The profits of the dollar stock exchange speculators continue...and the reduction costs the governme

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[size=52]The profits of the dollar stock exchange speculators continue...and the reduction costs the government $6 billion annually[/size]

[size=45]Baghdad / Tamim Al-Hassan[/size]
[size=45]The parallel dollar market still records a difference of about 20 points (number) from the official price of the foreign currency, despite the devaluation decision. On the other hand, the coordinating framework that leads the government strongly supported the reduction decision, despite his previous statements about the difficulty of implementing this measure due to its connection to global financial centers.[/size]
[size=45]However, politicians and experts warned of the widening financial deficit in expenditures due to the reduction in the price of the dollar, which could reach 15 trillion dinars annually.[/size]
[size=45]And the parallel stock markets, 24 hours after the decision to officially devalue the dollar, recorded prices that reached the threshold of 1,500 dinars against one dollar.[/size]
[size=45]According to citizens who spoke to Al-Mada, “the exchange companies have been buying dollars since the night before yesterday, but not selling them.”[/size]
[size=45]This explains, according to a deputy who spoke to (Al-Mada), accusing most exchange companies of “collecting dollars” in preparation for smuggling them abroad.[/size]
[size=45]And the deputy, who asked not to be named, says: “Reducing the dollar will not solve the problem of smuggling. On the contrary, companies have achieved double profits now because of the difference between the official and parallel prices.”[/size]
[size=45]Currency smuggling brokers achieve 170 million dinars per million dollars by transporting currency at a rate twice a day to the border for the purpose of smuggling it.[/size]
[size=45]And the day before yesterday, the Sudanese Prime Minister, Muhammad Shia'a, confirmed that the sale of the dollar at the new price (1300 dinars) will start from tomorrow, Wednesday (yesterday), stressing once again the existence of currency smuggling.[/size]
[size=45]The government's decision was surprising, as circles close to Al-Sudani expected that the discussion of the Central Bank's proposal would take at least a few days.[/size]
[size=45]Ali Al-Alaq, the new governor of the bank, in turn, thanked the government for the “quick response” to the central bank’s decision to devalue the dollar. According to a statement of the latter.[/size]
[size=45]In addition, Majid Shankali, a member of Parliament, warned of “adverse effects” if the decision to reduce the dollar was “emotional.”[/size]
[size=45]Shankali said in a tweet on Twitter that the difference between the price of the old and new dollars "will be close to 15 trillion dinars."[/size]
[size=45]He added that if the government was able to make up for that difference, "by preventing dollar smuggling, collecting tax and customs tariffs in full, and supporting industry and agriculture, then it is a successful decision, but if it was a political and emotional decision, its effects will be opposite."[/size]
[size=45]For his part, the head of an institution concerned with the economy considered that the recent reduction decision would cost the government $6 billion annually.[/size]
[size=45]“The first effects of changing the exchange rate will increase government expenditures by $500 million per month, which represents $6 billion annually,” Manar al-Obaidi, head of the Future Iraq Foundation, said on Facebook.[/size]
[size=45]And the head of the economic institution stated that the state’s monthly expenditures, about 6 trillion Iraqi dinars, were previously equal to:[/size]
[size=45]6 trillion ÷ 1450 = 4.14 billion dollars[/size]
[size=45]Today, the same 6 trillion would equal:[/size]
[size=45]6 trillion ÷ 1300 = 4.615 billion dollars[/size]
[size=45]That is, monthly, the Iraqi government's expenditures increased by 500 million.[/size]
[size=45]Al-Obeidi, a former candidate for the extension of the reduction movement, considered it: “a patchwork solution that I expected the government to adopt.”[/size]
[size=45]He added, "This decision on the strategic dimension is wrong. It will cost the Iraqi state new expenditures, and it will contribute to reducing the competitiveness of the productive sectors and affect the percentage of its contribution to the GDP, and thus may lead to reducing job opportunities as a result of the decline of these sectors."[/size]
[size=45]The government, in turn, did not talk about magical solutions to the decision to reduce the dollar. The financial advisor to the prime minister, Mazhar Muhammad Salih, told (Al-Mada) that "this decision is part of the solution."[/size]
[size=45]Mazhar stressed that "there are new packages of reforms and procedures that will be announced by the Central Bank."[/size]
[size=45]And Prime Minister Muhammad al-Sudani had said in a press conference held last Tuesday on the occasion of the 100th anniversary of his government: “We were surprised in the first month that there were due obligations related to the dollar sale mechanism agreed upon two years ago between the government and the central bank with the US Federal Bank.”[/size]
[size=45]He pointed out that "we took quick measures regarding the issue of the currency sale window, but it takes time," noting that "merchants are looking for an unofficial dollar parallel to the dollar that is sold through the currency sale window, and we do not deny the existence of currency smuggling operations."[/size]
[size=45]Al-Sudani had previously admitted that currency smuggling abroad takes place through transfers made on the basis of forged invoices for imports whose prices were inflated.[/size]
[size=45]In an interview with the official channel, he said, “Smuggling was done through forged invoices, and the money was going out and being smuggled, and this is a reality, otherwise what would we have imported for 300 million dollars a day? Inevitably, this money was coming out of Iraq, and this has been a chronic problem for years.”[/size]
[size=45]The coordination framework strongly defended the decision to reduce, and bloggers close to the Shiite coalition launched a “hashtag” “I promised and fulfilled,” referring to Al-Sudani’s decision.[/size]
[size=45]In this regard, Qais al-Khazali, the leader of Asa'ib, said: "The reduction of the dollar has restored matters to their proper place in order to serve Iraq and its people."[/size]
[size=45]And he added in a tweet on Twitter that the decision “proved what we have talked about over and over again, that the sudden exchange rate hike carried out by the previous government (…) has increased the suffering of the people.”[/size]
[size=45]As for the Deputy Speaker of Parliament, Mohsen Al-Mandalawi, he said, “We appreciate the cabinet’s approval of the decision of the Central Bank’s board of directors to adjust the exchange rate of the dollar against the dinar, and we affirm our support for these efforts to alleviate the burden of the people.”[/size]
[size=45]Al-Mandalawi called on the government to tighten control over traders and exchange rate manipulators to control the market, and to expedite the submission of the budget according to the new price.[/size]
[size=45]The justifications for the government's failure to return the old exchange rate, which is 1,200 dinars, were related to news that the coordination framework repeated after that, related to an agreement between Iraq and the World Bank for a period of 5 years.[/size]
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