Some Iraqi economist calls for the government to lift the Iraqi dinar exchange rate against the dollar until the rising purchasing power and increasing confidence it represents the sovereignty of Iraq, and calling for the need to stop the «dollarization» economy by preventing the deal internally by making local transactions are limited to the use of the Iraqi dinar only.
It must be pointed out that 70 percent of the currency in circulation was covered in gold and foreign currencies until 1981, and the remaining bonds Iraqi government (currency) Act, and Iraq was then applied to the remnants of the gold standard system. In order to maintain the cover, successive governments have continued to link fiscal policy, especially current spending and investment, the status of the balance of payments, and the latter was determined by the government’s revenue from oil exports. But the success of this linkage administrative restrictions applied to the outside, both the conversion, trade in goods, services and movement of capital. Thus followed the monetary and fiscal policies the province has maintained the stability of the Iraqi dinar is installed by the Central Bank of $ 3.2 dinar.
And it gave a commitment to cover the dinar ease monetary authority in the exercise of its duties, where he was only concerned with maintaining the stability of the currency, but that check on economic development that have not been spending the expense of the adequacy of fear that increased spending affect the stability of the currency. But during the Iraq war – Iran that caused Ptlashi Iraq precautions huge foreign currency, the Iraqi government abandoned the currency law and began to spend on the war without quantitative restrictions, causing a continuous decline in the dinar exchange rate against the dollar and other major foreign currencies, because of the increasing gap between the Iraqi currency supply and demand. And increased the economic embargo imposed on Iraq in 1991 it worse. Despite holding the government at official exchange rate (US $ 3.2) for official transactions, resulting from the continuation of the growing imbalance between the currency volume in circulation and demand for another rate of the dinar is the parallel market rate or the black market, we arrived at certain times to 4000 dinars to the dollar.
After the occupation of Iraq in 2003, and lift the ban on oil exports and reserves of foreign currency deposits abroad and the resort’s central bank to regulate the daily auctions to sell the dollar, which means the withdrawal of part of the local currency, the value of the Iraqi dinar to rise began gradually until it reached 1200 dinars to the dollar, and remained range around this average. And deprived the Iraqi – Iranian war conditions and the economic blockade after the Iraqi dinar many regarded as a store of value and medium of circulation, what caused the shift most transactions at home and especially internal trade in goods and services, to the dollar, and thus has «dollarization» of the Iraqi economy.
From this background on how the Iraqi dinar exchange rate over the last 36 years the price of change, and how it has «dollarization» economy, it is time to discuss the claims of some economists now demanding higher when the dinar exchange rate and stop «dollarization».
Since more than four years and officials in Iraq are talking about a project monetary reform in which to raise the Iraqi currency exchange rate against the dollar so that the new dinar equals 1.2 dinars to the dollar instead of 1200. But the move was postponed to a later date due to the exit of some Iraqi areas under government control after the occupation of «Daesh» her. Then the military operations began to recover these areas which still exist. The government is expected to return to the project itself after the end of military operations. If the monetary reform is successful, there will no longer need to use the US dollar in local transactions. The latter earned after the completion of daily transactions difficult with the arrival of the dollar value of one thousand dinars to become, making individuals resort to dealing in dollars instead of the dinar, especially in large transactions in the hoarding of currency. So can not be canceled «dollarization» Iraqi economy administrative decision or administrative orders of the monetary authority, but will be gone phenomenon gradual demise of the reasons that led to it, that is, after the above are monetary reform referred to, because the dinar will then mode for easy handling and a store of value obviates the use of the dollar.
However, monetary reform as mentioned above does not mean setting a new official exchange rate of the dinar against the dollar. If under the floating exchange rate as it is currently, the rise or fall according to the relationship between the width of the dinar and demand, the higher the stability of the dinar against the display or low demand, price declines cashed in against the dollar. And it gets the contrary, if the width of the dinar fell against the stability or rising demand. The monetary authority may resort to the installation of the new exchange to the dollar or to a basket of currencies. But in any case, is not advisable to adopt a high exchange rate, it does not give effect to the economy or raise the value of national sovereignty, as some believe, but have negative effects in the economy. The price of the Iraqi dinar former (US $ 3.2) was exaggerated and will continue to be overrated if has to return to it in the future. It will make imports cheaper, but it hinders improvement of production and export capacity of Iraq, may be the price of 1.2 dinars to the dollar or dinar against the dollar is a good price. But on the government to follow the fiscal and monetary policies that help to maintain it. So we can say that the calls that we hear today the lifting of the dinar exchange rate and the abolition of «dollarization» claims the economy is not right for your first or can not be achieved by the monetary reform for the second.
(AP) — Defense Secretary Jim Mattis said Monday he believes U.S. forces will be in Iraq and in the fight against Islamic State militants for a while, despite some rocky times between the two nations.
Speaking at the end of a day of meetings in Baghdad with military commanders and Iraqi political leaders, Mattis said he is open to any request from his military commanders to aid the battle to retake Mosul and launch a major battle to oust IS from the base of its so-called caliphate in Raqqa, Syria. He would not provide details.
Despite President Donald Trump’s past threats to take Iraq’s oil and his attempt to impose a travel ban that includes Iraqi citizens, Mattis said his meetings with Iraqi leaders underscored the partnership the U.S. has with the Iraqis.
He said there’s no doubt that “the Iraqi people, the Iraqi military and the Iraqi political leadership recognize what they’re up against and the value of the coalition and the partnership, in particular with the United States.”
His optimistic words come on the heels of his earlier declaration that the U.S. does not intend to seize Iraqi oil, distancing himself from comments made by President Donald Trump that has rattled Iraq’s leaders.
Trump’s oil threat and his inclusion of Iraq in the administration’s travel ban have roiled the nation and spurred local lawmakers to pressure al-Abadi to reduce cooperation with Washington.
“I think all of us here in this room, all of us in America have generally paid for our gas and oil all along, and I’m sure that we will continue to do that in the future,” Mattis told reporters traveling with him. “We’re not in Iraq to seize anybody’s oil.”
Trump brought up the prospect during the campaign, and he mentioned it again late last month during a visit to the CIA. He told the gathering there that, “To the victor belong the spoils,” and added, “maybe you’ll have another chance” to take the oil.
Despite those tensions, Mattis and Lt. Gen. Stephen Townsend, the top U.S. commander in Iraq, described an enduring partnership between the U.S. and Iraq.
“I imagine we’ll be in this fight for a while and we’ll stand by each other,” Mattis said.
Townsend, who was standing by Mattis, declined to say how long the U.S. will stay in Iraq. But, he said, “I don’t anticipate that we’ll be asked to leave by the government of Iraq immediately after Mosul.” He added, “I think that the government of Iraq realizes their very complex fight, and they’re going to need the assistance of the coalition even beyond Mosul.”
Townsend also acknowledged that U.S. forces are now operating closer and deeper into the fight with Iraq units as the battle to retake western Mosul entered its second day.
He said the change began in recent months during the successful fight to take back eastern Mosul, and is now happening more often. U.S. special operations forces have been working with the Iraqis, offering advice and assistance but initially they were only at the headquarters’ level.
More recently they have been moving closer to the battlefront, working with brigade, battalion and sometimes smaller units. But they are generally with command and control units, not in combat on the front lines.
“We embedded advisers a bit further down into the formation,” Townsend said.
Mattis’ unannounced one-day stop in Iraq was his first as Pentagon chief and the first visit to the warzone by a senior member of the Trump administration. It comes as Mattis and his military leaders are nearing the end of a 30-day review of the Islamic State fight. He must send Trump a strategy to accelerate the battle in the next seven days.
Senior U.S. military officers said Monday that the fight in the more urban, heavily populated areas of western Mosul will require more precision airstrikes and probably smaller bombs that can take out a building or group of militants and leave surroundings intact.
Lt. Gen. Jeff Harrigian, the top Air Force commander in the Middle East, said troops responsible for calling in airstrikes are closer to the fight and can move forward with Iraqi units. They also have greater authority now to speak directly to pilots in the aircraft overhead, allowing them to launch strikes more quickly, he said.
Military leaders, said Harrigian, realized they could be more responsive now because the troops have built up trust with their Iraqi partners.
While Mattis and Townsend wouldn’t talk about any future changes or accelerants in the war fight, various military options have been discussed in recent months. Among them: putting more troops in Iraq and Syria and boosting military aid to Kurdish fighters backed by the U.S.-led coalition.
More specifically, officials have talked about expanding efforts to train, advise and enable local Iraqi and Syrian forces, increasing intelligence and surveillance, and allowing U.S. troops to move forward more frequently with Iraqi soldiers nearer the front lines.
The Pentagon also would like more freedom to make daily decisions about how it fights the enemy. Current and former U.S. officials discussed the likely options on condition of anonymity because they weren’t authorized to talk publicly.
In Syria, a possible option would be to send more U.S. forces, including combat troops, there as the Raqqa fight heats up.
Another move would be to provide heavy weapons and vehicles to the U.S.-backed Syrian Kurds, and boost training. They have been the most effective force against IS in northern and eastern Syria, but the proposal is sensitive. Turkey, a key U.S. and NATO ally, considers the group a terrorist organization.
There are more than 5,100 U.S. military personnel in Iraq, and up to about 500 in Syria.
BAGHDAD Journal News
He told the head of the Kurdistan Regional Government delegation Najparvan Barzani, the US Senate that there was no progress on the outstanding issues between Baghdad and Erbil, with the exception of military cooperation to fight al Daesh.
The presidency of the province said in a statement, Monday, that Barzani met in Arbil, chairman of the Foreign Relations Committee in the US Senate, Robert Corker and his accompanying delegation, diplomatic and military.
The eighth corker “coordination between the Peshmerga and the Iraqi army forces in the liberation of Mosul process and its environs,” stressing “the need for a coordination in other areas and be for the Kurdistan region’s role in the Iraqi reconciliation”, expressing at the same time “, supporting his country to address all outstanding problems between Erbil and Baghdad. “
The statement noted that “the Arzana For his part, thanked the delegation for the visit to the region, aid and support from the international alliance in general and America in particular, which has impacted heavily in the defeat of” Daesh “attacks and threats of terrorism.”
He added that “Barzani talked about the sacrifices made by the people and government of Kurdistan and پeshmrkh in the face of terrorism and the rescue of displaced people and refugees fleeing from the oppression of the terrorists who caused the addition of a large load on the provincial government because of the financial crisis afflicting.”
The statement warned that “Barzani said in another section of his speech in the meeting that in military terms there is a good cooperation between Arbil and Baghdad, adding that in other areas there is no progress.”
He expressed the readiness of the region to resolve problems with Baghdad through dialogue and negotiation, stressing that the people of the region and all the Iraqi factions have the right to check on their future and that it is important to accompany the drafting of a national reconciliation plan this military operation unless talking about Baghdad so far.
Since 20/02/2017 17:31 pm (Baghdad time)
“Aaninoy are coming,” declares completed the front page of the third phase of operations following the …
Khandan – The leader of the Sadrist movement Moqtada al – Sadr, announced the launch of an initiative to post – edit the connector from the control of the organization “Daesh” terrorist, while calling for theneed to open a serious and effective dialogue with the Kurdish parties in order to reach solutions that benefit the reality of Iraq.
It consists cleric dubbed naming Initiative project after the liberation of Mosul , from several points, most notably, ” the need to open a serious and effective dialogue with the parties in Kurdistan in order to reach solutions that benefit the reality of Iraq and its people , I do not mind to be sponsored by the UN.”
Regarding the presence of Turkish troops on Iraqi soil, al – Sadr called on his initiative to “relentless pursuit at the international level in order to end the Turkish interventions crisis through diplomatic channels constitutional and legal contexts of the state and if that fails to work turns in this file to another context.”
He said al- Sadr also “need to work on the security wire filter all of the elements of undisciplined and put strict laws to restore the army and other security institutions prestige and independence.”
Sadr called on the government and especially the Ministry of Justice to look in detail at the innocent file of the detainees and to hold terrorists and the corrupt and the aggressors with the necessity of non – discrimination between the range and the other.
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