Conscious / reduce the Iraqi dinar exchange rate … punish people / d. Hussein al-Asadi

Iraq is going through extremely sensitive conditions, as the Iraqi economy faces a real challenge after the catastrophic failure to find alternatives to selling crude oil. Barrel according to explorations in 2018, or 8.5% of thebalance’s global reserves – – and yet he annually imports 3.3 trillion Iraqi dinars in oil products – the annual report of importing Iraq 2018, the Central Statistical Organization 2019 – and he imports energy worth 7 trillion Iraqi dinars – the 2019 budget Iraqi facts:Issue 4529 on 11/11/2019 – all of which can be produced in Iraq, as well as other resources such as agriculture, various industries, trade, tourism, etc., with no Sovereign Wealth Fund that provides additional imports and a portfolio to protect the future of generations, especially in times of crises, Iraq today He asks for aid to pay the salaries of employees and retirees because what enters the treasury is not equal to a quarter of what Iraq needs to cover salaries only.The financial budget for the year 2019 was allocated to the salaries of retired civilians and the military (9,316,652,417,000) Iraqi dinars, and the salaries of employees equal (43,404,629,267,000) Iraqi dinars and total The annual rate for the year 2019 is (52,721,281,684,000) Iraqi dinars, which means that Iraq needs monthly (4,393,440,140,000) Iraqi dinars, and if we take into consideration that the Iraqi dinar exchange 1,200 dinars per dollar means that Iraq needs monthly to (3,660,000,000) approximately one dollar, while the GDP of Iraq is approximately (1,100,000,000) dollars for the month of March and (1,200,000,000) dollars approximately for the coming months, as Iraq needs (2.5) billion dollars approximately per month in order to cover monthly salary expenses only, this is regardless of other needs, and to address This catastrophic failure began to raise some voices in order to reduce the Iraqi dinar exchange rate against the US dollar in order to increase the budget number and reduce the deficit in it, and I find it necessary to clarify some of the terms, so the reader may be surprised by the ignorance of many of those who speak in this field and perhaps they are in important locations of responsibility.5) Almost a billion dollars a month in order to cover monthly salary expenses only, this is regardless of other needs, and to address this catastrophic failure, some voices have started to decrease the Iraqi dinar exchange rate against the US dollar to increase the budget number and reduce the deficit in it, and I find it necessary to clarify some terms The reader may be surprised by the ignorance of many of those who speak in this field, and perhaps they are among those in important positions of responsibility.5) Almost a billion dollars a month in order to cover monthly salary expenses only, this is regardless of other needs, and to address this catastrophic failure, some voices have started to decrease the Iraqi dinar exchange rate against the US dollar to increase the budget number and reduce the deficit in it, and I find it necessary to clarify some terms The reader may be surprised by the ignorance of many of those who speak in this field, and perhaps they are among those in important positions of responsibility.
Floating Exchange Rate: A floating currency is the rate of currency that has floated so that it has become fully liberalized, so the government or the central bank does not interfere in determining it directly, but it is automatically generated in the currency market through the Supply And Demand mechanism that allows By setting the exchange rate of the national currency against foreign currencies, this term corresponds to the fixed price of the currency exchange Fixed Exchange Rate A specific price will be set against a major global currency (usually the US dollar, but also other major currencies such as the euro, yen, or basket of currencies), in order to maintain On the local exchange rate, the central bank buys and sells its own currency on the foreign exchange market for the currency in which it is linked.
Devaluation is the devaluation of the official exchange rate of this currency against an international reference currency (the US dollar or the euro, for example), so that the number of units of foreign currency that can be obtained against one unit of the national currency is low, and it is correct to talk about devaluation when it is The exchange rate is subject to the direct management of the government or the central bank, which determines this price through a government decision, and according to the same logic, it is possible to talk about raising the price of the currency Revaluation in exchange for reducing it, and this is when the exchange rate is subject to the direct management of the government or the central bank as well, and we note that the reduction The price of the currency and its elevation are within one framework which is the fixed exchange of the currency, but when the exchange rate is subject to the forces of supply and demand (floating the currency) and there is a decline in the value of this currency, depreciation of the currency, the decline is an automatic result of the free interaction between supply and demand in the foreign exchange market without interference Direct from the government or the central bank, according toFor the same logic, we can talk about the rise in the value of the currency Appreciation versus its decline, and we note that the rise and fall of the currency price within the currency float.
Since Iraq works within the fixed fixed rate system, we can talk about reducing and raising the exchange rate of the currency, and here I do not want to differentiate between the two systems, each of them has its conditions despite the market economy and its idea that the state should not interfere in economic activities and let the market control itself It operates a system of floating the currency and its price depends on the iron principle of supply and demand, but the actual conditions of Iraq do not allow for reasons that are too long to be explained.
Countries with a fixed exchange rate resort to reducing the currency exchange rate for economic reasons in improving their balance of trade mainly due to an increase in domestic production versus the importer. The currency reduction makes the difference between the outside and the inside and reduces the importer in front of the exporter, and this assumes that there is internal production It covers the local need and wants to preserve it and export it abroad, but in the Iraqi case, unfortunately, there is no industry, no agriculture, no internal production, it covers the local need as well as being an exporter, as Iraq has nothing to export other than Crude Oil, and I speak here As for the reality of what is there and not what I am calling for, the total imports for the year 2018 for commodities and petroleum products amounted to (37) billion dollars, equivalent to (43.8) trillion Iraqi dinars, and the total imports for the year 2018 for the non-oil commodities (34.1 dollars) Equivalent (40.5) One trillion Iraqi dinars, and Iraq has no need to reduce the exchange rate, but it is sufficient for it to prevent the import of any material that can be dispensed with. As for the real effect of the devaluation, it is the direct punishment for the Iraqi people, if we know that 6 million Iraqis receive a salary or aid from the Iraqi government and the number of individuals The Iraqi family is 5 people, we are talking about about 30 million Iraqis who live on what they receive from salaries or aid from the Iraqi government, all of these will be affected by this procedure, because inflation occurs. Inflation in prices is due to the low purchasinging power of the Iraqi dinar. An Iraqi after the currency devaluation has become worth 500 thousand dinars, and if she receives a number that is a million, therefore she will live in great distress because of this reduction, and the other affected are the owners of internal debts in the local currency, which amount to about 40 trillion dinars, which represent treasury transfers and debits with banksThe government and the central bank for companies, contractors, and merchants, and if they are a number, it will remain that the Iraqi government owes them to 40 trillion, but after the devaluation they will owe 20 trillion on the assumption that it has been cut in half. As for the external debtor, it remains the same because in foreign currency the dollar or the like.
Another issue remains here is the confidence of investors and companies in the currency after the devaluation is much less because the stability of the currency is one of the factors that encourage investment and entry in projects as well as problems related to economic feasibility after the devaluation, which is the basis of the intervention of the government or the central bank in fixing the exchange rate or only for work The principle of floating currency from the beginning.
Hence, we believe that those who seek to actually depreciate the currency are punishing the Iraqi people because of the wrong policies and economic failure that brought the country to this situation, as the people in this bear the mistakes of politicians and are punished instead of them.

واع/تخفيض سعر صرف الدينار العراقي… معاقبة شعب / د. حسين الاسدي

 

Mr. Ammar al-Hakim and al-Abadi insist on sovereignty and negotiation with Washington, entitled All of Iraq

Time: 06/2020 2020 23:44:47

{Baghdad: Al Furat News} The head of the National Wisdom Stream, Mr. Ammar Al-Hakim, received this evening the former Prime Minister and Chairman of Al-Nasr Coalition Haider Al-Abadi.

A statement issued by his office, received by Al Furat News Agency, said that the two sides “discussed developments in the political situation in Iraq and the region, as the meeting witnessed the need for everyone to assume their responsibilities in front of the challenges facing Iraq on the economic, security and health levels.”

Mr. Ammar al-Hakim and al-Abadi called for “dealing with the economic crisis in a manner that does not pressure the owners of limited income and the interests of citizens, while we share the views calling for diversification of the Iraqi state’s budget sources, activating the private sector and providing job opportunities.”

In the strategic negotiation file expected between Iraq and the United States , the two sides stressed “the need to preserve the constants of Iraq ‘s sovereignty and philosophy balanced in the region and the world files, and put the interest of the Iraqi on any other interest and go to negotiate entitled Iraq , all of Iraq” .anthy

Ammar al – Masoudi

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The International Monetary Fund provides emergency financing to 63 of the 189 countries that requested help

Arab and international

The World Bank

help

03/06/2020 15:16:37

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Some of the world’s poorest and emerging market countries may need to restructure their debt in the future, the Executive Director of the International Monetary Fund said on Wednesday, adding that only freezing debt payments may not be enough.

Kristalina Georgieva added that some emerging economies that have adopted prudent and sustainable debt policies are passing through the Corona virus crisis better than others, but a small number of countries with high debt burdens are likely to need assistance in the future.

Georgieva said the International Monetary Fund (IMF) has disbursed about $ 260 billion of its trillion dollar capacity at this stage, and has so far provided emergency funding to 63 of 189 countries that have requested assistance since early March.

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Parliament ends reading the borrowing law and discusses the implementation of the grant for poor families

Editing Date: 6/3/2020 19:09

[Baghdad-Ain]

The House of Representatives ended in its second session of the fourth parliamentary session for the second legislative year of the second legislative term that was held under the chairmanship of Muhammad al-Halbousi, Speaker of the Council today, Wednesday 3 and in the presence of 184 deputies, reading the local borrowing law And the Ministry of Foreign Affairs to finance the financial deficit and discussed a mechanism for implementing the grant for poor families approved by the Council of Ministers due to the Corona pandemic. The

At the beginning of the session, the parliament concluded, according to the media office statement of the House of Representatives, “reading the draft of the domestic and foreign borrowing law to finance the fiscal deficit for 2020 submitted by the Finance Committee, due to the delay in approving the federal public budget for 2020 and the spread of the Corona pandemic in the world and the decline in crude oil prices significantly as the government faces Iraqi has difficulty financing public spending and in order to facilitate financing the necessary public expenditures. ”

For his part, the speaker noted that “the law does not excuse the government from sending the draft budget bill for the year 2020 to the House of Representatives.”

Then, the parliament voted on “a resolution requiring the government to expedite the sending of the draft general budget bill for the year 2020 to the parliament no later than 30 June 2020”.

Al-Halbousi directed that “the Finance Committee host representatives of the General Retirement Authority and the Ministry of Finance to discuss the reasons for the delay in the distribution of the salaries of retirees who were referred to retirement.”

In turn, the representative of the government referred to “the cabinet’s discussion of ways to finance the general budget items according to priority, warning that not going to borrow makes the state unable to pay salaries to employees, indicating that there is a financial deficit of 35 trillion dinars for the remaining months of the year.”

The council discussed “the issue of following up the implementation of the grant for poor families due to the spread of the Corona pandemic, in the presence of Adel Hashush, Minister of Labor and Social Affairs, Minister of Social Protection.”

The minister explained that “the emergency grant approved by the Council of Ministers to grant an amount of 30 thousand to ten million Iraqis does not receive a government salary by allocating an amount of 600 billion dinars from the central bank spent for two months at 300 billion a month, noting that the first payment launched before the Eid holiday in various proportions due to The imposition of a curfew in cooperation with local telecommunications companies, pointing out that the number of grantees reached more than 14 million citizens and after checking the data by the ministers, 4 million people were excluded because they did not meet the conditions.

The interventions of the deputies focused on “knowing the reasons for the delay in the payment of grants to citizens, especially the unemployed grant and the emergency grant, in addition to the lack of clarity in the mechanism for the distribution of grants by the ministry and its instructions, in addition to calling for the need to combat the doors of corruption to fill the financial deficit, and inquire about the proportion of the Kurdistan region out of the total The amount allocated to the emergency grant, in addition to requiring the Ministry of Labor to put in place an appropriate mechanism to spend the specified amount from the crisis cell, and to adopt a professional standard for identifying the poorest areas in Iraq to ensure social justice.

The interventions pointed to “the importance of providing members of the House of Representatives with tables that clarify the percentage of the grant distribution to each governorate and the number of governorates that have been presented on the grant in order to achieve justice in the distribution between citizens, and inquire about the exact time to release the remainder of the amount of the grant to those who are entitled to, and demand the creation of an additional mechanism for abusive citizens who do not use devices Communication and the necessity of the ministry relying on the mechanism of field survey of the regions to know the poor groups, and demanding the government’s commitment to implement the Social Protection Law that the House of Representatives legislated without going to personal jurisprudence, and demanding to know the reasons for the failure of citizens in Nineveh Governorate to include the social welfare grant for years and until now, pointing to the existence of Corruption in the file of foreign labor as a result of the entry of hundreds of thousands of workers into Iraq without taking leave from the Ministry of Labor and Social Affairs. ”

In his response to the interventions during the session, which Hassan al-Kaabi presided over aside, the Minister of Labor and Social Affairs indicated that “the observations of the deputies will be a road map for the future work of the ministry, indicating that setting the poverty line standard is not within the jurisdiction of the Ministry of Labor but rather from the tasks of the Ministry of Planning, stressing the inclusion of citizens In the Kurdistan Region with the emergency grant by presenting them through the communication networks Cork and Asia Celle, noting the need for some laws related to the Ministry’s work to amend by the legislative authority to cope with the current conditions, expressing the Ministry’s readiness to conduct field visits to governorates that suffer from high poverty line rates.

In another matter, I directed the Presidency of the Council to hold a meeting next Saturday at eleven in the morning between the heads of the parliamentary blocs and the Legal Committee in order to review and audit the final version of the Parliament’s election law that was previously voted upon and the electoral districts.

Then it was decided to adjourn the session to next Saturday 6/6/2020.

Parliament will complete Al-Kazemi’s government next week

Politics

Iraqi government

Parliament

Complete the government

06/202020 09:46:52

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Shafak News / A source in the Prime Minister’s office, Mustafa Al-Kazemi, revealed on Wednesday that the Iraqi parliament is determined to complete the federal government during the sessions that it will prepare next week.

The source, who asked not to be named, told Shafaq News, “The completion of Al-Kazemi’s government formation will be in next Saturday’s session.”

The House of Representatives decided to adjourn its session, which was held today to Saturday of the next week at one in the afternoon.

After midnight Wednesday (May 6), the Iraqi parliament voted to grant confidence to the government of Mustafa Al-Kazemi and to vote on 15 ministers in the government booth, but five candidates did not obtain that confidence, and they are the ministries of trade, agriculture, culture, immigration and justice.

The House of Representatives also postponed the vote on the candidates of the Ministry of Foreign Affairs and Oil until another time, due to the lack of agreement to nominate the candidates.

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Parliament raises its session to next Saturday

Time: 06/2020 2020 17:48:48

{Baghdad: Al Furat News} The House of Representatives decided, today, Wednesday, to raise its session to next Saturday.

The media department of the parliament said in a statement that it received {Al Furat News} a copy of it, that it was “decided to adjourn the session to Saturday of next week at one in the afternoon.” is over

Mohammed Al-Marsoumi

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Kurdistan Region names its representative for the strategic dialogue between Iraq and America

Kurdish women

Kurdistan Region

Dialogue

USA

Iraq

06/202020 09:29:43

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Shafaq News / The Kurdistan Regional Government announced on Wednesday that the head of the regional Presidency Diwan Fawzi Hariri will represent Kurdistan in the strategic dialogue between Iraq and the United States of America.

This came during the regular session of the Kurdistan Regional Council of Ministers headed by Prime Minister Masroor Barzani and in the presence of his deputy, Qubad Talabani.

At the beginning of the meeting, the Prime Minister mentioned the increase in the risks of the emerging coronavirus among the high number of infected people and their victims, and on his behalf and on behalf of the Council of Ministers, he offered his condolences to the families of the victims, wishing the speedy recovery of the infected people. He also thanked citizens for their commitment to precautionary measures and health instructions, and said: “The territorial government continues to take preventive measures for the safety of citizens, and will spare no effort in this regard, and has done everything necessary, but the greatest responsibility lies with the citizens in maintaining For their safety and society. ”

 The Prime Minister stressed that the health measures taken by the government took into account the interests of citizens and took them into consideration, and expressed his regret for the attempts of some to politicize a health issue related to the lives and safety of citizens and reduce the risks of the virus and incite people not to adhere to, stressing that the law is the key to pursuing these people.

In another axis of the meeting, the Prime Minister highlighted the strategic dialogue between Iraq and the United States, which is scheduled to start this month with the participation of the regional government and will be represented by the President of the Kurdistan Regional Presidency Fawzi Hariri.

After that, the Deputy Prime Minister presented a detailed report on the visits made to Baghdad and the progress of discussions with the federal government, and indicated that talks with the new government are continuing with a view to solving problems related to oil and financial issues based on the constitution.

The Supreme Committee for Reform in the Kurdistan Region also submitted a report on the steps and follow-up of ministries and other relevant authorities to implement the reform law, which cut important steps in accordance with necessary procedures and mechanisms that the committee followed during implementation in accordance with the approved curriculum in this regard.

At the conclusion of the meeting, the Council of Ministers unanimously approved two draft legal laws (the rights and duties of patients in the Kurdistan Region) and (inclusion of employees in the Kurdistan Region).

The American Ambassador to Iraq, Matthew Tooler, announced on Tuesday that the Kurdistan Region will participate in the strategic dialogue that will be launched in mid-June.

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Barzani’s deputy: Talks with Baghdad are continuing to solve oil and money problems

Time: 06/2020 2020 17:30:02

{Baghdad: Al Furat News} The Kurdistan Regional Council of Ministers held today, Wednesday, its regular session headed by Prime Minister Masroor Barzani and in the presence of Deputy Prime Minister Qubad Talabani.

At the beginning of the meeting, the Prime Minister indicated, according to the statement of the Kurdistan Government’s Information Office, to “the increased risks of the new corona virus among the high number of infected people and their victims, and on his behalf and on behalf of the Cabinet, he offered his condolences to the families of the victims, wishing the speedy recovery to the injured.” He also thanked the citizens for their commitment With precautionary measures and health instructions, he said: “The territorial government continues to take preventive measures for the safety of citizens, and will spare no effort in this regard, and has done everything necessary, but the greatest responsibility lies with the citizens in preserving their safety and society.”

 The Prime Minister stressed that “the health measures taken by the government took into account the interests of citizens and took them into consideration, and expressed his regret for some attempts to politicize a health issue related to the life and safety of citizens and reduce the risks of the virus and incite people not to adhere to, stressing that the law is the key to pursuing these people.”

In another axis of the meeting, “The Prime Minister highlighted the strategic dialogue between Iraq and the United States, which is scheduled to start this month with the participation of the regional government and will be represented by the President of the Presidency of the Kurdistan Region.”

After that, the Deputy Prime Minister presented a “detailed report on the visits made to Baghdad and on the progress of discussions with the federal government, and noted that talks with the new government are continuing with a view to solving problems related to oil and financial issues based on the constitution.”

The Supreme Committee for Reform in the Kurdistan Region also submitted a report on “Steps and follow-up of ministries and other relevant authorities to implement the reform law, which made important steps in accordance with necessary procedures and mechanisms that the committee followed during implementation in accordance with the approved curriculum in this regard.” is over

Mohammed Al-Marsoumi

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