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


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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


    What will happen in the event of a return to the previous exchange rate? .. A specialist explains

    Rocky
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    • Post n°1

    What will happen in the event of a return to the previous exchange rate? .. A specialist explains Empty What will happen in the event of a return to the previous exchange rate? .. A specialist explains

    Post by Rocky Mon 21 Feb 2022, 7:06 am

    What will happen in the event of a return to the previous exchange rate? .. A specialist explains

    [ltr]2022.02.21 - 14:51[/ltr]


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    Baghdad - people  
    On Monday, Professor of Economics at Basra University, Nabil Al-Marsoumi, spoke about the repercussions of restoring the dinar exchange rate to what it was previously on the Iraqi economy, while noting that restoring the exchange rate to its previous era will not lead to the return of commodity prices to what they were.  
      
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    Al-Marsoumi said in his blog post, followed by "Nass" (February 21, 2022), that "there are demands for not a few members of the Iraqi parliament, aimed at restoring the dinar exchange rate to what it was before."  
      
    He added that "lowering the Iraqi dinar exchange rate was not a purely technical decision taken by the monetary and financial authorities alone, but rather a technical-political decision that was approved by the political blocs and the Parliamentary Finance Committee, which also had a reform paper in which 33 measures were taken, including the recommendation to reduce the exchange rate of the dinar." .   
      
    He explained that "changing the exchange rate will lead to destabilizing financial stability in Iraq, speculation in foreign currency, confusing the Iraqi market, losing the confidence of international financial institutions in the monetary and financial authority in Iraq, and negatively affecting the investment environment in Iraq."   
      
    And that "restore the dinar exchange rate to what it was previously requires an increase in the allocations for the paragraph of salaries, wages, retirees and social protection by about 17 trillion dinars."   
      
    He continued, "Linking the dinar exchange rate in a country that adopts a fixed price system with an external variable, which is the price of a barrel of crude oil, which is determined in the global market, which is characterized by high volatility, exposes the dinar exchange rate to severe risks, especially in the event of a significant drop in its prices, especially since Iraqi oil revenues constitute more of 90% of public revenue.   
      
    He pointed out that "restore the dinar exchange rate to what it was previously will not lead to the return of commodity prices to what they were, because prices enjoy high flexibility when rising, but they have weak flexibility when declining, especially since prices are not currently affected by the decrease in the exchange rate of the dinar alone, but rather by variables." Others also, including the global rise in the prices of imported goods, and the damage to the supply chain as a result of the Corona pandemic, which led to an increase in shipping and transportation costs.   
      
    While he stressed that "the sudden and significant change in the exchange rate of the national currency within a short period would affect the structure of domestic prices, internal and external trade, production, consumption, investment and foreign cash reserves, which would have a severe impact on the macroeconomic stability in Iraq."   
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