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

[yota691]

The Iraqi debate continues over the dispute between Al-Sadr and the Minister of Finance

Recession hangs over the markets after the dollar exchange rate drops

Monday - Rajab 20 1443 AH - February 21, 2022 AD Issue No. [15791]

 

 

A popular market in Baghdad (AP)

Baghdad: Fadel Al-Nashmi

The debates about the dispute that erupted earlier this week between Muqtada al-Sadr and the “Sadr bloc” in Parliament, on the one hand, and Finance Minister Ali Abdul-Amir Allawi, on the other, are still ongoing, as a result of intersecting positions regarding maintaining the current dinar exchange rate against the dollar. And the ability of Parliament to hold Minister Allawi accountable and to prevent his travel, given that he belongs to a caretaker government.

All of these developments were reflected in the form of a recession wave that shrouded the market movement in the country. For the first time in more than a year, the Iraqi dinar exchange rate rose against the US dollar. This rise reinforced expectations about the possibility of the Central Bank moving to raise the exchange rate of the dinar to about 1,300 dinars against One dollar, after the bank had raised in 2020, the exchange rate of the dollar to 1460 dinars per dollar. Vendors in Al-Shorja market in Baghdad told Asharq Al-Awsat that “the market movement has almost stopped for about two weeks as a result of fluctuations in exchange rates, as most single sellers are reluctant to shop these days as a result of expectations of a decrease in dollar exchange rates.”

And the Finance Minister had refused, during a letter he sent to Prime Minister Mustafa Al-Kazemi, last Friday, to attend Parliament based on a tweet launched by Muqtada Al-Sadr to discuss the dollar exchange rates and the banks controlling the currency auction in the Central Bank, and Allawi considered that the government is not managed by the “tweets” of the leaders of the blocs. and political parties.

Despite Allawi’s acceptance to attend Parliament in a letter he addressed the day before yesterday, on the condition that he be given sufficient time to attend and allow him to explain his financial policy, his disagreement with the Sadrist movement still takes a wide space in popular and official discussions and positions, as the leader of the “national” coalition Iyad Allawi defended Yesterday, Sunday, strongly about his cousin, the Minister of Finance, and implicitly criticized the position of the Sadrists, who was in support of the decision to reduce the exchange rate of the dinar, when he said in a tweet via “Twitter”: “The change in the exchange rate of the dollar came after consultations with all the blocs that participated in the government, and therefore an attempt Disavowing the responsibility of this decision or throwing it at others will not deceive the people.”

In response to the request of the Deputy Speaker of Parliament for the Sadrist bloc, Hakim Al-Zamili, to prevent the Minister of Finance from traveling, Iyad Allawi stated, “Travel ban orders are issued against those convicted or involved in suspicions of corruption and crime by the judicial authority and cannot be subject to whims and moods and will not frighten the efficient and impartial such as Ali Allawi, especially as he asked the Speaker of the House of Representatives to hold a session of the House of Representatives and vote on confidence in him as a minister and allow him to give a speech on the economy and the exchange rate.”

The issue of the Minister of Finance’s accountability before Parliament has turned into an issue for public discussion and the subject of discussions between those interested and legal experts. Researcher Yahya al-Kubaisi believes that “it is not within the House of Representatives’ authority to question a minister in a day-to-day care government, because the mandate is simply expired and the new parliament has not voted on it; And therefore he has no mandate over it, and because the interrogation means the possibility of a vote of no confidence, and thus impeachment.”

As for Judge Rahim Al-Ugaili, despite his acknowledgment that the constitution and the internal system of the House of Representatives “did not set any rules for questioning the minister in the outgoing government, like the current government,” but he believes that “the absence of constitutional or legal provisions regulating the accountability of the minister in the outgoing government does not mean his escape from accountability.” It is not acceptable for any executive to evade control and accountability, even if it is by virtue of the resignation, as long as he exercises executive powers and powers, even if they are limited. Al-Ugaili believes that "the accountability of the minister in the expired government is subject to what is decided and established by parliamentary norms."

“Reducing the dollar exchange rate will cost the budget an additional $10 billion annually, and if the oil price drops to $60, it will be unable to pay salaries and will not be able to finance infrastructure projects.” He added, "Therefore, efforts must 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."

[screwball]

why would he be banned from traveling? corrupt?

 

[NMP2017]

3 hours ago, screwball said:

why would he be banned from traveling? corrupt?

 

I think that is mentioned in one of the threads since thursday. Can't remember exactly but something about they have documents or something on him and Alawi has to answer their questions about them...

 

but I may remember wrong...I get crs lol

[6ly410]

Frame: “dollar” speculation threatens the livelihood of 13 million Iraqis

Last update 02/21/2022 | 12:50 pm

https://almaalomah-me.translate.goog/2022/02/21/583492/?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en

Information/ Diyala...
The leader in the coordination framework, Jabbar Al-Maamouri, confirmed, on Monday, that dollar speculation threatens the livelihood of 13 million Iraqis.
Al-Maamouri said in a statement to “Information” that “the crisis of the dollar and the exchange rate must be resolved through the competent authority, as it is concerned with a sensitive file that affects the people’s livelihood, and it is through the tools of the state, and that there be disclosure to public opinion about whether if the exchange rate is reduced, it will be possible to secure.” Expenditures and salaries and the extent of their impact on the national economy.
Al-Mamouri added, “A large part of the problems of the Iraqi economy is the dollar speculation that emerges from time to time and threatens the livelihood of 13 million Iraqis who are below the poverty line, pointing out that the weakness of control over the price file and the desire of some traders to earn more at the expense of the poor is a problem that must be considered and approved.” A firm principle in dealing with those who want to profit by raising prices.”
He pointed out that "the Iraqi economy needs a comprehensive vision by moving away from relying on oil sales revenues as a main source and opening up to the rest of the ingredients in a diversified economy capable of facing complications."
And the dollar’s speculations in the past days have caused great confusion in the Iraqi markets, with a slight decrease in the dollar’s exchange rate.” Ended 25 F

[rvmydinar]

11 hours ago, 3 bucks new rv rate said:

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.”

" THE EXCHANGE RATE WILL BE CHANGE UNANNOUNCED ".   Wouw i like this word so much. this proves that this rv thing is real and will happen and the CBI will announce the rv suddenly one day without a prior notice. Hopefully, it isn't 1,350 dinars/ dollar.

[screwball]

6 hours ago, rvmydinar said:

" THE EXCHANGE RATE WILL BE CHANGE UNANNOUNCED ".   Wouw i like this word so much. this proves that this rv thing is real and will happen and the CBI will announce the rv suddenly one day without a prior notice. Hopefully, it isn't 1,350 dinars/ dollar.

as we always knew!

[rvmydinar]

11 hours ago, screwball said:

as we always knew!

Yep. But for me, this is the first time the CBI said that " THE EXCHANGE RATE WILL BE CHANGED UNANNOUNCED ".

[screwball]

11 hours ago, rvmydinar said:

Yep. But for me, this is the first time the CBI said that " THE EXCHANGE RATE WILL BE CHANGED UNANNOUNCED ".

yes very true

[horsesoldier]

11 hours ago, rvmydinar said:

Yep. But for me, this is the first time the CBI said that " THE EXCHANGE RATE WILL BE CHANGED UNANNOUNCED ".

Yeah, but in what year ? just being cynical.

Lots of disinformation out there to include no change to the rate. We're hip deep in  as it is. Don't know where they picked up those shovels, but they're mighty big to be shoveling that much manure.

 

 

[6ly410]

 

The Presidency of the Iraqi Parliament hosts the Minister of Finance

Posted 19 seconds ago

https://iraqakhbar-com.translate.goog/3494796?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en

news source /Al Sharqiya Channel

News source / Al- Sharqiya channel

Baghdad-ALSharqiya, February 22: The presidency of the Iraqi parliament decided to host the Minister of Finance, Ali Abdul Amir Allawi, during the session that will be held next Monday.

The Speaker of the House of Representatives, Muhammad Al-Halbousi, sent a letter to the Prime Minister under the title “A public invitation to discuss with the Minister of Finance” after obtaining the approval of the Presidency of the Council on the request of Representative Burhan Al-Mamouri, accompanied by the support of one hundred deputies, to discuss the issue of the rise in the exchange rate of the dollar against the Iraqi dinar And the resulting repercussions and instability of prices in the local markets.

 

[6ly410]

Is price inflation linked to currency devaluation? Finance explain

 

Tuesday 22 February 2022 - 11:01

https://akhbaar-org.translate.goog/home/2022/2/291911.html?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en

 

The Ministry of Finance building in Baghdad

(Alsumaria News) - The Ministry of Finance confirmed, today, Tuesday, that price inflation is a global phenomenon that is not linked to the devaluation of the currency.

 

The ministry said in a statement received by Alsumaria News, "Price inflation is a global phenomenon that is not linked to the devaluation of the currency," pointing out that the exploitation of some importers and traders by imposing additional prices for the purposes of competition and achieving additional gains also leads to this phenomenon

[horsesoldier]

Minister of Finance is turd. Action by the CBI is what put my peepers to.

[6ly410]

economic news https://1-al--iraqinews-com.translate.goog/archives/237215?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en&_x_tr_enc=1

Inaugurated / Finance: price inflation is not linked to devaluation

February 22, 2022 11 Views

 

conscious / Baghdad / m. a

Today, Tuesday, the Ministry of Finance said that price inflation is a “global phenomenon” that is not linked to the devaluation of the currency.

The ministry stated in a statement received by (Iraqi Media News Agency / INA) that "price inflation is a global phenomenon that is not linked to the devaluation of the currency."

The statement added, "The exploitation of some importers and traders by imposing additional prices for the purposes of competition and achieving additional gains also leads to this phenomenon."

[6ly410]

What happens if the dollar sale window stops? .. An economist answers

https://almaalomah-me.translate.goog/2022/02/22/583776/?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en

Last update 02/22/2022 | 7:58 pm

https://almaalomah-me.translate.goog/2022/02/22/583776/?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en

 

Information / Baghdad..

On Tuesday, the professor of economics at the University of Basra, Nabil Al-Marsoumi, expected the possible scenario in the event that the window for selling the dollar in Iraq was stopped.

Al-Marsoumi said, in a Facebook post, which was seen by / the information / that “the oil dollar that the Ministry of Finance sells to the Central Bank of Iraq, which is almost the only source of supply for the dollar in Iraq, and when the window for selling the dollar in the Central Bank stops, the dollar supply will drop to almost zero, which means Floating the Iraqi dinar.

He added, "The dinar exchange rate will roll down to very low levels that may reach the level of 4000 dinars against the dollar, i.e. to a lower level than the levels of the economic blockade in the nineties due to the large volume of imports in Iraq, which exceeds 40 billion dollars annually, and because the population today has increased By about 20 million people, and that people’s needs have varied and increased, and most of them come from abroad, and therefore the volume of imports has doubled several times compared to the time of the siege.”

He considered that “the call to abolish the currency sale window, which is the only supporter of the dinar exchange rate, is a kind of absurdity or economic adolescence at best, but what is required today is to regulate the foreign exchange market in Iraq and to confront the worsening cases of corruption in it, which amount to billions of dollars annually.” finished/25h

[6ly410]

The framework considers decreasing the dollar price as one of its most important tasks ahead

 

2022/02/22 | 2:14 pm

https://almaalomah-me.translate.goog/2022/02/22/583696/?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en

 

Information/Baghdad.

A member of the State of Law coalition, Alaa Al-Hadadi, confirmed, on Tuesday, that the coordination framework seeks to reduce the price of the dollar through Parliament, indicating that the step to reduce the price of the dollar is one of the most important tasks ahead.

Al-Hadadi said in a televised interview followed by / the information / that "we stress the need to change the exchange rate of the dollar against the Iraqi dinar, especially with the rise in oil prices."

He added, "The coordination framework considers reducing the exchange rate of the dollar as one of the most basic issues, and it will have positions in Parliament for the sake of fairness to the citizen."

And on the political situation, Al-Hadadi stressed that “it is not within the powers of Parliament to reopen the door for nomination again for the position of the presidency, and everyone is waiting for the decision of the Federal Court to announce the date of the presidential election session.” Ended 25 D

[6ly410]

The rule of law sets two basic requirements for adjusting the price of the dollar

https://almaalomah-me.translate.goog/2022/02/22/583771/?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en

Last update 02/22/2022 | 7:45 pm

 

information / special

Representative of the State of Law coalition, Alia Nassif, revealed, on Tuesday, two basic demands identified by the coalition during its periodic meeting, stressing that the current exchange rate will not change until after preparing the current world budget.

Nassif said in a statement to "The Information", that "the periodic meeting held by the State of Law coalition discussed at length the issue of the dollar's exchange rate against the Iraqi dinar, where the meeting identified two basic demands, the first is to confirm its previous position by refusing to raise the value of the exchange rate against the dollar and to work seriously to persuade the political forces to return." As for the second requirement, work to make major governmental changes towards helping the citizen.”

She added that "the two demands are preparing the coalition's future plan in order to erase the effects and mitigate the damage caused to the citizen as a result of the decision to raise the exchange rate," stressing that "the current exchange rate will not undergo any change until after preparing the current world budget." Ended / 25 AD

[6ly410]

The dollar confuses local markets

Tuesday 22 February 2022 45

https://alsabaah-iq.translate.goog/61201/الدولار-يربك-الأسواق-المحلي-ة?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en

 

 Baghdad: morning 

The great confusion witnessed by the local markets during the past few days, confused the faces of a large segment of citizens and those interested in economic affairs, and disrupted many of the works that were to be carried out during the past days.

The specialist in economic affairs, Salwan Al-Nouri, stated that "stability represents a pillar from which all businesses start and advance economic performance in all global economies." In prices, they varied between declining and rising, which reinforced speculation among citizens of a change in exchange rates. 

He pointed out that what "was raised about exchange rates should be more accurate, to preserve the local market prices, which witnessed a clear confusion in all its joints, as there are many commercial transactions, canceled during the past days, pending the outcome of events, and where the compound prices will apply." The dollar, so that the seller and buyer are not harmed by the difference in price. 

He pointed out that "the exchange rates, up or down, by any value, negatively affect the reality of daily transactions, as they create a state of hesitation among a wide segment of dealers, and thus the result is a pause and waiting for everyone, and this in turn leads to a state of temporary stagnation, which carries between It has negative effects on the national economy. 

It is noteworthy that the Central Bank, confirmed that the dollar exchange rate is stable and there are no intentions to change it. 

In a statement received by the Iraqi News Agency (INA), the bank's media office stated that "there are no intentions to change the current exchange rate, especially after the positive results that it achieved during the period." 

past".

He added that "the discussions that took place while hosting the Governor of the Central Bank of Iraq in the House of Representatives on Saturday 19/2/2022 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".

And the office called, "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

[rvmydinar]

14 hours ago, horsesoldier said:

Yeah, but in what year ? just being cynical.

Lots of disinformation out there to include no change to the rate. We're hip deep in  as it is. Don't know where they picked up those shovels, but they're mighty big to be shoveling that much manure.

 

 

If you asked what year? Well noone knows. That's why they called it " unannounced or without declaring them in advance ". And as other member ever said before that " disinformation=distraction=there is no smoke, there is no fire = to keep people guessing and to confuse the investors ".

[6ly410]

https://shafaq.com/en/Report/Exchange-rate-game-in-Iraq-how-speculators-grossed-millions-of-dollars-in-48-hours-scheme

Exchange rate game in Iraq: how speculators grossed millions of dollars in 48 hours scheme

 

2022-02-27 08:49

 

Shafaq News/ In a short period of only 48 hours, currency speculators pocketed millions of dollars after disseminating rumors that the Iraqi government is seeking to change the exchange rate of the U.S. dollars in the 2022 budget. Iraqis rushed to the exchange joints scattered everywhere throughout the country to convert their dinars to a safer dollar, only for the rate to rebound immediately after the Central Bank of Iraq (C.B.I.) debunked these rumors.

In December 2020, the Central Bank of Iraq set the new rate for the dinar, which is pegged to the U.S. dollar, at 1,450 Iraqi dinars when selling to the Iraqi Finance Ministry. The dinar will be sold to the public at 1,470 and to other banks at 1,460.

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

As a result, according to specialists, annual inflation in Iraq has skyrocketed, with all prices of materials and goods in the Iraqi market rising significantly, igniting a wave of discontent among the public and experts equally.

Kick-off: al-Sadr's call and Allawi's rejection

"The tweets of Sadrist leader Muqtada al-Sadr and his insistence on hosting the finance minister and the governor of C.B.I. created a feeling that the exchange rate change would take place within hours. The majority rushed to sell consequently. However, the absence of buyers contributed to a reducing the dollar's purchase rate," economist Dhurgham Mohammed Ali told Shafaq News agency.

"The statements of the C.B.I. governor, who confirmed that there was no change in the exchange rate, have raised the value of the dollar again," Ali said, indicating that speculators have exploited the supply-demand game to make profits.

In a Feb. 17 tweet, the leader of the Sadrist movement, Muqtada al-Sadr, lamented the smuggling of foreign exchange out of the country and the 2020 devaluation of the Iraqi dinar, among other issues. He also called on lawmakers to question the head of the C.B.I. governor, Mustafa Ghalib Makhif, and Finance Minister, Ali Abdul-Amir Allawi.

The day after, First Deputy Speaker Hakem Al-Zameli, a Sadrist MP, summoned Allawi and Makhif to the parliament. Allawi promptly dismissed the summons in a strongly-worded letter to Prime Minister Mustafa al-Kadhimi on the same day. The finance minister essentially argued that his summoning per a "tweet" by Sadr was a protocol violation. Ghalib showed up in the legislature on Feb. 19.

Following the government-parliamentary escalation, the dollar fell in the local markets, catalyzed by rumors that the government intended to lower the devaluation reverse, leading citizens to sell their dollars at rates below 141,000 dinars to 100, down from 148,000 dinars.

"Government inability to address the situation"

"The government did not address the downsides of the devaluation properly. It left the citizens vulnerable to the subsequent surge of the commodity prices while reaping the devaluation benefits," financial expert Hilal al-Tahhan told Shafaq News agency, "the government pursued the 'shock therapy' to address the issues facing the state’s economy." 

"Over the past few weeks, speculators fueled the rumors about reversing the devaluation to boost their gains by buying at lower prices and yielding when the prices surge again," he said.

The summons sparked fear

"The Iraqi market is volatile. There is no order and law restrains for currency traders," Firas al-Hamdani, president of the Baghdad Chamber of Commerce, told Shafaq News agency.

"Confusion started after summoning the governor and the minister of finance. However, the absence of the latter stirred panic of a further drop of dollar exchange rates against the dinar among some traders and companies," al-Hamdani said.

"Those who understand the Iraqi economy and the budget are aware that the exchange rate is fixed in the 2021 budget. Therefore, it cannot be changed," al-Hammadani added.

Ministry blames traders

Iraq's Ministry of Finance downplayed the impact of the national currency devaluation on the foodstuff and basic commodity prices in the Iraqi markets, hinting at a greater role for other factors that are often overlooked.

An infographic shared by the ministry said that logistic and transportation costs, in addition to the rise of metals and primary material prices, contributed to the prices surge.

The ministry said that the rise of foodstuff in the global market drove its prices in the domestic market up.

Prices are under control

"The monetary policy of the Iraqi state does not suffer from significant price pressures despite the dinar's low exchange rate," PM’s financial adviser, Mudhhir Mohammad Saleh told Shafaq News Agency.

"C.B.I.'s s job is to fight the sharp and strong inflationary forces," Saleh clarified, "the bank is building good reserves and injecting stability into the economy." 

Dollar prices remain captive to C.B.I. specialists and officials in assessing the country's financial situation, as long as the dollar is not subject to flotation.

[6ly410]

Al-Rikabi: We stand by the exchange rate change and not harm the citizen and the state

https://almaalomah-me.translate.goog/2022/02/27/584617/?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en

Last update 02/27/2022 | 8:52 pm

 

Information / Baghdad...

On Sunday, the leader of the State of Law coalition, Kataa Al-Rikabi, presented a road map to address the dollar exchange rate crisis and its impact on the Iraqi markets.

Al-Rikabi, a former member of the House of Representatives, said in an interview with “The Information” that “the State of Law coalition had a clear and firm position by opposing raising the exchange rate of the dollar and did not vote on it, as well as the budget during 2021, stressing that our position is with an exchange rate commensurate with the living situation of Iraqis and must To do justice to all categories.

He added that "the return of the exchange rate should not be random and lead to severe harm to citizens and the state together, and it should adopt the opinions of those concerned and the jurisdiction by introducing a program to reschedule the exchange rate in a way that begins with successive steps so as not to lead to harm to citizens as consumers or the interests of markets or even the state in the same time.”

The increase in the exchange rate of the dollar caused great harm to millions of Iraqis, especially the poor and simple, due to the increase in the prices of foodstuffs and medicines