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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


    The dollar escapes from the grip of the government... and the citizen is a victim of "failure"

    Rocky
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    The dollar escapes from the grip of the government... and the citizen is a victim of "failure" Empty The dollar escapes from the grip of the government... and the citizen is a victim of "failure"

    Post by Rocky Fri 23 Jun 2023, 10:52 am

    The dollar escapes from the grip of the government... and the citizen is a victim of "failure"
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    Baghdad Today - Reports
    The exchange rate of the dollar in the black parallel markets in Iraq has risen again, as the markets record 1470 dinars for one dollar, although the Central Bank of Iraq sells it for 1320 dinars, a difference of more than 15 thousand dinars per cent of dollars.
    It seems that the measures taken by the government and the Central Bank of Iraq to control the exchange rate have failed in front of "brokers" selling the currency and their arbitration over prices, which puts citizens and traders at their mercy.
    Economists rule out that the exchange rate will be affected by the approval of the financial budget law, which set the exchange rate at the official rate due to the increased demand for it locally with the fluctuation of the Central Bank's daily sales of foreign currency.
    With the government's efforts to control prices in the parallel markets, the commercial markets witnessed a decline in the exchange rate in the past weeks, but it has recently risen again, which indicates an economic problem that is still present in the country.
    And Iraq had witnessed during the last three years a great fluctuation in the exchange rate of the dollar after the previous government raised the exchange rate from 1180 dinars to the dollar to 1450 in December 2020, while the parallel markets witnessed a record high exchange rate after the central bank began using the electronic platform. and compliance with SWIFT standards last November.
     As a result, the government resorted to a plan to impose dealings in Iraqi dinars in markets and retail stores in various governorates, as the concerned security services began to take written undertakings from merchants and owners of car showrooms to deal in Iraqi dinars instead of dollars.
    The security services have warned that failure to comply with this will expose merchants to legal accountability, which can be considered a precedent in Iraq since 2003, which may cause security and economic problems, given that the majority of merchants refuse to deal in dinars due to the large difference between the official and parallel exchange rates, according to observers. .
    Commenting on the procedures of the Ministry of Interior and preventing dealing in dollars, the spokesman for the Ministry of Interior, Major General Khaled Al-Muhanna, indicates that there are directives from the government to stop dealing in dollars in government and private outlets because there is no justification for dealing in other than the national currency.
    He pointed out that the Ministry of Interior undertook to follow up on the implementation of these measures through two phases. The first is to educate and educate the public about the need to deal in dinars only to limit speculation and high prices of consumer goods, provided that the next phase includes security campaigns to control violators.
    This rise in the exchange rate was reflected in many economic sectors in Iraq, including construction materials whose markets and building materials suffer from a great stagnation, with a sharp decline in purchasing power and a lack of investment projects, in addition to a significant increase in prices due to the dollar crisis and speculation operations that take place in the local market and the inability to Obtaining US currency at the official rate, which forces them to resort to the black market at a price ranging between 1460 and 1490 dinars per dollar, while the official price is 1302.
    Iron traders also complained about the great recession in the Iraqi markets and the complete halt of the selling movement for many days, due to political differences that led to the delay of many investment projects in the Iraqi governorates, in addition to the government's inability to control the exchange rates of the dollar.
    Some of them said that: "Obtaining the dollar is very difficult in light of the influencers' control over the currency market and the outlets for buying it from the currency sale window at the Central Bank of Iraq, which forces them to buy dollars from the parallel market at prices that finally reached 148 thousand dinars per 100 dollars, while The official price set by the state is 132,000 dinars.
    Others criticized the government's performance in dealing with local economic files and commercial movement in the markets, indicating that more than 75 percent of construction materials sales are related to investment projects, which are still suspended due to the delay in starting work on the budget and its entry into force.
    They stressed that the greatest damage from this recession is directly reflected on the citizen, because there are large numbers of workers and small traders who depend on working in this field, and the continuation of the recession causes great economic damage.
    And the governor of the Central Bank of Iraq, Ali Al-Alaq, contradicts all “hearsay” about the exchange of the dollar and expects it to decline soon, saying in a press statement on June 10 to the official agency that “commitment to firm instructions for financing foreign currencies will contribute to a significant decrease in the exchange rate of the dollar in the coming days,” denying “the existence of what necessitates launching Urgent new packages at present.
    And he believed that "the situation is moving towards stability and there is no need to take additional measures," warning that some merchants' insistence on buying dollars from the parallel market will expose them to legal accountability.
    Pointing out that "there is coordination to monitor the decision to deal in Iraqi dinars instead of dollars by investment companies and the sale of housing units."
    For his part, Mazhar Muhammad Salih, economic advisor to the Prime Minister, said that the monetary policy of the Central Bank under Law No. 56 of 2004 is to preserve the purchasing power of the Iraqi dinar, and that dealing locally in any currency other than the Iraqi dinar leads to striking centers of economic stability.
    The Central Bank's procedures require limiting dealings in dinars, according to Saleh, who confirms that the aim of this campaign is to reduce the turmoil in the local market, pointing out that the dual currency is one of the most dangerous aspects facing countries.
    From a legal point of view, legal expert Ali Al-Tamimi indicates that the penalty for speculation that leads to influencing the exchange rate of the local currency was stipulated in Article 44 of the Money Laundering Law No. 39 of 2015, where the article punished speculators with imprisonment for a period of one year and a fine of one million dinars (about 760 dollars). As for the penalty for those accused of smuggling money to other countries and laundering it, it reaches 15 years in prison, according to Articles 36, 37 and 38 of the same law.
    Al-Tamimi pointed out that the Iraqi government's approach to banning dealings locally in dollars aims to control the currency and consumer prices and prevent inflation through the application of consumer protection and monopoly laws.
    While the economic researcher, Hamza Al-Hardan, attributed the significant increase in all imported goods and materials in price levels, due to the exchange rate difference and currency speculation, which created a state of price imbalance.
    Al-Hardan stressed in a press statement that there is a real economic recession that the local markets are suffering from, and a state of despair afflicted most of the merchants with the existence of manipulation in the price situation, which generated a state of great fears among consumers.
    Al-Hardan concluded his speech by saying that limiting the rise in prices is related to preserving the value of the Iraqi dinar against foreign currencies, the stability of the exchange rate, the elimination of currency speculation, and the reduction of crises that drain the Iraqi economy and cause a lot of money to leave the country.
    Citizens and traders alike are anticipating the effect of approving the financial budget on moving the commercial and economic market and its reflection on the exchange of the dollar and the decline in prices to get out of the current state of recession the country is going through.
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