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More Iraqi News Thursday PM 12-31-20

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Economist: The Dollar’s Exchange Rate May Rise To Unnatural Levels After The Middle Of Next Year

08:30 – 31/12/2020   Information / Special …Economist Ihssan Al-Tamimi said that the dollar’s exchange rate may change after the middle of next year, especially if the government resorts to borrowing after it exceeded the month of June in 2021 because of the large deficit in the budget.

“The budget, which exceeded the 160 trillion dinars, has a large deficit that exceeds the 60 trillion dinars, at a time when everyone is contemplating the rise in oil prices to cover this deficit.”

He added that “the government will resort to borrowing again, in the event that it is unable to overcome the deficit in the budget, which is intended to take additional measures that would increase the dollar exchange rate.”

And that “the dollar exchange rate may reach abnormal levels and may exceed 1700 dinars to one dollar, after the middle of next year, if the government can find new sources of financing that eliminate the budget deficit.”

Al-Kinani ruled out the return of the dollar’s exchange rates to 1,200 in the next three years, especially since global markets are suffering from a financial crisis due to the Corona virus, amid fluctuations in oil prices due to the repercussions of the virus. 25 n

The Central Bureau Of Statistics Issues Preliminary Estimates Of GDP For The Third Quarter Of 2020

Money  and business  Economy News _ Baghdad  On Thursday, the Central Bureau of Statistics released the estimates of gross domestic product for the third quarter of 2020.

The agency said in a report reviewed by “Al-Eqtisad News”, that “the gross domestic product at basic prices for the third quarter of 2020 amounted to 53223.9 billion dinars, which is equal to 45.02 billion dollars,” indicating that “the rate of change of the gross domestic product at current prices recorded a decrease of 21.05% compared to In the same period in 2019. ”

The agency added that “the rate of change of gross product at current prices for the third quarter 2020 increased from the second quarter 2020 by 31.08%.”

She pointed out that “these indicators, along with other indicators, will reflect the volume of economic activity, whereby all movements of the main economic flows, such as production and consumption, can be monitored. These indicators are also important economic indicators that planners and economic decision-makers need in order to formulate policies that ensure the advancement of the national economy.” The number of observations: 149, date of addendum, 12/31/2020

Dollar Exchange Rates In The Iraqi Market

Pratha News Agency101 2020-12-31   The exchange rates of the dollar rose in the main stock market and local markets for the third consecutive day today, Thursday (December 31, 2020)

The Kifah Stock Exchange recorded 144,800 dinars against 100 US dollars, while the exchange rates for the day on Wednesday in the Kifah Stock Exchange were 143,700 dinars per 100 dollars.

As for the exchange rate in the local market, it also rose:

Selling price: 145.750 dinars per 100 dollars.   The purchase price is 143.750 dinars per 100 dollars.

Economic Welcome To The Trend Of Raising The Deposit Rate

Thursday 31 December 2020   36  Baghdad: Haider Al-Rubaie and Muhannad Abdul-Wahab

The economic circles welcomed the initiative of the Rafidain and Rasheed banks, who raised the interest rates on deposited funds, stressing that this step is necessary to absorb the “hoarded money”, and while a banking expert called for an increase in the interest rate to 12 percent on deposited funds, he emphasized that about 85 percent Of the currency circulating in Iraq, chunky with the owners of capital.

The Rafidain Bank increased the financial interest rate to 5 percent for fixed deposits for citizens for a period of one year, and interest up to 4.5 for those who deposit for a period of six months, a step followed by the Rasheed Bank, which raised the interest rate by 7 percent for fixed deposits.

Economic welcome

The banking expert, Abd al-Rahman al-Sheikhly, confirmed during his speech to “Al-Sabah” that “Iraq has been suffering for years from the phenomenon of“ hoarding outside banking channels ”, as more than 85 percent of the currency circulating in Iraq is hoarded with the owners of capital,” indicating that “The reason for hoarding this money stems from the loss of trust between the banking institution and the citizen.”

Al-Sheikhly expressed his astonishment at some banking policies that he described as “obstructing the deposit and withdrawal operations,” noting that “when a citizen needs money to go about his affairs, he clashes with several obstacles after reviewing banks, and many banks do not grant citizens who settle his money, when he needs “This is why most citizens were forced to keep their sums away from banks.”

Interest increase

Al-Sheikhly praised the procedure of Al-Rafidain and Al-Rasheed banks, calling for an increase in the interest rate to 12 percent, attributing that to two aspects, the first being the withdrawal of liquidity from the street, and then investing it within the banking institution, as those funds can be operated in several areas, ”indicating that“ the second It is to restore confidence between the banking institution and the citizen.

Enhancing liquidity

In turn, the banking expert, Abdul-Hussein Al-Mandhari, said during his interview with Al-Sabah that “Al-Rafidain and Al-Rasheed Bankers took this step with the aim of encouraging citizens to place their savings in banks instead of saving them at home, in order to obtain benefits that compensate them for the decrease in their value against the dollar After the government and the central bank resorted to reducing the dinar exchange rate.

“This initiative will enhance the liquidity of banks, which have decreased as a result of customer and government lending and as a result of some customers’ delay in paying their loan installments as a result of the economic recession that the country’s economy suffers from due to the Corona pandemic that struck most sectors of the economy in the world,” Al-Mandhari explained.

Al-Mandhari urged commercial and Islamic banks to motivate customers to deposit their money in dollars, taking advantage of its price fluctuation in the market.

Deposit in banks

For her part, the official spokeswoman for the Rasheed Bank, Amal Al-Shuwaili, stressed the need to educate citizens about the importance of depositing in banks, and not to hoard money in homes, as it may be subject to theft or some predestination.

Al-Shuwaili explained during her interview with “Al-Sabah”, that “the interest in increasing the interest rate to 7 percent by the Rasheed Bank for a period of two and a half years for fixed accounts came to stimulate and encourage capital owners and citizens to deposit their money and not hoard it,” explaining that “the sums of money For depositors, they are kept with us and are safe. They will be returned whenever requested by their owners, and the bank is obligated to preserve them. ”

As for the importance of depositing and attracting funds to banks, Al-Shuwaili confirmed, “This approach is definitely important and is in the interest of the government’s approach to advance the economic reality in general,” stressing that “Al-Rasheed has put in his plan to support investment projects in accordance with the regulations in place to contribute to supporting (housing / health projects) / Educational / commercial / industrial).    LINK

Ministry Of Commerce: The Middle Of Next Month, The Date For The Application Of The Electronic Payment System

Author: AhadNA1 On 12/31/2020 – 3:14 PM  95  The Ministry of Trade confirmed, Thursday, that mid-January will be the date for the application of the electronic payment system for exporters and importers, while it indicated the reasons for the obstacles to the export process.

“The company signed a contract with the Central Bank regarding electronic payment, as the middle of next month will be the date for the application of the electronic payment system, which will allow exporters and importers to pay with any available card,” said the General Manager of the General Company for Iraqi Fairs and Commercial Services, Sarmad Taha Saeed.

He added that “attractive offers were made to the exporters, by giving ten percent of the invoice value free of charge, in support of the Iraqi exporter, as our goal is not only to export, but to make the transfer in Iraqi banks, and to provide hard currency.”

He pointed out that “the Council of Ministers previously issued a decision to make the export absolute, but we were surprised to stop exporting most of the materials due to the existence of laws that contradict the decision.”

He explained that “when traders started exporting, they were surprised to stop exporting gravel, aluminum industries, etc., as we must take sectoral approvals, after which export is allowed, in addition to the existence of laws issued in previous years that prevent the export process, and therefore we must present a proposed law to the Council of Ministers and ratify it. And it is sent to the House of Representatives and presented for the first reading and the second after which a decision is issued.

The Baghdad Post Thursday, December 31, 2020 10:51 AM A deputy reveals a new parliamentary approach to question the governor of the Central Bank and the Minister of Finance

Mazen Al-Faily   A member of the Parliamentary Economic and Investment Committee, Mazen Al-Faili, revealed a new parliamentary approach to question the governor of the Central Bank and the Minister of Finance.

Al-Faily said, “There is a representative approach among most of the political blocs to question the governor of the Central Bank and the Minister of Finance against the background of raising the dollar exchange rate and discussing new government reforms,” noting that “government decisions need extensive discussions within the House of Representatives.

He added that “most of the members of the House of Representatives rejected the item on the deduction of salaries of employees,” noting that “government reforms must be far from the salaries of employees.

The MP for the coalition of Iraqis, Hassan Khatti, confirmed yesterday that “the House of Representatives will present the draft federal budget for 2021 for discussion next week, pointing out that Parliament will need six sessions to pass the budget by three weeks.”   LINK

Economist: Iraq Depends On A Traditional, Useless Fiscal Policy

The Baghdad Post Thursday, December 31, 2020 02:38 PM  The researcher in drawing financial policies, Haytham al-Hassani, said that the budget deficit was due to the absence of financial policy.

In a televised statement, Al-Hassani called on the competent authorities to reduce government spending to protect employees’ salaries instead of continuing with a traditional, useless fiscal policy devoid of reform and even reliance on routine orders by the Ministry of Finance.   LINK 

Alia Nassif Warns Of Tampering And The Attempts To Waste And Steal Millions Of Dollars

The Baghdad Post Thursday, December 31, 2020 03:24 PM   Representative Alia Nassif warned today, Thursday, that “entities” are seeking to distort the documents related to the payment of debts owed by the mobile phone companies and present at the Media and Communications Commission, calling on the Iraqi judiciary to expedite the withdrawal of these documents.

Nassif said in a statement, “Some people who have been recruited by mobile phone companies are trying to access documents related to debts owed by mobile phone companies for the benefit of the state, noting that these documents are with the executive body of the Media and Communications Authority. Millions of dollars of public money for the benefit of these companies.

Nassif stressed “the necessity of the intervention of the judicial authorities and the acquisition of these files as soon as possible before their numbers are tampered with or destroyed.”   LINK

Sumo: $ 42 Billion In Oil Revenue In 2020

Thursday 31, December 2020 17:48 | Economical Views: 29   Baghdad / NINA / The Oil Marketing Company / SOMO / announced the volume of revenues from oil exports during the year 2020.

The general manager of the company Alaa al-Yasiri said, according to the official news agency: “The volume of revenue generated from exporting oil through the company for the year 2020 amounted to 42 billion dollars. While the current December revenues amounted to more than 4 billion dollars, for a sale price of 49 dollars per barrel.

He added, “Iraq exports about 3 million barrels per day after the reduction decision, following the OPEC + agreement.” Al-Yasiri expected: “Oil prices will improve despite the new strain of Corona.” / End

An Economic Specialist Warns Of The Escalation Of Poverty … And Calls For Attracting Local And International Expertise To Draw Up A Budget That Saves Iraq

Thursday 31, December 2020 14:27 | Economical Views: 175   Baghdad / NINA / The Baghdad Chamber of Commerce advisor, specialized in the administration and economy sector, Maha Al-Obeidi called for urgent measures to be taken to contain the escalation of poverty and unemployment.

And she demanded a statement by the Iraqi National News Agency ( NINA ) to take a series of correct decisions regarding investment, trade and support for the private sector, before the escalation of a wave of social crisis that leads to family problems, committing criminal crimes, and renewed protests and demonstrations with a stronger wave than what happened in October 2019.

Al-Obaidi warned of the current economic situation, in light of the incorrect decision of the Central Bank of Iraq to raise the exchange rate of the US dollar and the steps of the Ministry of Finance, which will be reflected in increasing poverty and unemployment rates from 30% to 60% and adding burdens to the income of the individual and the Iraqi family suffering from accumulated crises. .

Al-Obaidi pointed out: “The House of Representatives is facing a test by legislating the 2021 Budget Law in line with the economic conditions, and using expert advisory experts to draw up a correct budget, after the government held on to a wrong and serious position that affects the middle and crushed classes in the country.”

She indicated: “Iraqi and international capabilities are ready to prepare a better budget that achieves comprehensive development and balance the economy, and ends the corruption that destroyed the economy.”

The House of Representatives is scheduled to start the first reading of next year’s budget within the next few days, after the Council of Ministers sent it two days ago.

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