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Regarding the dollar exchange rate... Al-Sadr proposes to summon the Minister of Finance and the Governor of the Central Bank"immediately"


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4 hours ago, rvmydinar said:

Convert their dollar savings into iraqi dinar? Hmm. Could this be a sign that CBI is ready to release the new lower denoms to the publics one day suddenly? So the iraqi citizens will exchange their old dinars ( 25,000 iqd, etc ) for the new lower denoms in the country of iraq. And, the dinar investors will trade dinars for dollars out of iraqi country.

This is great news if happening 

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4 hours ago, rvmydinar said:

Convert their dollar savings into iraqi dinar? Hmm. Could this be a sign that CBI is ready to release the new lower denoms to the publics one day suddenly? So the iraqi citizens will exchange their old dinars ( 25,000 iqd, etc ) for the new lower denoms in the country of iraq. And, the dinar investors will trade dinars for dollars out of iraqi country.

Maybe there’s a tipping point where iraqis are better off with Dinar in country rather than usd, maybe this will trigger the lower denoms release, who knows!

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12 hours ago, 6ly410 said:

Unfortunately, anything is possible in Iraq

Truer words have never been spoken!
 

But this article was the most bullish for the Dinar’s Sudden Revalue, “

 

”Thou doth protest too much” ……

 

They explained logical reasons as to why they can’t revalue quickly and how it must be done gradually… etc etc, However this is Iraq, and they devalued it overnight so why can’t they revalue overnight?  

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The dollar crisis and the Minister of Finance... Legal irregularities and an opportunity for traders to exploit them

Posted 12 seconds ago
news source /Baghdad today
1645355587_186604-810x456.jpg
 
Baghdad today - Baghdad - Report: Asaad Juma

The order to host the Minister of Finance, Ali Abdul-Amir Allawi, in the House of Representatives, to discuss the repercussions of the dollar exchange rate and the smuggling of currency outside the country, as called for by the leader of the Sadrist movement, Muqtada al-Sadr, aroused a great deal of confusion among the popular and academic circles, where the issue was marred by a lot of legal ambiguity, as the request was met Parliament did not respond by Minister Allawi, who considered the summons request as unconstitutional, as it is part of a daily caretaker government and the elected parliament is not entitled to do so according to the law. 

Legal expert Salem Hawass explained in a statement to (Baghdad Today), that “the political process in Iraq and the results of the parliamentary elections have not completed its three pillars represented by the presidencies of the republic, parliament and ministers,” noting that “the current parliament does not have the right to question or host any minister within Day-to-day caretaker government.

He adds that "any files related to the person of the Minister of Finance, Ali Abdul-Amir Allawi, must be referred to the Integrity Commission or the judiciary to decide on them," noting that "the supervisor of the oversight work of my presidency and ministers under the caretaker government is the judiciary only because it has a happy hand and has all powers." .

He points out that "the elected House of Representatives is not legally entitled to host any minister within the caretaker government."

On the possibility of Prime Minister Mustafa Al-Kazemi withdrawing the hand of the Minister of Finance, Hawass affirms, “The Prime Minister does not have the authority to withdraw the hand of any minister, since his government is a caretaker, according to the text of Article 42 of the Cabinet’s bylaw for 2019.”

The hosting of the Minister of Finance by the First Deputy Speaker of Parliament, Hakim al-Zamili, comes two days after the leader of the Sadrist movement, Muqtada al-Sadr, called on Parliament to investigate banks affiliated with political parties involved in financial and legal violations, and summon the minister, but the latter refused, saying: “I will not accept that a will is managed.” government through tweets. 

Allawi did not stop to this point, but rather sent a letter to the House of Representatives in response to the request to host him, asking for a vote to restore confidence in him as Minister of Finance, in an attempt to circumvent the law, according to the opinion of legal experts.

While the legal expert, Ali Al-Tamimi, told (Baghdad Today), “Allawi’s request to renew confidence in him as a minister by the current parliament is incorrect and unconstitutional, since ministers are presented through the Prime Minister-designate in accordance with the law, and otherwise the House of Representatives is not entitled to vote on any Minister,” noting that “Allawi’s request is a circumvention of the law and the constitution.”

In light of the controversy over the legality of hosting the Minister of Finance and his failure to attend the House of Representatives, the First Deputy Speaker of the House of Representatives, Hakim Al-Zamili, submitted a request to the Public Prosecution to issue a decision banning Allawi’s travel, due to files he said were related to “financial and legal violations.”

Legal expert Ali Al-Tamimi sees the request of the First Deputy Speaker of the House of Representatives to prevent the travel of the Minister of Finance as “an important measure and set an important precedent for the current parliament to consider previous incidents and accusations, and this achieves the Parliament’s oversight role and achieves deterrence,” stressing that “these charges do not fall by statute of limitations.”

He added that “the travel ban book is in line with Articles 5 and 6 of the new Public Prosecution Law 49 of 2017, which allowed him to investigate charges of administrative and financial corruption and also refer them to the investigation court. The investigative court may issue a travel ban in dangerous cases in accordance with Article 93 of fundamentalism as a procedure subsequent to the arrest warrant, and the travel ban is intended to prevent the suspect’s escape or scattering of evidence, and this applies to Articles 44 and 45 of the constitution.

And he asserts that "even if a person holds a foreign passport, his travel can be prohibited in accordance with Articles 10 of the Iraqi Nationality Law and Articles 14 and 33 Civil, which is the spatial jurisdiction of the crime."

The conflict between the Minister of Finance and the House of Representatives was reflected in the exchange rates of the dollar in local markets across the country, as the selling price of the dollar fell to 140 thousand dinars compared to 100 dollars during the past two days.

The economic expert, Salam Sumaisem, confirms to (Baghdad Today), that "what is happening in the markets in terms of a relative decrease in the exchange rates of the dollar is speculation."

She adds that "there is no intention to restore the exchange rate of the dollar, according to the statement of the governor of the Central Bank," calling on citizens to "not allow traders to manipulate exchange rates by buying and selling currency at relatively low prices and waiting for it to rise to sell it again to get simple profits."

In the 2021 budget, the Iraqi government decided to reduce the value of the dinar by 1,450 dinars per US dollar, after it was 1182 dinars per US dollar, to confront the financial crisis and the deterioration of the local economy.

The decision caused a crisis at the local level, as the prices of goods and merchandise rose in the local markets, and inflicted damage on the working class.

Various Iraqi provinces witnessed widespread protests against the decision to devalue the Iraqi dinar

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A Member Of Al-Sadiqoon To Al-Ahed News: We Will Restore The Dollar To Its Previous Price

%D9%81%D9%84%D9%88%D8%B3-%D8%A7%D9%84%D8Author: AhadNA1 On 2/20/2022 - 9:47 AM 77

https://alahadnews.net/2022/02/20/عضو-بالصادقون-لـالعهد-نيوز-سنعيد-الد/

Al-Ahed News - Special

Today, Sunday, The Representative Of The Al-Sadiqoon Parliamentary Bloc, Suhaila Al-Sultani, Confirmed That Restoring The Exchange Rate Of The Dollar Against The Iraqi Dinar Is A Popular Demand, And We Will Work To Restore It To Its Previous Price In The Coming Sessions.

Al-Sultani Said In An Interview With “Al-Ahd News” That “There Are Parliamentary Moves To Return The Dollar Exchange Rate To Its Old Price.

She Added, "Reducing The Dollar's Exchange Rate To Its Old Price Has Become A Popular Demand," Noting That "The Only Person Affected Is The Poor Citizen. 

She Explained That "Parliament Will Work To Put Pressure On The Competent Authorities That Accompanied The Decision In Order To Return It To Its Old Price, Stressing That The Government Has The Ability To Reduce The Price Of The Dollar And Return It To Its Previous Price."

 
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The price of the dollar hits hard in Iraq... confusion in the market and a parliamentary movement to address it

142022022_upload_1635746511_32560863-810

|  
05:36 – 20/02/2022

Special - Mawazine
News
A state of
confusion dominated the Iraqi market, as a result of the parliamentary movement to address the effects of raising the price of the dollar and the
rise in the prices of goods and merchandise in the Iraqi markets, and the controversy that accompanied it about the possibility of
reducing the exchange rate of the dollar by the Central Bank of Iraq. Yesterday, the House of Representatives
hosted the Governor of the Central Bank, Mustafa Ghaleb Mikhaif, who confirmed that there is no possibility to reduce the price of the dollar, but the local markets witnessed a decrease in dollar prices, as its price reached 1445 dinars to the dollar. The owners of the exchange shops called on the Central Bank to "determine its position on the statements that come out regarding the reduction of the dollar exchange rate, especially as it introduced confusion in their work and increased supply compared to demand." According to the shop owner


A money exchanger in the Karrada district spoke to / Mawazine News /, "Many citizens are
afraid of reducing the price of the dollar, so they are now selling the dollar, fearing a sudden decision
and thus losing the difference between the current exchange rate and the new rate."
And he asserts,
"The demand for buying dollars from banking shops decreased as a result of the confusion that occurred and the return of
the market to normal requires an explicit statement from the Central Bank."
This comes as
a parliamentary source revealed meetings of the political blocs, including the State of Law and Al-Fateh coalition,
to discuss reducing the dollar exchange rate in light of the high prices of basic materials in the
Iraqi markets. In an interview with Mawazine News, the
source added, “The dollar hit the poor families, and today it threatens security.”

economic, so it is hoped that decisions will be issued regarding addressing the effects of raising the price of the dollar.”
For his part, the representative of the State of Law coalition, a frightening revolutionary, comments
on the political turmoil towards reconsidering the dollar exchange rate,
stressing that any action has its economic reasons and rationales.
In
an interview with Mawazine News, he said that the Sadrist movement had earlier voted to raise the dollar exchange rate,
and that this was the country's financial policy, and they believed earlier in the necessity of changing it.
He added that in our meeting
with the Prime Minister, he confirmed that the process of raising the exchange rate achieved positive results in terms of raising
the central bank's balance of hard currency from 43 billion to 64 billion dollars, and
indicated that any
law issued must have negatives and positives, and in general economists take Positives
The biggest. Ended 29 / h

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How can change the dollar exchange rate legally?

Last update 02/20/2022 | 6:06 pm

information / special

On Sunday, legal expert Ali Al-Tamimi revealed the options available to the current government to change the dollar exchange rate in a manner consistent with the articles of the constitution.

Al-Tamimi told the "Information" agency, "The current government has two options to change the dollar exchange rate, the first is the proposal of the governor of the Central Bank to change the exchange rate, provided that this is presented to Parliament in order to give it legitimacy, and then if the vote is obtained by a majority of the number of members (half plus one), it will be adopted This change.

And he indicated that the justifications for the first option were represented by “the impact of the high exchange rate on poverty and consequently the prevalence of crime, suicide and other heinous crimes,” noting that “the rise in the exchange rate violates Articles 30 and 31 of the constitution, which obligate the government to provide a free and decent life.”

He continued, "As for the second option, it is by including the proposal to reduce the exchange rate in the next budget law, which is presented by the elected government according to exchange rate changes, and this becomes a binding law

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Thanks 6ly and Yota for these VERY interesting articles.

 

It seems that the exchange rate news is dominating the threads as of late, perhaps something is up. Also Iraqi's changing dollars back to Dinars as well. 

Stressing That The Government Has The Ability To Reduce The Price Of The Dollar And Return It To Its Previous Price."

I think we are getting to the point where that the price of crude being at 90.00usd per barrel

Gold reserves up

Cash reserves up 

White paper showing results

Inflation at all time highs

And the list goes on......

Timing is everything, and, the timing seems to be perfect to FINALLY bring value to the IQD.

No one really knows for sure, but in all the time being invested, I have never seen so much news about the subject :goodnews:

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The rule of law comments on the dollar crisis .. “The government is philosophizing”

 

A member of the State of Law coalition, Ghassan Abu Ragheef, confirmed, on Sunday, that the outgoing government is satisfied with “philosophical responses” regarding the crisis between Parliament and the Minister of Finance over the exchange rate.

Abu Ragheef said in an interview with Al-Information, that “the government headed by Mustafa Al-Kazemi is watching the parliament and financial crisis, and is satisfied with the economic philosophy adopted by Finance Minister Ali Al-Alawi as part of the government that moved towards raising the exchange rate, with the support of some political blocs that voted on the decision.”

He pointed out that "the political blocs that insisted on raising the exchange rate, and are now demanding its devaluation, have become meaningless and unclear."

A member of the State of Law coalition explained that "the only person affected by the increase in the price of the dollar is the Iraqi citizen, who is surprised by how the state manages the economic file in Iraq." End /25 R

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155111.jpg.895e05cdff122ce8326eeb0b8acaff5c.jpg

 

2022/02/20 17:45

 

Ideas to avoid the negative effects of the exchange rate.. Increasing nominal salaries and activating economic security

 

Baghdad / Obelisk: Muhammad Sahib Al-Daraji wrote..

In order to avoid the negative effects of the exchange rate of the US dollar against the Iraqi dinar, we have previously emphasized, through several statements and televised meetings, that the devaluation of the Iraqi dinar should have been accompanied by a set of important steps, the most important of which are:

1- Increasing the nominal salaries of employees for grades from the fifth to the ninth grade, and increasing the salaries of the social protection network by 12% to reduce the impact of possible inflation on the vulnerable classes.

2 - Amending the currency sale mechanism to preserve the hard currency inside the country, and that the dollar and other foreign currencies are sold and traded directly in the currency markets, or through the stock market to obtain a real price of the Iraqi dinar against the American dollar, and that the price guarantee is the value of the reserve available with the Iraqi Central Bank of hard currency.

3- Pricing government projects in the investment budget in dollars, and financing the budget of exchange units for the investment budget in dollars.

4- Setting an import curriculum, stopping some imports, controlling customs outlets, supporting the tax system, and exempting local products from income tax for a period of two years.

5- The state imports commercial foodstuffs to the markets and pumps them into the rationing program in case the prices rise.

6- Supporting fuel for transportation, factories, factories and irrigation projects, and giving great importance to the food industries.

7- Injecting hard currency into the exchange markets to maintain a price level for the Iraqi dinar in order to prevent the price from going haywire due to potential speculation.

8 - Activating the role of economic security and entering the competent government agencies to control the monetary rhythm in the currency market and the markets for selling foodstuffs.

 

 

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40 minutes ago, Fairways&Greens said:

If an RV is imminent, these kind of statements from CBI would be expected to avoid too much speculation on the currency. We’ll see “in the coming days”

Iraqi's are selling their dollars to buy Dinars, more "chunky money" out of the system 😉 

Sadr means business, and yes, we'll see 🙏

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The Ministry of Finance declares...

1645376767_20220220_080558-45-810x469.jp
Source of the news / Sky Press

Sky Press /

The decision to devalue the dinar was part of a package of fundamental reforms targeting the structure of the Iraqi economy.

- Changing the exchange rate gave great strength to the economic joints of the country.

The exchange rate adjustment came after the state’s foreign currency reserves were depleted and some private banks controlled the illegal currency sale market.

We have worked to attract companies to support investment in Iraq for the purpose of advancing the country’s economy by maximizing non-oil revenues.

– Despite the stifling financial crisis, we were able to convert the contracts of the Ministry of Electricity and free lecturers to Resolution 315.

We were able to solve all the problems related to bonuses, promotions and other benefits for all employees and citizens.

We worked on preparing a sound and stable financial position for the country by preparing budgets for the coming years within the available resources to address the delay in strategic projects

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38 minutes ago, 6ly410 said:

The Ministry of Finance: The decision to devalue the dinar was part of a package of reforms

political| 07:31 - 20/02/2022

The Ministry of Finance: The decision to devalue the dinar was part of a package of reforms

 

Baghdad - Mawazine News
, on Sunday, the Ministry of Finance issued a statement regarding the reduction of the Iraqi dinar against the dollar.
And the ministry stated in a statement received by / Mawazine News / a copy of it, that "the Ministry of Finance sought with all its institutions to correct the structural distortions in the Iraqi economy, which the public financial policy lacked, which led to restricting the ability of financial reform in the country, and when oil revenues collapsed two years ago, the government was Iraq is facing enormous financing pressures while it was struggling with its basic internal and external obligations, as the cash reserves of the Central Bank were in a rapid decline, and in December 2020, it was expected to be implemented within a year, and Iraq was on the brink of a comprehensive economic crisis that came as a result of the drop in oil prices.
And she added, "The decision to reduce the value of the dinar came within a package of fundamental reforms that target the structure of the Iraqi economy, and this decision was taken as a result of a stifling economic crisis that befell the whole world represented by the Corona pandemic, where the price of a barrel of oil at the time reached $ 20, and this is what caused an economic crisis that led The difficulty of meeting the government’s financial obligations from previous external and internal debts in addition to the salary bill for employees, retirees and social protection, as the Social Protection Authority was supported by increasing the allocations of the new targeted groups to compensate for the emergency change in the exchange rate and subsidizing the poor segment, but the House of Representatives reduced the amounts allocated to the new inclusion Which led to the non-inclusion of new families within social protection.”
And she pointed out, "The change in the exchange rate of the dinar came in conjunction with the implementation of the economic reform project, which the Iraqi government called the "white paper" and it was a necessary option to reform the structural system of the Iraqi economy. The Central Bank, which confirmed that raising the exchange rate led to an increase in the possibility of local product competition, and to reduce expenditure pressure on the Ministry of Finance by 23%, which enabled the Ministry of Finance to overcome the crisis resulting from the drop in global oil prices during 2020 and the first months of 2021.
I continued: "The decision to adjust the exchange rate came after the state’s foreign currency reserves were depleted and some private banks controlled the market for selling currency by illegal means. We worked to raise the foreign currency balance through a series of decisions in addition to the rise in oil prices. The Central Bank of Iraq, and raising Iraq’s global credit rating internationally, as the statistics of specialized international organizations indicate the gross domestic product by 9% for the first half of 2021, and the growth of the non-oil economy by more than 21% in the first half of 2021 and this is due to the strong performance in The service sectors after easing the measures to prevent the emerging corona virus, and this recovery reduced the lag in the oil sector, by 10% in the first half of 2021, as Iraq adjusted its share in OPEC and since then, OPEC gradually increased the production share of member states, which was reflected an increase in the gross domestic product (GDP)General and basic inflation in Iraq for the period from January to July 2021, reaching 5.2% and 6.3%, respectively, due to the increase in domestic demand and the insufficient supply of commodities to meet the entire growing demand, in addition to the positive impact of inflation due to the decline in import prices in some exporting countries facing a depreciation in the value of their local currencies.
And she indicated, that she "worked to attract companies to support investment in Iraq for the purpose of promoting the country's economy by maximizing non-oil revenues and emphasizing the need to adopt the budget of programs to achieve the best performance of the plans and timings set and to develop appropriate mechanisms within its strategy to finance and involve the private sector and to approve the completion of strategic projects with a multiplier effect." Reducing the banks’ monopoly on foreign currency, and in light of the stifling financial crisis, they dealt with the suffering of a large segment of the contracts of the Ministry of Electricity and free lecturers, as they were converted into contracts based on Cabinet Resolution No. 315 of 2019 and all the problems that many ministries faced from their contracts terminated, including the Ministry of Defense and Interior And the Popular Mobilization Authority and the solution of all problems related to bonuses, promotions and other benefits for all employees and citizens.
She pointed out, "It also worked within its strategy to prepare a sound and stable financial position for the country by preparing budgets for the coming years within the available resources to address the reluctance that occurred in strategic projects. Hence, the Ministry of Finance would like to show that it worked in difficult economic conditions with which it dealt with most financial situations and from During its plans for the white paper project adopted by the government and the Ministry of Finance with its reform project in order to advance the economic reality, as the Ministry of Finance invested those positions that were put in place to reform the economic situation and the stifling financial crisis after it preferred difficult solutions, including raising the dollar exchange rate against the Iraqi dinar. h

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Finance talks about the decision to reduce the value of the Iraqi dinar

20220221638%D8%B9%D8%A7%D8%AC%D9%84-810x
 
News source / NR TV channel

 

 

The Ministry of Finance, with all its institutions, sought to correct the structural distortions in
the Iraqi economy, which the public financial policy lacked, which led to restricting
the ability of financial reform in the country.
.

Why was the exchange rate devaluation in December 2020 necessary?

When oil revenues collapsed two years ago, the Iraqi government was facing
enormous funding pressures while it was struggling with its basic internal and external obligations,
as the cash reserves of the Central Bank were in rapid decline, and in December 2020, it was
expected to be implemented within a year and Iraq was on the brink of a comprehensive economic crisis that came
As a result of lower oil prices
.

Where the decision to reduce the value of the dinar came as part of a package of fundamental reforms that
target the structure of the Iraqi economy, and this decision was taken as a result of a stifling economic crisis that befell
the whole world represented by the Corona pandemic, where the price of a barrel of oil at the time reached
$ 20 and this is what caused an economic crisis that made it difficult to meet The government pays its financial obligations
from previous external and internal debts, in addition to the salary bill for employees, retirees
and social protection. Where the Social Protection Authority was supported by increasing the allocations of the
new targeted groups to compensate for the emergency change in the exchange rate and to subsidize the poor segment
. However, the House of Representatives reduced the amounts allocated to the new inclusion, which led to
the non-inclusion of new families within social protection
.

The change in the exchange rate of the dinar came in conjunction with the implementation of the
economic reform project, which the Iraqi government called the “white paper” and it was
a necessary option to reform the structural system of the Iraqi economy.

We add that the exchange rate change gave great strength in the economic joints of the
country, and it is in line with the statements of the Central Bank, which confirmed that raising the exchange rate led to
an increase in the possibility of competition for the local product, and to reduce the pressure of expenditures on the Ministry of Finance by
23%, which enabled the Ministry of Finance to overcome the resulting crisis On the decline in global oil prices
during 2020 and the first months of 2021
.

The decision to adjust the exchange rate came after the state’s
foreign currency reserves were depleted and some private banks controlled the market for selling currency by illegal means. We worked
to raise the foreign currency balance through a series of decisions in addition to the rise in
oil prices.
64 billion
dollars from the reserves of the Central Bank of Iraq, and raising the global credit rating of Iraq
internationally
.

As the statistics of the competent international organizations indicate the gross domestic product
of 9% for the first half of 2021, and the growth of the non-oil economy by more than 21%
in the first half of 2021, and this is due to the strong performance in the service sectors after easing the
measures to prevent the emerging corona virus, This recovery reduced the sluggishness in the oil sector
, by 10% in the first half of 2021, as Iraq adjusted its share in the Organization of the Petroleum Exporting Countries
. Since then, OPEC has gradually increased the production share of member states, which was reflected in
an increase in GDP, and the general and core inflation rate reached In Iraq
for the period from January to July
2021, where it reached 5.2% and 6.3% , respectively, due to the increase in domestic demand and the insufficient supply of commodities to
fully meet the increasing demand, in addition to the positive impact of inflation due to the decline
in import prices in some exporting countries facing a deterioration in the value of their local currencies
.

The Ministry of Finance has also worked to attract companies to support investment in Iraq
for the purpose of advancing the country’s economy by maximizing non-oil revenues and emphasizing the
need to adopt the budget of programs to achieve the best performance of the plans and timings set and to develop
appropriate mechanisms within its strategy to finance and involve the private sector and to approve the completion of
strategic projects with a multiplier effect and scaling Banks' monopoly on foreign currency
.

In light of the stifling financial crisis, the Ministry of Finance dealt with the suffering of a
large segment of the contracts of the Ministry of Electricity and free lecturers, as they were converted into contracts based
on Cabinet Resolution No. 315 of 2019 and all the problems that many
ministries faced from their contracts terminated, including the Ministry of Defense, Interior and the Popular Mobilization Authority
All problems related to bonuses, promotions and other benefits for all employees
and citizens
.

The ministry also worked within its strategy to prepare a sound
and stable financial position for the country by preparing budgets for the coming years within the available resources to address the
delay in strategic projects.
.

Hence, the Ministry of Finance would like to show that it worked in difficult economic conditions in which
it dealt with most of the financial situations and through its plans for the draft white paper that
the government and the Ministry of Finance adopted with its reform project in order to advance the economic reality, as
the Ministry of Finance invested those positions that were put in place to reform the economic situation and the
financial crisis The suffocation after I preferred difficult solutions, including raising the dollar exchange rate against
the Iraqi dinar

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The Ministry of Finance talks about the value of the dinar and the decision to change the exchange rate of the dollar

8-1645374999.jpg
 
News source / Noon Agency

Today, Sunday, the Ministry of Finance confirmed that the decision to reduce the value of the dinar came as part of a package of fundamental reforms that target the structure of the Iraqi economy, while noting that the exchange rate adjustment came after the state’s foreign currency reserves were depleted and some private banks controlled the market for selling currency illegally. .

And the Finance said in a statement received by Noon News Agency, that it "sought with all its institutions to correct the structural distortions in the Iraqi economy, which the public financial policy lacked, which led to restricting the ability of financial reform in the country."

Why was the exchange rate devaluation in December 2020 necessary?

The statement explained, "When oil revenues collapsed two years ago, the Iraqi government was facing enormous funding pressures while it was struggling with its basic internal and external obligations, as the central bank's cash reserves were in rapid decline, and in December 2020, it was expected to be implemented within a year and Iraq was on On the brink of a comprehensive economic crisis that came as a result of the drop in oil prices.”

And the statement continued, “The decision to reduce the value of the dinar came within a package of fundamental reforms that target the structure of the Iraqi economy, and this decision was taken as a result of a stifling economic crisis that befell the whole world represented by the Corona pandemic, where the price of a barrel of oil at the time reached $ 20 and this is what caused an economic crisis This made it difficult for the government to meet its financial obligations from previous external and internal debts, in addition to the bill for the salaries of employees, retirees and social protection. The Social Protection Authority was supported by increasing the allocations of the new target groups to compensate for the emergency change in the exchange rate and to subsidize the poor. However, the House of Representatives reduced the amounts allocated to the new inclusion, which led to the non-inclusion of new families within social protection.

He pointed out, "The change in the exchange rate of the dinar came in conjunction with the implementation of the economic reform project, which the Iraqi government called the "white paper" and it was a necessary option to reform the structural system of the Iraqi economy," adding that "the exchange rate change gave great strength in the country's economic joints, which is This corresponds to the statements of the Central Bank, which confirmed that raising the exchange rate led to an increase in the possibility of competing with the local product, and to reduce the pressure of expenditures on the Ministry of Finance by 23%, which enabled the Ministry of Finance to overcome the crisis resulting from the drop in global oil prices during 2020 and the first months of 2021.”

The decision to adjust the exchange rate came, according to the statement, “after the state’s foreign currency reserves were depleted and some private banks took control of the currency selling market by illegal means, and we worked to raise the foreign currency balance through a number of decisions in addition to the rise in oil prices, and these decisions resulted in an increase 64 billion dollars from the reserves of the Central Bank of Iraq, and raising the global credit rating of Iraq internationally.

And he indicated, "The statistics of specialized international organizations indicate the gross domestic product at 9% for the first half of 2021, and the growth of the non-oil economy by more than 21% in the first half of 2021, and this is due to the strong performance in the service sectors after easing measures to prevent the virus." The new Corona virus, and this recovery reduced the lag in the oil sector, by 10% in the first half of 2021, as Iraq adjusted its share in OPEC. Since then, OPEC has gradually increased the production share of member states, which was reflected in an increase in GDP General and basic inflation in Iraq for the period from January to July 2021, reaching 5.2% and 6.3%, respectively, due to the increase in domestic demand and the insufficient supply of commodities to meet the entire growing demand, in addition to the positive impact of inflation due to the decline in import prices in some exporting countries which are facing a deterioration in the value of their local currencies.

Ghali pointed out that “the Ministry of Finance worked to attract companies to support investment in Iraq for the purpose of promoting the country’s economy by maximizing non-oil revenues and emphasizing the need to adopt the budget of programs to achieve the best performance of the plans and timings set and to develop appropriate mechanisms within its strategy to finance and involve the private sector and to approve the completion of strategic projects with The multiplier effect and curbing the monopoly of banks on foreign currency.

And the finance dealt, according to the statement, “in light of the stifling financial crisis, the suffering of a large segment of the contracts of the Ministry of Electricity and free lecturers, as they were converted into contracts based on Cabinet Resolution No. 315 of 2019 and all the problems that many ministries faced from having their contracts terminated, including the Ministry of Defense and Interior And the Popular Mobilization Authority and solve all problems related to bonuses, promotions and other benefits for all employees and citizens. The ministry also worked within its strategy to prepare a sound and stable financial position for the country by preparing budgets for the coming years within the available resources to address the delay in strategic projects.

The Finance concluded its statement, by saying, “From here, we would like to show that it worked in difficult economic conditions in which it handled most financial situations and through its plans for the draft white paper that the government and the Ministry of Finance adopted with its reform project in order to advance the economic reality, as the Ministry of Finance invested those positions that were set for reform The economic situation and the stifling financial crisis after I preferred difficult solutions, including raising the dollar exchange rate against the Iraqi dinar

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2022/02/20 18:34
 

Finance: adjusting the exchange rate to prevent the depletion of foreign currency reserves and stop the control of private banks on the market

https://almasalah-com.translate.goog/ar/news/222498/المالية-تعديل-سعر-الصرف-لمنع-استنزاف-احتياطات-العملة-الأجنبية-وايقاف-سيطرة-المصارف-الأهلية-على-السوق?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en

 

Baghdad / Obelisk: The Ministry of Finance confirmed, on Sunday, February 20, 2022, that the decision to reduce the value of the dinar came to prevent the depletion of foreign currency reserves and to stop the control of private banks on the market.

The ministry said in a statement received by The Obelisk: It sought with all its institutions to correct the structural distortions in the Iraqi economy, which the public financial policy lacked, which led to restricting the ability of financial reform in the country.

She added: Why was the exchange rate devaluation in December 2020 necessary? When oil revenues collapsed two years ago, the Iraqi government was facing enormous funding pressures while it was struggling with its basic internal and external obligations, as the central bank's cash reserves were in rapid decline and in December 2020, it was It is expected to be implemented within a year, and Iraq was on the brink of a comprehensive economic crisis that came as a result of the drop in oil prices.

She stressed that the decision to reduce the value of the dinar came within a package of fundamental reforms that target the structure of the Iraqi economy, and this decision was taken as a result of a stifling economic crisis that befell the whole world represented by the Corona pandemic, as the price of a barrel of oil at the time reached $ 20 and this is what caused an economic crisis that led to difficulty The government’s fulfillment of its financial obligations from previous external and internal debts, in addition to the salary bill for employees, retirees and social protection, where the Social Protection Authority was supported by increasing the allocations of the new targeted groups to compensate for the emergency change in the exchange rate and subsidizing the poor segment, but the House of Representatives reduced the amounts allocated to the new inclusion, which led To not include new families in social protection.

She pointed out that the change in the exchange rate of the dinar came in conjunction with the implementation of the economic reform project, which the Iraqi government called the white paper and was a necessary option to reform the structural system of the Iraqi economy, adding that the change in the exchange rate gave great strength in the economic joints of the country and is consistent with the statements of the Central Bank that She stressed that raising the exchange rate led to an increase in the possibility of competition for the local product, and to reduce expenditure pressure on the Ministry of Finance by 23%, which enabled the Ministry of Finance to overcome the crisis resulting from the drop in oil prices globally during 2020 and the first months of 2021.

She pointed out that the decision to adjust the exchange rate came after the state's foreign currency reserves were depleted and some private banks took control of the currency selling market by illegal means. dollars from the reserves of the Central Bank of Iraq, and raise the global credit rating of Iraq internationally, indicating:The statistics of specialized international organizations indicate an increase in gross domestic product by 9% for the first half of 2021, and the growth of the non-oil economy by more than 21% in the first half of 2021, and this is due to the strong performance in the service sectors after easing measures to prevent the emerging corona virus. And this recovery reduced the sluggishness in the oil sector, by 10% in the first half of 2021, as Iraq adjusted its share in the Organization of the Petroleum Exporting Countries (OPEC). And the basic in Iraq for the period from January to July 2021, reaching 5.2% and 6.3%, respectively, due to the increase in domestic demand and the insufficient supply of commodities to meet the entire growing demand, in addition to the positive impact of inflation due to the decline in import prices in some exporting countries facing Deterioration in the value of their local currencies.

And she added that she worked to attract companies to support investment in Iraq for the purpose of promoting the country's economy by maximizing non-oil revenues and emphasizing the need to adopt the budget of programs to achieve the best performance of the plans and timings set and to develop appropriate mechanisms within its strategy to finance and involve the private sector and to approve the completion of strategic projects with a multiplier effect and scaling the monopoly Banks for foreign currency, stressing that they have dealt with, in light of the stifling financial crisis, the suffering of a large segment of the contracts of the Ministry of Electricity and free lecturers, as they were converted into contracts based on Cabinet Resolution No. 315 of 2019 and all the problems that many ministries faced from having their contracts rescinded, including the Ministry of Defense, the Interior and the Commission Popular Mobilization and solving all problems related to bonuses, promotions and other benefits for all employees and citizens.

And she added that she also worked within her strategy to prepare a sound and stable financial situation for the country by preparing budgets for the coming years within the available resources to address the delay in strategic projects, indicating that she worked in difficult economic conditions in which she dealt with most financial situations and through her plans for the draft white paper adopted by the government. And the Ministry of Finance with its reform project in order to advance the economic reality, as the Ministry of Finance invested those positions that were put in place to reform the economic situation and the stifling financial crisis after it preferred difficult solutions, including raising the dollar exchange rate against the Iraqi dinar.

 

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2022/02/20 14:54

Mishaan: Reducing the dollar exchange rate will cost the budget an additional 10 billion dollars annually

https://almasalah-com.translate.goog/ar/news/222484/مشعان-خفض-سعر-صرف-الدولار-سيكلف-الميزانية-10-مليار-دولار-اضافية-سنويا?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en

 

Baghdad / Obelisk: Mishaan al-Jubouri's books.

Reducing the exchange rate of the dollar will cost the budget an additional 10 billion dollars annually, and if the exchange rate drops to 60 dollars, it will be unable to pay salaries and will not be able to finance infrastructure projects.

Accordingly, efforts should focus on finding ways to support the poor and reduce the prices of basic commodities that are related to the needs of people with limited income

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