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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


    Economists: the Iraqi dinar crisis may push the Central Bank to issue new money

    rocky
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    Economists: the Iraqi dinar crisis may push the Central Bank to issue new money Empty Economists: the Iraqi dinar crisis may push the Central Bank to issue new money

    Post by rocky Tue 24 Jan 2023, 2:02 pm

    Economists: the Iraqi dinar crisis may push the Central Bank to issue new money
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    Baghdad today - follow-up
    Today, the Iraqi government is facing fears of its inability to provide the salaries of employees, retirees, and social welfare subscribers, who number about 10 million people, for whom about six trillion Iraqi dinars are allocated.
    Today, Tuesday, the newspaper (The Independent Arabic) wrote a report followed by (Baghdad Today), in which it said that “the restrictions imposed by the US Federal Bank on the Central Bank of Iraq in the dollar file, and the start of introducing the Iraqi financial transfer within the “Swift” system, caused a series of crises. It led to a contraction of the Iraqi market and a decline in the purchasing power of most Iraqis during the past weeks.
    She added, "The Iraqi economy depends almost entirely on Iraqi oil sales in US dollars, which are transferred through the Iraqi Ministry of Finance to the Central Bank, which sells them to banks to obtain the Iraqi dinar."
    The report said, "In the absence of any other resource other than oil to bring in the dollar in conjunction with the absence of real economic activity or other revenues for the Iraqi government from taxes, fees and investments, obtaining the Iraqi dinar will become very difficult, and Baghdad may be forced to use alternatives, which will cause an increase." inflation rates in the country.
    He explained, "Since the fall of Saddam Hussein's regime in 2003, successive Iraqi governments, under pressure from the parties participating in the political process, opened the door wide for appointments in Iraqi state departments as an important part of their campaign for elections, which raised the number of workers in the public sector from 850,000." 2003 to four million employees, workers, wage earners, and contractors who earn about 43 trillion Iraqi dinars ($29 billion) annually, in addition to millions of retirees and those covered by social care, bringing the number to about 10 million people, according to the Iraqi Ministry of Planning.
    And financial expert Muhammad Dagher believes that "the Central Bank of Iraq will resort to issuing new money from the dinar to meet its needs of paying employee salaries, if its sales continue in this way," while noting that "the central bank currently has enough local currency."
    Dagher said, "The issue of salaries is a red line that cannot be touched, and if we do not get Iraqi dinars through the dollar sale window, the Central Bank of Iraq must issue new money."
    Dagher ruled out that salaries would be distributed in US dollars instead of dinars if an Iraqi dinar was not available at the central bank, due to national and other economic considerations represented in the possibility of price increases.
    He stressed that "the central bank has a reserve of local currency and can maneuver it and meet the needs."
    The financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed that the Central Bank of Iraq has temporary alternative procedures for absorbing liquidity, which are in the study phase and awaiting implementation, but he did not disclose these procedures.
    And the specialist in economic affairs, Safwan Qusay, said, "Iraq suffers from a deficit of four trillion dinars per month as a result of the decline in dollar sales, while he referred to a set of solutions to bridge the deficit, including the issuance of bonds in Iraqi dinars."
    Qusai said, "The currency selling window decreased at a rate of 130 million dollars per day, by about 200 billion dinars, which will lead to a decrease in the possibility of obtaining the Iraqi dinar to meet the requirements of the operational and investment budget." 
    Qusay added, "The US federal wants to improve the economic situation of the Iraqis and create job opportunities. The more we raise the level of investment spending with international companies, the more we will get a dollar and convert it into Iraqi dinars to spend on these projects."
    And Qusay indicated that the amount of the monthly deficit amounts to 2.5 billion dollars, that is, about four trillion Iraqi dinars, and therefore we need 50 trillion dinars annually, up to ($ 34 billion), stressing that what is now available to the Iraqi ministries and the Central Bank is less than this number, which will mean that the government You will be in trouble for the next six months.
    He pointed out that there are more than 70 trillion dinars (47 billion dollars) with the Iraqis, and it is possible to withdraw part of it to fulfill the obligations through selling the state’s lands and properties in Iraqi dinars, and issuing dinar bonds, which contributes to absorbing the surplus dinars.
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