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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


    "Fitch" raises Iraq's credit rating after the procedures for reducing the exchange rate

    Rocky
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    • Post n°1

    "Fitch" raises Iraq's credit rating after the procedures for reducing the exchange rate Empty "Fitch" raises Iraq's credit rating after the procedures for reducing the exchange rate

    Post by Rocky Sun 28 Mar 2021, 7:30 am

    "Fitch" raises Iraq's credit rating after the procedures for reducing the exchange rate

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    Fitch International raised Iraq's credit rating from negative to stable in the long run.
    The rise in Iraq's classification is due to the direct impact of the decision to reduce the exchange rate on the basic economic and financial indicators that focus on reducing the balance of payments deficit and reducing the ratio of public debt to GDP, as well as reducing the budget deficit as well as maintaining foreign reserves.
    The agency indicated that this is based "mainly on the decision to reduce the exchange rate of the dinar by 22.6% during the end of 2020, in addition to the improvement in oil prices and the government's approval of the white paper for economic reform."
    She explained that "the reduction in the exchange rate of the Iraqi dinar has led to a reduction in the demand for imported goods and services, which automatically reduced the demand for the dollar and reduced the current account deficit, thus preserving the foreign reserves at the Central Bank of Iraq."
    The agency added: "The government’s revenues from oil export sales increased due to the increase in production, the increase in oil prices and the reduction in the exchange rate of the Iraqi dinar. The government's ability to cover expenditures and public sector salaries has increased, as oil sales in foreign currency constitute about 89% of the budget revenues."
    She pointed out that "this is what led to a decrease in the budget deficit expected for the year 2021 relative to GDP from 16.5% to 5%."
    "Reducing the exchange rate of the Iraqi dinar and the subsequent programs to support social groups would increase the financial solvency and creditworthiness of the Iraqi economy and maintain monetary stability, and this is useful in attracting capital and reassuring it towards investment in the Iraqi productive sectors and increasing economic growth opportunities," she stressed.  
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