Al-Alaq: The devaluation of the dinar should not be the first line of defense to confront the financial crisis

Central Bank Governor Ali Al-Alaq

Banks

Economy News – Baghdad:

The Governor of the Central Bank of Iraq, Ali Al-Alaq, stressed that the devaluation of the dinar against foreign currencies should not be the first line of defense to confront the financial crisis and bridge the budget deficit.

In a letter addressed to the former Assistant Secretary-General of the League of Arab States, Legal Adviser to the Prime Minister, Dr. Fadel Mohamed Jawad, and obtained by Al-Iqtisad News, Al-Alaq said that “by virtue of the responsibility of the Central Bank for monetary policy, the study and review of the exchange rate is a continuous matter from Before formations of the bank and its board of directors based on in-depth studies that take into consideration all factors and variables, “noting that” the exchange rate is not a sacred matter so that it cannot be compromised. ”

He added that “the devaluation of the dinar against foreign currencies should not be the first line of defense, nor should it be a means to bridge deficits, shortcomings and failures in the performance of other financial, commercial, investment, tax and customs policies”, explaining, “easy solutions that achieve financial value should not be used Limited at the expense of damage to all segments of society caused by inflation, especially the fragile and poor segments. ”

He stressed that “we note the inaccuracy of the (some) account of the reduction achieved by the dinar from resources to the public budget, as the correct calculation is that we subtract from the total dollar revenues the share of oil companies, which amounts to 14 billion dollars annually and the payment of debts, interest and external liabilities amounting to more than 5 billion Dollars, in addition to the equipment and materials imported by the government, such as oil derivatives, ration materials, etc., the net of this amount strikes at the new price of the dinar, ”noting that if the dinar’s value is reduced to 1500 dinars per dollar, what the Ministry of Finance gets from the difference is 5 trillion dinars.  

He noted that “the devaluation of the dinar against the dollar will lead to protection and stimulation of the local product is something that many notes suffer because this measure is used by some countries to encourage exports and in the case of Iraq the goal is to provide ingredients to stimulate domestic production and protect it from dumping policy practiced by exporting countries, especially neighboring countries, This goal will not be achieved by reducing the value of the dinar because the price difference is because of the dumping policy or because of the depreciation of the currency of these countries in a very large way. ”

Al-Alaq called for controlling random imports and stopping dumping policy through controlling border crossings, as the number of informal border crossings is more than official and strict application of customs duties is an effective application of laws to protect the product and the consumer and anti-dumping.  

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A parliamentary committee meets with Al-Kazemi to discuss the “Turkish-Iranian aggression”

Security

06/1920 2020 06:24:35

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Shafaq News / The Parliamentary Security and Defense Committee announced, on Friday, that tomorrow, Saturday, will be decided to meet Prime Minister and Commander-in-Chief of the Armed Forces, Mustafa Al-Kazemi; To discuss the “Turkish-Iranian aggression” on Iraqi soil.

“The foreign minister, Fuad Hussein, summoned the ambassadors of Turkey and Tehran to Baghdad and delivered a strongly worded protest note to the transgression of their governments on Iraqi sovereignty. In turn, the Parliamentary Security and Defense Committee requested an urgent meeting with Prime Minister Mustafa Al-Kazemi in his capacity as Commander in Chief” The armed forces to discuss the Turkish-Iranian bombing and bombing and incursions of the Turkish army into Iraqi territory.

He pointed out that “the president and members of the Parliamentary Security and Defense Committee meet tomorrow, Saturday, with the Prime Minister to discuss the attack and take a joint decision in the interest of Iraq.”

Areas in the Kurdistan Region were bombed by Turkish-Iranian forces, while Turkish forces entered the region, as part of a military operation against the PKK.

The day before yesterday, Wednesday, the border villages and mountain ranges near the town of Haji Imran were subjected to intense artillery shelling by the Iranian Revolutionary Guard forces for the second day in a row, coinciding with the start of Turkish ground forces to penetrate into the territory of the Iraqi Kurdistan region at a depth of more than 10 kilometers Near the border area of Batufa of the town of Zakho, in the far north of Dohuk Governorate.

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The Foreign Minister outlines the priorities of the Al-Kazemi government and confirms: We refuse to interfere in our internal affairs

Political | 01:39 – 19/06/2020

Baghdad – Mawazine News

, Foreign Minister Fuad Hussein confirmed on Friday that the government’s priorities are to strengthen relations with countries of the world and reform the economic system.

The media office of the Minister of Foreign Affairs stated in a statement received by / Mawazine News / a copy of it, that “Hussein held a meeting with ambassadors and charge d’affaires of Asian, Latin American and Australian countries accredited in Iraq within the framework of the attention he gives to discussing common issues of concern to all.”

Hussein affirmed, “The full commitment of the Iraqi government to continue its efforts in facing and overcoming challenges,” calling for “adopting the principle of dialogue in resolving the crises facing the region without interfering in the internal affairs of countries.”

He stressed, “Iraq flatly refuses to interfere in its internal affairs.”

He added, “The government seeks to reform the economic system,” referring to the call to open the door for investment in Iraq.

On the meeting with the ambassadors and charge d’affaires, Hussein stressed that “the meeting with them is for the sake of exchanging views and views on strengthening diplomatic relations, and supporting cooperation with Partners. “29 Hussein Al-Nasser finished

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