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Iraqi News Saturday AM 12-10-20

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An Economist Warns Against Relying On Reducing The Dinar Against The Dollar In The Face Of The Budget Deficit

Saturday 12, December 2020 12:07 | Economical Views: 434  Baghdad / NINA / Economic expert Safwan Qusay warned against relying on cash issuance without cover at a rate of 12%, meaning that the official Iraqi dinar price will be 1340 per 100 dollars / the reduction of the dinar against the dollar / in the face of the budget deficit, stressing that it will negatively affect the poor citizen .

He said in a statement to the Iraqi National News Agency / NINA/ In light of a clear weakness in financing the federal budget deficit for the next fiscal year 2021, some suggest relying on monetary policy to face this deficit by undertaking the monetary issuance without cover at a rate of 12%, meaning that the official Iraqi dinar price will be 1340 per 100 dollars and this procedure despite Of its ease, it means direct damage to the real income of employees, and thus it will reflect on the already high poverty rate and will confuse the financial and economic sector due to the presence of large commitments in foreign currencies in the Iraqi market. ”

Qusay stressed, “the need to move away from this proposal and activate the role of the Central Bank of Iraq in preserving the official rate of 1200 unchanged and for the government to rationalize public spending in all ways and increase oil and non-oil revenues to finance the deficit that can be financed without damaging the value of the currency, at least under the current circumstances.” Which is witnessing an increase in oil prices due to the possibility of eliminating the impact of the Corona virus. ”

Al-Kifah Central Stock Exchange in Baghdad recorded 127050 dinars against 100 dollars, while Al-Harithiya Stock Exchange in Baghdad recorded 127100 dinars against 100 dollars.

https://ninanews.com/Website/News/Details?Key=875702

The Supply Of The Dollar In The Market Is Scarce … And Speculators Are Behind Its Rise Against The Dinar

An economist to / Nina /:  Saturday 12, December 2020 10:05 | Economical Views: 342  Baghdad / NINA / An expert in economic affairs, Salam Sumaisem, attributed the high exchange rate of the dollar against the dinar to the scarcity of supply in the market of dollars, stressing that this increase will expose the Iraqi economy to an unnecessary wave of inflation. / End8    https://ninanews.com/Website/News/Details?key=875689

An Economist Explains The Reasons For The High Price Of The Dollar

Time: 12/12/2020 11:53:02 Read: 6,149 times   (Baghdad: Al Furat News) An economist, Bassem Jamil Antoine, commented on the reasons for the high price of the dollar.

“There are speculations in the exchange rates of the dollar against the dinar between the Kurdistan region and Baghdad, and between one region and another in Baghdad,” Antoine said in an interview with the Euphrates News Agency.

He stressed that “the price of the dollar is still the same in the central bank, but there are those who are trying to create confusion among citizens, trying to create terror and commotion.”

He added that “the Central Bank and international organizations refuse to change the price of the Iraqi dinar,” noting that “it creates a kind of inflation that reflects on the poor classes.”

The economic expert pointed out that “there are mafias that are waiting for opportunities and are supported by external parties who benefit from the high prices in the currency.”   LINK

Parliamentary Finance: Baghdad Will Send 320 Billion Dinars To Erbil

Money  and business  Economy News _ Baghdad  A member of the Parliamentary Finance Committee in the Iraqi parliament, Faisal Al-Issawi, announced that a “very good” meeting had been held with the delegation of the Kurdistan region, indicating that the federal government would send 320 billion dinars to the Kurdistan region within the next two days.

The delegation of the Kurdistan Regional Government, headed by Deputy Prime Minister Qubad Talabani, met last Thursday with the committee in charge of the Iraqi Council of Representatives to discuss with the regional government about the problems between the two sides. Citizens of the Kurdistan region and Iraq, “according to a statement issued by the Kurdistan Regional Government.

Al-Issawi said in an interview with Kurdish media, “The meeting was very positive and frank, and all parties seek to address differences, on the condition that everyone abides.”

Al-Issawi pointed out to “discussions with the Iraqi government on this issue, as it agreed to disburse an amount of 320 billion dinars to the Kurdistan region,” indicating that the amount will be spent “today, Saturday, or tomorrow, Sunday.

On August 15, Baghdad and Erbil reached an agreement to send the federal government 320 billion dinars a month to the Kurdistan Region until the vote on the budget law, and for a period of three months, but the Iraqi parliament approved on November 12, the law on financing the fiscal deficit despite the withdrawal of the representatives of the blocks The Kurdistan Region objected to the article that stipulates determining the Kurdistan Region’s share of the total actual spending, provided that the Kurdistan Region is committed to paying the amounts of oil exported from the region and in the quantities specified by SOMO exclusively and the federal non-oil revenues. This text has legal responsibility. ” Number of observations 128 Date of addendum 12/12/2020

https://economy-news.net/content.php?id=23091

MP Burhan Al Mamouri: The Instability Of The Currency Exchange Rate Undermines Confidence In The National Economy

11/12/2020  MP Burhan Al-Mamouri believed on Friday 11/12/2020 that the instability of the currency exchange rate would lead to confusion in the market and undermine confidence in the national economy.

Al-Mamouri said in a statement: The exchange rates of the Iraqi dinar against the dollar are witnessing a clear instability in the market, while we notice them steady in the currency auction, which indicates greedy speculations carried out by parties that do not want good for Iraq and its people.

Al-Mamouri added: The big difference between the official price of the dollar and what is traded in the local markets confused the market and raised citizens’ fears of high prices of goods and foodstuffs, which causes a new burden on the Iraqi individual.

Al-Maamouri called for reconsidering the currency auction, monitoring the exchange rates in the local markets, and punishing all those who manipulate the currency rate with severe penalties to protect the national economy, which suffers greatly as a result of the absence of a strategic vision in managing the country’s financial file. House of Representatives  Information  Department 12/11/2020  LINK

The Presidents Of The Council Of Ministers And Representatives Chair A Negotiating Meeting With The Delegation Of The Kurdistan Region

The Prime Minister, Mr. Mustafa Al-Kazemi, and the Speaker of Parliament, Mr. Muhammad Al-Halbousi, chaired today, Saturday, the joint negotiation meeting between the federal government, the Parliamentary Finance Committee and the Kurdistan Region delegation.

The meeting, which was held at the Governmental Palace, discussed the commitment to implement the Fiscal Deficit Financing Act, which the House of Representatives voted on last month, and discussed its implementation mechanisms, in a manner that takes into account justice in distributing financial allocations to all regions of Iraq.

The Media Office of the Prime Minister  12 December 2020   https://pmo.iq/press2020/12-12-202001.htm

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