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Don961: The value of the currency on the expert table
Sunday 07 July 2019
Baghdad / Hussein Thugb
The importance of the Iraqi currency and its impact on the Iraqi economy in light of the current changes The Department of Economic Studies in Beit al-Hikma held a scientific symposium entitled (Change the value of the Iraqi currency .. benefits and costs) with the participation of financial and economic experts in the public and private sectors.
The symposium was moderated by Dr. Falah Hassan Thwaini, supervisor of economic studies at Bayt al-Hikma last weekend, with the participation of the financial adviser to Prime Minister Dr. Muthahra Mohammad Saleh, as well as Professor Dr. Mahmoud Mohammad Dagher, Director of the Department of Financial Operations and Debt Management of the Central Bank of Iraq.
The participants dealt with the reality of changing the value of the Iraqi currency and the reduction of the Iraqi dinar, and its impact on the Iraqi economy, some describe this reduction as a support for the global economy and some see the deterioration of the purchasing power of the Iraqi individual.
Dr. Mohammed Saleh spoke about the policy of the Central Bank since its establishment so far in a concise and clear way as the bank's goal is to manage the monetary expectations and how Iraq's oil revenues from 2003 to 2014 are improving continuously.
He pointed to "the role of Iraq and the agreements signed with the International Monetary Fund and its impact on the Iraqi economy," and the importance of the need for new policies are consistent with the policy of the Central Bank to reach solutions.
Dr. Mahmoud Mohammed Dagher discussed the current exchange rate regime for two years in Iraq and mentioned facts about the Iraqi economy for 2019.
The decision to devalue the Iraqi currency is effective in all the monetary and real balances of the Iraqi economy, because one of the causes of inflation, which ignites expectations and pressures towards the continuation of its decisions subsequent reductions.
Then he talked about reserves since 2019 to today, and then the exchange rate has been stable for more than a year.
"The actual external debt is 24 billion dollars, and the annual short debt is between 1.5 and 2 billion dollars," he said.
Dagher warned that "the decision to reduce the currency risk, because it affects all balances," and then go to the tax and customs fact down to inflation levels.
"Monetary action needs a positive change in the industrial and agricultural sectors, especially as we are financially weak economically".
Dagher concluded that "the value of the currency raises inflation and here is the main benefit of the dollar campaign."
The Academy d. Said that "some of the experiences were temporarily reduced to overcome a crisis and then returned, do we have the potential to adopt such a way?"
"The need for multilateralism in building economic and productive sectors in particular, as well as the activation of other agricultural policies Industrial ".
"The financial sector is the cornerstone of the stage of economic development sought by the country, and the introduction of such an important subject before financial experts is the need to come out with effective treatment, and can
Taking advantage of global experiences in this direction, to find out the merits of the subject and to know the actual benefit of the National economy ". link
MilitiaMan: Todays article above is a little more in depth and speaks of 2019 reserves, short and long term debt.
Don't forget today they told us they increased the reserves by 14 billion and will again soon to 86 billion. They also remind us that they need the taxes, customs fees, industrial and agricultural side of things to be in line.
By making the decision to reduce the Iraqi dinar (to raise the rate) and to reduce the auctions (which also needs a higher rate), they are mentioning the good it will do, as if you don't raise the rate the imports will ruin the purchasing power for the citizens, thus, the decision to reduce both Auctions and Iraqi Dinar was done or is to be done when the rate changes internationally.
Reduction from the low of 1190/1 down to 1/1 raises the value. The Dinar when reduced it gets more value. They readjusted contracts recently, so, they are going to need to get busy or they'll have to rewrite them again. imo Thus, all that said, we are looking good imo! ~ MM
Pete2001: MM, can you please explain why there will be massive inflation if they don't raise the rate given that they are taking the auctions to once a week....I think that is what a lot of us don't appreciate or understand....and that would be very helpful and put to bed the doubt that this action is not profound for our investment thanks
MilitiaMan: When they reduce the auctions, they'll run out of liquidity in foreign exchange for imports if they don't change the rate imo.
Black markets could start causing problems very fast. They know what they are doing and they are clearly doing what needs to be done, to avoid any issues that will arise.
Until they get a balance with reserve, internal industry, agricultural, taxes and customs in mind, they'll imo need a good solid rate to give purchase power to the citizens, so that they have the time to catch up with all of them over time.. imo. (I am not an economist, so this is only an opinion.). ~ MM
Samson: Rafidain announces the salaries of some ministries through the Master Card
6th July, 2019
Rafidain Bank announced on Saturday the distribution of salaries of a number of ministries and state institutions through electronic payment tools
The bank's information office said in a statement read by "Economy News" that "the salaries of employees of some ministries and state institutions have been distributed from those whose salaries have been settled with the bank and card holders electronic master card
The statement added that "the bank continues to pay salaries according to specific contexts and dates LINK
Samson: Govt reports on Implementation of 2018-22 Programme
5th July, 2019
The Iraqi government has issued a report on the implementation of its 2018-2022 programme.
The report covers the period from October 2018, when the government came to office, to April 2019, providing an overview of what has been implemented from the government programme, identifying obstacles that may impede the completion of several projects, and outlining measures to address them.
Iraqi officials say that the report, the first of its kind to be issued by an Iraqi government, is an important measure to strengthen transparency and hold the government accountable before the Iraqi people and their parliamentary representatives.
Click here to download the report (Arabic only)
Samson: Democratic: Budget law is not implemented so far and related to the receivables of the region
6th July, 2019
MP on the Kurdistan Democratic bloc, Deyaar Berwari, Saturday, July 6, 2019, that "there are 70 articles in the budget law is not implemented so far and part of them related to the receivables of the region as a result of differences in understanding the Constitution and the laws in force."
"The budget law is a set of paragraphs, including the obligation of the federal government to send salaries of regional staff and send a full budget with the commitment of the territorial government to send 250 thousand barrels, which is part of a general law."
He stressed the need to implement the budget law in general and not in a fragmented manner, pointing out that "there are 70 articles in the budget law is not implemented so far and part of them related to the receivables of the region."
He added, "There are high-level problem committees between the federal and regional governments of the Ministries of Planning and Finance and the General Secretariat of the Council of Ministers with the delegations of the region." "After the formation of the provincial government there will be delegations that have full powers to negotiate with the federal to implement the policy." LINK