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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

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    A government advisor explains the effects of reducing the dinar: it increased the poverty rate

    Rocky
    Rocky
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    A government advisor explains the effects of reducing the dinar: it increased the poverty rate Empty A government advisor explains the effects of reducing the dinar: it increased the poverty rate

    Post by Rocky Wed 29 Dec 2021, 6:39 am

    [size=52]A government advisor explains the effects of reducing the dinar: it increased the poverty rate[/size]

    [size=45]Saif Abdullah[/size]
    [size=45]At the end of this year, the public's anger increased over the continued appreciation of the dollar's exchange value in relation to the local dinar despite the improvement in oil prices globally, while the statement of the Minister of Finance regarding the possibility of laying off employees after 10 years due to the economic crisis generated fear among the street.[/size]
    [size=45]And Finance Minister Ali Allawi had said during the Ministerial Forum on Future Energy Outlook that the Iraqi financial structure is rigid and in the event of the collapse of revenues, it will result in the layoff of large numbers of employees or the accumulation of arrears and thus will lead to pressure on the state, likely to lay off employees after 10 years.[/size]
    [size=45]What are the employees' opinions?[/size]
    [size=45]In this regard, Abu Muhammad, an employee at the Ministry of Agriculture, said in an interview with Al-Mada that "the statements of the Minister of Finance regarding the layoffs of employees raise the alarm and show the government's inability, as it anticipates a crisis and does not put future solutions to it."[/size]
    [size=45]The employee added, "The employee segment is not responsible for the financial crises that Iraq is facing, as the government is responsible for providing financial liquidity under any circumstances."[/size]
    [size=45]On the other hand, Nada Al-Lami, a teacher at the Ministry of Education, said, "The data actually indicates the possibility of not providing salaries for employees during the coming years, because Iraq depends only on oil, and therefore any decrease in its prices causes a financial crisis."[/size]
    [size=45]In an interview with Al-Mada, she indicated that "the new government is required to develop a plan to avoid this crisis, which is to start relying on financial resources other than oil, such as operating industry and agriculture to fill the expected financial deficit in oil."[/size]
    [size=45]Al-Lami explained, "The move to raise the value of the dollar harmed many citizens and posed a difficult challenge to them and caused many crises, as the prices of all consumables were raised, and therefore the citizen is the only one who was affected by this process."[/size]
    [size=45]Benefits of devaluing the dinar[/size]
    [size=45]For his part, Economic Adviser to the Prime Minister, Mazhar Muhammad Salih, said, “The reduction of the dinar exchange rate in relation to the general budget resulted in the so-called monetary adjustment, that is, achieving additional revenues of 23% of the value of the government’s annual oil revenues as a result of transfer differences.”[/size]
    [size=45]In an interview with Al-Mada, Saleh indicated that “this step is, in all cases, one of the doors of inflationary taxes, as it helped fill an important aspect of the deficit in the operational budget for the year 2021, amounting to nearly 20 trillion dinars, and after subtracting the consequent reductions in Foreign government payments, its net revenue is not less than 12 trillion dinars.[/size]
    [size=45]Regarding non-oil revenues, Saleh explained, "The indicators that were planned within the 2021 budget are about 20 trillion dinars, but in practice only 8 trillion dinars have been achieved from them."[/size]
    [size=45]Saleh added, "The rise in the value of the dollar is the reason for high inflation rates and its creep to the edge that may reach at the end of the year 8-9%, which generated an effect called the effect of falling cash income and a decrease in the purchasing power of the poor, disadvantaged and low-income classes."[/size]
    [size=45]The economic advisor to the Prime Minister continued, "This matter also requires the fiscal policy to make a fair compensation for income or to adopt appropriate distributive bases by expanding the ration card program in quantity and area, as well as enabling programs to address poverty within the framework of social welfare in a tangible and broader way to reduce poverty rates that have escalated ».[/size]
    [size=45]unknown economic future[/size]
    [size=45]Economist Amer Al-Jawahiri sees during his speech to (Al-Mada), that "the economic future of Iraq is not clear," noting that "the previous government identified many challenges facing the economy, and now the Minister of Finance has identified many points that represent future challenges."[/size]
    [size=45]Al-Jawahiri added, "The current situation needs a government that identifies challenges and sets quick solutions to them in terms of organizing (financial, administrative and human capabilities) in order to advance the economic reality."[/size]
    [size=45]The economic expert pointed out that "the new government is required within its program to develop a plan for real projects that represent a point to raise the country's non-oil economic capabilities, in cooperation with the private sector and experts in this field."[/size]
    [size=45]And regarding the Minister of Finance’s statement regarding the dismissal of employees, Al-Jawahiri ruled out the possibility of “demobilizing them even if there are financial crises, but it is possible for Iraq to enter into economic crises as a result of fluctuating oil prices and expectations of its decline in the future.”[/size]
    [size=45]Iraq witnessed a financial crisis in 2020, where the government’s first borrowing took place with the aim of financing the salaries of employees and projects for a period of 3 months, while the crisis was renewed in the same year when the government was unable to pay salaries and was delayed 45 days, which prompted it to borrow locally.[/size]
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