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Al-Kazemi's advisor draws a road map for the sustainability of Iraqi economic growth


yota691
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 Baghdad: Huda Al-Azzawi
 
Experts and specialists in economic and financial affairs called for the optimal use of the surplus achieved by the rise in oil prices in the current period to complete investment projects, not only consumer and operational, and while they stressed the need to find a "sovereign fund" to invest the current and future surplus, they indicated that optimism about the rise in oil prices should It should not be excessive because volatility rules the global market.
Adviser to the Prime Minister for Economic Affairs, Dr. Mazhar Muhammad Salih, said in his interview with “Al-Sabah” that “the rises in crude oil prices are subject to three factors: the first is the price averages throughout the fiscal year, the second is the exported quantities, and the third factor is hedging against the fluctuations of the oil market because The cycle of assets in it is fraught with risks, as once supply rises above demand, a so-called (oil glut) occurs, which leads to serious collapses in crude oil prices.
And he indicated that, based on the effective (Financial Management Law), which urges the adoption of an average price of a barrel of oil for the purposes of calculating oil revenues in the budget in a rational and conservative manner, "the general budgets of the Republic of Iraq are designed on oil prices lower than the market price and generate a potential or hypothetical deficit surrounded by a financial buffer that handles Collecting oil revenues that exceed the price of a barrel of oil specified in the budget to feed expenditures without resorting to borrowing in the event that the deficit is actual.
He explained that "the problem in the budget is always (non-oil) revenues that do not reach the ceiling of the targeted expectations," and that "if we expect, for example, (50 dollars) as a price for a barrel of oil for the budget of next year 2022, we must obtain an average annual return from exports. Oil, with the export of more than three million barrels, at a price per barrel of oil not less than $75 an annual average. 
2023".
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22 minutes ago, GreedyDinar07 said:

It is the end of the year....they always talk about changing the exchange rate at the end of the year...I will believe it when I see it..or spend it!! LOL!! 

Well, you have to admit, they actually did change the exchange rate at the end of last year. Just not in the direction we wanted 😁

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Years ago , the rv happened briefly , or at least showed up on several  currency sites , as having shot up to $1.46 . This rate disappeared quickly . The dinar rate , .1460.000 ,, reminds me of that time ,   I went to bed drunk and rich , woke up poor and hungover .

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  When Iraq was negotiating out of Chapter7 with Kuwait , Kuwait was in the catbird seat . They may be more integral to this whole thing than we think . They would never agree to a settlement where they shot themselves in the foot with  having a much higher exchange rate than Iraq , especially when it came to selling oil. It would be like , "no thanks , we'll just buy our oil from Iraq because it 's  mucho mucho cheaper " . Iraq has already paid approximately $53 billion in reparations , with a measly $2.5 billion still owed .  In the grand scheme if things , this is chump change . Innerweb sources are murky on whether this amount was paid in USD or Dinar ,they just state the amount . So did the US pay this debt off because it might have been  stipulated in the Strategic Framework Agreement? Better yet , is Kuwait holding onto $55 billion DINAR ?!! . At a rate higher than Kuwait's , that is no longer chump change .  

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1 hour ago, MEP01 said:

I'm hoping that Adam's up-and-coming chat will bring some clarity to this rash of news about the exchange rate.


No clarification needed.... it’s “ clear “ to me they’re going to continue to TALK about this until the cows come home. Seeing how few cows are in Iraq, I suspect they’ll need a map to find their home. 
.... many maps of Iraq are of one color, desert beige. Ever try reading a map that’s just barren & featureless ?

 

Thanks MEP01. Clarification in all things with these monkeys as the only thing they’re clear on, is that they’re deliberately NOT clear on anything.

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1 hour ago, dinarham said:

Years ago , the rv happened briefly , or at least showed up on several  currency sites , as having shot up to $1.46 . This rate disappeared quickly . The dinar rate , .1460.000 ,, reminds me of that time ,   I went to bed drunk and rich , woke up poor and hungover .

Just like our last ELECTION!!  Went to bed with 45,  woke up with fake 46 !!!!!

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5 hours ago, dinarham said:

up on several  currency sites , as having shot up to $1.46 . This rate disappeared quickly . The dinar rate , .1460.000 ,, reminds me of that time ,   I went to bed drunk and rich , woke up poor and hungove


i remember it well.  Got pretty fired up for about 5 mins. That was 2010. 

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9 minutes ago, Pitcher said:


i remember it well.  Got pretty fired up for about 5 mins. That was 2010. 

I have been been excited a few times since 2009 but now I just think Same **** Different Year.  Although I am looking forward  to Adams update to see what promise it holds. I will admit that in my mind the  much awaited text/email still feels that it’s light years away. 

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1 hour ago, markb57 said:

and Pelosi would be 48...............🤮


DAMN !!!!! Pelosi gets in, constructs some Crap to continuing her use of using the Constitution as a doormat, pulls in Billary as VP ( cuz Pelosi was given an offer she couldn’t refuse : Billary takes over after a mysterious case of lead poisoning in Pelosis anti-wrinkle cream 😀 -  ( bet y’all thought I was going to infer something else ) then we’re in more trouble than we could have ever though of. 

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12 hours ago, Half Crazy Runner said:

Well, you have to admit, they actually did change the exchange rate at the end of last year. Just not in the direction we wanted 😁

yep. you are right Half Crazy Runner. hopefully, they don't either devalue again ( even worse than 1,460 ) or return to 1,182 again. what was the date they devalued last year? the date was december 19,2020. so the date i should keep in mind is December 19, 2021 ( more or less )?

P.S : I amn't guru and amn't trying to predict the date and the rate.

Iraq's central bank devalues dinar by over a fifth

Central Bank will devalue Iraqi dinar by 22% in response to severe liquidity crisis brought on by low oil price amid public anger.
Saturday 19/12/2020
The new rates represent a dramatic reduction from the previous official rate of 1,182 IQD
The new rates represent a dramatic reduction from the previous official rate of 1,182 IQD
 

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 US 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 US 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 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.

 

link  :  https://middle-east-online.com/en/iraqs-central-bank-devalues-dinar-over-fifth

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7 minutes ago, Laid Back said:

- Al-Kazemi's Financial Advisor Talks About Changing The Exchange Rate

 

- The International Monetary Fund Expected A Significant Growth In The Iraqi Economy To Reach 10.5 Percent In 2022, And A Decrease In The Inflation Rate To 4.5 Percent.

 

- The Central Bank of Iraq announced, on Wednesday, that 19 private Iraqi banks obtained a classification from international agencies.

 

- The Arab monetary fund, in cooperation with the IMF. Organizes a course on “exchange rate policy”.

 

All I see is GOOD news.!


In my opinión we are pretty close to see the international value of the IQD

 

Go Iraq 

Go international 

Go RV

 

 

Good morning brother Laid Back, I am onboard with your thought process, Iraq is beginning  to make head ways and is on track to become a global competitor :twothumbs:

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I’m in agreement with you LB, my guess the first of the calendar year January 2022 would be a great time to make the change. 
It appears their getting everything lined up and the public education seems to moving along as well. 
I also think if Al-Sadr can some how hurry up and form the new government it will add credibility and stability to Iraq which would be a plus to foreign investment….

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Pelosi's anti wrinkle face cream my butt! :lmao:  Plastic Pelosi is more like it at 81 it's time for her

 to go out to pasture with hilarious that way they can take each other out!!!!  :D

13 hours ago, horsesoldier said:

: Billary takes over after a mysterious case of lead poisoning in Pelosis anti-wrinkle cream 😀 -  ( bet y’all thought I was going to infer something else ) then we’re in more trouble than we could have ever though of. 

 

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