Iraq... The devaluation of the dinar inflames the markets and popular congestion ahead of Ramadan

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[size=52]Iraq... The devaluation of the dinar inflames the markets and popular congestion ahead of Ramadan[/size]

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A WOMAN IN A VEGETABLE MARKET IN BAGHDAD.
The Iraqi street is witnessing widespread congestion due to the rise in food prices, especially flour and oil, and a number of other consumer items, with the continuation of the political crisis and the persistent disagreement over the formation of the government, three weeks before the beginning of the month of Ramadan.

On a tour by “Al-Nahar Al-Arabi” to a number of shops in the capital, Baghdad, to find out the prices inside the market and the percentage of purchase, it was found that the price of a bottle of cooking oil reached 5,000 Iraqi dinars (about $3) after it was about 2,000 dinars, while it reached The price of a bag of flour is 50,000 dinars (about $32) after its price was 15,000 dinars, while the price of a layer of table eggs has reached 6000 dinars (about $4).

 This increase included vegetables, fuel, household items, and others.

As a result, the purchasing power of families declined and the demand for basic items decreased significantly, according to what a shop owner assured us. There is anticipation of what the prices will be as the month of Ramadan approaches, which begins on the second of next April.
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The price hike affected most of the necessary items.

The Iraqi Prime Minister, Mustafa Al-Kazemi, chaired an emergency meeting to discuss the issue of food security in the country, and the high prices of commodities and foodstuffs in the markets, in the presence of the Ministers of Finance, Foreign Affairs, Planning, Trade, Agriculture, Water Resources and Industry, the Secretary-General of the Council of Ministers, and a number of advisors.

The meeting discussed ensuring the achievement of food security and the readiness of the ministries to achieve this, in light of the crisis of the Russian-Ukrainian war.

Al-Kazemi directed the importance of securing the strategic stock of basic foodstuffs, and overcoming the obstacles they face. He also directed the ministries of finance, trade and agriculture to take the necessary measures on the main points discussed in the meeting, and to put the issue of food security and securing the strategic stock on the agenda of the Ministerial Economic Council and the Council of Ministers for this week. and take the necessary decisions thereon.

Exploit
The Iraqi economic expert, Abdul Rahman Al-Sheikhly, says that “after decreasing the Iraqi dinar exchange rate against the dollar, the markets shook, as we witness from time to time a rise in food prices,” adding that “some traders in Iraq started exploiting the devaluation of the dinar to achieve their material interests and create a crisis.” economical.”

And he continues, "The economic system in the country is an open system for traders, so you see them act in it at any time without any accountability from the regulatory authorities, so the state was supposed to set the fixed path for food prices and close the door to manipulation in front of traders."

Al-Sheikhly pointed out that "the Russian-Ukrainian war is not a major reason for the rise in food prices in Iraq."

In this context, the Iraqi economic expert, Dr. Haitham Al-Nuaimi, comments on the phenomenon of high food prices, saying that “the Iraqi governments from 2003 until now have not adopted any economic policy to confront crises, as all that is issued by them is prosthetic solutions that burden the Iraqi citizen, and in In return, it leaves the market open for traders to manipulate the prices of materials.”

He points to the Iraqi government's measures to confront the rise in food prices, including providing a financial grant to four categories of citizens, namely employees, retirees, those covered by the social welfare network and the incomeless. The rise in prices,” he expected, “the country will witness a major economic crisis in the coming days, due to the politicians’ preoccupation with the crisis of forming the government and alliances.”

Hundreds of people demonstrated in various Iraqi cities against the rise in food prices, in light of the high rate of poverty and unemployment.

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Dr. Haitham Al-Nuaimi, comments on the phenomenon of high food prices, saying that “the Iraqi governments from 2003 until now have not adopted any economic policy to confront crises,

You have to wonder what economic policy would confront crisis? Anyone? This is a bold statement.