Will the devaluation of the dinar contribute to reviving the local industry?
[You must be registered and logged in to see this image.] |
Economy News - Baghdad
The depreciation of the Iraqi dinar against the dollar caused disruption to local markets and a significant increase in prices, as most of the goods are imported and linked to the US currency .
This matter brought the Iraqi industry file back and activated it to the fore again, after decades of extinction and destruction that affected the industrial sector, amid demands to work to mitigate the damage resulting from the deterioration of the Iraqi dinar, by adopting the national industry that the country lacks .
Reducing the salaries of employees and the rise in the value of the dollar against the Iraqi dinar (1 dollar equivalent to 1450 dinars) caused great resentment in the country, according to a member of the Economy and Investment Committee in Parliament, Nada Shaker Jawdat .
Jawdat stresses that this decision is not a parliament’s decision and it is far from it, and the government is the one who took it and implemented it, without holding a parliamentary session to audit accounts, as it is not a law .
Jawdat warned of the repercussions of the decision to reduce the value of the Iraqi dinar, which led to an increase in the prices of goods and services, and all harm to the simple Iraqi citizen, due to corruption and mismanagement, as she put it .
And considered that the decision to reduce the value of the dinar came a devastating blow to the Iraqi people, due to the lack of control over the markets, which began to manipulate the situation of the simple citizen and worsen his livelihood .
In the same context, the Director of Information of the Ministry of Industry, Mortada Al-Safi, said that imported materials will be expensive, as a result of the high price of the dollar as well as customs duties, while the national product is exempt from customs tariffs and taxes, and this difference will be an incentive to operate Iraqi factories, whether in the public or private sector .
Economic expert Hammam Al-Shamaa believes that the recession will increase in the Iraqi market, due to the decline in the purchasing power of the mass of employees after the decrease in the value of their salaries .
Al-Shamaa suggested that purchasing power will decline by 20%, as a result of the rise in prices, and thus will be reflected in the private sector, and this will lead to an further decline in GDP .
He pointed out that the activities of the real sector, such as agriculture and industry, do not depend on the exchange rate except in a very simple way, and this means that lowering the exchange rate of the Iraqi dinar gives the local product an opportunity to compete with imported products, meaning that Iranian, Turkish and other imported goods in the Iraqi market, It will be more expensive than before, according to Al Shamaa .
He added, "However, Turkish and Iranian commodities will have lower prices than the local ones, due to the devaluation of the Turkish lira and the Iranian riyal to very low levels, and thus their competitiveness remains higher than that of Iraqi goods ."
Also, the local product cannot produce all kinds of commodities required by the Iraqi market, there may be agricultural production of vegetables and some fruits, but it does not fully meet the market’s need - according to Shamaa - and therefore there remains a need for import .
For his part, the President of the Federation of Iraqi Industries, Ali Al-Saadi, welcomed the government's decision to reduce imports and help the local product to compete, and called on government agencies to support the fragile and vulnerable classes by supporting imported products that relate to the citizen’s life, as well as providing Iraqi manufacturers with subsidized raw materials to compensate for the shortage. , Leaving the luxuries, consumables and unnecessary items unsupported .
Al-Saadi revealed that there are 54 thousand registered projects in the union, as well as 21 thousand projects with the Industrial Development Directorate, and confirmed that 90% of these vital projects have stopped due to the inability to compete, the lack of a safe business environment, and ideal infrastructure such as industrial cities .
The President of the Federation of Iraqi Industries noted that there is no real government support for the local industry, while imported materials are supported in their countries by export support funds .
And he indicated that the fees that the Iraqi manufacturer pays to state departments amount to more than 30 fees, and the cost of fuel and electricity is high and unsupported, and most national products are not protected by the product protection law, in addition to that there is intentional commodity dumping and suspicions of money laundering, according to Al-Saadi .
On government factories, Al Safi explains that the number of factories and laboratories belonging to public companies is about 285, of which 83 are suspended .
Regarding the reasons for the factories' stoppage, the Ministry of Industry Information Director mentions many reasons, including the old of these equipment; Because most of them have been used since 1960, and were subjected to consumption during the siege of the 1990s, due to continuous work and a lack of maintenance equipment at the time, as well as wars, and what they were exposed to at the hands of ISIS militants .
For his part, Al-Shamaa estimates the total stalled economic projects, with more than 50 thousand small and medium industrial projects, and may reach 100,000 disabled projects .
And he indicated that industrial production used to constitute 12% of the GDP, but it became less than 1% at the present time .
While Jawdat spoke about the presence of some influential figures who have industries outside the country, and they do not allow the establishment of a new industry inside Iraq, because they want Iraq to remain a consumer market for their products .
It expressed its regret at the war, mismanagement and corruption that Iraq suffers, and regional and international conflict targeting Iraq, as some countries are working to dump Iraq with goods to deplete its budgets .
The Ministry of Industry and Minerals developed a plan to promote Iraqi industry and restore the "Made in Iraq" reputation again. The plan was divided into 3 sections, short, medium and long term, according to Al Safi .
Work is currently underway on the first short-term plan, which includes operating factories and factories with less than 30% stoppage. He confirmed that 12 factories and factories of the Ministry of Industry and Minerals had been opened, as part of the short-term plan .
Al-Safi explains that these factories and factories are spread in Baghdad and all governorates, and varied between medical oxygen laboratories, medicines and asphalt laboratories, pipes that serve the infrastructure, a brick factory, and a factory for the production of electrical transformers .
And stresses the need for the public or private sector to invest the opportunity of the high dollar against the Iraqi dinar, which will push the citizen to acquire the local product .
While Al-Shamaa believes that changing the exchange rate will not be a magic tool to develop industry and give it the opportunity, but the real requirements for the renaissance of industry require abundant capital, the return of late industries abroad, achieving security and stability, and putting weapons in the hands of the state .
Al-Saadi believes that the industry needs security and services, especially electricity, as well as activating its own laws, such as the law on consumer protection that is legislated in parliament and not activated, and also the commodity monopoly law .
And he confirms that restoring confidence in the local product needs a very long period, because the local industry has not had a chance to succeed, as Iraqi governments after 2003 opened the door to imported goods.
[You must be registered and logged in to see this link.]
Today at 7:04 am by Rocky
» utube MM&C 4/16/24 IQD Update - Iraq Dinar - America - Activate - Massive Economic Deals -
Today at 7:02 am by Rocky
» utube MM&c 4/19/24 Iraqi Dinar - Private Sector - Economic Stability - Financial Reform - Al Sudan
Today at 7:01 am by Rocky
» Iraq officially signs the “Singapore” agreement to resolve trade disputes
Today at 6:59 am by Rocky
» Parliament Finance advises raising exchange rates again... What about oil revenues?
Today at 6:55 am by Rocky
» Al-Sudani: Iraq is in the process of recovery and has taken its leading position that attracts work
Today at 6:54 am by Rocky
» Al-Araji: Iraq is prepared to deal with all circumstances and seeks partnership with the United Stat
Today at 6:52 am by Rocky
» Sudanese from Michigan: The government represents all components and is keen to take care of the aff
Today at 6:50 am by Rocky
» Democratic Party: The "new generation" is the most corrupt and has dozens of cases in court
Today at 6:47 am by Rocky
» What is the benefit of Iraq establishing a petrochemical plant in Egypt?!.. An oil expert explains
Today at 6:46 am by Rocky
» A judicial delegation participates in the Permanent International Forum for Commercial Courts in Qat
Today at 6:43 am by Rocky
» Al-Sudani: The government follows a balanced policy that makes Iraq a station for security
Today at 6:42 am by Rocky
» Deduction of 160 million dinars from the salaries of MPs absent from Parliament sessions
Today at 6:40 am by Rocky
» Central Bank: Washington praised Iraq's measures to resolve 80% of the financial transfer file
Today at 5:13 am by Rocky
» Voices of Resilience: Al-Sudani’s frankness embarrasses the White House
Today at 5:12 am by Rocky
» Al-Alaq confirms the formation of a committee between Baghdad and Washington regarding sanctions on
Today at 5:10 am by Rocky
» Former MP: The Democrat will not hand over power after the regional elections
Today at 5:07 am by Rocky
» Document/allocation of 20% of the lands of Al-Jawahiri Complex to employees of the Ministry of Defen
Today at 5:06 am by Rocky
» Al-Hakim: Al-Sudani’s visit to Washington was a protocol and missed the two most important files
Today at 5:05 am by Rocky
» Parliamentary Security: The National Security Service law will be voted on by Parliament soon
Today at 5:04 am by Rocky
» Reconstruction and Housing: Zarbatieh residential project completed by 82%
Today at 5:01 am by Rocky
» Al-Sudani reveals an intention to establish Al-Faw refinery with a capacity of 300 thousand barrels
Today at 5:00 am by Rocky
» Government readiness to move the Doura refinery to an alternative location.. What are the conditions
Today at 4:59 am by Rocky
» Al-Sudani’s visit to Washington.. Implications and results
Today at 4:56 am by Rocky
» Association of Iraqi Private Banks: The suspension of some electronic payment services yesterday was
Today at 4:55 am by Rocky
» Parliamentary memorandum.. Two solutions were before the Federal Court instead of removing the compo
Today at 4:53 am by Rocky
» Blue fuel... Iraqi steps towards inexhaustible wealth for a century
Today at 4:51 am by Rocky
» For fear of being "upset"... MPs "evade" signing to host Al-Sudani in Parliament
Today at 4:50 am by Rocky
» Al-Sudani’s statement to convert 40% of Iraq’s exports into derivatives.. What does it have to do wi
Today at 4:48 am by Rocky
» An Iraqi-American partnership to benefit from oil field gas
Today at 4:46 am by Rocky
» The Minister of Commerce announces the distribution of the first payments of farmers’ dues for the 2
Today at 4:45 am by Rocky
» Sudanese to members of the Iraqi community in the American city of Houston: Iraq has regained its he
Today at 4:43 am by Rocky
» Romanski announces loans worth $50 million to support the Iraqi private sector
Today at 4:42 am by Rocky
» Prime Minister: We plan to invest production capacities for export
Today at 4:41 am by Rocky
» “Something happened” in Iran and no one is talking about Iraq and Syria. This is what we have so far
Today at 4:38 am by Rocky
» Al-Sudani asks the American Baker Institute for assistance in preparing studies related to the oil m
Today at 4:36 am by Rocky
» The Interior Ministry denies the occurrence of explosions inside Iraqi territory and diagnoses “the
Today at 4:35 am by Rocky
» Tensions between Najaf and Baghdad over the airport... the rule of law over “military force” and the
Today at 4:34 am by Rocky
» Al-Sudani from Washington: We agreed with Abu Dhabi on joint management of Al-Faw Port
Today at 4:33 am by Rocky
» "Al-Party" talks about the region's elections and reveals the reason for refusing to pay salaries di
Today at 4:31 am by Rocky
» Russia's oil is taking more of the Middle East's shares in the Indian market.. How much has Iraq los
Today at 4:29 am by Rocky
» Early next month.. Traffic confirms that the electronic payment system is working only
Today at 4:27 am by Rocky
» The Service Council accuses state departments of refraining from disbursing bonuses because of the m
Today at 4:25 am by Rocky
» Electricity: The Baghdad street lighting campaign will be completed before the middle of this year
Today at 4:24 am by Rocky
» Oil poses two conditions for moving the Doura refinery to an alternative location
Today at 4:23 am by Rocky
» The Foreign Minister reveals the truth about his resignation and the reason for his departure to Erb
Today at 4:22 am by Rocky
» Progress: Al-Halbousi’s acquittal has become conclusive, and his return to the presidency of Parliam
Today at 4:20 am by Rocky
» Disagreements strike Al-Maliki's coalition over choosing the governor of Diyala
Today at 4:19 am by Rocky
» The Union accuses Türkiye of exploiting the political situation for a ground incursion into Iraq
Today at 4:18 am by Rocky
» The Democratic Party: Barzani is eagerly awaiting the results of Al-Sudani’s visit to Washington
Today at 4:17 am by Rocky
» Frame: Al-Halbousi in the news and his return has become a pipe dream
Today at 4:16 am by Rocky
» A parliamentary request to capitalize on Erdogan’s visit to Baghdad to end the water crisis
Today at 4:15 am by Rocky
» Al-Sudani urges the US corporation Honeywell to help finish the Basra refinery
Yesterday at 2:48 pm by Rocky
» Al-Sudani Meets with Representatives of Western Media Outlets in Washington
Yesterday at 2:46 pm by Rocky
» Chairman of the Investment Authority signs the United Nations Convention on International Mediation
Yesterday at 2:44 pm by Rocky
» PM: We will sign a contract to establish the Al-Faw refinery with a Chinese company
Yesterday at 2:42 pm by Rocky
» PM arrives in Houston as part of his visit to USA
Yesterday at 2:41 pm by Rocky
» Militia Man & Crew 4/18/24 Bush signed it and all presidents implemented it. Iraq’s funds have been
Yesterday at 1:46 pm by Rocky
» Iraq is close to launching the electronic signature
Yesterday at 7:12 am by Rocky
» The Basra government discusses with an international oil company the implementation of social benefi
Yesterday at 7:11 am by Rocky
» The Prime Minister confirms to an American company: Gas projects in Iraq are a priority for the gove
Yesterday at 7:10 am by Rocky
» The Minister of Planning discusses with the World Bank mechanisms for scheduling external loans
Yesterday at 7:09 am by Rocky
» Oil sets the twenty-seventh of this month as the date for opening contracts for the fifth complement
Yesterday at 7:08 am by Rocky
» “Electronic begging”...professionalism and fabrication of stories” generates millions of dinars dail
Yesterday at 7:05 am by Rocky
» Al-Sudani calls on the American company Hanwell to contribute to the completion of the Basra refiner
Yesterday at 7:03 am by Rocky
» An American company expresses its willingness to establish LED lighting production lines in Iraq
Yesterday at 7:02 am by Rocky
» Including Iraq.. Iran announces the possibility of exporting 300 megawatts of “renewable electricity
Yesterday at 7:01 am by Rocky
» Political forces present two options to find an alternative to Al-Halbousi
Yesterday at 6:58 am by Rocky
» Parliament is awaiting the arrival of the budget schedules and the government is studying higher spe
Yesterday at 6:56 am by Rocky
» The International Monetary Fund adjusts its expectations for the development of the world’s economie
Yesterday at 6:54 am by Rocky
» A representative talks about the difficulty of finalizing the file of “electing the Speaker of Parli
Yesterday at 6:50 am by Rocky
» Work on preparing a law for diplomatic passports
Yesterday at 6:49 am by Rocky
» A female representative accuses the Ministry of Immigration of corruption
Yesterday at 6:47 am by Rocky
» Minister: Solving the Kurdistan salaries problem is the beginning of addressing other disputes betwe
Yesterday at 6:45 am by Rocky
» About 270 million dollars were sold by the Central Bank of Iraq in the currency auction
Yesterday at 6:42 am by Rocky
» The volume of trade exchange between Jordan and Iraq will exceed 800 million dinars in 2023
Yesterday at 6:41 am by Rocky
» Iraq signs memorandums of understanding with American companies in the fields of electricity, oil an
Yesterday at 5:31 am by Rocky
» The American company that manufactures the F16 expresses its readiness to implement the terms of con
Yesterday at 5:30 am by Rocky
» The volume of expected Qatari investments for the Iraq Fund for Development exceeds $3.5 billion
Yesterday at 5:29 am by Rocky
» Decrease in dollar prices in Baghdad and Erbil
Yesterday at 5:27 am by Rocky
» The President of the Region brings together the Kurdish parties to resolve the election file
Yesterday at 5:26 am by Rocky
» Al-Sudani receives in Washington the Chairman of JPMorgan
Yesterday at 5:25 am by Rocky
» Transport is starting to transform its ports into smart ones
Yesterday at 5:23 am by Rocky
» Sudanese reveals the volume of exchange with America
Yesterday at 5:22 am by Rocky
» "Al-Eqtisad News" publishes the memorandums of understanding signed between the Iraqi delegation and
Yesterday at 5:21 am by Rocky
» Al-Sudani urges an American company to contribute to establishing a chemical materials factory
Yesterday at 5:20 am by Rocky
» Iraq stresses the importance of Lockheed Martin's commitment to opening military aircraft maintenanc
Yesterday at 5:19 am by Rocky
» Iraq is on the verge of a “water disaster” by 2035
Yesterday at 5:18 am by Rocky
» Great satisfaction and optimism with the results of Sudanese’s visit to Washington
Yesterday at 5:16 am by Rocky
» Transport is beginning to adopt a plan to transform its ports into smart ones
Yesterday at 5:15 am by Rocky
» Completed 8,000 loan transactions at the Housing Bank
Yesterday at 5:14 am by Rocky
» Prime Minister: We plan to invest production capacities for export
Yesterday at 5:12 am by Rocky
» Transformation and partnership...a new horizon in Iraqi-American relations
Yesterday at 5:10 am by Rocky
» What is new in the economic dimension of the Washington visit?
Yesterday at 5:09 am by Rocky
» Two letters to the future
Yesterday at 5:08 am by Rocky
» National interests first
Yesterday at 5:06 am by Rocky
» Iraqi-American rapprochement...a national necessity
Yesterday at 5:05 am by Rocky
» Al-Sudani’s visit to Washington and the course of Iraqi-American relations
Yesterday at 5:04 am by Rocky
» Sudanese carries security, economic and development files to Washington
Yesterday at 5:03 am by Rocky