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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


    Delayed salaries.. “Liquidity” embarrasses the government and the treatments do not rise to the scal

    Rocky
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    • Post n°1

    Delayed salaries.. “Liquidity” embarrasses the government and the treatments do not rise to the scal Empty Delayed salaries.. “Liquidity” embarrasses the government and the treatments do not rise to the scal

    Post by Rocky Fri 24 May 2024, 4:22 am

    Delayed salaries.. “Liquidity” embarrasses the government and the treatments do not rise to the scale of the crisis - urgent

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    Baghdad today - Baghdad
    Today, Thursday (May 23, 2024), expert in financial and economic affairs, Nabil Jabbar Al-Tamimi, commented on the government’s mechanism for dealing with the financial liquidity crisis, which caused a delay in the payment of employee salaries.
    Al-Tamimi told “Baghdad Today” that “the presence of a liquidity crisis is usually the result of one of two reasons, as for a defect in preparing the budget, which is usually an estimate (realistic) of revenues and designing expenditures based on revenues,” explaining, “as for the other reason, it is the occurrence of something.” "It disrupted the flow of money to the state treasury and caused a change in the size of the state's revenues."
    Al-Tamimi added, “It cannot be said that the second reason exists, as the main flaw is in designing the budget and managing it during the year. The government’s budget set large spending estimates that far exceed the size of its revenues,” adding that “this is the direct reason with which the government embarrassed itself through this volume of spending.” Spending in light of the weak internal circulation of funds, including oil funds, which require recycling and converting them from dollars to dinars, the presence of larger transfers issued by the Central Bank, dynamic recycling of non-oil revenues, and the activation of the unified treasury account.”
    The expert in financial and economic affairs stated that “there are many steps through which the government can provide liquidity,” stressing that “it has not reached the point of a major crisis, but rather has become a continuing challenge to it.”
    Professor of International Economics, Nawar Al-Saadi, revealed on Saturday (April 6, 2024) the reasons for the failure of monetary policy in Iraq, indicating who bears responsibility for this failure.
    Al-Saadi told "Baghdad Today", "There are several reasons for the failure of monetary policy, including large inflation in government spending, as government spending exceeds available revenues, so monetary policy was affected by increased spending on infrastructure and public services without the availability of sufficient funding sources."
    He stated, “The second reason is the heavy reliance on oil revenues, which makes the Iraqi economy vulnerable to fluctuations in oil prices, which negatively affects the government’s ability to implement effective monetary policies. In addition to the weak financial infrastructure, the banking and financial system in Iraq suffers from a traditional system that lacks Modernity in providing advanced financial services, which makes it difficult for the central bank to implement effective monetary policies to ensure economic stability.”
    He added, "In the case of Iraq, the country's central bank is the body responsible for setting and implementing monetary policy, including setting the interest rate and managing the money supply. However, the government also has a role in determining general economic policies that may affect monetary policy." Such as government spending, foreign trade policies, etc.
    He continued, "The most prominent negatives, errors, and problems of monetary policy in Iraq is that Iraq is now suffering from hyperinflation. There is a large increase in monetary supply and demand in hyperinflation, which negatively affects the purchasing power of citizens and weakens economic stability, not to mention the budget deficit occurring as a result of the disparity." Spending and revenues, Iraq faces a budget deficit that requires additional funding from the central bank or external borrowing, as happened in previous years, especially the periods of low oil and the wars with ISIS, and of course also the exchange rate fluctuations in the last two years played a major role in instability in the financial markets and a negative impact on Investment and foreign trade.
    The professor of international economics concluded by saying, “I think it is difficult to accurately determine the losses due to the multiplicity of factors, the discrepancy in estimates, and also the conflicting numbers from the concerned parties, but the losses could include a loss of confidence in the currency, unstable trading, a slowdown in economic growth, and an increase in public debt as a result of the budget deficit.” "Inflation will increase, and these losses could reach billions of dollars annually, which makes the need for serious reforms in monetary policy urgent in Iraq."
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