An important message from Baghdad that resolves the fate of the presidential candidates and sets a deadline for the Kurds

1,370 Policy  10/07/2022 20:38 
Baghdad today – Baghdad 

The leader in the coordination framework, Jabbar Al-Maamouri, revealed, on Friday, the details of the message sent from the coordination framework to the leaders of the Patriotic Union of Kurdistan and the Democratic Party, indicating that the message includes a reminder of the framework deadline to decide the selection of the President of the Republic. 

Al-Maamouri said in an interview with (Baghdad Today), that “the coordinating framework sent a very important message to the leaders of the Kurdistan Democratic Party and the Patriotic Union in Erbil yesterday in order to expedite the resolution of submitting the consensual candidate for the position of President of the Republic, and they were given a one-week deadline for resolution.” 

He added, “In the event that results cannot be reached, the two parties must present a candidate to the House of Representatives and leave the option to its members to choose one of them for the post of President of the Republic, i.e. a repeat of the 2018 scenario.”

He pointed out that “choosing the president of the republic is very important for setting the first features of forming the government by assigning the Sudanese, who enjoys the support of most of the political forces, to form the next government.” 

The coordinating framework has demanded on several occasions from the Kurdish forces to decide to enter a unified candidate for the presidency of the republic or to enter with two candidates before entering the voting session for the presidency.

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20 thousand dinars.. the new category under the lens of experts, negative and positiveTime: 07/10/2022 10:32:12

  • Time: 07/10/2022 10:32:12
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20 thousand dinars.. the new category under the lens of experts, negative and positive

  {Reports: Al Furat News} The Central Bank of Iraq is heading to issue a new category of local currency for cash circulation that is not very high, after the depreciation of its currency against the dollar, in a move described as useless and will increase inflation on the one hand, and its goal is to improve the efficiency of the performance of the cash payments system in the country In intermediate currencies that serve the speed of monetary exchange and facilitate settlement of transactions and payment methods within the economic community on the other hand.

This trend came on the lips of the Governor of the Central Bank, Mustafa Makheeb, who revealed during his participation in the “Al-Rafidain Forum for Dialogue” last September 27, about the Iraqi Central Bank’s intention to issue a new denomination of the Iraqi currency with a value of 20 thousand dinars (approximately $13) based on comparative study and research. With neighboring countries, he is working on completing the paper’s form, and in the coming days it will be announced.

He said, “We are working on a new currency, a category of 20 thousand dinars, after studies in order to keep pace with the requirements and to match the neighboring countries,” adding, “We will start announcing the new category after completing its requirements.”  

It is noteworthy that Iraq possesses – so far – 7 categories of local currency issued by the Central Bank of Iraq, which are {250 dinars, 500 dinars, 1000 dinars, 5000 dinars, 10,000 dinars, 25000 dinars, and 50,000 dinars).

During the post-2003 years, the Iraqi currency went through volatile and volatile stages that lost its local value and market influence, but it was subjected to what can be described as a “semi collapse” on December 21, 2020, when the Central Bank reduced the exchange rate from 1190 to 1450 dinars against One dollar, with the aim of better managing payments and the economic crisis in the country, and estimated that the value of the local currency in the market would fall by about 22% of its previous value.

repercussions and risks

The devaluation of the Iraqi dinar against the dollar had major repercussions, as this resulted in increases in the prices of most consumer and food services and materials, in particular, by more than 45%, according to economic estimates, which reduced the economic welfare of the local currency against other currencies and the dollar. specifically.

And what made the recent devaluation of the Iraqi dinar against the dollar, which is the harshest and most harmful – according to experts in economic affairs – was that it came at a time when the correct premises were not available in terms of the existence of a reliable base for industry and agriculture and the availability of a commodity alternative to many imported industrial and agricultural commodities whose prices had risen. Also, the change in the exchange rate was sudden and not gradual.

What makes the depreciation of the Iraqi currency in embarrassment due to its low price, is that the country’s economy is single in production and depends on the export of oil to secure its annual budgets. In other words, depreciation of the exchange rate does not contribute to an increase in oil exports, since the latter’s prices are determined in the world market by a single price system.

This report answers a set of questions: What are the main reasons for launching the new Iraqi currency at a value of 20 thousand dinars (about $13)? What are its pros and cons? Then what role is it supposed to play in improving the image of the local currency after a wave of “semi-collapse” following the rise in the price of the dollar and its depreciation about 3 years ago?

The pros and cons of the new cash category

A member of the Parliament’s Finance Committee, Jamal Cougar, disagrees with the Central Bank of Iraq and believes that it was more appropriate to print small denominations of cash, such as the 150 dinars denomination, but he went to print a new denomination (20 thousand) between two currencies far from each other (10 thousand and 25 thousand) and there is no Between them any other currency.

Cougar expressed his support for printing small currencies instead of large or high ones because it contributes to creating space for goods entering the country, so that they are sold in a way that serves the citizen more. But the situation would have been better if there were another, lesser currency, such as 150 dinars.

Representative Cougar suggests printing the new category gradually, not at once and for varying periods, especially since there is talk about the possibility of printing about 70 trillion Iraqi dinars (about 45 billion dollars) for several categories, especially the 25 thousand dinars category, warning of market inflation in the event that all payments are made. These quantities of categories printed to market.

What is the supposed role of the new class?

The appearance of Muhammad Salih, the financial and economic advisor to the Prime Minister, shows the assumed role of the new monetary category, saying that it comes within the framework of improving the Central Bank’s policy in managing the cash payments system, which required – through experience – the need to issue a category (intermediate currency) divisible by two to facilitate Cash payments (not large) within the cash circulation system.

Saleh denies that the issuance of a new category of cash circulation is an expression of inflationary conditions, but rather a measure to improve the efficiency of the performance of the cash payments system in the country with intermediate currencies that serve the speed of monetary exchange and facilitate the settlement of transactions.

Does the issuance of the new category contribute to the increase in inflation?

Economic researcher Diaa Al-Mohsen acknowledges in his response to the possibility that the issuance of the new category would contribute to increasing inflation or not; The lack of any benefit from the idea of ​​the Iraqi Central in this approach as much as it will be a burden on the economy, “the more monetary issuances will lead to the disappearance of other monetary categories in the market, and this may lead to a kind of inflation in the Iraqi economy, which exceeded 6%.”

He describes the Mohsen as a “dangerous indicator of the economy,” especially that the country’s economy is rentier and the real sectors are ineffective, while stressing that Iraq does not need to issue a new currency because it will affect the rate of inflation and therefore the citizen will be harmed by this issuance instead of being a benefit to him.

What is the purpose of printing a new banknote?

In the case of the Central Bank of Iraq, the main objective of issuing a new currency denomination of 20 thousand dinars comes to give individuals greater flexibility in local commercial and financial transactions and obligations, according to the hadith of the economist and academic Ali Dadush, and at the same time its costs will be covered by the difference between the amount of the banknote (as an ordinary paper). ) and its actual amount after trading in the markets, and therefore there is no loss or waste of public money.

In return for the printing of any currency by central banks, Daadush requires that it be matched by assets or assets, whether foreign assets or domestic credits, and then we see the goals that central banks want from issuing or printing new banknotes (or adding new categories of currency), in addition to not Ignore printing costs for new or added currency.

The economic expert comments on the possibility of the Iraqi currency entering another stage of collapse against the US dollar – as it is said from time to time – that the oil dollars leading to an increase in foreign reserves with the Iraqi Central prevent the collapse of the local currency, through the foreign currency sale window, and also led to confidence Relatively individuals in dinars, and the narrowness of the dollarization phenomenon that the Iraqi economy was suffering from.

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The Iraqi parliament discusses the Iranian bombing in a session on Saturday .. Document

politicsbreakingParliament

 2022-10-07 06:20A-AA+

Shafaq News / The Media Department of the Iraqi Parliament announced, on Thursday, the agenda of the parliament session scheduled for next Saturday, including discussing the Iranian bombing file on the Kurdistan Region.

And the media department said in a statement received by Shafaq News Agency, that “the Saturday session will include taking the constitutional oath of some deputies, and discussing the Iranian bombing file on the Kurdistan Region.”

She added that “the session will also include the first reading of the draft mineral investment law, the first reading of the draft law on social security and retirement for workers, as well as general discussions.”

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