10th July, 2022
Sunday, the Central Bank confirmed that there is no justification for changing the exchange rate of the dollar against the Iraqi dinar, while indicating that the economic circumstance is the main criterion for changing the exchange rate.
The Deputy Governor of the Central Bank, Ammar Khalaf, said in a statement to the Iraqi News Agency (INA): “The exchange rate at the present time - in our belief as a monetary authority - there is no justification for changing it,” explaining, that “changing the exchange rate remains within the monetary authority’s policy and according to circumstances.”
He pointed out that "during the years from 2004 until now, the exchange rate has changed more than once, depending on the circumstances, whether to increase or decrease."
He added, "The economic circumstance is the main ruler, and there is no future plan to change the exchange rate, whether after 3-5 years, and the economic conditions determine what is the appropriate decision that fits the time period at the time."
He stressed, "The exchange rate is within the monetary policy and is the exclusive competence of the Central Bank, and when it sees that there is a necessity, it thinks about changing the exchange rate, but currently there is no justification or need to modify it," explaining, that "monetary policy, one of its advantages is flexibility in general and not it is good to change the exchange rate quickly because it confuses the markets and weakens the economy." LINK
The Central Bank: There is no future plan that includes changing the exchange rate LINK
Tivon: Guys, ask yourself. Why is he trying so hard to convince the citizens of this personal notion of his? This guy is on a campaign. How do you say that there is no justification.
When the Oil & Gas Law is contingent upon the USD price reduction so the citizens can receive their monthly allotments according to the Constitution? This guy is willing to break the law with his baseless theory that goes against commonsense, reality, and legal articles that justifies the rate change.
Not your opinion. That's more than enough of a reason.
The Citizens Entitlements is apart of the EFSL. This guy is directly going against PM Al-Kazemi. How do you say the economic circumstance is the main ruler as to what can determine the exchange rate when the citizens are suffering from inflation? Isn't that an economic crisis?
They literally can't afford nothing for the holiday festivities. They Can't pay rent. But you know he is definitely one of these guys in the Maliki camp. Not to mention the oil prices. This high demand will not last. Citigroup warned of that. Do you see how he is double speaking.
How do you say in the same breath the monetary policy is flexible but if you change the rate it confuses the markets? So you are saying it's not flexible then? It can't be both at the same time my guy. You need to pick one because how you are saying it conflicts the two.
It's like he's talking within a bubble where what he says vs what actually is are two different scenarios that do not coexist in the same environment. The guy has no legs here. Nothing solid has been said.
Al-Kazemi is going with the law and constitution. Not your personal beliefs or feelings about the situation. Pipe down.
I remember him stating this back in February that he won't change the rate. He's literally he'll bent on keeping the citizens poor. Read the below statement and tell me the two agendas don't conflict. No wonder the citizens were surprised when he stated this a week ago. It made no sense.
A parliamentary bloc moves to lower the dollar exchange rate
4th July, 2022
Today, Monday, Jawad Al-Ghazali, a member of the State of Law coalition, revealed a move by his bloc to reduce the dollar exchange rate. Al-Ghazali told "Mawazine News", "The lawmakers have collected their signatures regarding reconsidering or modifying the dollar exchange rate to its previous era." He explained, "This step (comes) due to the rise in commodity prices in the markets and the harm of citizens, and this step will be towards a gradual reduction of the exchange rate, not completely, so that it will be dealt with smoothly without losses." End quote.
Sir: IMO-He is stating at this time! (Everything will be revealed soon) We here in America see just how much our Fed notes are worth today (-98%). The Federal note is dead for all intensive purposes, it’s just in the wake stages and will be buried soon. Again I say be patient and stay in prayer, it’s the most important thing we can do to help bring this to an end. We are so close you can smell the wine but we can’t taste it just yet, but soon we will feast like never before in history. These next few weeks will unveil corruption on a world scale, silent war no more! IMO
Tivon: Now we know they would not be able to gradually reduce the price as it will not make the IQD attractive in supply & demand from the onset and will deter the citizens from turning in the three zero notes. And it also goes against Article 8.
But something is to take note of here is that the Deputy Governor is not working in conjunction with the government. As you can see from his statements goes against the overall purpose of creating the EFSL to begin with.
So we have to ask why do these incongruent plans of action conflict with one another?
I can understand if the Ammar Khalaf was consulting with the different political camps and everyone in the meeting from Al-Kazemi cabinets to the State of Law came to one solid conclusion on the USD matter. But no, that's not the case at all.
Which makes this all the more weird. Guys we must be really close because this guy only started saying this, this year.
I can’t find him on record at any other time or year. Here’s another statement below. IMO
Quote: Representative Uday Awad announced that he had collected the signatures of more than 100 deputies to reduce the exchange rate of the US dollar against the Iraqi dinar. Awad stated that based on Article (61-Seventh-C) of the Iraqi constitution and Article (56) of the internal system, please include the issue of reducing the price of the dollar in the earliest possible session, according to constitutional contexts, and because of the economic repercussions taking place in the country and the collapse of the currency and its impact on the Iraqi citizen. In turn, the Parliamentary Finance Committee denied what was recently reported about Parliament’s efforts to restore the dollar’s exchange rate to its previous state.
DallasDude: Thanks for your thoughts Tivon..they should be back in session by the end of the week and hopefully by the end of the month the citizens will have their entitlements and we will have a new exchange rate..there may not be justification to change the rate today or this week but when parliament resumes their session all bets are off..
Tivon: Guys this is how I knew the Budget 2022 was dead in the water. Which by default will have Al-Kazemi run the affairs of the country for the remainder of the year.
Jamal Cougar already admitted that there's simply not enough time to prepare a general budget. And other political blocs are already talking about skipping this year entirely and focusing on the 2023 budget. Which I think is going to prompt Al-Kazemi to be really bold and blunt with what he wants to do with the EFSL.
Blitz Play coming up.
A technical expert stated....The supplementary budget bill, officially called the "Emergency Food Security Support" bill, has its origins in demands by parliament for extra spending measures in response to public anger over the increased cost of living, and to public pressure for the government to translate the sharply rising oil revenues into public expenditures.
So Ammar Khalaf there's your ruler Deputy Governor. Sense this is the deciding factor on changing the rate. What's your next excuse? IMO
Today, Thursday, the economic expert, Manar Al-Obaidi, commented on the fact that all financial surpluses go to finance the provisions of the Food Security Law.
Al-Obaidi said, to (Baghdad Today), that "the information that talks about the disappearance of the financial surpluses that were achieved from the rise in oil prices since the beginning of the year to finance the paragraphs of the Food Security Law is absolutely incorrect, so it is not possible to spend all of this surplus in one time."
And he indicated that "it is not a necessity or a condition that Iraq spends all the allocated matters within the provisions of the Food Security Law," explaining that "even the public budgets do not spend all the funds allocated in them, and a lot of unspent funds remain for several reasons."