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More Iraqi News Saturday PM 12-19-20

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Al-Kinani: The Central Bank Has Nothing To Do With Changing The Exchange Rate

Pratha News Agency124 2020-12-19   The head of the Parliamentary Economic and Investment Committee, Ahmed Al-Kinani, considered, on Saturday, that the Central Bank has nothing to do with changing the exchange rate, stressing that the Ministry of Finance owns the dollar and sets the price.

Al-Kinani said in a press interview that “the Central Bank has nothing to do with changing the exchange rate, and the Ministry of Finance is the one who owns the commodity (the dollar) and it sets the price.”

He added that “Article 3 of the Central Bank Law No. 56 of 2004 clearly indicates that the Central Bank is one of its duties to maintain the exchange rate after determining the sale value of the party that owns the dollar (the Ministry of Finance).”

The Trends Of Devaluation Come To Cover The Deficit Rates

Sunday 20 December 2020   20   Baghdad: Morning   The head of the Baghdad Center for Sustainable Energy, Muhammad Shaker, confirmed that “the trends of devaluation come to cover the large deficit in the budget in order to avoid the complexity of the economic scene more than it is.”

He said: “There is a need to distribute the salaries of employees in Iraqi dinars (in order to preserve the principle of the sovereignty of the national currency) while giving him the right to disburse the equivalent of half his salary in dollars supported by the adoption of a subsidized exchange rate, such as 1300 dinars to the dollar, and he can pay through electronic transfer in his bank account or in The electronic payment card, which enables electronic payment, whether in dinars or dollars, so that it does not significantly affect the level of the salary, so that the employee or the retired person has Iraqi cash to cover his usual daily expenses and he has a dollar in which to cover the goods whose prices will change due to the change in the exchange rate.

He drew attention to “the importance of stopping space salaries and giving the task of electronic documentation according to the biological fingerprint of utmost importance, and it must be completed within two months as a maximum, with the announcement of the penalties that will be imposed on those who will be found to have two fingerprints in two different locations to eliminate aliens, pointing to the need to support people with limited income and strive to strengthen The national economy to reduce dependence on imported goods is harmful Useful. ”

Shaker suggested, “stopping the currency auction and opening direct selling of currency in all Iraqi banks without exception and adopting the electronic exchange rate so that any account holder can convert an amount from Iraqi into dollars at the official exchange rate, and then eliminate the parallel market for the exchange rate, which a number of people benefit from. And behind them are the supporters. ”

He called for “the adoption of bank credits only for the purposes of foreign remittances. An encouraging exchange rate could be adopted to pay these credits, provided that they are accounted electronically for customs and taxes, and fix the prices of some important and basic commodities through the subsidized dollar when paying bank credits with external suppliers, as well as supporting the private sector to provide basic requirements.” Locally and to stop the waste of foreign currency and activate and encourage national industry. ”

He pointed out, “the importance of achieving self-sufficiency in electric energy through national production, activating current stations and encouraging the use of solar energy to reduce dependence on the national grid.”  LINK

The Dollar Or The Dinar ?! 

Pratha News Agency137 2020-12-19  Hussein Faiq Ala Abdul Rasoul    Many members of Iraqi society believe that crises are fabricated from time to time, and events are fabricated from time to time. It is liable to mislead the public opinion and derail its thinking; This is being created by some influential parties in the Iraqi government to achieve goals, pass laws and conclude deals under the table. Suspect

After each crisis, the Iraqis were surprised by decisions that they did not know or know about the details of. After the solutions of the economic crisis related to securing employees’ salaries appeared; The crisis rained down on the Kurdistan Region, oil revenues and border crossings, which occupied the minds of observers and those interested in the country’s internal affairs.

And after the region’s delegation arrived at the Baghdad government and followed it through debates and discussions.

The economic crisis has returned, the rise in dollar prices and salary cuts; As soon as the people emerge from a media whirlwind, they will soon return to a crisis and confusion in planning, distribution and decisions once again.

And now the Iraqi citizen is waving between the waves of the dollar, its rise, the salary and its loss … to fall to the side, crying with a hoarse voice and withered eyes … Have mercy on us with one crisis, either the dollar or the salary

Citizens are angry because of the low price of the dinar against the dollar

Pratha News Agency122 2020-12-19   Citizens spread anger on social media due to the low exchange rate of the Iraqi dinar against the dollar.

It is noteworthy that “the Council of Ministers held an emergency session this morning to approve the draft federal budget bill for 2021, but postponed it until tomorrow.”

During the past 24 hours, social networking sites in Iraq have witnessed a state of popular anger against the government because of this decline, especially among the employees who receive their salaries in dinars.

He pointed out that “some exchange offices in Baghdad sold the 100 dollars today, Saturday, for 137 thousand, while some offices refused to buy and sell.”

This crisis comes after a document was leaked stating that an item was placed in the budget in 2021 indicating that the exchange rate of the dollar against the Iraqi dinar would rise to 145 thousand dinars for every 100 dollars, after it had stabilized between 122 and 125 thousand.

Anxiety In The Street About Price Increases After The Dollar’s Exchange Rate Change

Time: 12/19/2020 19:00:05  Read: 5,772 times    Baghdad: Al Furat News} The Iraqi street is witnessing a clear concern about the rise in prices after the change of the dollar exchange rate

Urgent questionnaires showed that the Iraqi street seemed clearly apprehensive of decisions that were until this morning expected to change the dollar exchange rate.

Where citizens confirmed that goods will accumulate in the shops after increasing their prices as a result of the high price of the dollar, which was approved by the Ministry of Finance and the Central Bank this afternoon.

Even the stock market witnessed a noticeable rise in the dollar’s exchange rate, two hours after the central bank announced the new exchange rate.

The Central Bank confirmed the adoption of new exchange rates for the dollar against the dinar, up to 145 dinars against one dollar.

For his part, economist Basem Jamil Antoine told Al-Furat News that the poor and middle class citizens will bear the result of this rise, as if they will pay the price of the reform paper.   LINK

The Minister Of Finance Explains The Reasons That Led To The Increase In The Dollar Exchange Rate

Economie| 09:04 – 19/12/2020   BAGHDAD – Mawazine News, Minister of Finance, Ali Abdul Amir Allawi, spoke today, Saturday, about the reasons that led to the move towards raising the exchange rate, indicating that the step of raising its price will not affect those with limited income. (Such BS)

Finance Minister Ali Allawi said, “In the event that the exchange rate is not changed, the central bank’s reserves will be implemented after 6 months,” adding that “Iraq suffers from a high exchange rate for the dollar, weakening the ability of Iraqi goods to compete.”

He pointed out that “reducing the exchange rate encourages the private sector to produce and export,” noting that “adjusting the exchange rate is part of reforms of the Iraqi economy within the 2021 budget.”

He pointed out that “the Iraqi product faced a great challenge and inability to compete,” noting that “changing the exchange rate helped the rise of Egyptian exports, for example.”

“It is not correct that people with limited income are more affected by the change in the exchange rate,” he said, noting that “the poor groups will not be affected by the change in the exchange rate because the value of housing rent and the food basket will not change unless they buy imported things.”

He added that “those affected most are the travelers and those who deal in imported goods.”

And that “the poor groups will be supported in the 2021 budget.”

Regarding the effects of this change, Allawi indicated that “the positive effect of changing the exchange rate will be through encouraging Iraqi industry and providing job opportunities,” adding that “Iraq is a consumer country and we want to change the reality by changing the exchange rate first.”

“The Iraqi markets are flooded with foreign goods, and policies must be implemented to encourage the local product,” he said.

Regarding the trend towards reducing the salaries of employees, the minister said that “employee allocations will be reduced, but they will not affect or affect all employees, and salaries have not been affected,” noting that “there are exaggerated allocations for some categories of employees.”

He warned that “120% of the budget goes to employee salaries, and that the cost of retirement will increase by 40% in the 2021 budget.” Ended

Central Bank Governor: Exchange Companies Will Buy 100 Thousand Dollars Instead Of 50 Thousand Dollars

Central Bank Governor, Mustafa Ghalib    Banks  Economy News – Baghdad  Central Bank Governor Mustafa Ghaleb Makheif confirmed that the bank will double the sale of dollars to exchange companies .

A scary, in an interview with Iraqiya and followed the “Economy News”, that “discreet precautions enable us to stabilize prices,” noting that “exchange companies buy 50 thousand dollars, and Sndhaafha to 100 thousand dollars .”

He added, “The abundance of the dollar will make it stable in the market.” Suspect

Number of observations 1,300, date of addition 12/19/2020

Central Bank Governor: We Will Double The Sale Of Dollars To Exchange Companies

Economie| 10:10 – 19/12/2020   Baghdad – Mawazine News  Central Bank Governor Mustafa Ghaleb Makheif confirmed that the bank will double the sale of dollars to exchange companies.

Makhif said, “discreet reserves enable us to stabilize prices,” noting that “exchange houses buy 50 thousand dollars, and we will double it to 100 thousand dollars.”

He added, “The abundance of the dollar will make it stable in the market.”

The Central Bank of Iraq decided earlier today, Saturday, to amend the foreign currency exchange rate as follows:

1450 dinars per dollar, the price of buying foreign currency from the Ministry of Finance. ”

1460 dinars per dollar, the price of selling foreign currency to banks.”

1470 dinars per dollar is the selling price of foreign currency to the public. ”Ended 29 / A43

TOYBOY:  Timmy  I remember about 2 years ago the Iraqi government talked about increasing the dinar to 1500 to 1. I was under the impression the CBI was in charge of the dinar rate but looks like the finance is in charge. With this decrease is going to be terrible for the people and for us. It won’t be long the reserves will be gone at the rate they going with inflation going out of control. Plus to compound the situation article was out few days ago on the site stating they have been printing trillions of dinars with no backing of the currency. Will not take much to be in Bankruptcy. Looks like the writing on wall of our leaving this currency, unfortunitely after all the years we have invested out funds in Iraq.

Al-Kazemi’s Advisor Reveals The Details Of The High Selling Of The Dollar

Economie| 09:55 – 12/19/2020  Baghdad – Mawazine News  The Prime Minister’s Adviser for Financial Affairs, Mazhar Muhammad Saleh, revealed today, Saturday, the details of the high selling price of the dollar against the local currency in the Iraqi market.

Saleh said, “Reducing the exchange rate is a measure in a rentier economy like Iraq that is directly related to financing the state’s general budget and represents, in essence, an inflationary financing method), that is, buying a cheap dinar issued by the central bank with government oil revenues in dollars or foreign currency.

The high value of filling part of the deficit in the general budget is equivalent to the reduction percentage, “pointing out that”The reduction carries positive effects for holders of real wealth of foreign assets, such as the rich in dollars or owners of foreign assets such as gold, cars, etc.

The value added here is an increasing emergency wealth due to the change in government policies in its favor, and although the local market itself is not affected (directly) by the reduction, as it is He can transfer the price or value burden on the consumer or the ultimate buyer immediately (as a transitional inflation tax), with the exception of temporary problems related to contracts between dealers, term sales, debts and mutual obligations.

He added, “This does not mean that there has been no contraction in the demand for goods and services in the market, especially goods with high flexibility in demand for them, including luxury or leisure goods.” Flooding in the market that suppressed the local product due to the lack of imports from it. ”

He continued, “It remains the most affected person from the lowering of the exchange rate and in all cases with limited income and the poor and vulnerable groups in society, as the purchasing power of their incomes in the local currency will decrease by the decrease in the external value of money due to the rise in prices, especially the necessary imported commodities, which are low elasticity of demand such as food and necessities. Medicines are what require a government program to compensate those affected by the poor, vulnerable and low-income classes. ”Ended 29 / A43

An Economist For {Al Furat News}: They Will Pay The Price For The Central Bank’s Decision To Raise The Dollar

Time: 12/19/2020 17:55:56 Read: 14,326 times   (Baghdad: Al Furat News) Economist Basem Jamil Antoine confirmed, Saturday, that “the Central Bank surprised us by changing its position towards the dollar exchange rate.”

Antoine told {Al-Furat News} that “the Central Bank surprised us with the approval and approval of the process of changing the exchange rate of the dollar as for the Iraqi dinar.” They were not affected and the social implications of this decision were not taken into account. ”

And that “the decision to raise the dollar creates consequences for the increase in inflation. The poor classes and employees with middle salaries will suffer and bear the responsibility of the decision, because about 20% of their average limited income has been withdrawn.”

He pointed out that “the Iraqi market is an importer and will pay the price of the white paper, the poor and destitute classes. The government took its deficit from their pockets,” noting that “the decision has great social consequences.”

The Central Bank announced the adoption of new exchange rates for the dollar to 145 dinars against the dollar. LINK

A Legal Expert Explains The Constitutionality Of The Decision To Change The Currency And The Right Of Parliament To Challenge It

Time: 12/19/2020 23:33:04 Read: 8,892 times   {Baghdad: Al Furat News} The legal expert, Tariq Harb, explained that changing the exchange rate of the dollar against the Iraqi dinar in the Federal Budget Law for the next year 2021 is correct and does not violate the Federal Constitution.

Harb said in a press statement, “The Federal Constitution did not address this issue, and that the Central Bank Law dealt with the issue of cash, its value, and determining it in accordance with its Law No. 56 of 2004, which was issued during the time of the civil governor Paul Bremer, who gave him his authority to set prices.”

He pointed out that “raising the exchange rates of the dollar against the Iraqi dinar is not considered a legal or constitutional violation.”

Harb also stressed, “The Central Bank is an independent body, and the House of Representatives has no authority to challenge or intervene in determining the exchange rate of the dollar against the Iraqi dinar.”

And the Minister of Finance, Ali Abdul Amir Allawi, announced on Saturday that the exchange rate of the dollar would be raised to 1450 dinars to one dollar.

And the exchange rate markets recorded 1400 dinars per dollar, after the Minister of Finance’s statements regarding the government’s and Parliament’s approach to raise the dollar’s exchange rate to 1450.

The Iraqi Central Bank officially announced the adjustment of the foreign currency exchange rate as follows:

1450 dinars per dollar The price of buying foreign currency from the Ministry of Finance

1460 dinars per dollar The selling price of foreign currency to banks

1470 dinars per dollar The price of selling foreign currency to the public   LINK

The House Of Representatives Ends Reading Five Laws And Discusses The Reasons For The Currency’s Rise

12/19/2020    The House of Representatives, in its thirty-second session, which was held under the chairmanship of Mr. Hassan Karim Al-Kaabi, First Deputy Speaker, and in the presence of 178 deputies, on Saturday evening 12/19/2020, finished reading and discussing five Rules.

At the outset of the meeting, the Council did read the report and discuss a proposed law against Torture and submitted by the Commission on Human Rights.

Confirmed the interventions of Ladies and Gentlemen , the House of Representatives during the meeting , which was chaired by which Mr. Bashir mourning the need for law legislation to entrench human rights in Iraq and the treatment of errors that occurred due to Wrong dealing with people, especially in the investigative circles, in addition to the criminal acts pursued by terrorist organizations.

In its response to the interventions, the concerned committee expressed its full readiness to take the opinions presented into consideration in order to mature the law in a discreet manner and legislate it as soon as possible, noting that Iraq is bound to legislate this law due to its association with international and international agreements.

The House of Representatives completed reading the report and discussed the first amendment proposal to the Inmates and Depositors Reform Law No. 14 of 2018 submitted by the Human Rights Committee.

The interventions of the ladies and gentlemen called for the importance of taking into account dealing with prisoners and applying human rights principles, in addition to reviewing the articles of the law in a way that guarantees internal security and peace, especially in dealing with terrorist prisoners.

In the same regard, Mr. Bashir Al-Haddad directed the formation of a representative delegation that includes a member of the Presidency of the Council and the Human Rights Committee to conduct a field visit next week to prisons to find out the reality of inmates and detainees.

The Board finished reading a report and discussion of the proposed union of Iraqi programmers and submitted the law of the committee of civil society institutions and parliamentary development.

Completed the Council read the report and discussion of the proposed third amendment to the Law of the Association of Accountants and Auditors Law No. 185 of 1969 and submitted by the Finance Committee.

He also completed the Council to read the discussion of the first draft amendment to the law the national oil company No. 4 of 2018 and submitted by the Commission on oil and energy and natural resources. focused interventions , ladies and gentlemen deputies, to claim carefulness in the legislation to amend the law to its importance and continue to discuss it in order not to conflict with the Constitution and hosting experts in the field of oil for consultation and benefit From their views, and the call to achieve equity and social justice among Iraqis in the distribution of national wealth.

For its part, the concerned committee called on the ladies and gentlemen of the deputies to submit their proposals and observations on amending the law of the Iraqi National Oil Company for study in order to make the law mature.

The Council concluded its session with a general discussion paragraph, by calling for an expanded economic conference attended by experts and specialists in economic affairs that would contribute to finding solutions and alternatives for a solid financial policy and reduce the burden on citizens,

in addition to asking the government to review the contracts concluded by the Iraqi air force before 2003 related to aircraft The Iraqi civil and military equipment and equipment outside the country, and the invitation to host the Prime Minister, Minister of Finance and the Governor of the Central Bank in a special session to find out the reasons for the rise of the official currency exchange rate and its repercussions on the livelihood of the Iraqi citizen, in addition to demanding that the salaries of employees and retirees not be affected.   Then it was decided to adjourn the session  Media Department  Parliament  12/19/2020  LINK

Parliamentary Expectations Of Canceling Dozens Of Service Projects After Raising The Price Of The Dollar

11:59 – 19/12/2020   The information / Baghdad ..A member of the Parliamentary Services Committee, Manar Abdul-Muttalib, confirmed, on Saturday, that the high exchange rate of the dollar will lead to the suspension of a large part of the service projects in the country.

Abdul-Muttalib said in a statement to / the information /, that “raising the price of the dollar and reducing the value of the Iraqi dinar is not an easy matter and its economic repercussions will be painful in Iraq because of the government’s weak ability to provide alternatives to protect large sectors from its negative repercussions.”

Abdul-Muttalib added, “Raising the exchange rate of the dollar will lead many companies and contractors to stop their projects, especially since some of them are forced to buy imported raw materials whose cost has become higher with the rise of the dollar and this is something that should be paid attention to, stressing that if the government is trying by raising the dollar to absorb the cash mass And stopping the smuggling of dollars, but in return, its decision will lead to other setbacks in raising the prices of other materials, especially those related to projects.

Abdul Muttalib indicated that “the government’s decision to raise the dollar exchange rate if it is true that it actually adopted it will be incorrect in light of the current crisis afflicting Iraq, stressing the need to find other alternatives to increase the state’s liquidity to fulfill its financial obligations.”

The Iraqi market is witnessing a steady increase in the exchange rate of the US dollar with the leakage of the contents of the budget for the year 2021 a few days ago.

In Detail … A Previous Central Bank Report Warned Of “Devastating Consequences” Of The Decision To Reduce The Exchange Rate

17:42 – 12/19/2020   The information / Baghdad ..A report prepared by the Governor of the Central Bank of the former, on the Keywords, the large size of the damage it will suffer the Iraqi economy and Iraq in general , the impact of the decision to reduce the value of the Iraqi currency.

The report concludes, that the decision to reduce the value of the national currency will lead to a further reduction in the unstable conditions that Iraq is going through , which confuses market conditions and increases the demand for foreign currency.

And he warned of “inflationary pressures that the Iraqi citizen bear most of the negative effects, as a result of the decrease in the citizens’ purchasing power.”

To view the full report, click here .

Parliamentary Finance Reveals The Reasons For The Delay In The 2021 Budget

Pratha News Agency93 2020-12-19   A member of the Parliamentary Finance Committee, Majed Al-Waeli, revealed, on Saturday, that there are three main reasons that delayed sending the 2021 budget from the government to Parliament.

The semi-official Al-Sabah newspaper quoted Al-Waili as saying: “The first issue is the exchange rate of the dollar in the Iraqi market, as it is part of the monetary policy that the government will pursue during the next stage to solve part of the financial and economic problem in the country is to raise the exchange rate.”

Pointing out that “the task of the Central Bank of Iraq is to control its prices in the market, as it controls the exchange rates, whether in selling it to the banks or buying it from the markets.”

He added, “The second issue is to reduce the budget deficit as much as possible after the political blocs refused to send the budget without measures to reduce the deficit percentage,” describing it as “very high.”

Al-Waeli explained, “The third basic thing is the article that concerns the dues of the Kurdistan region, as last Wednesday’s meeting with the regional government delegation was paving the way to lay down an article in the budget law that was present in the deficit financing law, but that requires measures from both parties, not to mention. On the non-oil revenues, such as ports, taxes and municipalities, after controlling the oil revenues by addressing the oil marketing company SOMO to determine its quantity, despite what is in it of belongings such as companies’ contracts and others.

A member of the Finance Committee indicated, “the budget is ready to be sent to the House of Representatives after these three basic points are resolved.”

Legal Expert Tariq Harb: Our Deputies Frightened The Citizens And Burned The Market

Pratha News Agency116 2020-12-19   Legal expert Tariq Harb criticized, on Saturday, (December 19, 2020) the Iraqi parliamentarians as a result of the large number of media appearances and statements regarding the economic situation, indicating that their statements led to the burning of the market and the citizen’s feeling of dread and fear of the present and the future.

Harb said in a statement that “the proliferation of media appearances in the media, especially satellite channels, is a phenomenon that only MPs in Parliament have, and this is a characteristic that is not present among the deputies of neighboring countries, such as Iran, Kuwait, Jordan, and other neighboring countries such as America and Britain.”

Indicating that “the large number of statements of representatives about the budget, oil and the economic situation, led to the burning of the market and economic chaos and the citizen’s sense of panic and fear of the future and the present.”

He added, “The Iranian MP and Iran are in an economic situation that may be worse than our economic situation, and we have rarely seen representatives in the Iranian media, and this is a decided right for deputies in Kuwait, Jordan, Turkey, America, Britain and other countries, and the deputies of these countries did not do what is happening from the large number of our representatives.” In the media. ”

And he continued, “This right is governed by the wisdom that says (if the truth exceeds its limit, it will turn against it). God is God in the large number of media appearances and in the large number of statements, especially those that attack the market, the onslaught of fire. Those countries and other media, and a comparison with the cases of your Excellency appearing in the Iraqi and other media. ”

He concluded by saying, “We do not forget the cases of (Nancy Pelosi), the Speaker of the US House of Representatives, who speaks only to the media while she walks without stopping, and the position of His Excellency the Speaker of Parliament, who can be an example to be emulated in the lack of statements and the lack of media exposure.”

To Discuss The Budget .. The Council Of Ministers Holds An Extraordinary Session Headed By Al-Kazemi

Pratha News Agency115 2020-12-19   Today, Saturday, the Council of Ministers held an extraordinary session headed by Council Chairman Mustafa Al-Kazemi, to discuss the draft Federal Budget Law for the Republic of Iraq for the fiscal year / 2021.

The Council’s Media Office said in a statement that “the Council of Ministers holds an extraordinary session headed by Prime Minister Mustafa Al-Kazemi to discuss the draft federal budget law for 2021

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