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Iraq uses the policy of "raising reserves" to control inflation


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money and business
   

Economy News - Baghdad
On Thursday, the Central Bank of Iraq announced that foreign reserves had risen to $74 billion, noting that the financial situation in Iraq was "very excellent" compared to the countries of the region and neighboring countries.

The Director General of the Investments Department at the bank, Mazen Sabah Ahmed, said that "foreign reserves, according to the latest report for the first quarter of 2022, amounted to 74 billion dollars, distributed geographically between 8 or 9 major countries, and vary in different forms and assets between deposits, government bonds, gold and current balances."

He pointed out that "this relatively high level of foreign reserves puts Iraq in a comfortable position in terms of the level of adequacy of foreign reserves in comparison with the size of the economy and the volume of annual imports, as well as in comparison with the size of obligations related to foreign debt in the short term."

Ahmed went on to say, "I am sending a message of reassurance about the level of foreign reserves in Iraq, especially after the increase in oil prices and the fading of the repercussions of the Corona virus on the global economy."

He added, "The financial situation now is very excellent compared to the countries of the region and neighboring countries, and this opportunity must be exploited towards achieving the optimal investment for this financial position and the high creditworthiness of Iraq, driven by the rise in oil prices, and it must also be strengthened by some government measures that enhance the capacity of the Iraqi economy."

He continued, "The fact that the increase in oil revenues that was achieved after the increase in oil prices is the ownership of the government or the Ministry of Finance and not the ownership of the central bank, and therefore there is no action that falls on the central bank as a result of these increases, and therefore the required action is from the government and the Ministry of Finance towards optimal investment." for these increased returns.

 
 

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Added 05/26/2022 - 5:42 PM
Update 05/27/2022 - 3:36 PM
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Report: Alsumaria News
Iraqi Finance Minister Ali Allawi issued a statement, and said that the country's cash reserves are expected to rise to more than $90 billion by the end of 2022, noting that this is a record level for Iraq.

Yesterday, Thursday, the Central Bank of Iraq said that "Iraq's foreign currency reserves amounted to 74 billion dollars, distributed geographically between 8 to 9 major countries, with various forms and assets," while noting that the Iraqi economic situation is very excellent compared to the countries of the region and neighboring countries.
 

He added, "This relatively high level makes Iraq in a comfortable position in terms of the adequacy of the level of foreign reserves," reassuring "about the level of Iraq's foreign reserves," stressing that "the economic situation is very comfortable," calling on government agencies to exploit this financial abundance

. At the end of last year, the Central Bank of Iraq said that foreign currency reserves had risen to $64 billion, from $48 billion since Baghdad devalued its currency in December 2020.
 
How will altitude affect?
 
The economic advisor to the Prime Minister, Mazhar Muhammad Salih, explains the impact of the rise on citizens, and the financial and economic situation in general in Iraq.

Saleh said in an interview with Alsumaria News, "The main and primary task of the Central Bank is to stabilize the currency and maintain the value of the Iraqi dinar against the rest of the currencies due to the ability of the Central Bank to intervene in the market and control the levels of the Iraqi dinar and has high flexibility to comment and thus control the exchange rates for long periods In addition to controlling income stability, it also has the ability to support the economy through financing foreign trade.

He added: "What is supposed to be during the next stage of the rise in Iraq's cash reserves is that there will be a process of balance between the level of financing, development steps and the means of production," noting that "consumer imports should be legalized on the grounds that they do not provide anything for development, and we hope that the private sector will go towards productive import.

He added, "What we need are special policies that contribute to directing the private sector to productive import," explaining that "the fiscal and monetary policies in Iraq are advanced, and we do not expect them to exist in many countries of the world, but they need to move, organize and direct and unify efforts, especially political ones to support monetary policies." And finance in order to develop and support the wheel of development in the country instead of putting obstacles that could cause harm instead of benefit to the Iraqi economy.”

He stressed that "the basis of economic and financial reform should be objective and practical, and we believe that the white paper is the main means for correcting future policies, but it needs application and cooperation among all to achieve its goals set in an optimal and correct manner."

In this context, experts in financial markets confirmed that reaching the central bank’s reserve a threshold of more than 70 billion dollars will strengthen the structure of the local economy and its position globally, but the challenge
of ill-considered and unproductive spending remains Iraq’s biggest economic challenges, and raising the value of the Iraqi dinar will make it A competitive currency that helps lower the prices of commodities and foodstuffs in the markets.

The Diwan of Iraq
, and the Minister of Finance, stated that the total external and internal debts amounted to more than 99 trillion dinars (67.8 billion dollars).
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The arrival of dollar reserves to 90 billion, ringing the bells of the exchange rate

Baghdad / Obelisk: Calls are rising among the popular and political circles, to reduce the exchange rate of the dollar against the dinar, after the foreign currency reserves in Iraq witnessed a jump during 2022, thanks to the rise in global oil prices.

Finance Minister Ali Allawi said that the country's cash reserves are expected to rise to more than $90 billion by the end of 2022, noting that this level is a record for Iraq.

He added that the recovery in oil prices and prudent financial management helped the reserves to become 70 billion dollars by April.

After Allawi's statement, Representative Mahmoud Hussein al-Qaisi said that merchants are taking advantage of keeping the exchange rate high despite the recovery of foreign currency reserves in Iraq, to raise the value of goods by several times their real price.

Al-Qaisi's tweet represented an explicit call to reduce the exchange rate, after its rise revived the dollar's reserves in the country.

Writer Yassin Al-Yasiri believes that it is time for the exchange rate to return to what it was in the past, after its rise achieved many positives for the state treasury, and negatives represented by the crises that afflicted the citizens.

Financial market experts stressed that reaching the central bank's reserves at the threshold of $70 billion would strengthen the structure of the local economy and its global standing.

But the challenge of ill-considered and unproductive spending remains Iraq's biggest economic challenge, and the step of raising the value of the Iraqi dinar, if achieved, will make the dinar a competitive currency that helps lower the prices of commodities and foodstuffs in the markets. According to the experts.

And the Iraqi cash reserve recorded during the second half of last year more than 60 billion dollars, after it was 51.9 billion before the start of the reform measures of this government.

At a time when official data indicate that Iraq's cash reserves are close to 90 billion dollars, the external debt rates amounted to about 20 billion dollars, which are very good rates compared to its share of Iraq's gross domestic product of 180 billion dollars, representing only 11%.

Comparing the hard currency reserves in Iraq with the external debt, means that the rise in reserves will enable Iraq to pay what it owes to the creditor countries, in addition to solving the financial crises inside the country.

At the present time, the Iraqis are hoping to return the exchange rate to what it was before to return the markets to normal after the crisis that resulted from the depreciation of the Iraqi dinar against the dollar.

 

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Foreign currency reserves moving in the right direction ⬆️🆙

 

- The foremost advantage of foreign currency reserves. It serves in meeting the international finance obligations including sovereign and commercial debts, financing of imports.

 

- It helps in boosting the confidence of the market in the ability of a country to meet its external obligations.

 

- It acts as cushion for unforeseen external shocks.  
 

- It Increases confidence of foreign investors and thus helps in boosting foreign direct investment (FDI).

 

-It is use to adjust foreign exchange rate. 
 

The foreign currency reserves are invested mainly in instruments abroad which have the highest credit rating and which do not pose any credit risk. These include sovereign bonds, treasury bills and short-term deposits in top-rated global banks besides cash accounts.

 

Go CBI

Go international 

Go stronger dinar 

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5 hours ago, horsesoldier said:

Talk & more talk...no action. They'll be at a 100 Billion and they'll still be talking.

I get it it's about the rate not when.

Even so This talk and no/slow action sounds like a Mr. Haney (Green acres) auction.

Do I hear 70 billion do I hear 90 billion do I hear 100billion for an RV at the end of the year

Sold!! to the people who just talk about numbers and for us.. but not till the end of the year (ringing the bells) of an exchange rate.

 

Mr. Haney says I'll have take an IOU on that against my dinar I am holding since the invasion. Arnold the pig gave me the tip

I can't make it to Reno to cash in I am hoping Mr. Drucker ( where I bought it) at the General Store to me cash out.

I think Mr. Douglas Is Tier 1 his wife Lisa's family from Hungary have a ton of dinar. They are whales

They are going to take the train to Pixlie where Oliver Wendel and Lisa will be met with Lisa's family helicopter.

Then jet into Reno. Oh yeah they are cashing out "soon". 1-infinity exchange rate. Us bottom feeders are Tier -4 the cellar. 

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1 hour ago, Stelardoc said:

I get it it's about the rate not when.

Even so This talk and no/slow action sounds like a Mr. Haney (Green acres) auction.

Do I hear 70 billion do I hear 90 billion do I hear 100billion for an RV at the end of the year

Sold!! to the people who just talk about numbers and for us.. but not till the end of the year (ringing the bells) of an exchange rate.

 

Mr. Haney says I'll have take an IOU on that against my dinar I am holding since the invasion. Arnold the pig gave me the tip

I can't make it to Reno to cash in I am hoping Mr. Drucker ( where I bought it) at the General Store to me cash out.

I think Mr. Douglas Is Tier 1 his wife Lisa's family from Hungary have a ton of dinar. They are whales

They are going to take the train to Pixlie where Oliver Wendel and Lisa will be met with Lisa's family helicopter.

Then jet into Reno. Oh yeah they are cashing out "soon". 1-infinity exchange rate. Us bottom feeders are Tier -4 the cellar. 

Maybe struck out on this one southbeach.

I just get tired of all the rhetoric

Just trying to have keep it light

You Gotta be a Green Acres Fan.

It was a classic for hick humor

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  • 2 weeks later...
 
 Baghdad: Mustafa Al-Hashemi
 
 Shukran Al-Fatlawi
 
Finance Minister Ali Allawi stated that good financial management and the recovery in oil prices allowed an increase in the Ministry of Finance's deposits with the Central Bank, expecting at the same time that reserves would reach more than $90 billion by the end of this year, a record level achieved by Iraq, which provides the government with flexibility to continue Spending in the event of a decline in oil prices.
Allawi explained in a paper published on the ministry’s website and followed by “Al-Sabah,” “The continuation of the Ministry of Finance’s sales in US dollars reflects an increase in oil revenues and an increase in the government’s provision of goods and services to citizens, and the increase in those sales in exchange for a decrease in demand for the dollar will lead to an increase in foreign currency reserves with the Central Bank.” .
The minister continued, saying, “The recovery in oil prices and the presence of wisdom in the financial management helped the cash reserves to become 70 billion dollars by last April,” adding: “It is expected that the continuous recovery of oil prices will lead to an increase in these reserves to more than 90 billion dollars.” billion dollars by the end of this year, a record high
 Iraq".
Allawi pointed out that "the recovery in foreign currency reserves with the Central Bank, the stability of the dinar exchange rate, and the stability and stability of financial policy, led to the enhancement of confidence in the Iraqi banking system."
He pointed out that "it can be seen that this confidence has increased by the private sector (companies and individuals), as deposits and loans have strongly increased, as indicated by recent data," stressing that "Iraq's devaluation directed at its currency avoided risks, because the forced currency cuts confuse people's confidence in the system." It leads to hoarding cash and withdrawing deposits, which puts pressure on the banking system.”
The Central Bank had announced late last month, the size of Iraq's reserves of foreign currency, and stressed at the time, that the Iraqi economic situation is very excellent compared to neighboring countries.
The Director General of Investments in the Bank, Mazen Sabah Ahmed, said that "Iraq's foreign currency reserves amounted to 74 billion dollars, distributed geographically between 8 to 9 major countries, with various forms and assets."
He added, "This relatively high level makes Iraq in a comfortable position in terms of the adequacy of the level of foreign reserves," reassuring "about the level of Iraq's foreign reserves."
He stressed that "the economic situation is very comfortable," calling on government agencies to take advantage of this financial abundance.
Ahmed indicated that "the Iraqi economic situation is very excellent compared to the countries of the region and neighboring countries."
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  • 3 weeks later...
  • Time: 06/25/2022 20:44:21
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Iraq uses the policy of "raising reserves" to control inflation
  
{Economic: Al Furat News} The economic expert, Salah Nuri, revealed today, Saturday, Iraq's monetary policy to control inflation.
 

Nuri told Al-Furat News that: "The central bank's reserves and capital are of great importance, especially with the international component of hard currencies such as the dollar, the euro and gold."
He added, "Increasing the reserve enables the central bank to use its monetary tools for stability, and this enables monetary policy to stabilize and control inflation."
Nuri continued, "According to the financial law, the central bank is the one who controls the dollar exchange rate, not the Ministry of Finance, but what happened, the ministry is the one who changed the dollar exchange rate, and this is a precedent that no country in the world has ever happened."

From: Raghad Daham

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A former financial official: Changing the dollar exchange rate portends major losses

Economie01:31 - 06/25/2022

 
image
 
 

 

Special - Mawazine News
, the former Director of the Financial Supervision Bureau, Salah Nouri, confirmed today, Saturday, that changing the dollar exchange rate will shock the market and cause great losses.

In an exclusive interview with Mawazine News, Nouri said, "Any manipulation of the exchange rate and changing it will cause a great shock in the market, which will affect the wheel of the economy, because returning it to its previous price will cause great losses."

He added, "We have often stressed the need for any exchange rate transactions to be gradual so that a major shock does not occur in the market and affect the economy." Ended 29/M99

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Adviser to the Prime Minister: The government is moving to launch anti-inflation policies in the markets
  
{Economic: Al Furat News} The government is heading to launch anti-inflation policies in the country during the next stage to confront the food and energy crisis after it increased in global markets by 45% from the previous one.

Adviser to the Prime Minister for Economic Affairs, Mazhar Muhammad Salih, said in a press statement that "the global inflation crisis has greatly affected Iraq, as it imports the ration card items, which represent basic commodities for the citizen by 90 percent," noting that "the rise in their prices globally has a negative impact on the country." ".
He added that the poor classes depend on the ration card items equivalent to 80 percent of their income, which the government is forced to provide despite the great financial burden to avoid nutrition problems and the increasing area of poverty and exposure to famines.
Saleh added, that the government also provides financial support for agricultural production supplies such as fertilizers and seeds, as well as egg and chicken production materials, of which Iraq imports 70 percent of them from abroad, noting that it "took another measure represented in zeroing the cost of taxes from duties and customs on goods for a period of time." Six months, renewed every three months, which contributes to absorbing a large part of inflation and price increases.
However, he added that the energy crisis is no less dangerous than the food crisis, for without government support for oil derivatives, especially gasoline, a large part of which is imported daily despite its high prices globally, great problems would have occurred, stressing that “the state has kept the prices of its services fixed to face inflation in all its forms.” ".

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money and business
   

Economy News - Baghdad
Adviser to the Prime Minister for Economic Affairs, Mazhar Muhammad Salih, said on Monday that the state has kept the prices of its services fixed to face inflation in all its forms.

Saleh said in a statement to the official newspaper, that "the global inflation crisis has greatly affected Iraq, as it imports the ration card items, which represent basic commodities for the citizen by 90 percent," noting that "the rise in prices globally negatively affected the country."

He added, "The poor classes depend on the ration card items equivalent to 80 percent of their income, which the government is forced to provide despite the great financial burden to avoid nutrition problems and the increasing area of poverty and famine."

Saleh added, "The government also provides financial support for agricultural production supplies of fertilizers and seeds, as well as materials for egg and chicken production, 70 percent of which Iraq imports from abroad," noting that "it has taken another measure represented in zeroing the cost of taxes from duties and customs on goods." For a period of six months, renewed every three months, which contributes to absorbing a large part of inflation and price hikes.

He continued, "The energy crisis is no less dangerous than the food crisis, because without government support for oil derivatives, especially gasoline, a large part of which is imported daily despite the high prices globally, great problems would have occurred," stressing that "the state kept the prices of its services fixed to face inflation. in all its forms.”

 
 

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Added 06/27/2022 - 10:21 AM
Update 06/27/2022 - 3:23 PM
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money and business
   

Economy News-Baghdad
On Tuesday, the Ministry of Planning announced the stability of the monthly inflation rate for the month of May and its annual rise, indicating that spending on food constitutes 30% of the family's monthly income.

Ministry spokesman Abdul-Zahra Al-Hindawi said in an interview with Shafaq News Agency that "the inflation rate for the month of May stabilized at 0.2%, which is the same rate witnessed in last April," noting that "the annual inflation rate for the month of May 2022 compared to the same period last year. 2021, saw an increase of 5.4%.

He added, "Expenditure on food constitutes 30 percent of the family's monthly income, but the food and non-alcoholic beverages department did not witness a significant increase in it during the month of May as a result of government support by providing the ration card items, and thus this department maintained its stability."

He pointed out that "the commodity totals that increased the most in prices for the month of May 2022 is the department of supplies, household equipment and maintenance, which rose by 1.9 percent, the department of entertainment and culture also increased by 1.5 percent, and the department of restaurants and hotels rose by 1.2 percent."

 
 

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Added 06/28/2022 - 12:27 PM
Update 06/28/2022 - 4:24 PM
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