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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

Many Topics Including The Oldest Dinar Community. Copyright © 2006-2020


    Iraqis panic as leaked budget draft signals devaluation

    chouchou
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    chouchou
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    Join date : 2012-12-20
    • Post n°1

    Iraqis panic as leaked budget draft signals devaluation Empty Iraqis panic as leaked budget draft signals devaluation

    Post by chouchou Sat 19 Dec 2020, 4:56 am

    A leaked draft of Iraq's state budget has spurred panic as it confirmed the government's intentions to devalue the national currency, the Iraqi dinar, and cut salaries to cope with a severe economic crisis


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    Iraq Economy

    (Copyright 2020 The Associated Press. All rights reserved.)


    A leaked draft of [You must be registered and logged in to see this link.] s state budget sent Iraqis into a panic on Thursday as it confirmed the government's intentions to devalue the national [You must be registered and logged in to see this link.] the Iraqi dinar, and cut salaries to cope with the [You must be registered and logged in to see this link.] of a severe economic crisis.

    Discussions about devaluating the Iraqi dinar, which has been pegged to the dollar for decades, have been going on for weeks as the government worked to finalized the 2021 budget. The draft law, which has to go through a parliament vote first, gives an anticipated exchange rate of 1,450 Iraqi dinars for the dollar — a significant drop from the central bank’s current official rate of around 1,182 dinars for $1.

    As the draft made rounds on social media, the Finance Ministry expressed “resentment and deep regret over the unauthorized publication" of the proposed law, saying public hysteria would impact the neutrality of ministers. The cabinet is to discuss — and introduce possible amendments — to the draft in a session scheduled for Saturday.

    Multiple officials said the leaked draft was authentic but stressed it might undergo changes in parliament. Sharp public reactions indicate the challenges the country will face implementing needed economic reforms in an election year, and in particular to the budget-draining public sector. Nationwide parliamentary elections, a year earlier than expected, are due in June.

    “[You must be registered and logged in to see this link.] preparation is a complex technical process ... over a long period of time,” the ministry said. “Releasing it prematurely to the media is a largely irresponsible act.”

    Already, the value of the dinar is falling on the street, with exchange houses in Baghdad selling the dollar for 1,300 Iraqi dinars.

    Public discussion over the government's reform policy — dubbed the “white paper” — focused sharply on ways to bring the wage bill down from 25% of the GDP to 12%. The draft budget took a step in this direction by looking to cut salary benefits, which sometimes exceeds the base pay of many in Iraq's bloated public sector. Benefits can include incidentals such as danger pay, higher education degrees and hospitality expenses for high-level officials.


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