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Iraqi News Friday PM 12-18-20

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Statement Of The Finance Committee On The Increase In The Currency Exchange Rate

12/17/2020  The Finance Committee held an emergency meeting, on Thursday 12/17/2020, in the presence of the Governor of the Central Bank, Mustafa Ghaleb Makhaif, to discuss the implications of the high exchange rate of hard currency on the Iraqi market.

During the hosting, which was held at its headquarters, the committee focused on ways to confront the negative repercussions of the increase in the exchange rate on citizens, particularly the vulnerable and poor classes, as well as the measures that the Central Bank will follow towards private banks and banking companies to deter the weak people from exploiting this situation.

The Finance Committee called on the government to carry out rapid reforms to protect the vulnerable classes and those covered by the social welfare network and workers in the private sector, confront inflation, provide necessary foodstuffs through the ration card, and implement the reforms sent by the Finance Committee to the government earlier.

The Finance Committee also notes that the draft general budget law for 2021 is still in the process of discussion in the Council of Ministers and has not reached the House of Representatives until now.

Media  Department Parliament  17-Dec-2020  LINK

Economist to / NINA /: The rise in the price of the dollar will negatively affect the average citizen only

Friday 18, December 2020 15:50 | Economical Views: 140  Baghdad / NINA / Economic expert Safwan Qusay called on Parliament not to contribute to raising the exchange rate of the dollar against the dinar with its decisions and the statements of its representatives, stressing: “The rise of the dollar against the dinar will negatively affect the simple citizen.”

Qusay said in a statement to the Iraqi National News Agency / NINA / that “the reduction in the value of the Iraqi dinar by 12% will negatively affect the local currency and the poor citizen,” noting: “Some of the proposals and statements of representatives to reduce the local currency confused the market and ignited the price of the dollar. Representatives not to make such sensitive statements. ”     https://ninanews.com/Website/News/Details?Key=877009

The Dollar Is Declining Slightly Against The Dinar, After A Worrying Jump

Economie| 11:16 – 18/12/2020  BAGHDAD – Mawazine News  The exchange rate of the dollar against the Iraqi dinar showed, today, Friday, a slight decrease, after the jump that occurred in exchange rates yesterday.

The selling price of the dollar at exchange offices came: 132,500.  The purchase price of the dollar came to 130,000.

The exchange rate of the dollar against foreign currencies, as it came against the Iranian Toman:

100 dollars compared to 2,480 tomans, and 100 euros for every 122.55 dollars.

Every 100 pounds for 135.47 dollars, and 100 dollars for 773.10 Turkish liras.

As for the global price of an ounce of gold, it is 1881.36, while the price of a barrel of crude oil is $ 51.35, while the price of a barrel of US crude oil came to $ 48.41.

https://www.mawazin.net/Details.aspx?jimare=134684

The Dollar Records 132,500 Dinars On The Local Stock Exchange

Friday 18, December 2020 10:42 | Economical Views: 225  Baghdad / The dollar exchange rate recorded a new high against the dinar on Friday on the local stock market.  The selling price of the dollar was 132,500 dinars against $ 100, and the dollar’s purchase price was 130,000 dinars against $ 100, which is an approximate and unstable price. https://ninanews.com/Website/News/Details?key=876956

Finance Minister: The Previous Dollar Exchange Rate Distorted And Damaged The Economy

Finance Minister Ali Abdul Amir Allawi   Money  and business  Economy News – Baghdad  The Minister of Finance, Ali Allawi, announced that the dollar exchange rate of 1182 dinars per dollar distorted and damaged the Iraqi economy, indicating that next year’s budget will impose new taxes.

Allawi said in a statement about the 2021 budget seen by “Al-Eqtisad News”, that the 2021 budget adopted an exchange rate of 1450 dinars per dollar, because the previously approved exchange rate of 1182 dinars per dollar is distorted and does not reflect the actual reality, stressing that the previous exchange rate hurt the Iraqi economy As a result, the goods are being paid from neighboring countries, which has a negative impact on the local product.

He pointed out that the appropriate level of the exchange rate is a confusing question, but the Ministry of Finance believes that for multiple reasons, and after study and analysis, the exchange rate at the present time is 1450 dinars to one dollar, despite our belief that the floating and controlled exchange rate is better, but the best solution at the present time is the price.

Above, as it serves the various economic sectors, as the economic competitiveness of Iraq has been seriously affected by the overestimation of the exchange rate, which affected the flow of foreign investments outside the oil sector, stressing that the exchange rate adjustment has a beneficial effect on the deficit and will put Iraq in a position that allows it to re-balance To economize on the background of the most competitive price.

He noted that Mustafa Al-Kazemi’s government managed the financial crisis with very limited resources without any support from the international community, explaining that the failure to issue the Federal Budget Law for the year 2020 created additional burdens when preparing the budget for next year, and the reason for not knowing the real numbers required in the spending, pointing to The rise in salaries and pensions has become worrisome, as they are now in the range of 120% of oil revenues.

Allawi stressed that we have started a process of serious treatment of the deficiencies in the customs and tax administrations, and these reforms will take some impact to show results, but it is expected to maximize these revenues in the year 2021, indicating that the spending was the main issue as the need to rationalize the salary and pension bill, as these rates increased. Year after year, at an alarming rate, it is far from critical levels.

The Minister of Finance pointed out that government support programs and subsidies have hit the economy, as subsidies have reached very high levels, and it has become difficult to change or reduce them, and the most subsidy is granted to the electricity sector, as the real economic costs of the electricity sector were estimated at 24 trillion dinars, as about 10% of the GDP The total, indicating that the subsidies to the agricultural sector cost the state 2.5 trillion dinars last year, as the Ministry of Agriculture buys wheat, rice and barley at prices much higher than international prices.

He indicated that the direct support for the ration card is still close to 2.5 trillion dinars, while next year’s budget included maintaining and even increasing support for the poor and vulnerable segments of the country, as the Ministry of Finance is working with the World Bank and the Ministry of Planning to expand the scope of the Community Development Fund to more than one billion dollars.

He pointed out that the 2021 budget allocated an amount of 500 million dinars to increase the capital of state-owned banks, and these funds will be allocated to enhance the capital base and operational efficiency.

Allawi focused on the financial deficit in the budget next year, as he confirmed that it will reach 95 trillion dinars after approving the budget for all arrears and legal obligations to work and pensions, but after adjusting the dollar exchange rate, the deficit will reach 60 trillion dinars.

Allawi pointed to the addition of new sales taxes, in addition to the total salary being subject to tax, as we will achieve an additional revenue of 5.2 trillion dinars, noting that new traffic fees have been imposed on vehicles violating the issue of traffic registration and it is expected that they will collect revenues of up to one trillion dinars, explaining that the sale of oil Crude to refineries and oil companies at world prices.

Number of observations 2217 Date of addendum 12/18/2020  https://economy-news.net/content.php?id=23193

Finance Minister: The Previous Dollar Exchange Rate Distorted And Damaged The Economy

Friday 18, December 2020 13:15 | Economical  Views: 413  Baghdad / NINA / The Minister of Finance, Ali Allawi, announced: “The exchange rate of the dollar of 1182 dinars per dollar has distorted and damaged the Iraqi economy, indicating:” The budget for next year will impose new taxes.

“Allawi said in a statement on the 2021 budget that the Iraqi National News Agency received / Nina / a copy of it: “The 2021 budget adopted an exchange rate of 1450 dinars per dollar, because the previously approved exchange rate of 1182 dinars per dollar is distorted and does not reflect the actual reality,” stressing: “The previous exchange rate harmed the Iraqi economy as a result of the flow of goods from Neighboring countries, which negatively affected the local product. ”

He pointed out: “The appropriate level of the exchange rate is a confusing question, but the Ministry of Finance believes that for multiple reasons, and after study and analysis, the exchange rate at the present time is 1450 dinars per dollar, despite our belief that the floating and controlled exchange rate is better, but the best solutions are in The present time is the price above as it serves the various economic sectors, as the economic competitiveness of Iraq has been seriously affected by the overestimation of the exchange rate, which affected the flow of foreign investments outside the oil sector, “stressing that the exchange rate adjustment has a beneficial effect on the deficit and will put Iraq in A position that allows him to rebalance his economy against the backdrop of a more competitive price.

He noted that the government of Mustafa Al-Kazemi, managed the financial crisis with very limited resources without any support from the international community, explaining that the failure to issue the Federal Budget Law for the year 2020 created additional burdens when preparing next year’s budget, and it caused the real numbers required in the spending to not be known, indicating The rise in salaries and pensions has become a cause for concern, as it now accounts for 120% of oil revenues.

Allawi continued, “We have started a serious process of addressing the deficiencies in the customs and tax administrations. These reforms will take some time to show results, but these revenues are expected to be maximized in the year 2021,” noting: “The spending was the main issue as the need to rationalize the salary and pension bill. These rates have increased year by year at an alarming rate and are now far from critical levels. ”

The Minister of Finance pointed out: “Government support programs and subsidies have hit the economy, as subsidies have reached very high levels, and it has become difficult to change or reduce them, and the most subsidy is given to the electricity sector as the real economic costs of the electricity sector were estimated at 24 trillion dinars, about 10% of Gross Domestic Product, “indicating:” The subsidies to the agricultural sector cost the state, last year, 2.5 trillion dinars, as the Ministry of Agriculture buys wheat, rice and barley at prices much higher than international prices. ”

And: “Direct support for the ration card is still approaching 2.5 trillion dinars, while next year’s budget included maintaining and even increasing support for the poor and vulnerable segments of the country, as the Ministry of Finance is working with the World Bank and the Ministry of Planning to expand the scope of the Community Development Fund to more than one billion.” Dollars “.

He pointed out that the 2021 budget allocated an amount of 500 million dinars to increase the capital of state-owned banks, and these funds will be allocated to strengthening the capital base and operational efficiency.

Allawi focused on the financial deficit in the budget next year, as he confirmed that it will reach 95 trillion dinars after approving the budget for all arrears and legal obligations to work and pensions, but after adjusting the dollar exchange rate, the deficit will reach 60 trillion dinars.

Allawi pointed to the addition of new sales taxes in addition to the total salary being subject to tax, which will generate an additional income of 5.2 trillion dinars, indicating that new traffic fees have been imposed on vehicles that violate the issue of traffic registration and it is expected that revenues of up to one trillion dinars will be collected, explaining: The sale of crude oil to refineries and oil companies will be at international prices. / End 8 https://ninanews.com/Website/News/Details?key=876976

Central Bank: We Are Ready To Launch A Package Of Measures To Achieve Balance In The Exchange Rate

Economie| 07:08 – 12/17/2020   Baghdad – Mawazine News, Governor of the Central Bank, Mustafa Ghaleb Makhaif, announced today, Thursday, that the bank is ready to launch a package of measures that will achieve a comfortable balance in the exchange rate.

The media department of the House of Representatives said in a statement, that “the Finance Committee hosted today, Thursday, the Governor of the Central Bank, Mustafa Ghaleb, to discuss the economic crisis and the implications of the high exchange rate of hard currency on the Iraqi market situation.”

She added, “The committee focused during the hosting, which was held at its headquarters, on ways to confront the negative repercussions of increasing the exchange rate on citizens, particularly the vulnerable and poor classes, as well as the measures that the Central Bank will follow towards banking companies to deter the weak people from exploiting this situation.”

She pointed out that “the committee called on the government to carry out rapid reforms to protect the vulnerable classes and those covered by the social welfare network and workers in the private sector, confront inflation and provide the necessary foodstuffs through the ration card.”

According to the statement, Central Bank Governor Mustafa Ghaleb Makheif provided an explanation regarding the reasons for the high exchange rate, stressing that “the bank is preparing to launch a package of measures that will achieve a comfortable balance in the exchange rate for 2021, such as launching an initiative of 3 trillion to support low-income people, and doubling Providing hard currency in the market, and increasing interest rates on the Iraqi currency deposited in banks. ”Ended 29 / h          https://www.mawazin.net/Details.aspx?jimare=134625

Central Bank: We Are Ready To Launch A Package Of Measures To Achieve Balance In The Exchange Rate

Editing date: 12/18/2020 10:52 • 117 times read   [Baghdad-Where]   Central Bank Governor Mustafa Ghaleb Makheif announced today, Thursday, that the bank is ready to launch a package of measures that will achieve a comfortable balance in the exchange rate.

The media department of the House of Representatives said in a statement, that “the Finance Committee hosted today, Thursday, the Governor of the Central Bank, Mustafa Ghaleb, to discuss the economic crisis and the implications of the high exchange rate of hard currency on the Iraqi market situation.”

She added, “The committee focused during the hosting, which was held at its headquarters, on ways to confront the negative repercussions of increasing the exchange rate on citizens, particularly the vulnerable and poor classes, as well as the measures that the Central Bank will follow towards banking companies to deter the weak people from exploiting this situation.”

She pointed out that “the committee called on the government to carry out rapid reforms to protect the vulnerable classes and those covered by the social welfare network and workers in the private sector, confront inflation and provide necessary foodstuffs through the ration card.”

Central Bank Governor Mustafa Ghaleb Makhaif, according to the statement, provided an explanation on the reasons for the high exchange rate, stressing that “the bank is preparing to launch a package of measures that will achieve a comfortable balance in the exchange rate for 2021, such as launching an initiative of 3 trillion to support low-income people, and doubling Providing hard currency in the market, and increasing interest rates on the Iraqi currency deposited in banks      http://www.alliraqnews.com/modules/news/article.php?storyid=105311

Draw The Economic Policy For The Country To Control The Economic Collapse

Mohammed Al-Sabry95 2020-12-18   Mohammed Al-Sabry If the government does not rectify the matter within a month, Iraq will become the second Lebanon in terms of the rise in the dollar’s price against the Iraqi dinar.

Since we remember the trade volume between the two countries, I would like to present an important point that I made in the time of Brother Al-Abadi and in the time of Abdul-Mahdi, as well as at the beginning of Al-Kazemi.

We have a commercial exchange or import from one side. Let us be clearer and there are figures circulating that the volume of imports from neighboring Turkey or neighboring Iran exceeds 15 billion dollars for one of them, as well as Saudi Arabia with 6 billion, Jordan with such a billion and Kuwait with such a billion

And since Iraq is going through a difficult economic situation when the import is not in the local currency and the dollar currency at the same time, that is, we import from Turkey with 14 billion dollars to be seven billion US dollars and the equivalent of seven billion in the Iraqi currency. Here we put our currency on the Turkish market and the Iraqi currency has a kind of strength Against the Turkish currency, as well as with neighboring Iran, the Iraqi dinar will be in exchange for the Iranian Toman. As well as neighboring Saudi Arabia, Kuwait, Jordan and Syria.

Here we have made the points.

We opened our currency to these countries and became in exchange for their local currency

The second matter, we cut off the doors to take out the dollar from the country under the pretext of trade, and the dollar kept moving inside banks and inside the Iraqi street

The Iraqi-Iranian Stock Exchange, Turkey, Saudi Arabia, Kuwait, Jordan, Syria, is like a monetary union between countries, and everyone knows Iran is besieged by the United States and semi-besieged Turkey as well, and Iraq is besieged by traders of smuggling hard currency.

For the last three days, we hear a conversation in the public street about the increase in the Iraqi dinar exchange rate against the US dollar, and it reached some areas to 135 or 140. If the dollar comes out from the central bank at a price of 1119 and is sold at 130 or more or less, then this is the responsibility of the central bank, national security and national security to protect the citizen from the greed of banking offices.

Either withdraw the license or punish them with a large financial fine, that is, disciplining these private financial areas such as private banks and private banking Licensed.

In the event that the government intends to raise the value of the dollar to 145, it must announce the sale number and the exit of the dollar from the central bank, so that the citizen knows the price of the dollar when it leaves and when it is sold to the citizen.

And you have taken the government to raise the value of the dollar while controlling the merchants and supporting them so that food and consumer prices remain at the same prices, so there is no harm if they rise or fall on the citizen, but on the contrary, the merchant will be punished in the event of price manipulation before anyone, especially if he is monitored while he is supported by the state.

And since we deal with government salaries in the national currency, raising the dollar will save large sums for the budget and the government.

for example.

Let’s say the Ministry of Education has a budget of 12 trillion Iraqis. This is an example, no more.

If the dollar is 1119, how many billion dollars do we need?

But if the dollar was raised to 145 or 150 billion km, this ministry needs more clarification

If we count 12 trillion Iraqis for education, and a dollar is 1119, it will make a lot of difference if the dollar is 150 or 145. This difference is due to the treasury.

Or we say we need a budget for 2021 in dollars, 105 billion dollars, how much in Iraqi dinars, if the dollar is 1119, while if the dollar is raised, we will find a big difference due to the state because salaries are spent in the local currency, and here we do not need printing a currency without cover. Note that oil imports are in US dollars.

If we print the currency without cover, the employee’s salary does not exceed 25 dollars, while if we raise the dollar currency to 150. The employee whose salary is one million dinars today means his salary is approximately $ 850. This is if his salary is one million Iraqi dinars, and raising the price of the dollar to 150 will make the employee’s salary less by 35 to 45 dollars, almost a little more.

I think the procedure is very sound, but it needs an explanation in order to reach the public and cut all roads in front of rumors, installments, and attacks that are not justified.

Raising the value of the dollar against the Iraqi dinar is good if the government does not think about reducing salaries or printing currency locally.

But if the government is really intent on raising the value of the dollar, reducing salaries, and not supporting merchants and protecting consumers, then this is a disaster. I do not think the government will bear additional disasters. http://burathanews.com/arabic/economic/382661

The National Union Reveals The Reason For The Delay In The Agreement Between Baghdad And Erbil

Political| 11:27 – 12/18/2020   Baghdad – Mawazine News, a member of the House of Representatives for the Patriotic Union of Kurdistan, Rizan Sheikh Dalir, on Friday, explained the delay in the agreement between the federal government and the Kurdistan region, due to the lack of cash liquidity in the first and the uncertainty in nature.

In a statement, Mawazine News received a copy of it, Sheikh Dleir said, “The federal government is trying in every meeting to raise the ceiling of demands before the regional government and to bring them to a crippling stage and procrastinate to the maximum possible extent due to the reflection of the scene of political tension and partisan tension between government representatives in Baghdad. “, Stressing that” the main reason behind this is due to the lack of cash flow in the Central Bank of Iraq, because of which it was unable to send money to the region. ”

She added, “The region has expressed its full readiness to hand over imports to the Oil Marketing Company” SOMO “on a regular monthly basis, in addition to solving the problems of revenue of border crossings and customs, but the government did not give any answer by agreeing to the agreement or not.

And it indicated, “the existence of major financial problems facing the central government, which delayed the signing of the agreement, and thus negatively affected the people of the region after the deterioration of living conditions there due to the delay in salaries that must be sent by the central government immediately, after the regional government responded to all its demands.”

She noted, “The Iraqi people in general, and Kurdistan in particular, must understand that the response has reached its highest level by the negotiating Kurdish delegation, believing that the citizen’s strength and life is more important than everything, and Kurdistan is still waiting for the Baghdad government to respond to this matter.” https://www.mawazin.net/Details.aspx?jimare=134686

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