POSTED ON[You must be registered and logged in to see this link.] BY [You must be registered and logged in to see this link.]
[size=52]To address the dollar exchange rate... Mazhar Muhammad explains the risks of floating the Iraqi dinar[/size]
[size=45]To address the dollar exchange rate... Mazhar Muhammad explains to Al-Zawraa the dangers of floating the Iraqi dinar
[You must be registered and logged in to see this image.]
04/27/2024
Mustafa Falih:
The government’s financial advisor, Mazhar Muhammad Saleh, explained the dangers of the economic vision that wants to float the Iraqi dinar as a solution to address the double dollar exchange rate, while Provide an alternative economic vision.
Saleh said in an interview with “Al-Zawraa”: “The economic vision that wants to float the Iraqi dinar to end the gap between the official rate and the exchange rate parallel to it may be possible in an economy in which the free market is the only one influencing the movement of the balance of payments and not in an economy in which the government sector is dominant and rentier-generating.” Reserves supporting foreign currency, in which the monetary authority is the main source of supply of foreign currency and meeting the desired demand for foreign exchange.”
He added, “Claims (for floating) mean in all cases adopting the prevailing exchange rate in the parallel market to achieve the goal of stability and balance in the official exchange rate itself at a new exchange point that the market will reach at the end of the supposed floating policy and return to stability again.”
He pointed out that “the scenario of demands for floating means, in all cases, the withdrawal of the monetary authority (as a primary central exhibitor) of foreign currency, and is replaced by new forces that exhibit foreign currency from free market makers, which certainly only have a weak, limited supply of foreign exchange, and at the same time they carry... An uncontrolled bundle of inflationary expectations is called the forces generating inflationary expectations.”
He explained that “the new hypothetical supply forces for foreign exchange adopted by the exchange market in that scenario will mean the dominance of supply forces from speculators with very limited quantities of foreign exchange available for supply in the parallel market, matched by an open demand for foreign currency on the part of the market that undoubtedly exceeds that limited parallel supply.” of foreign exchange, perhaps at least more than ten times.”
He stressed that “such a policy of floating to achieve a homogeneous equilibrium exchange rate will be an open and perhaps (unruly) situation as long as the central government supply of foreign currency will be absent from the market, and we will not then obtain any equilibrium point in the exchange rate that the float seeks except with a widespread deterioration of the exchange rate as long as It is controlled by forces that generate inflationary expectations, and it is an exchange rate whose mechanisms will move in a market that is incomplete in terms of productivity to compensate for the required supply of goods and services,” adding, “Then no one knows how much the new price resulting from (floating) will be, which will undoubtedly be accompanied by a prior wave of expectations.” Inflation is a dangerous wave whose trends are difficult to control, which may force monetary policy to intervene with excessive foreign reserves and unjustified extravagance in foreign exchange to impose a state of stability in the general level of prices.”
He noted that “the difference in the two prices did not come due to the limited supply of foreign exchange at the monetary authority, but rather came as a result of a sudden external factor imposed by the compliance platform and administrative audit restrictions on external transfer movements.”
He explained that “the alternative solution to the flotation scenario, which is a scene surrounded by inflationary risks in mono-economy countries, is to resort to reducing the exchange rate to create harmony in the exchange market. It is possible to go to amending the customs tax schedules and imposing customs discipline with precise, studied conditions that protect the national economy, and here it depends.” To financial policy instead of the ease of delving into and risking the principles of stability in monetary policy to provide the required price homogeneity in exchange rates.”
He pointed out, “The high operating spending in the annual public budgets, which has always generated cash income from rentier sources that are not matched by the very limited productivity of commodity and service flows, has made the country essentially dependent on large-scale imported consumer goods, which requires a higher examination in Import policies inherited over the past twenty years.”[/size]
[size=45][You must be registered and logged in to see this link.]
[size=52]To address the dollar exchange rate... Mazhar Muhammad explains the risks of floating the Iraqi dinar[/size]
[size=45]To address the dollar exchange rate... Mazhar Muhammad explains to Al-Zawraa the dangers of floating the Iraqi dinar
[You must be registered and logged in to see this image.]
04/27/2024
Mustafa Falih:
The government’s financial advisor, Mazhar Muhammad Saleh, explained the dangers of the economic vision that wants to float the Iraqi dinar as a solution to address the double dollar exchange rate, while Provide an alternative economic vision.
Saleh said in an interview with “Al-Zawraa”: “The economic vision that wants to float the Iraqi dinar to end the gap between the official rate and the exchange rate parallel to it may be possible in an economy in which the free market is the only one influencing the movement of the balance of payments and not in an economy in which the government sector is dominant and rentier-generating.” Reserves supporting foreign currency, in which the monetary authority is the main source of supply of foreign currency and meeting the desired demand for foreign exchange.”
He added, “Claims (for floating) mean in all cases adopting the prevailing exchange rate in the parallel market to achieve the goal of stability and balance in the official exchange rate itself at a new exchange point that the market will reach at the end of the supposed floating policy and return to stability again.”
He pointed out that “the scenario of demands for floating means, in all cases, the withdrawal of the monetary authority (as a primary central exhibitor) of foreign currency, and is replaced by new forces that exhibit foreign currency from free market makers, which certainly only have a weak, limited supply of foreign exchange, and at the same time they carry... An uncontrolled bundle of inflationary expectations is called the forces generating inflationary expectations.”
He explained that “the new hypothetical supply forces for foreign exchange adopted by the exchange market in that scenario will mean the dominance of supply forces from speculators with very limited quantities of foreign exchange available for supply in the parallel market, matched by an open demand for foreign currency on the part of the market that undoubtedly exceeds that limited parallel supply.” of foreign exchange, perhaps at least more than ten times.”
He stressed that “such a policy of floating to achieve a homogeneous equilibrium exchange rate will be an open and perhaps (unruly) situation as long as the central government supply of foreign currency will be absent from the market, and we will not then obtain any equilibrium point in the exchange rate that the float seeks except with a widespread deterioration of the exchange rate as long as It is controlled by forces that generate inflationary expectations, and it is an exchange rate whose mechanisms will move in a market that is incomplete in terms of productivity to compensate for the required supply of goods and services,” adding, “Then no one knows how much the new price resulting from (floating) will be, which will undoubtedly be accompanied by a prior wave of expectations.” Inflation is a dangerous wave whose trends are difficult to control, which may force monetary policy to intervene with excessive foreign reserves and unjustified extravagance in foreign exchange to impose a state of stability in the general level of prices.”
He noted that “the difference in the two prices did not come due to the limited supply of foreign exchange at the monetary authority, but rather came as a result of a sudden external factor imposed by the compliance platform and administrative audit restrictions on external transfer movements.”
He explained that “the alternative solution to the flotation scenario, which is a scene surrounded by inflationary risks in mono-economy countries, is to resort to reducing the exchange rate to create harmony in the exchange market. It is possible to go to amending the customs tax schedules and imposing customs discipline with precise, studied conditions that protect the national economy, and here it depends.” To financial policy instead of the ease of delving into and risking the principles of stability in monetary policy to provide the required price homogeneity in exchange rates.”
He pointed out, “The high operating spending in the annual public budgets, which has always generated cash income from rentier sources that are not matched by the very limited productivity of commodity and service flows, has made the country essentially dependent on large-scale imported consumer goods, which requires a higher examination in Import policies inherited over the past twenty years.”[/size]
[size=45][You must be registered and logged in to see this link.]
Yesterday at 3:32 pm by Rocky
» The Minister of Oil sponsors the signing of an agreement to develop the Tuba oil field project with
Yesterday at 3:26 pm by Rocky
» In numbers... Basra Oil explains the importance of the Tuba field after signing a contract to develo
Yesterday at 3:25 pm by Rocky
» Electricity: The government provides energy at subsidized prices for (4) categories
Yesterday at 3:24 pm by Rocky
» The electricity produced in Iraq covers 65% of demand... and 15 thousand megawatts is a “deficit”
Yesterday at 3:22 pm by Rocky
» Parliamentary services: Government interest in Baghdad will make it one of the most beautiful capita
Yesterday at 3:21 pm by Rocky
» Basra Council emphasizes work to qualify young people and place them in the labor market
Yesterday at 3:19 pm by Rocky
» Politician: Al-Kadhimi was recommending that Plasschaert write “negative” reports about Iraq
Yesterday at 3:17 pm by Rocky
» Trade launches operations to lift the ban on the ration card next to Rusafa
Yesterday at 3:16 pm by Rocky
» utube 5/12/24 Iraqi Dinar | Citi Bank Announced New Rate Of The Iraqi Dinar | Dinar News Today 202
Yesterday at 7:00 am by Rocky
» utube 5/9/24 MM&C 0:02 / 46:46 PM - Al-Sudani - Golden Opportunity - Private Sector - Contra
Yesterday at 6:57 am by Rocky
» utube MM&C 5/11/24 Iraqi Dinar - IQD Update - International - IraqTiming - 2024 Budget Schedule - Sp
Yesterday at 6:55 am by Rocky
» Bahr Al-Ulum calls for legislating the renewable energy law and localizing the solar panel industry
Yesterday at 6:49 am by Rocky
» In numbers: the rise in internal debt in Iraq
Yesterday at 6:49 am by Rocky
» Jordan demands that Iraq continue to export oil for another three months
Yesterday at 6:46 am by Rocky
» Iraq is the largest producer.. OPEC+ is pumping higher than scheduled and in anticipation of the Jun
Yesterday at 6:44 am by Rocky
» Close to the coordination framework: There is no intention to change the internal regulations of Par
Yesterday at 6:43 am by Rocky
» Central Bank sales exceed $274 million today
Yesterday at 6:41 am by Rocky
» But the representative of the exchange companies is pessimistic... Why did the dollar fall?... The C
Yesterday at 6:38 am by Rocky
» Jordan addresses Iraq to extend a memorandum of understanding to purchase oil
Yesterday at 6:36 am by Rocky
» Bribes increased from 3,000 to 50,000 dollars.. What is the condition of alcohol in Iraq after the p
Yesterday at 6:34 am by Rocky
» Presence movement: Sunnis and Kurds while the Americans remain in Iraq
Yesterday at 5:31 am by Rocky
» A deputy reveals the contents of the first water strategy in Iraq
Yesterday at 5:29 am by Rocky
» Soon...the second reading of the proposed red card law
Yesterday at 5:28 am by Rocky
» The discovery of 10 new oil and gas fields in the Anbar desert
Yesterday at 5:27 am by Rocky
» A bloc announces to “Al-Ma’louma” the date of the parliamentary speaker’s election session
Yesterday at 5:26 am by Rocky
» Parliamentary Finance explains the mechanism for amending the retirement law
Yesterday at 5:24 am by Rocky
» Sovereignty accuses Al-Halbousi of obstructing the election of a Speaker of Parliament
Yesterday at 5:23 am by Rocky
» Parliamentary Agriculture accuses Kurdistan of harming the farmers of the center and south
Yesterday at 5:22 am by Rocky
» Al-Sudani confirms Iraq's readiness to host the Arab Network conference
Yesterday at 5:21 am by Rocky
» Nechirvan Barzani calls on the Iraqi government to allocate a budget to confront climate change
Yesterday at 5:20 am by Rocky
» “Iraq is in danger.” Political warnings against ending the work of the UN mission
Yesterday at 5:19 am by Rocky
» The Iraqi Interior Minister announces the signing of a security cooperation memorandum with Syria
Yesterday at 5:17 am by Rocky
» The Minister of Oil told “Al-Iqtisad News”: The 5th and 6th rounds will add 3 Mqmq of gas to Iraq’s
Yesterday at 5:16 am by Rocky
» Economist: Tax revenues from the private sector should be 4 trillion dinars annually
Yesterday at 5:14 am by Rocky
» The Real Estate Bank calls on the Iraqi Central Bank to determine a plan to allocate a new initiativ
Yesterday at 5:13 am by Rocky
» More than one billion and 400 million dollars...CBI sales within a week
Yesterday at 5:12 am by Rocky
» Oil: Iraq achieved self-sufficiency in liquid gas and began exporting the surplus
Yesterday at 5:10 am by Rocky
» Iraq begins exporting liquid gas
Yesterday at 5:09 am by Rocky
» The Cabinet Secretariat sets to Al-Iqtisad News the completion date for the Chinese agreement school
Yesterday at 5:09 am by Rocky
» Securities: The most recent law of the Authority in the Arab and regional countries
Yesterday at 5:07 am by Rocky
» A European desire to strengthen security and economic cooperation with Baghdad
Yesterday at 5:06 am by Rocky
» The close selection of a person for the position of Speaker of Parliament
Yesterday at 5:05 am by Rocky
» Parliamentary law excludes the exchange of penalties for cash amounts
Yesterday at 5:04 am by Rocky
» An agreement with Italy to finance industrial projects
Yesterday at 5:02 am by Rocky
» The Najaf Chamber of Commerce signs a “memorandum of understanding” with its Thai counterpart
Yesterday at 5:01 am by Rocky
» Baghdad, Arab Forum
Yesterday at 5:00 am by Rocky
» Specialists: Economic integration and job opportunities await development
Yesterday at 4:59 am by Rocky
» The President of the Republic, Nechirvan and Barzani stress the necessity of coordinating efforts be
Yesterday at 4:57 am by Rocky
» The Judicial Institute announces the names of those accepted for the 48th and 49th sessions
Yesterday at 4:56 am by Rocky
» Today's newspapers are interested in launching the fifth licensing supplement rounds and the sixth l
Yesterday at 4:55 am by Rocky
» Al-Sudani receives the Secretary-General of the Arab Network for National Human Rights Institutions
Yesterday at 4:53 am by Rocky
» Trade participates in the meetings of the Economic and Social Council at the level of senior officia
Yesterday at 4:52 am by Rocky
» The Minister of Transport discusses with the Tunisian Minister of Foreign Affairs and Immigration wa
Yesterday at 4:50 am by Rocky
» Iraq recorded an increase in its oil exports to the United States last week
Yesterday at 4:49 am by Rocky
» It is governed by three dimensions.. Parliament talks about a strategic priority for Iraqi national
Yesterday at 4:48 am by Rocky
» To what extent do Arab countries influence politically Iraq? It has become more independent
Yesterday at 4:46 am by Rocky
» The Iranian ambassador in Baghdad: Iraq has paid its debts, and the security agreement includes thre
Yesterday at 4:45 am by Rocky
» Dollar exchange rates decline slightly on the Baghdad Stock Exchange
Yesterday at 4:44 am by Rocky
» China has 18% of the fields in the two new rounds, and 11 countries share the remainder
Yesterday at 4:43 am by Rocky
» On the table...a proposal for the Kurdistan oil crisis and an effort to conclude a similar agreement
Yesterday at 4:42 am by Rocky
» Al-Awadi: A government decision to provide sovereign guarantees and guarantees to encourage the inve
Yesterday at 4:40 am by Rocky
» 6 Chinese companies are among the winners of developing Iraqi oil and gas fields
Yesterday at 4:38 am by Rocky
» Baghdad gives UNAMI the end of 2025 to leave the country after fiery briefings
Yesterday at 4:37 am by Rocky
» Dhi Qar clarifies: The quarry burying radioactive materials is regular and does not pose a danger
Yesterday at 4:36 am by Rocky
» Al-Sudani: There are 64 lagging projects in Babylon
Yesterday at 4:34 am by Rocky
» The housing crisis is expanding and planning confirms: Iraq needs 3 million housing units to solve i
Yesterday at 4:34 am by Rocky
» 90 billion dinars were recovered from social protection violators
Yesterday at 4:32 am by Rocky
» Iraq seeks to increase its oil reserves to more than 160 billion barrels
Yesterday at 4:31 am by Rocky
» After keeping the numbers secret... Did the rain increase Iraq's water reserves by 120%?
Yesterday at 4:30 am by Rocky
» In the first quarter of 2024.. Iran will displace Iraq and become the second largest producer in OPE
Yesterday at 4:28 am by Rocky
» Iraqi oil exports to Jordan stopped 20 days ago
Yesterday at 4:27 am by Rocky
» Iraq and Syria sign a memorandum of security cooperation in several fields
Yesterday at 4:25 am by Rocky
» Parliament recommends stopping electronic schools in Iraq
Yesterday at 4:24 am by Rocky
» Parliamentary law rules out passing a law replacing penalties with sums of money
Yesterday at 4:22 am by Rocky
» After a rare meeting... sources talk about Al-Sadr's future in political life in Iraq
Yesterday at 4:21 am by Rocky
» The President of the Republic warns of climate change and its threat to food security and future gen
Yesterday at 4:20 am by Rocky
» The Iranian ambassador to Iraq talks about negotiations for the withdrawal of American forces and Tu
Yesterday at 4:19 am by Rocky
» Deputy: Iraq represents an important factor in the stability of the global oil market
Yesterday at 4:16 am by Rocky
» Transportation: The Iraqi-Turkish technical committees continue to fulfill the requirements for impl
Yesterday at 4:15 am by Rocky
» Economic: Raising the interest rate will reduce real estate prices
Sat 11 May 2024, 7:20 am by Rocky
» Did Barzani agree in Tehran to end the presence of Iranian groups in Kurdistan? - urgent
Sat 11 May 2024, 7:16 am by Rocky
» Al-Sudani: We are establishing a new situation for the global energy market through the Development
Sat 11 May 2024, 7:14 am by Rocky
» Al-Sudani: The government program devoted a wide scope to the government’s vision for oil and gas in
Sat 11 May 2024, 7:11 am by Rocky
» Al-Awadi: Ending the work of the UNAMI mission is consistent with the government’s vision in this fi
Sat 11 May 2024, 7:10 am by Rocky
» MM&C Floating the dinar" returns to the forefront.. Will the Central Bank of Iraq resort to it and w
Sat 11 May 2024, 5:24 am by Rocky
» The Secretary of the Ministry of Defense meets with the Commander of the NATO mission
Sat 11 May 2024, 5:17 am by Rocky
» Expert: The stability of the economy is linked to the political situation
Sat 11 May 2024, 5:13 am by Rocky
» A parliamentary request to lift the injustice against 20,000 Iraqi employees
Sat 11 May 2024, 5:09 am by Rocky
» Parliamentary Finance criticizes the government's failure to send the budget schedules
Sat 11 May 2024, 5:08 am by Rocky
» Minister of Oil: The 5th and 6th licensing rounds will take place within the framework of exploratio
Sat 11 May 2024, 5:07 am by Rocky
» Al-Sudani: Iraq is a difficult number in the global market in the field of energy
Sat 11 May 2024, 5:06 am by Rocky
» Al-Khanjar rejects Al-Halbousi’s request to head Parliament
Sat 11 May 2024, 5:05 am by Rocky
» Revealing the date of the arrival of the 2024 budget schedules
Sat 11 May 2024, 5:04 am by Rocky
» Al-Halbousi nominates Talal Al-Zubaie for presidency of the House of Representatives
Sat 11 May 2024, 5:03 am by Rocky
» "A coup in Iraqi universities"... Replacement of presidents and deans under the new education law
Sat 11 May 2024, 5:01 am by Rocky
» Al-Sudani: Iraq is a difficult number in the equation of energy and oil wealth in the region and the
Sat 11 May 2024, 5:00 am by Rocky
» Minister of Oil: We hope to announce an increase in Iraq’s oil reserves to 160 billion barrels
Sat 11 May 2024, 4:58 am by Rocky
» Iraq's mass graves...stories that did not end with the burial of their owners, and the "legacy of IS
Sat 11 May 2024, 4:57 am by Rocky