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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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An invitation to the government and the Central Bank after the instability of the dollar in Iraq – urgent

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News source / Baghdad today
Baghdad today_Erbil

Today, Sunday, the Kurdistan Democratic Party called on the federal government and the Central Bank of Iraq to take quick measures to stem the instability of dollar prices in Iraqi stock exchanges.

Representative of the Democrat Mahma Khalil said in an interview with (Baghdad Today), that "quick measures must be taken by the Central Bank to end the state of confusion in the Iraqi markets ."

He added that "most businesses are suspended, especially those that depend on the dollar in buying and selling," noting that "a quick solution must be found, due to the instability caused by the recent crisis."

Iraq is witnessing a state of instability in the exchange rates of the dollar after the proposals made by the leader of the Sadrist movement Muqtada al-Sadr regarding the reduction of the exchange rate

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ROLL THE GOSH DAMN IQD OUT AND STOP ALL OF THIS WHINNY CLAP TRAP ABOUT THIS OR THAT WILL OR WONT HAPPEN SKY IS FALLING CRUD.
 

No more committees, subcommittees or studies. We’re wise to your sand bagging & corruption. You people are pathetic ( well okay for the most part ), I wanna puke all over your shoes. I wanna snort black pepper and sneeze in you faces.

 

Guess that’s enough for now.

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Independent Deputy: Most of the political parties voted to raise the dollar in the previous budget

 
politics  ,   2022/02/20 18:06  , the number of readings: 354
 
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Baghdad - Iraq today:

Representative Basem Khashan commented on efforts to change the dollar exchange rate, and the role of parties in this regard.

Khashan said in a blog post that "most political parties supported raising the dollar exchange rate, and the budget in which the current official exchange rate was approved passed with the approval of most of the political blocs, and the exchange rate was raised without the government taking any measures to compensate for the huge losses in the salaries of employees, workers and the poor people."

He added, "It is okay for parties to change their position regarding raising the dollar exchange rate, but these parties must express this change using the correct constitutional and democratic means."

 

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5 minutes ago, horsesoldier said:

ROLL THE GOSH DAMN IQD OUT AND STOP ALL OF THIS WHINNY CLAP TRAP ABOUT THIS OR THAT WILL OR WONT HAPPEN SKY IS FALLING CRUD.
 

No more committees, subcommittees or studies. We’re wise to your sand bagging & corruption. You people are pathetic ( well okay for the most part ), I wanna puke all over your shoes. I wanna snort black pepper and sneeze in you faces.

 

Guess that’s enough for now.

They need to do a study about a study on the rate first. However, they have to go on holiday once they get back from the last holiday. But they need to do a study on the holiday first.

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The high exchange rate turns from an economic problem to a political one
 
Sunday 20 February 2022 - 15:43
 
[[article_title_text]]
Report (Alsumaria News) - The issue of the dollar exchange rate and the overlap between this file and the political aspect is still a preoccupation for public opinion and the street, given that it is an issue that touches the citizen's livelihood and daily strength.
 
At a time when a parliamentarian indicated that the steps being taken today to reduce the dollar price by some parties have political consequences behind them, a financial expert stressed the importance of finding treatments for the dollar exchange rate without sticking to the situation and coming up with realistic treatments for the origin of the crisis.
 
The representative of the State of Law Coalition, Aref Al-Hamami, confirmed that the steps that are taking place today to reduce the price of the dollar by some parties are behind political consequences by the same parties that previously voted on the decision and supported it with the relevant government parties.
 
Al-Hamami said in an interview with Alsumaria Yuz, "There are many Iraqi segments that have been subjected to serious damage at different levels as a result of the decision to raise the price of the dollar against the dinar, therefore, after this situation became a public opinion as a result of the legitimization and support of a number of political blocs known to all, this decision, which It is borne by it and the government agencies that have adopted it, as we find that these parties are returning today to talk about steps to reduce it and to blame specific people and hold them for the result and consequences of the decision."
 
Al-Hamami added, "What is happening today, unfortunately, is a state of confusion in positions, and clearly political trends stand behind it," noting that "the call for an emergency session with the signatures of fifty deputies is a step that we believe has political consequences behind it, and it is an attempt to divert attention from the situation." The bad that the governorates of southern Iraq are witnessing, especially Maysan governorate, is an attempt to show some blocs to themselves that they are defending the Iraqi people, even though they were the ones who voted on the decision at the time.
 
The financial expert, Nabil Al-Ali, stressed the importance of finding treatments for the dollar exchange rate without sticking to the position and coming up with realistic treatments for the origin of the crisis.
 
Al-Ali said in a press interview, "The issue of the dollar exchange rate is a purely economic and financial issue, but unfortunately it has turned into stubbornness and political debate, as we find that there is intransigence and strictness on the part of some people in their positions and decisions, even though they are decisions that have proven incorrect," noting that " The decision to raise the price of the dollar, even if it was necessary at a certain stage, despite its negatives, but it was necessary that there should be treatments within fixed periods of time for the positives and negatives of the decision and not to leave it loose in this way despite the absence of its requirements.
 
Al-Ali added, "Introducing politics in the field of economics is a big mistake, and unfortunately, stubbornness and political debate has become the goal and goal, and there is a real flaw in the formulation of financial policies, which reached a decision to raise the exchange rate, which leads to damage to forty million people," pointing out that "It is necessary for whoever made a mistake to admit his mistake and go to listen to the opinions of specialists to find real solutions and solutions to the root of the problem."
 
He pointed out that "the economy should be mobile and adapt to the nature of the changes, because it is unreasonable to adhere to the decision and remain steadfast on it without changing, no matter how the circumstances change. Imposing wills without verifying their validity
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Fahmy: Provoking the dollar exchange rate depreciation was motivated by political reasons and changing it led to dire effects

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News source / Euphrates News
{Economist: Al-Furat News} The political analyst, Raed Fahmy, blamed politics for provoking the devaluation of the dollar, while stressing that "changing it led to dire effects."

 

Fahmy said; For the (Undisclosed) program broadcast by Al-Furat satellite channel tonight, that: “The exchange rate reduction was raised again for political reasons, due to the existence of a pressing social and popular situation in this direction, as the exchange rate reduced the local production and became 22% local and 80% of what Iraq is buying from raw materials.”
 He added, "The benefits of raising the exchange rate came at the expense of the citizen, and the profits resulting from raising the exchange rate reduced the purchasing power of citizens, as stated in difficult economic conditions and a lack of liquidity."
Fahmy continued, "What is happening today is not a procedural act. The central bank is responsible for monetary policy, meaning that it is responsible for raising the exchange rate, and it is not the government's authority to determine the exchange rate in the budget, and government spending is the one who determines monetary policy."
 “Sometimes raising the exchange rate is beneficial; But it is supposed to be linked to another package, including attracting and encouraging investment.
There is a philosophy attached to the White Paper, which is to unleash the forces of the market and ease the burdens on the state; But how to guide and who bears this and the state did not provide any opportunities for employment?
Fahmy stressed, "The exchange rate has led as a result of shortcomings, which has led to dire social effects, and today we have a failure in the administrative policies of the economic file," stressing "the need for a political review." 
He concluded by saying, “The white paper relies on a specific logic that requires the role of an officer of the state, not in light of the rampant corruption and disarmament, and we need to change the structure of the budget, including monetary policy, and the achievements of the white paper have lifted subsidies on agriculture and reduced production

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1 hour ago, Theseus said:

They need to do a study about a study on the rate first. However, they have to go on holiday once they get back from the last holiday. But they need to do a study on the holiday first.


Nailed it !!!! You’ve very precisely summed up the work ( lack there of ) ethic of the Iraqi politicians.

 

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3 hours ago, 6ly410 said:

The exchange rate has led as a result of shortcomings, which has led to dire social effects, and today we have a failure in the administrative policies of the economic file," stressing "the need for a political review." 

yep....they have studied the rate this is all smoke

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 The “dollar crisis” is escalating.. Economists warn against devaluing the exchange rate: it will create turmoil in the markets

 2022/02/21

 

 

Specialists in economic affairs rule out the return of the exchange rate of the dollar against the dinar to what it was before December 2020, while they saw that returning the exchange rates to what they were, would create a kind of turmoil in the Iraqi markets and lead us to building a new budget in addition to storming the money market and undermining stability .

On Thursday, the leader of the Sadrist movement, Muqtada al-Sadr, presented six proposals regarding the dollar exchange rate, including summoning the Minister of Finance and the Governor of the Central Bank under the dome of Parliament, organizing the Iraqi currency market centrally and enacting "some laws that increase the value of the Iraqi dinar exchange rate."

As soon as the recall decision was announced, the selling prices of the dollar in the local market decreased slightly, as the price of the $100 bill reached 144,500 thousand dinars.

The exchange rate set by the Central Bank amounted to 1450 dinars to the dollar, instead of the previous rate of 1190 dinars, which sparked a series of criticisms from politicians, economists and citizens alike.

The government attributed the decision to cut at the time to the stifling economic crisis that the country, the second largest oil producer in OPEC, is going through, as a result of the drop in crude prices.

However, the recent rise in oil prices in global markets to record levels not seen in seven years has sparked controversy recently regarding the decision to devalue the Iraqi dinar and the possibility of reconsidering it.

The specialist in economic affairs, Nabil Al-Marsoumi, said in an interview with (Al-Mada), that “Iraq is a rentier state that relies on the principle of stabilizing the exchange rate,” noting that “the rise in the price of the dollar against the dinar has negatively affected the poor segments through the rise in local and imported prices.”

Al-Marsoumi added, "The negative aspects of the exchange rate have been exacerbated for more than a year by the failure to take measures that contribute to reducing the crisis, such as building social sources of income, supporting the poor classes, and tax exemptions for basic commodities."

The specialist in economic affairs pointed out that “tying the exchange rate to a short-term, fast-volatile variable (oil) is an economic absurdity,” noting that “it is not possible to link the price of the dinar with the price of oil, since the latter has sudden fluctuations.”

Al-Marsoumi called for «regulating the exchange market by addressing the rampant corruption in the sales of the Central Bank of Iraq and the domination of the market by the owners of private banks».

Repercussions of the dollar devaluation

And the professor of economics at the University of Basra said, "Restoring the dollar exchange rate to what it was before will create a kind of turmoil in the Iraqi markets and lead us to building a new budget, in addition to storming the money market and undermining financial stability."

For his part, the economist, Ahmed Hathal, told Al-Mada that “oil prices have short-term effects, and if oil price changes were calculated annually in the year (2021), the average would be ($68.63) annually, with a daily export rate of 2.7 million barrels. It is equivalent to the equilibrium price of the hypothetical public budget at least, and the daily fluctuations of oil prices do not depend on its early economic results.

Hathal added, “The exchange rate has short, long or medium-term effects, whether negative or positive. The call to return the exchange rate will cause more social problems than the problems it created when (the mistake of changing it previously), and if it will contribute to reducing prices, it will not decrease at the previous level.” Because there is no complete control over it first, and because it is linked to international markets and their fluctuations, secondly, given that most commodities are imported, in addition to the viscosity of prices declining and their flexibility to rise.”

short term solutions

The economic affairs specialist presented some short-term solutions for the affected groups, including:

1 - Supporting basic commodities for the citizen, ensuring the arrival of all necessary commodities to the citizen, fighting the corruption of the Ministry of Trade and its suspicious contracts, or giving cash alternatives to the targeted citizen equivalent to the value of the budget allocated to support the ration card.

2 - Supporting the health sector, fighting the scourge of corruption in the Ministry of Health, medicine stores, hospitals and health centers, providing all treatments for the category of chronic diseases, and providing equipment for critical operations and incurable diseases.

3 - Supporting the educational process, combating school dropouts, eradicating illiteracy, increasing enrollment rates, and giving cash subsidies to those who enroll in school after primary school to ensure an educated generation with the minimum costs of study and living.

Hathal concluded, by saying that “these are three basic points that any government must start according to a budget based on programs and performance in order to diagnose failure and corruption in every sector and department of the state,” adding, “It is not reasonable to falter with new decisions or approve a complete budget.” Without a real vision and programs that work to achieve the efficiency of spending the general budget allocations.”

For his part, the other expert in economic affairs, Faleh al-Zaidi, said that “the exchange rate process was not an economic decision, and that all the political blocs participated and agreed to that process of change, and the possibility of returning it to what it was is currently out of the question.”

And Al-Zaidi told Al-Mada that "Iraq suffers from structural imbalances in its economy by relying on only one export commodity, which is oil, which is volatile, according to supply and demand, according to global market conditions."

"Economic blunders"

He noted that "a decision to reduce the price of the dollar must be made through economic reforms first, that is, diversifying exports by establishing an industrial base by operating all government and private stalled and lagging factories, and transferring oil revenues to real non-consumer investment projects."

Al-Zaidi continued, "The confusion in economic decisions and neglect of the rights of citizens who are creditors to the state from the farmers who marketed wheat and barley to the state and from contractors and from the owners of government bonds and banks that loaned the state, all of this has made debts accumulate and citizens demand their rights, so the devaluation of the dinar was in favor of The state

 

link  :  https://www.almadapaper.net/view.php?cat=258891

 

 

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Professor of Criminal Law: Parliament does not have the right to ban Allawi's travel

2022/02/21

 

Today, Sunday, a professor of criminal law confirmed that the House of Representatives took a decision to prevent the Minister of Finance, Ali Abdul Amir Allawi, from traveling, stressing that the judiciary is exclusively competent with these decisions, and issues them on the occasion of the existence of a criminal case against the accused.

In an interview with Al-Mada, Bushra Al-Obaidi said that "the authority competent to make travel ban decisions in accordance with the law is the judicial authority and exercises it through its courts, on the occasion of filing a criminal complaint against the accused."

Al-Obaidi added, "The House of Representatives is a legislative, not a judicial, body, and it does not have the jurisdiction to prevent the travel of any person, but rather it has the right to ask the judiciary to play its role in this regard."

And she pointed out, "The travel ban, and if it is taken by the judiciary, must be preceded by moving a criminal case, and it does not exist against the Minister of Finance, Ali Abdul Amir Allawi, until the present time."

And Al-Obaidi added, "Resorting to the travel ban comes for fear of escaping outside Iraq, something that happened many times with former ministers."

Al-Obaidi added, "The decision taken by the House of Representatives to ban the Minister of Finance from traveling represents a violation of the principle of separation of powers and an infringement on the jurisdiction of the judiciary and the competent courts, and it is not permissible."

The Iraqi parliament, earlier on Saturday, asked the Public Prosecution to prevent Finance Minister Ali Allawi from traveling.

 

link  :  https://www.almadapaper.net/view.php?cat=258885

 

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The Central Bank of Iraq resolves the controversy over the dollar exchange rate

9 hours ago
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((Wan_Baghdad)) An
authorized source in the Central Bank of Iraq stated, on Sunday, that there are no intentions to change the current exchange rate, especially after the positive results that it achieved during the last period.
  
The source stated, (20 February 2022), that “the discussions that took place while hosting the Governor of the Central Bank of Iraq in the House of Representatives on Saturday corresponding to 19/2/1922 emphasized the need for concerted efforts by all government institutions to improve the economic and living standards of the poor classes that were affected by the high rate of inflation. “.
The source called on the "honorable public not to deal with news that indicates the possibility of a price change."
He stressed that "the central bank possesses sufficient foreign reserves to stabilize the current exchange rate."

 

link  : https://ashourland.net/2022/02/20/البنك-المركزي-العراقي-يحسم-الجدل-بشأن-2/

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The Governor of the Central Bank reveals the results of his meeting in Parliament

10 hours ago
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((Wan_Baghdad))
The Governor of the Central Bank of Iraq, Mustafa Ghaleb, revealed, on Sunday, the results of his meeting with members of the Iraqi Council of Representatives, to discuss important files, including the exchange rate.
  
A statement by the Central Bank, (20 February 2022), said that “Governor Mustafa Ghaleb Mokhif commended the results of his meeting with members of the House of Representatives on Saturday 19/2/1922, and his Excellency provided a full explanation of the Central Bank’s tasks, the mechanisms of buying and selling foreign currency, and oversight over the banking sector.” .
The statement added that "the governor of the Central Bank presented the justifications that necessitated the adjustment of the foreign exchange rate and the results that have been achieved and will be achieved in the medium and long term," noting that "the Central Bank is studying the issue of the exchange rate from its various aspects, and public financial institutions must perform their tasks in a complete manner to achieve all resolution objectives.

 

link  : https://ashourland.net/2022/02/20/محافظ-البنك-المركزي-يكشف-نتائج-اجتماع/

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An official statement from Finance Minister Ali Allawi on the exchange rate controversy

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((Wan_Baghdad))

Today, Sunday, Finance Minister Ali Allawi issued a statement regarding the controversy of the dollar exchange rate against the Iraqi dinar.

The following is the text of the statement: -
February 20, 2022
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. 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 about the drop in oil prices globally 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 took control of the market for selling currency in illegal ways, and we worked to raise the balance of foreign currency through a number of decisions in addition to The rise in oil prices resulted in these decisions increasing $64 billion from the reserves of the Central Bank of Iraq, and raising Iraq's international credit rating.
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, reaching 5.2% and 6.3%, respectively, due to the increase in domestic demand and the insufficient supply of commodities to fully meet the increased 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 of 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 it preferred difficult solutions, including raising the exchange rate of the dollar against the Iraqi dinar.
———————————————-
Media Office of the Minister of Finance

 

link  : https://ashourland.net/2022/02/20/بيان-رسمي-من-وزير-المالية-علي-علاوي-حول/

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The first official comment from the Ministry of Finance regarding the dollar exchange rate

 
 
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The Ministry of Finance clarified, a short time ago, that the decision to devalue the dinar came within a package of fundamental reforms targeting the structure of the Iraqi economy, noting that the exchange rate adjustment came after the state’s foreign currency reserves were depleted and some private banks took control of the currency selling market by illegal means.

And the Finance said, in a press statement followed by writings: "All of 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."

And she continued: “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 the brink of a crisis.” A comprehensive economic came as a result of the drop in oil prices.”

 

She explained: “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, as the price of a barrel of oil at the time reached 20 dollars, and this is what caused an economic crisis that led to 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 in social protection.”

And she confirmed: “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. She confirmed that raising the exchange rate led to an increase in the possibility of competing with 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.

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. dollars from the reserves of the Central Bank of Iraq, and raise the global credit rating of Iraq internationally.

He added: "The statistics of the 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 Corona virus." 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, and the inflation rate reached General and 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 fully meet the increased 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.

And she pointed out: “The Ministry of Finance has 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 the 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, the Interior and the General Authority for The popular crowd and the solution of all problems related to bonuses, promotions and other benefits for all employees and citizens, as the ministry also worked within its 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.

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 of the financial situations and through its plans for the draft white paper project 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 stifling financial crisis after it preferred difficult solutions, including raising the dollar exchange rate against the Iraqi dinar.

 

link  : https://kitabat.com/news/أول-تعليق-رسمي-من-وزارة/

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For the sake of the dinar exchange rate, "Al-Sadr" enters a new battle...The Minister of Finance refuses to come to Parliament for questioning and is banned from traveling!

February 20, 2022
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In a new political challenge to the leader (the Sadrist movement); Muqtada al-Sadr, the dinar exchange rate crisis turned into a political battle, as the Finance Minister refused; “Ali Allawi,” yesterday, the response: to Al-Sadr’s “orders” to appear before Parliament with the director of the Central Bank; Mostafa Ghaleb, and his deputy, “immediately,” to discuss a series of proposals he presented to solve the crisis of the high dollar exchange rate and coordinate the currency market.

And "Allawi" saw, in an angry letter to the Prime Minister; “Mustafa Al-Kazemi”, that his summons from the Vice-President of the Sadrist Parliament; Hakim Al-Zamili, after Al-Sadr’s tweet; Last Thursday, it is unacceptable and should not be tolerated: “whether for the dignity of the government, his dignity as a minister, or his personal dignity and the dignity of his family,” stressing that: “The administration of the state is not carried out through the tweets of political leaders, and the government is not responsible to any political party, it is responsible Only in front of the people through its elected parliament.”

In the letter, Allawi described; He summoned him, with outrageous partisan interventions in the work of the government, refusing to give up the independence of the executive power of the state.

Allawi defended himself by saying, "I worked in very difficult circumstances for nearly two years, and I believe that I succeeded in managing financial affairs and taking care of the economy towards a degree of safety."

Regarding the exchange rate adjustment, he explained that he had to take many difficult decisions, including the decision to amend the exchange rate, noting that he had the support system" rel="">support of the international community, the Council of Ministers, the “Central Bank” and political parties in two separate meetings with their leaders, and was approved by the “House of Representatives” ”; In February 2021.

As he appreciated the support system" rel="">support of the Sadrist movement in his appointment as Minister of Finance; Two years ago, the leader of a major political party refused to treat him lightly as one of his followers, and the party had no right: “to address me as a servant at their request and invitation.”

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Issuance of a travel ban.

He was the first deputy speaker of the House of Representatives; “Hakim Al-Zamili,” said in a press statement yesterday, Saturday, that the Minister of Finance; Ali Allawi conveyed his losing experiences to the companies he managed abroad; to "Iraq", and nothing was given to his country.

He added before the House of Representatives that a travel ban book will be issued against the Minister of Finance, holding the Ministry of Interior and the Intelligence Service responsible for his travel, until he completes the requirements for him to attend Parliament, testify and resolve the files on him.

Al-Zamili indicated that the minister; Allawi contributed to the rise in Iraq’s debt to 27 trillion dinars in just one year.

He indicated that an emergency session will be held this week; Based on a request submitted by: 50 deputies, to discuss financial policy, currency smuggling and the exchange rate, stressing that the “House of Representatives” has files that condemn the minister himself, and the “Ministry of Finance.”

He noted that the Ministry of Finance; “Its financial accounts have not been sent yet, and they have not taken any measures to collect debts with telecommunications companies, and smuggled money.”

Indeed, yesterday, Saturday, the Iraqi Parliament requested the Public Prosecution to prevent the Minister of Finance; Ali Allawi, from travel.

This meeting comes after the head of the Sadrist movement demanded; Muqtada al-Sadr, in a statement; By summoning both the director of the “Central Bank” and the Iraqi Minister of Finance to Parliament: “immediately.”

Al-Sadr’s proposals to control the exchange rate.

Al-Sadr put forward several proposals regarding the exchange rate of the dollar in Iraq, in order to control the exchange rate and reduce the negative repercussions of raising the value of the foreign currency against the dollar.

Among the proposals; Stop the smuggling of currency, as well as forged invoices, "forcefully and firmly."

Al-Sadr also called for looking into the matter of some banks, “such as the Middle East Holding Bank and Al-Ansari, which belong to some people who control the currency,” and some other private banks.

Al-Sadr suggested regulating the Iraqi currency market centrally in a correct manner, and enacting some laws that increase the value of the Iraqi dinar exchange rate, in addition to dealing “firmly” with some banks belonging to some of the controlling parties in the country.

The Iraqi government had decided; In December 2020, the dollar exchange rate against the Iraqi dinar, as part of its efforts to address the financial deficit facing the country.

The decision to raise the value of the dollar against the Iraqi dinar significantly affected the movement of the market and prices, which negatively affected the people’s living reality; Especially the low income bracket.

The Presidency of Parliament does not have the right to prevent him from traveling.

Commenting on the decision to prevent “Allawi” from traveling; legal counsel said; “Ali al-Tamr,” that this matter is not the right of the parliament speaker.

He said “dates”; In a press statement that: (Article 44 of the Iraqi constitution, the first paragraph of which stated that Iraqis have freedom of travel, movement, and residence inside and outside Iraq, meaning that the constitution gave freedom to all Iraqis; it did not specify a specific person, but the rule was comprehensive,” adding that: “ As long as the Minister of Finance is Iraqi, then he may not be prevented or detained except by a judicial decision.”

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The legal advisor added; That: “The functions of the House of Representatives are known in Article (41) of the Constitution; It is the oversight of laws and the enactment of laws, and he has no right to prevent anyone from traveling,” noting that: “If the matter is a recommendation; The recommendation is not issued to prevent travel except by virtue of a judicial decision and in accordance with a criminal case.”

And he added: “The minister can only be prevented from traveling after a meeting: 25 deputies in the House of Representatives, and the matter was brought before the prime minister for the purpose of summoning the minister and questioning him, and then lawsuits are opened against him, his hand is withdrawn, or a lawsuit is filed against him.”

And between “dates”; that: “the House of Representatives; Legal or financial committees have not yet been organized, and this precautionary measure is premature, and this measure can be ordered by the judiciary,” stressing that: “The judiciary; As far as I know, no decision or arrest warrant has been issued against the Minister of Finance.”

He pointed out that: “These claims are just statements, but Al-Zamili does not have the right to demand that the minister be prevented from traveling, as the matter must be presented to the competent committees to begin with,” explaining that: “Al-Zamili’s statement; It was premature because the minister can only be prevented from traveling by virtue of a decision issued by the competent courts.”

cash liquidity crises

Regarding the entry of the “Al-Kazemi” government into a new conflict with Parliament, the economist says; “Saleh Al-Hamashi,” that: “the rise in the exchange rate of the dinar against the dollar came due to the crisis in cash flow; suffered by the Iraqi government, as the monetary mass in the Iraqi market; And amounting to: 97 trillion dinars, it has become unable to meet this market’s need for currencies, so it was among the inevitable central bank policy to change the exchange rate of the Iraqi dinar, because the central bank cannot sacrifice the bank’s cash reserves in exchange for maintaining the exchange rate of the dinar. There are effective mechanisms for the Iraqi government to withdraw the national currency from the street, so returning the dinar exchange rate is a very difficult process.”

Al-Hamashi added: “Iraq is different from the rest of the world; Since the economic interests in it are based on political visions, the economic policy in the country cannot be built on an abnormal and temporary rise in oil prices, which is subject to temporary crises, and Iraq may face; in the year 2025; An economic problem that may lead to the collapse of the political process, if the same conditions that he is experiencing today remain, including fiscal and monetary policy, political conflict and a decline in services and production capacity. I also think that the Iraqi dinar exchange rate will rise; In the year 2023, up to: the 1700 dinars against one US dollar, due to the problem in the monetary supply; As well as the increasing population growth in the absence of solutions.”

Shallow fiscal and monetary policy.

Description of the economist; “Faris Al-Amin”, the financial and monetary policy in “Iraq” is shallow, while he blamed the specialized authorities for the stagnation of the local economy, which led to hitting the simple people with the nerve of daily sustenance, the rise in poverty and the difficulty of living.

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“Political decisions control the country, and here is the grave mistake that lies in moving away from the partisan and personal view, and that the shallowness of financial policy, as a result of the reactions of market fluctuations, and not providing a decent life for the citizen; Whether a government employee, a earner or working in the private sector, and that the stability of financial policy is linked to the stability of the currency, and the decision to raise the exchange rate was not correct at all, and any country in the world did not do any work, as for what officials in Iraq did by destroying the national currency, and the trend in the economy and money And criticism towards stagnation, decline, chaos and problems.”

The Central Bank can correct the relationship between the exchange rate and the dinar.

With regard to the opinion of experts in the economic affairs; That: “The Central Bank can correct the relationship between the exchange rate and the dinar, provided that the mention of the dollar exchange rate is canceled in the next budget; With the total revenues mentioned only in dinars, and there is no need to mention the quantities of exported oil and their average prices, this is the cause of the problems, and this issue is supposed to remain within the financial policy and it is not necessary to inform Parliament or the citizen about it.”

They pointed out that: “The Central Bank can take steps without mentioning them in the announcement or declaring them in advance, and the exchange rate will be changed unannounced, for example: 1350 dinars to the dollar; And it remains for a long and unknown period, perhaps for a year or more.”

Meanwhile, the General Coordinator of the Iraqi Economists Network confirmed; “Bariq Muhammad Shubr”, that: “The political conflict over the high exchange rate of the dollar has been going on since 2012, as previous governments interfered blatantly with the independence of the Central Bank; We are witnessing petty conflicts that are harmful to the economy and the citizen over the exchange rate; This thing is unreasonable,” adding: “Because of the refusal of the political blocs to reduce salaries or impose taxes on salaries; Finance was forced to maintain the central reserve by raising the exchange rate.”

Al-Sadr can withdraw confidence from him.

from his side; The eminent thinker, Hassan Al-Alawi wrote; that: “the chief (of the Sadrist movement); Muqtada al-Sadr does not treat his office janitor lightly, and the Minister of Finance should not see himself above national stature, and should not detract from his worth when he listens to al-Sadr, because he is the leader of the absolute majority in the House of Representatives and he can withdraw confidence from him when necessary.

Violation of the principle of separation of powers.

in turn; The legal expert considered; “Suha Al-Rubaie,” that: “The parliament’s decision to prevent the Minister of Finance from traveling; It is a wrong and inaccurate decision, because such decisions must be legislated by the judiciary, not the legislature, and this is a clear and explicit violation of the principle of separation of powers.”

for his part; The legal expert, Nihad Mansour Al-Namous, said; That: “The invitation addressed to the Minister of Finance; It cannot be qualified as an interrogation or a summons to appear for the purposes of clarification, because the constitution expresses that a summons to appear or an interrogation must be issued based on the approval of: 25 members.

 

link  :  https://kitabat.com/news/من-أجل-سعر-صرف-الدينار-الصدر-يدخل-معرك/

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We publish the details of hosting the Governor of the Central Bank in Parliament

February 20, 2022
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The Governor of the Central Bank of Iraq, Mustafa Ghaleb Makheef, revealed, a short while ago, the details of his hosting in the House of Representatives, yesterday, Saturday.

The Central Bank said, in a press statement followed by writings: “The governor praised the results of his meeting with members of the House of Representatives on Saturday 19/2/1922, as he provided a full explanation of the Central Bank’s tasks, the mechanisms for buying and selling foreign currency, and the supervision of the banking sector.”

The Governor of the Central Bank also presented, according to the statement, the justifications that necessitated the adjustment of the foreign exchange rate and the results that have been achieved and will be achieved in the medium and long term, explaining that the Central Bank is studying the issue of the exchange rate from its various aspects, and public financial institutions must perform their tasks in a complete manner to achieve all the objectives of the decision. .

It is noteworthy that the House of Representatives hosted the Governor of the Central Bank, yesterday, Saturday, and discussed various matters related to the supervisory affairs of the banking sector and the issue of adjusting the exchange rate.

 

link  :  https://kitabat.com/news/ننشر-تفاصيل-استضافة/

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Khazali: There is no point in withdrawing the confidence of a minister in a caretaker government

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On Sunday, political analyst Haitham Al-Khazali said that the Sadrist movement insisted on withdrawing confidence from the Minister of Finance regarding the reduction of the dollar's price, stressing that a sudden reduction in the price of the dollar could lead to major problems.

Khazali said, in a statement, that "there is insistence and pressure by the Sadrist movement on the Minister of Finance regarding reducing the price of the dollar in the recent period."

He added that "the pressure of the current on the Minister of Finance in a caretaker government is useless during this period, as the entire government has expired legal powers and is only to run things."

He pointed out that "lowering the price of the dollar suddenly may lead to major problems, as happened previously during its raising," noting that "lowering the price of the dollar requires time and big plans so that we do not enter into new turns."

And the representative of the coordination framework, Muhammad Al-Ziyadi, had confirmed, earlier, that the refusal to appear Minister of Finance Ali Allawi before the First Deputy Speaker of the House of Representatives is constitutional, considering that the government and ministers are responsible to the House of Representatives and not to people.

 link  :  http://www.sotaliraq.com/2022/02/20/الخزعلي-لا-فائدة-من-سحب-ثقة-وزير-في-حكو/
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 Baghdad: Haider Falih Al-Rubaie 
The economic controversy over the calls to return the exchange rate of the dinar against the dollar, which was demanded by the leader of the Sadrist movement, Muqtada al-Sadr, as a result of the apparent rise in all goods and services in the local market, especially foodstuffs and health, resulting from the increase in import costs covered by the dollar. This exacerbated the inflation and poverty, and led to the erosion of a large percentage of the purchasing value of the salaries of employees and workers in the private sector.
Despite the significant negatives left by the resolution voted on by the House of Representatives in the previous session, economists see some “positives” in other corners of the move, which “created a wide debate in political and economic circles,” stressing that the devaluation of the dinar led to confronting the financial crisis that It resulted from the collapse of oil prices during the Corona pandemic and the restrictions imposed by that pandemic on all countries of the year, indicating that the matter also achieved financial liquidity that led to securing the salaries of employees.
 
Parliamentary position 
Immediately from Mr. Al-Sadr’s calls, the House of Representatives hosted the Governor of the Central Bank, while the Minister of Finance “refused” to accept the invitation that was sent to him by the legislative authority, to discuss ways to reduce the value of the dollar against the dinar. , Governor of Al-Zamili, chaired an expanded meeting attended by a number of heads of political blocs and representatives, and witnessed hosting the Governor of the Central Bank, Mustafa Ghaleb Mikheeb, while Finance Minister Ali Abdul Amir Allawi refrained from attending, to discuss the issue of currency smuggling and the dollar exchange rate, and some banks controlled the currency auction and the most effective situation Solutions to mitigate their impact on citizens.
While Al-Zamili called on the Public Prosecution to take the necessary legal measures to prevent the travel of Finance Minister Ali Abdel Amir Allawi, he confirmed that this week will witness an emergency parliamentary session to question the minister.
 
alternative proposal
In order not to create an economic “confusion” that might be caused by decreasing the exchange rate of the dollar, the economic expert, Nabil Jabbar Al-Ali, suggested that the reduction be gradual, at a rate of 1% or 2% per month, through a clear and announced exchange policy for all, in other words 1000-2500 dinars per 100 Dollars depreciate per month by setting the price in the coin auction regulations.
Al-Ali believes that “a return to the previous exchange rate may not be reasonable so quickly, due to the recent monetary policy of the Central Bank, which strengthened and raised the cash in circulation by a large percentage, and the price of 1300 dinars per dollar may be reasonable.”
The economic expert called for the necessity of "sending messages of reassurance to traders, importers and savers by clearly clarifying the foreign exchange policy for a period of one year or more."
And the Governor of the Central Bank, Mustafa Ghaleb, pledged during the parliamentary hosting, to hold banks that do not comply with regulations and manipulate exchange rates to account.
 big mistake
The economic expert, Raed Al-Hashemi, did not depart much from the previous opinion, when he described the move to change the exchange rate as a “big mistake” that directly harmed citizens, especially those with limited income.
Al-Hashemi said: “I think that returning the dollar exchange rate is never that easy. Reality to support basic services and reduce pressure on the citizen, such as subsidizing the ration card items and reducing electricity, water and internet wages and mobile recharge cards, and this is better for the market in general and for the citizen secondly.
 
exchange rate stability
In turn, the researcher in economic affairs, Issam Salem, confirmed that “the uproar that is being raised about the exchange rate has no real justification, as the consequences on which it was built are great and cannot be addressed now or in the foreseeable future, and that this confusion directly affects trading in the local market.” It paralyzes the market movement and allows speculators and money holders to reap additional profits. Salem stressed the need for “the exchange rate policy to be fixed and not subject to change, while achieving some support for the ration card items, maintaining food security and supporting basics, such as electricity, water, services and roads, stabilizing internal security, encouraging local production in all its aspects, and finding real solutions to save currency.” Difficulties at home through tourism and export. The financial advisor to the Prime Minister, Dr. Mazhar Muhammad Salih, had suggested a mechanism to address the side effects of changing the exchange rate.
Saleh told the Iraqi News Agency (INA), that "the time has come for fiscal policy to play its active and important role in addressing the side effects that resulted from the exchange rate change and its effects on income, especially the poor and low-income classes being negatively affected by price failures without compensation."
He added, "This aspect directly bears the importance of significantly reducing customs taxes on imported foodstuffs, pharmaceuticals and local production supplies, as well as restructuring government support for goods and services that directly affect the poor social classes."
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