Home
The dinar continues to decline, and the high cost gnaws at the purchasing power of citizens
Economical 2023/01/23
[You must be registered and logged in to see this image.]
Baghdad: Haider Fleeh Al-Rubaie
Significantly, the volume of fears expressed by economists about the results and repercussions of the exchange rate crisis has expanded remarkably, which they confirmed could cause a doubling of poverty rates and “gnawing” a large part of the incomes of workers in the public and private sectors and reducing their purchasing power, in addition to reaching frightening rates of inflation. To affect the overall economic process, and while they stressed the need for the Central Bank to resort to using its monetary tools to “stabilize” the dinar price, they suggested the possibility for the government to intervene strongly in economic activity, and to undertake a percentage of imports to create price competition in the markets.
The measures taken by the monetary authority “so far” have not achieved its goal of reining in the dollar, whose exchange rate “at times” exceeded the barrier of 1,600 dinars per 100 dollars, a figure that economists described as “dangerous” and which could undermine sustainable development rates. And lead to severe economic damage due to the increase in the prices of all goods and services, and thus the rise in the inflation indicator.
In the midst of this, the Central Bank confirmed, earlier, that it would continue to work to simplify external transfer procedures through official channels and at the official exchange rate for merchants in light of the launch of the electronic platform for external transfer at the beginning of this year, while the bank’s advisor, Ihsan Shamran Al-Yasiri, told the Iraqi News Agency. (conscious): “The turmoil in dollar prices is a temporary situation, and the Central Bank’s resources are now at their highest levels in decades, and the state’s financial situation is very comfortable,” noting that “the controls that were put in place for selling dollars on the platform came in order for the dollar to go to the real beneficiary.” It is an organizational process.
Despite the packages of measures that the Central Bank can take to counter the rise in the dollar exchange rate, the academic and economist, Dr. Sattar Al-Bayati, believes that “the currency auction is not among those measures that can represent part of monetary policy, indicating that the tools of that policy are familiar to Specialists in economic affairs, which are four pillars represented in “the interest rate, the rediscount rate, the open market, and the legal reserve,” and there are other tools that may not be used, but the window for selling the currency is not among them, “according to the speaker.
Al-Bayati pointed out during his speech to “Al-Sabah” that “this window may have fulfilled its purpose in a certain period by financing imports, but over time it has become a burden on the economy, and this burden is translated through the many forgeries witnessed in the certificates of origin of imported goods, Therefore, the window for selling the currency has become a real drain on Iraqi financial resources, especially hard currency.
Al-Bayati believes that “fixing the exchange rate represents a big mistake, as most types of exchange rates are flexible, floating or managed exchange rates, and the main goal is the stability of the exchange rate, and that one of the most important tasks of the central bank is to work to stabilize the exchange rate of the Iraqi dinar.” , and not stabilizing it,” explaining that the exchange rates remaining high has serious negative consequences represented in the high rates of inflation and the erosion of the real wages of the citizen. To not obtaining his requirements from the market, in which prices began to rise remarkably, stressing that if the situation continues as it is, the number of those below the poverty line will increase.
Regarding solutions that could lead to mitigating the sharpness of the dollar’s rise, the expert Al-Bayati pointed out that there are a number of measures that lead to that purpose, including “the possibility for the government to intervene strongly in economic activity, and to undertake a percentage of imports to create a kind of competition that will reflect positively on prices and the citizen.” And not to leave that matter entirely to the private sector,” stressing the need for “the government to intervene to restore matters to their true position regarding the exchange rate and return it to what it was previously, and for the Ministry of Finance not to argue that there is a budget deficit, as Iraq has large resources, and the reserves have reached good numbers.” Very much, and we must not forget that "the country's budgets always start with a deficit and end with a surplus."
In turn, the banking expert, Abd al-Rahman al-Sheikhly, explained that the first reason behind the high exchange rate is “the negligence in applying the AML due diligence standards for preventing money leakage, and the international decisions that led to stopping the participation of many banks in the currency auction.” ".
Al-Sheikhly suggested, during his interview with Al-Sabah, a number of solutions that could address the crisis of the high exchange rate, including “compliance with international standards, especially with regard to foreign transfers, as well as adherence to documentary credits in transfers and according to the Central Bank’s instructions, auditing all transactions, and requiring knowledge of the sources of funds that participate.” In which the customer is in the currency sale window and who is its real owner, what are the beneficiaries from it, the size and type of imported goods, and that taxes and customs are collected on it in accordance with the applicable laws.
[You must be registered and logged in to see this link.]
» MM&C 11/14/24 Trump and the Iraqi Banks Puzzle
» utube 11/13/24 MM&C MM&C News-Private Sector- Electronic Payments-Reconstruction-Development-Digit
» utube MM&C 11/15/24 Update-Budget-Non Oil Resources-CBI-USFED-Cross Border Transfers-Oil
» New decline in gold in Iraq.. and globally records the worst week in 3 years
» Monitoring body approves 2023 imports annual report
» Development Road: Faw Port Ignites Regional Corridor Race
» First in Iraq... Diyala sets a plan for "rural reconstruction"
» Al-Saadi: Influential parties are working to erase the theft of the century file
» MP: Baghdad supports the "Diyala Artery" project with 40 billion dinars
» Source: General amnesty law will pave the way for the return of terrorist groups
» The Prime Minister stresses the need to expedite the completion of the requirements for restructurin
» Minister of Resources: The project to develop the left side of the Tigris River has reached its fina
» Foreign Minister: We are proceeding with implementing the associated gas exploitation program
» Swiss Ambassador Expresses His Country's Desire to Invest in Iraq
» "We left the camel and its load" .. Moroccan farmers await "imminent compensation" from Iraq
» OPEC sues Iraqi minister over oil violations.. What is Kurdistan's involvement?
» Iraq warns of 'dire consequences' of imposing barriers to plastic products
» Iranian newspaper: Iraq's development path is a step towards regional economic integration
» Al-Mandlawi discusses with the Russian ambassador developing relations in the fields of economy, inv
» Oil Minister discusses with Dutch Ambassador strengthening bilateral relations
» The Minister of Oil discusses with the companies "+dss" and "Xergy", joint cooperation to develop th
» Rafidain Bank announces a plan to include other branches in the implementation of the comprehensive
» With the presence of the opposition... Baghdad supports the partnership government in Kurdistan
» Parliamentary move to raise retirement age in state institutions to 63 years
» Through leaks.. Warnings against creating political crises as parliamentary elections approach
» Iraqi oil returns to decline in global markets
» Parliamentary Committee: Iraq uses its international relations to avert the dangers of war from its
» The value of non-oil imports for Sulaymaniyah and Halabja governorates during a week
» Rafidain: Continuous expansion in implementing the comprehensive banking system
» Planning: The population census includes residents of Iraq according to a special mechanism
» Transparency website reveals non-oil imports to Sulaymaniyah and Halabja during a week
» Al-Sudani directs the adoption of specialized international companies to prepare a unified structure
» MP warns of a move that will worsen the housing crisis and calls on the government
» Disagreements strike the Kurdish house... hindering the formation of the regional parliament and gov
» Hundreds of Moroccan farmers are waiting for “imminent compensation” from Iraq.. What’s the story?
» Iraq 10-Year Review: Spending, Imports, Unemployment in 2024 at ‘Highest Level’ in a Decade
» Call to all smokers in Iraq: Prepare for the law
» utube 11/11/24 MM&C News Reporting-IRAQ-USA-Financial Inclusion up 48%-Money Inside & Out of Iraq
» Al-Mandlawi to the UN envoy: The supreme authority diagnosed the problems and provided solutions for
» Saleh: Government strategy to boost gold reserves as part of asset diversification
» Prime Minister's advisor rules out oil price collapse: Trump's policy will not sacrifice petrodollar
» Tripartite alliance between Iraq, Egypt and Jordan to boost maritime trade
» Parliamentary Committee reveals date of entry into force of Personal Status Law
» Al-Fatah warns against US blackmail and Trump's intentions for the next stage
» A leader in the law: If the Americans do not leave on their own two feet, we will expel them in fune
» MP: Next Sunday's session will witness the passing of "important laws"
» There is a financial aspect.. Al-Zaidi rules out voting on the real estate law
» "Promising" economic opportunities in central Iraq open doors to investment, trade and unemployment
» Minister of Transport: Arab interest in the development road project
» Bitcoin Fails to Maintain Its Meteoric Rise
» Amending the retirement age on the parliament's table.. This is the latest that has been reached
» Launching the Health Unit Initiative in Iraqi Schools
» Will Iraq be the savior of the countries of the region if oil prices fall?
» Regarding electrical energy.. Government moves to meet the needs of next summer
» {Retirement age} sparks debate in parliament
» Minister of Transport to {Sabah}: Arab interest in the development road project
» Planning: Two important pre-census activities start today and tomorrow
» Next week.. contracting with 2500 applicants on a {contract} basis
» Service Effort: Opening 30 projects in agricultural areas next month
» The House of Representatives issues a clarification regarding its tenders and official invitations
» Issuance of (3000) new decisions for politically dismissed employees and non-employees
» Al-Sudani discusses cooperation in the field of energy and development of the oil and gas sector wit
» Trade: Transferring 400 billion dinars to pay farmers’ dues for the remaining wheat for the northern
» Iranian Minister of Trade and Industry Injured During Trip to Kurdistan
» Chairman of the Integrity Commission: Corruption negatively affects reconstruction and development a
» Strengthening judicial cooperation on the table of Judge Zidane and his Turkish counterpart
» Al-Sudani directs the Ministry of Oil to communicate with Shell to implement projects that serve Ira
» One of them is "protocol".. A politician determines the extent of the difference between Al-Sudani's
» Iraq confirms its keenness to support OPEC unity to ensure oil price stability
» It may drop to 40%.. Al-Kanani warns of a sharp drop in oil and directs an urgent call to the govern
» Distribution next week.. The region will receive nearly 533 billion dinars to finance its employees’
» Iraq expresses interest in cooperating with major international oil companies
» Criticism follows the performance of the Minister of Foreign Affairs in international positions.. Wi
» Al-Mashhadani's election "embarrassed him"... Will Al-Sudani implement the ministerial reshuffle?
» Will the "dollar crisis" topple the central bank governor?
» The Oil and Gas Law Returns to the Forefront... Will Al-Sudani Be Able to Resolve the Disputes Over
» Oil Licenses in Basra: An Environmental Disaster That Raises Cancer Rates and Suffocates the Populat
» Iraq begins intensive campaign to deport illegal foreign workers and regulate the labor market
» Government advisor explains Baghdad Metro project specifications and confirms its continuation witho
» Al-Mashhadani to the 188 Alliance delegation: The best solution is to give people the freedom to cho
» Parliamentarian: Ambassadors and representatives of foreign missions came to Parliament to prevent t
» Al-Sudani's advisor reveals the reasons for the lack of gold in the government's reserves
» New fortifications close the most dangerous border gaps between Iraq and Syria
» "Baghdad breathes a sigh of relief" .. Closing of 144 illegal factories that emit toxins into the ai
» Iraqi oil prices continue to decline amid global price decline
» “The War of Leaks” Confuses the Political Scene... Blackmail or Expose of Corruption?
» Government sends budget amendment to resolve differences with region
» More than 800 “dual-job” employees work at Najaf Airport
» Slight rise in dollar prices against the dinar in Iraqi stock exchanges
» Where did the parliamentary discussions on the "retirement age" reach?
» The region "mobilizes" for the first census in 37 years: It will increase the budget share and the n
» "Thousands of them are suspended" .. Draft laws challenge the remainder of the life of the current p
» Population, oil and salaries...hot files in the meeting between Al-Sudani and Barzani
» Political attempts to obstruct it.. Personal Status Law on its way to legislation
» MP: Al-Sudani has reached the conviction of the necessity of removing some ministers
» Central Bank announces progress in dollar control procedures
» Baghdad.. Closing 144 informal metal smelting factories to reduce pollution
» Private Banks Association: Iraq to adopt advanced trade finance system by end of 2024