government's failure to address the file of the border outlets. Devastating effects on the Iraqi economy, so how can a local product see the light in light of the collapse and cracking of the customs wall?

Fourth - Lack of political stability

The general unstable political situation has had devastating repercussions on the economy. This could include political corruption, the lack of independence of political and thus economic decision-making, and the multiplicity of non-governmental policy-making actors. This is mainly due to a political basis.

Moreover, the political will has lost its compass regarding economic policies, which makes any confrontation or confrontation of the imbalances in the economy is a prisoner of groups and parties that benefit from the state of non-politics, if you will, in economic affairs. The weakness of that will was also reflected in multiple forms, including the lack of commitment to the strategies and plans set in relation to diversifying budget revenues, poverty alleviation, revitalizing the private sector, and the national development plan. This weakens the confidence of the international community, states and organizations, in the government and the Iraqi decision. Not to mention the lack of a common political will to impose security on the entire territory of the state, which made non-governmental interference play its role in the service of partisan and personal interests.

Fifthly - economic imbalance

The picture of economic imbalance (rentier economy, and the weak role of the private sector) was clear, and this is an indicator for all post-2003 governments, as well as international economic and financial institutions. All governments have emphasized in their governmental programs to overcome this imbalance, but the reality is that they are well aware that overcoming this imbalance may require some economic and social cost, and therefore the opponents of the economic affairs and the administration of the executive authority do not want to lose their political future.

Consensus on the economic decision and the government's lack of independence in the economic decision and the influence it is subject to in its economic decisions, and the intervention of non-governmental actors motivated by regional or narrow interests, all of these greatly affected the economy through two things:

The first is the lack of clear economic policies except for the expansion of public spending, which comes for electoral reasons.

The second is the absence of a bold economic reform decision, which prompted all governments, without exception, to borrow to finance the "political money account".

Sixth: Corona and oil prices

Among the causes of the double economic shock was the crisis and complex shock (health, economic) that the Iraqi economy witnessed at the end of the first quarter of 2020. The first was the isolation measures to confront the outbreak of the Coronavirus Covid 19 after the World Health Organization officially announced at the end of January that the outbreak The virus is a public health emergency of international concern.

As for the second, the sharp decline in oil prices due to the epidemic and its transmission to many countries of the world, and the slowdown in economic activity, which confused the public finances in the country, and the financing of public spending became facing great challenges and difficulties, so the government resorted to taking severe austerity measures that will have negative effects. Long-term impact on the economy, and the shock really began when the OPEC + meeting failed to maintain the oil agreement, due to the decline in oil prices significantly, as well as reducing oil production quotas, this situation greatly affected the existing economic activity.

Seventh - Government intervention in the economy

Some argue that countries whose governments intervene in the economy are very natural to experience such shocks, and the worst repercussions are still coming.

The successive governments in Iraq have frequently manipulated the Iraqi economy’s counters, such as (currency exchange rate, wage rates, interest rates, customs fees, government employment rates, and others ...). This manipulation received the blessing of the people, thinking that the government’s manipulation in its favor, but it became clear today that the government and its manipulative policies are the problem, not a blessing.

We will compare these indicators that we mentioned above with (pain), we all live in physical pain, but there is a good reason for the existence of pain, because the pain was created by God Almighty to indicate to us that there is a problem in our bodies, and then the imbalance must be treated, not the symptoms.

It is possible to take pain relievers, in which case you temporarily relieve the symptoms, but the defect remains.

The same applies to economic indicators that are symptoms of any imbalance in the economy. For example, high prices indicate that there is a problem with productivity in a particular sector and a decrease in supply.

Instead of treating the problem, the government forcibly lowers prices or lowered the price of the foreign currency. It has temporarily remedied the symptoms (price hikes), but the economic problem remains latent.

The second axis - ways out of the double economic shock

You can confront shock and get rid of its negative repercussions by:

First - Effective trade and financial policies

What should be done is to fortify the customs wall and to fully control all border crossings to increase the volume of revenues entering the budget, protect the local product, and reduce all unnecessary spending, especially in the three presidencies, allocations for maintenance, fuel, cleaning, dispatch, hospitality, cleaning, rent, and the abolition and integration of many unnecessary governmental bodies and institutions that drain Budget revenues and a review of laws and legislations that inflated current public spending, which lacked standards of efficiency and fairness, and which burdened the budget, especially the retirement laws in the three presidencies, as well as that preceded the formation of the Iraqi government.

On the revenue side, processing telecommunications network files and collecting the arrears owed by them while pushing toward establishing a national telecommunications company, as well as corporate files for licensing rounds, collecting tax revenues for companies and controlling the revenues of ports and airports, moving quickly to resolve corruption files, retrieving looted state funds, and following up on Iraq's funds abroad. ... and the trend towards legalizing imports to the narrowest possible extent and limiting themselves to what is necessary and regulating the process of foreign currency exit abroad. Addressing the issue of land ownership and slums, which will add large sums to the budget ...

Second - Monetary Policies - Multiple Exchange Rate

That is, it is necessary to go to the multi-exchange rate system, through which it is possible to have the exchange rate of essential food and pharmaceutical imported commodities low and identical to the previous price, i.e. linking the exchange rate with the flexibility of the commodity with the continuation of the agricultural calendar for agricultural commodities, and the exchange rate is raised on luxury goods and other than The necessary ... in addition to the existence of a competitive and preferential exchange rate for imported production requirements that enter into the production of locally produced goods in order to reduce production costs and raise their competitiveness.

Third - Communication companies, border crossings revenues and the industrial sector

There are many alternatives, foremost among which are telecom companies whose contractual deadline has expired and which generate revenues exceeding $ 20 billion annually, excluding the debts owed by them to the state.

In addition to controlling the revenues of the border crossings and the exclusion of foreign workers that drain hard currency and whose expenditures do not enter the internal economic cycle, the industrial sector can also be activated to meet many of the needs locally, and this operation can also contribute to covering the salaries of its employees at the very least.

Fourth - a common political will targeting security and the economy

Necessity calls for resolution, and the common political will of political forces and government is the basis from which to start. Availability of a plan for reform or availability of strategies is not sufficient. The Iraqi state has more than 20 strategies and plans in which experts, executive specialists, academics, and specialized international organizations have contributed, but none of them have found a full implementation path according to what is decreed, but the opposite is complete to escape forward and leave the pitfalls that characterize the economic decision in the country.

Today, the country is in a dangerous direction, and we do not forget that most of the experiences of countries that witnessed divisions were mainly security and economic reasons, and our country is witnessing an imbalance in the security and economic sectors. Therefore, it is necessary to face objectively the potentials of defects in economic security. We believe that this requires several pillars:

State sovereignty over its entire territory and the absolute monopoly of the right to coercion.

- Governmental political will, legislative power and even political forces towards real reform, confronting corruption, and independence in national political, security and economic decisions.

A realistic economic program that takes into consideration all the current macroeconomic and social indicators to avoid any measures that would increase the economic and social costs of reform.

Implementing the program through accurate legislative and executive frameworks, within the framework of public policies that support it.

Fifth: Reforming the political system is a guarantor of economic reform

The solutions to this situation are now known to all, but up to now they are useless. The political situation still casts its shadow on the economic scene, and without political reform movement at the level of the system and the political process, the improvement of the economy may be prolonged and the country will continue its rent and dependence on oil for long periods, exposing the country to more. Economic shocks, political reform has become necessary in order to stop the drain on the resources of the country's economy.

Sixth: Liberating the economy from government interference

As long as the government follows the same policies that brought the country to this crisis, the crises will continue and worsen.

Everyone focuses on quick solutions, but these quick solutions will make the situation worse if they are not part of a comprehensive strategy based on liberalizing the economy over the next five years.

In general, we have to monitor two main indicators if we want to follow the progress of government reform of the economy.

The first: the Index of Economic Freedom, which includes sub-indicators that help to closely monitor the economy.

The second: the Iraq Stock Exchange Index, as the index's rise will reflect the extent to which investors are comfortable with the business environment in the country.

Investor sentiment is a sincere indicator to a large degree, because the investor is not flattered or manipulated when it comes to his money! In contrast to government and economic reports, which can often be deceptive, the reporter will lose nothing if he makes a mistake in his report!

The first indicator will tell us whether the government continues to manipulate the economy’s meters ... and if the manipulation continues, it is unlikely that the second indicator will improve, and the only hope will remain an improvement in oil prices, but from the continuing corruption of course.

Seventh - Other Policies

1- Providing a base for monetary and financial stability that allows for the success of the investment effort and opens horizons for investors in the direction that price fluctuations do not affect the future of investment.

2- Moving towards a policy of economic diversification (diversification of sources of income) and raising the share of the private sector in the gross domestic product by achieving partnership between the public and private sectors in order to enhance its role in the sustainable development process.

3- Supporting the real activities of the Iraqi economy by continuing to provide a financial support package for private sector projects, that is, lending to private sector projects from specialized banks as well as supporting small and micro enterprises through the largest lending initiative in the history of Iraq presented by the Central Bank of Iraq.

4- The offering of bonds by the Central Bank for individuals and institutions, similar to the bonds that were offered in the 1980s under the name Corona crisis bonds (whether mandatory or optional), and this type is very beneficial for the economy, as it reduces inflation rates and helps reduce deficits The budget.

5- Reducing government spending on all aspects of expenditures (governorates, ministries, the Kurdistan region, regional development, the investment budget), and this option could lead to an economic recession, but at lower rates.

Issuing Islamic and traditional savings certificates for the benefit of the Ministry of Finance, as some banks allow customers to issue savings certificates that comply with Islamic Sharia, with the aim of attracting a segment of customers who do not deal with traditional banking products, and prefer products that comply with the provisions of Sharia, and banks set specific controls to calculate the return on these certificates According to Islamic law, it is represented in determining an estimated average return on certificates that are subject to rise or fall according to the annual net revenue of the bank's business, and in order to achieve the desired goals, they must be greatly supported by the media in order to transfer the behavior of the Iraqi citizen from a consumer to an investor, and to mobilize national savings.

Recommendations:

First - Reforming the political system to be able to manage the country and bring it out of chaos for stability, as there is no economic reform without political stability.

Second - Combating corruption in all parts of the state and controlling border crossings, land, sea and air, to ensure that public revenues are counted and supplemented to the general budget.

Third - Paying attention to the file of the telecommunications companies in terms of paying the state's owed money, and working to establish a national telecommunications company (a joint stock company) whose shares will be offered to the Iraqis.

Fourth: To reduce public expenditures, especially unnecessary current, as much as possible, which leads to a reduction in the size of the fiscal deficit.

Fifth: Working at a multiple exchange rate according to the flexibility of commodities to ensure that economic and social costs are reduced and the cost of local production is kept from rising.

Sixth: Focusing on the quality of investment spending rather than its size to ensure that the state proceeds in the right direction and in line with the new economic trend.

Seventh - Liberating the economy from the government, especially the factors of production, and specifically the land, where the state dominates 80% of it.

Eighth - Legislating the law on partnership between the public and private sectors, which was reviewed by the State Council since December 2017.

* Al Furat Center for Development and Strategic Studies / 2004-2021
www.fcdrs.com

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15 minutes ago, horsesoldier said:

Up til now how about across the board, dismal failure 

 

I can see you're frustrated, and granted the emergence of a new democracy embroiled with results of corruption, dictatorship, and foreign occupation is frustrating, but high risk, high return.

 

If you ever consider getting out of the dinar investment, let me know. I would be interested in buying your dinar. 

 

 

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That's what I said, it has been a failure since it has started and will continue to be. Some people have hope but I am frustrated because I have been around for so long. It is the same thing year after year. it appears that they don't want anything better. They won't pass the budget or the hcl and this has been going on for over a decade. Really??? I am tired of hope and dreams with these morons we need results. It's like dealing with children and trying to make them behave.

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The Central Bank’s sales of hard currency continues ... How will it affect the exchange rate?

2021-03-01
1603827641_1599381131_59de6c8f-fa3d-4ef1

Yes Iraq: Baghdad

On Monday, the Central Bank of Iraq announced the sale of more than $ 139 million in a currency auction.

 

The Central Bank of Iraq witnessed during its auction for the sale and purchase of foreign currencies today, a decrease in its sales by 10.53 percent to reach 139 million 530 thousand and 235 dollars, covered by the bank at a basic exchange rate of 1460 dinars per dollar, compared to last Thursday, when sales reached 155 million and 948 thousand Dollars.

 

The purchases amounting to 139 million 530 thousand and 235 dollars went to strengthen the assets abroad in the form of transfers and appropriations, while the banks did not buy any dollar in cash.

 

And 23 banks responded to requests to boost assets abroad.

 

The expert in economic affairs, Raad Twig, revealed that the average price of the dollar recorded a decrease from 1460 dollars, which is the official price of the Central Bank of Iraq, 1447.5 dinars for purchase and 1457.5 for sale, as a result of the revival of sales of the Central Bank through the currency window last Thursday, to 155.984 million dollars at the official price.

 

He pointed out that "this move in the cash demand comes after it was met by stagnation in the Central Bank of Iraq’s dollar sales since the Iraqi dinar price was reduced as a result of the presence of excessive real domestic demand for imported goods for fear of extending urban periods as a result of the epidemic, as well as the merchants’ reliance on contentment with a steadfast decision. The Central Bank reduced the exchange rate of the Iraqi dinar and the Ministry of Finance pledged to compensate traders and contractors for their losses due to the decrease in the price of the dinar

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4 hours ago, GreedyDinar07 said:

That's what I said, it has been a failure since it has started and will continue to be. Some people have hope but I am frustrated because I have been around for so long. It is the same thing year after year. it appears that they don't want anything better. They won't pass the budget or the hcl and this has been going on for over a decade. Really??? I am tired of hope and dreams with these morons we need results. It's like dealing with children and trying to make them behave.

 

I am assuming no one held a gun to your head when you bought dinar as an investment and it was a conscious decision. Any true investor will research and study an investment prior to making a decision to invest.  So far, the only people I hear complaining are the people making a relatively small outlay of cash and wanting a fast return. A miracle making wishes come true. There are big guys out there that have invested but know how to be patient: No complaining there. They're smart.

 

The Iraqis don't owe us anything. Iraq is their country and they can do what they want when they want to. Do I think things should and could be done differently? Of course! There are a handful of people controlling the country with their corruption and greed, just like other countries be it China, Russia, India, etc. Nothing is different in Iraq: We just happen to be focused on Iraq because we have invested there. Anybody follow Iraq prior to investing (military excluded)? Anybody understand what Ramadan was? Could you find Iraq on a map? No, it was just a quick buck.

 

Iraqis are not "morons" and happen to be very intelligent. It's the corruption. But again, they don't owe us anything. They don't try to trick us with news because they don't even know we exist. I think they have more important issues on their plate than "investors" that might have spent $100, $500, or a few grand or more. 

 

As much frustrating news that is brought here, there is 3 times as much bitching and moaning about the news.  On and on, and then on and on again for years. The complaining is far more annoying than what Iraqis do. The complaining outweighs any bad or good news that the great news hounds bring to us. If anyone has been in this for years, is the only thing you can do is complain? You have nothing of substance to contribute, an opinion, a bit of knowledge or reflection? Did you not learn anything?

 

It's unfortunate there are so many victims of a goal that has not even been realized yet.

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2 hours ago, Carrello said:

 

I am assuming no one held a gun to your head when you bought dinar as an investment and it was a conscious decision. Any true investor will research and study an investment prior to making a decision to invest.  So far, the only people I hear complaining are the people making a relatively small outlay of cash and wanting a fast return. A miracle making wishes come true. There are big guys out there that have invested but know how to be patient: No complaining there. They're smart.

 

The Iraqis don't owe us anything. Iraq is their country and they can do what they want when they want to. Do I think things should and could be done differently? Of course! There are a handful of people controlling the country with their corruption and greed, just like other countries be it China, Russia, India, etc. Nothing is different in Iraq: We just happen to be focused on Iraq because we have invested there. Anybody follow Iraq prior to investing (military excluded)? Anybody understand what Ramadan was? Could you find Iraq on a map? No, it was just a quick buck.

 

Iraqis are not "morons" and happen to be very intelligent. It's the corruption. But again, they don't owe us anything. They don't try to trick us with news because they don't even know we exist. I think they have more important issues on their plate than "investors" that might have spent $100, $500, or a few grand or more. 

 

As much frustrating news that is brought here, there is 3 times as much bitching and moaning about the news.  On and on, and then on and on again for years. The complaining is far more annoying than what Iraqis do. The complaining outweighs any bad or good news that the great news hounds bring to us. If anyone has been in this for years, is the only thing you can do is complain? You have nothing of substance to contribute, an opinion, a bit of knowledge or reflection? Did you not learn anything?

 

It's unfortunate there are so many victims of a goal that has not even been realized yet.

The mods told me to allow this person to complain all the time.  Whenever they want to.  So while you appeal was great imo, it will fall on deaf ears.  Negativity gets us nowhere.  Some havent learned that yet.  They love to unload on all of us here.  

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Careello, who are you to tell me how to respond and when I used the term "Moron" I was referring to the GOI. I have been around since 2007 and if I want to comment that I am frustrated then I have a right to do so. Some of you guys are not happy unless we go along with the narrative and that is not how investing works. I never said Iraq owe us anything and you can keep your personal insults to your self. We are all here TO MAKE MONEY and I don't give a damn about how you feel about what I post. If you don't like what I post then don't read it but DO NOT tell me (In so many words) that I shouldn't respond unless I have a hopeful attitude. Life doesn't work that way. Some of us are tired of Iraq's BS because we have seen it all. Until there is a RV I will respond this way and since you are so "EDUCATED" about this investment what is the next move they will make? Right.. you have no idea and none of use do. We all have different perspectives and that is what makes this site interesting, so don't get upset when someone says something that you don't agree with. Was there a RV in January?..NO Was the Budget or HCL passed by the end of February? NO....80% of the dinar is in neighboring Countries and will never return to Iraq. So what is the hold up? If the World Bank and the IMF hadn't of introduced the White Paper I wouldn't be here reading any of these post. Is there hope? Yes, but in the meantime I am  at my wits end with hopes and dreams!! 

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