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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

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    Al-Nusairi: The lack of clarity in financial policies in the 2023 budget will put the central bank a

    rocky
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    Al-Nusairi: The lack of clarity in financial policies in the 2023 budget will put the central bank a Empty Al-Nusairi: The lack of clarity in financial policies in the 2023 budget will put the central bank a

    Post by rocky Sat 18 Mar 2023, 5:21 am

    Al-Nusairi: The lack of clarity in financial policies in the 2023 budget will put the central bank and the economy at risk

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    Economy News-Baghdad
    Samir Al-Nusairi, the economic and banking advisor to the Association of Iraqi Private Banks, predicted that the lack of clarity in financial policies and poor coordination with monetary policy in preparing and presenting the 2023 budget will lead to blurry vision and confusion in the implementation of the budget when it is issued by a law from the House of Representatives.
    He added, to Al-Eqtisad News, that the approval of the Council of Ministers for the allocations allocated for operating expenses, at an amount of 150 trillion dinars, at a rate of 13 trillion per month, and the continuation of budget revenues depend at 86% as planned on oil revenues confirms that financial policies are planned in isolation from monetary policy. Because the expected total oil revenues In 2023, amounting to 117 trillion dinars, equivalent to 90.9 billion dollars, at a planned price of 70 dollars, which must be converted into the local currency secured by the Central Bank for the purposes of implementing the operational budget, and at a price of 1300 dinars per dollar, which is the official price set by the Central Bank.
    He explained, which will oblige the central bank in the current complex conditions that the central bank faces in controlling the stability of the exchange rate and addressing the decline in dollar sales in the window for the purposes of the Ministry of Finance, which will lead to an increase in the exported local currency, which currently exceeds, as the information indicates, more than 93 trillion dinars, of which there is outside the device. The banking sector is more than 80%, and its increase will inevitably lead to an increase in the rate of inflation and will affect the adequacy of foreign cash reserves to cover the local currency in circulation.
    He pointed out that adopting the budget to cover the deficit, which exceeded 63 trillion dinars, at a rate of 23% of the gross domestic product, while the percentage specified in the Financial Management Law 6 of 2019 is 3%, which will lead to pressure on the Central Bank and its foreign monetary reserves and the applications of its monetary policy tools.
    Al-Nusairi pointed out that since the internal debt of the central bank owed by the government for several years, amounting to 46 trillion dinars, has not been paid yet, which if it is paid, it will enable the central bank to face the expected risks in internal and international economic changes due to the sudden collapse of the US banks Silicon Valley and Silver Gate. It will spread and expectations of the collapse of other banks and the impact of Asian and European stock markets and the possibility of the continuation of the Russian-Ukrainian war portends the risks of falling oil prices to less than planned in the 2023 budget, and its indicators actually started since yesterday, as the price of Brent fell today to $ 76 a barrel, which will force the finance to demand from the Central Bank Sooner or later, to fill the deficit in the budget by rediscounting the treasury transfers that will be issued and because of the expectations of the inability to implement the paragraphs of the budget in its operational and investment parts, which will increase the internal debt, which the government did not pay the previous debt in the first place, and return to zero point.Which constitutes an embarrassment to the Central Bank and its inclusion in the circle of government interventions, which will impede the implementation of its strategy to control the exchange rate and achieve stability in the monetary system.

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    Added 03/18/2023 - 11:52 AM


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