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Iraqi News Tuesday AM 1-19-21

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The Decision To Devalue The Currency Is On The Table Of Experts

Tuesday 19 January 2021  54  Baghdad: Hussein Thahab  A specialized economic seminar dealt with the impact of devaluation on the reality of the Iraqi economy, where the decision to devalue the currency was accompanied by repercussions, including partial halt and confusion of economic and commercial dealings, and whether it is an economic reform, as confirmed by the competent authorities, or is it a means or a tool to save the financial situation from the state of confusion in which it lives. .

Economic expert Dr. Shaban Saddam al-Amara said during the seminar organized by the Economic and Financial Development Platform and followed by “Al-Sabah”:

He pointed out that “devaluation is one of the studied economic policies, and it is one of the spending transfer policies that countries usually resort to when they suffer from a persistent or permanent deficit in the balance of their payments, and the purpose is to reduce the prices of domestic goods in order to increase their exports (increase their ability to compete in the market) On the other hand, imported goods become more expensive, thus reducing imports, and the result is to address the deficit in the balance Payments ”.

Global Market

He said, “Iraq does not have a chronic or permanent deficit in its balance of payments. Rather, it is a temporary deficit that occurred due to the pandemic and its associated effects. Also, Iraq does not have important commodities to export except for oil, and this commodity is determined by its price in the global market, and there is no relation to the devaluation of the currency.

By demand for them and their prices, and in return, Iraq imports most of its needs from the outside world, and here we must note the amount of damage to the Iraqi citizen as a result of this policy, meaning that the Iraqis will pay 22 percent higher amounts than the previous prices for their purchases, and this constitutes a significant decrease in their real incomes. He asked whether economic reform aims to reduce real incomes? The decline in real incomes also means the deterioration of the economic well-being of the members of society.

Currency display

On the other hand, he continued, “Some believe that this policy was designed to harmonize the official exchange rate with the parallel or market exchange rate, but this opinion is far from the truth, because the exchange rate despite the change in the currency’s value and its decline against the dollar will continue to decline, unless it interferes.

The state is stable, because the foreign currency supply in Iraq is linked to oil exports, the resources of which belong to the state, and therefore the demand by importers cannot be covered, except with the intervention of the state through the central bank, because the exchange rate in Iraq will remain an administered exchange rate, as long as The Iraqi economy depends on oil for its exports as the only commodity.

Official price

Stressing that “there is no truth to the opinion that the reduction came to harmonize the official and parallel price, and this measure, and I do not say the policy, increased the confusion of the economic situation. Speculators increased their interest from them ». Suspect

Coin value

Head of Economic Studies, Dr. Falah Thuwaini believes that “the task of issuing cash since the time of Ricardo, who demanded that the cover of the issued currency be 100 percent of gold at the time. His justification for this was to maintain the general level of prices, the value of the currency and its purchasing power.”

And that «the value of the currency is linked to the capacity and flexibility of the productive apparatus, and even when countries face external pressures with a decrease, not to reduce the exchange rate of their currency, they will be affected temporarily and quickly return to normal or close to it, as is the case with Turkey.

As for countries that reduce the exchange rate of their currency, The same is the case with Egypt and Iraq. Egypt has succeeded to some extent, and Iraq will not succeed if the state of its economy remains based on oil rents and leaves the basic manufacturing industries prey to the organized dumping internally and externally.

Productive projects

Economic expert Dr. Khaled Al-Shammari stressed that «the problem now is in the enormity of the budget and its current spending, which constitutes the greatest burden on growth and development, and if the government does not take into consideration the devaluation of the currency, it is possible to resort to the cash issuance at the rate of reduction, which is 21.8 percent of the current cash issue, which is up to sixty-five trillion dinars,

meaning Up to fifteen trillion dinars, all of them invest in productive projects that are not for independent companies and institutions, which formed a burden on the budget and not a supplement to income, and with the participation of the private sector, local and foreign product, and the establishment of joint-stock companies for graduates with their specializations and attention to human development, all of which will contribute to raising the (Gross Domestic Product) GDP by no less than a percentage Reducing the currency within one year, because there are idle production capacities and good local consumer demand, and it will also employ employment and reduce unemployment, without accumulating rates of increase thereof and reduce pressure on the government to appoint to increase unemployment Disguised ”.

The peculiarity of the economy

Dean of the College of Administration and Economics, Samir Fakhry, said in “my modest estimate there is no difference between monetary financing and non-monetary financing of the deficit due to the peculiarity of the Iraqi rentier economy. The private sector, if any, buys it, but whoever buys it in the Central Bank, here a monetization process took place and it does not differ, in the end the matter is from the case of direct cash issuance and in isolation from the growth of GDP.

Disability coverage

She is asking how to explain the deficit in the general budget for the past year? In the trillions of cash issuance and independently of GDP growth, how can this be explained? Is it not by issuing through monetary and non-monetary financing through financing the issuance of debt securities, which the Central Bank returned to deduct through the purchase of debt, here a process took place through cash issuance.

Academic d. Youssef Al-Asadi said: “The Iraqi economy is not subject to the logic of economic theory, especially the ideas of the monetary school, which emphasized the growth of gross domestic product, due to the increase in money supply, and in the long run to the rise in the general level of prices, but the rate of prices will rise, because more food commodities and needs Basic citizen Imported ”.

Real entry

Dr. Shaaban, the emirate, said: “As for the government’s measures, all of them lead to deflation and stagnation in devaluing the currency. I explained how it leads to a decrease in real incomes, and then a decrease in the overall demand, that is, a contractionary policy. The state, in all its policy orientations, is contractionary. Therefore, the state, through its budget, must allocate available materials towards the investment budget and for real productive projects.

Financial dominance

Academic d. Jaafar Baqer Alloush stated that «the recent financial decisions have had negative effects on the Iraqi economy, as they will affect the monetary side and bear burdens, whose tools may not be able to address them, as in the past, monetary policy was chasing after financial dominance, and it had the tools of control and scientific trust, I Tighter at the hands of the Iraqi Central Bank in its previous policies, except for some reservation on the currency window, and ten years ago I mentioned in a seminar on monetary policy that we will witness one day a storm that is the first affected by the central bank and monetary policy ».

Collect the currency

“Here I would like to discuss facts in exchange for a proposal … with everyone, the reality is with the decline in central bank sales and the decrease in the sterilization process for foreign trade, the central bank also loses the ability to collect local currency, and the currency of the public will be the actor in directing consumption and trade exchange,” he said. Generates pressure on public finances through the weak ability of the Central Bank of Iraq to exchange the Iraqi dinar for dollars to the Ministry of Finance.

Import financing

He pointed out that «the monetary mass of the public is important and not to be underestimated in terms of creating unfamiliar balances for the financial decision-maker, and therefore the central bank will be forced to issue cash this time to sterilize the requirements of public spending which is expanding par excellence, and here we will be in front of a dangerous slope, as both finances are lost. Public as well as cash represented by the Central Bank is the ability to control conditions or control trends of exchanges, and here I suggest that the central bank sterilize in a different manner, enter a partner for the productive sectors, through an internal investment portfolio and participate in financing productive projects in coordination with the ministries of industry, agriculture and industrial sector.

Production only, for example, to finance and cover their imports of raw materials and their participation with its financing capabilities, instead of financing imports of inferior goods, means transferring sterilization from foreign trade to production sectors, whether public or private.

Unemployment rates

Turn d. Abbas Fadel Al-Tamimi said: “Inflation, which is planned according to clear development and economic plans, is a natural case. Since 2003, the easiest of these results has been the already high unemployment and poverty rates, and the other repercussions they have on all Levels ».   LINK

9 Profitable Companies Raise The Stock Market Index

Iraq Stock Exchange  Market  Economy News – Baghdad Nine profitable companies contributed to the introduction of the stock market index in the green zone.  On Tuesday, the index rose by 0.20%.

The Petroleum Products Transport Company topped the winning companies, followed by the Mansour Hotels Company.

The index was not free from the losing companies if it reached 3 companies, topped by the Babel Hotel Company, followed by the Iraqi Company for seed production.

During the meeting, 9.2 billion shares were traded, worth 3.9 billion dinars.

The Iraqi Islamic Bank Company topped the companies in terms of circulation and value, with 9 billion shares being traded at a value of 3.6 billion dinars.  Number of observations 78 Date added 01/19/2021

Today, Tuesday … Learn About The Exchange Rates Of The Dollar In The Local Market

Economie| 10:45 – 19/01/2021  BAGHDAD – Mawazine News  The exchange rates of the dollar on the stock exchange and local markets in the capital, Baghdad, were recorded on Tuesday, up from the prices recorded yesterday.

The Central Kifah Stock Exchange in Baghdad recorded an increase in the dollar exchange rate, reaching 145.700 dinars for each $ 100 bill.

The Al-Harithiya Stock Exchange, west of the capital, Baghdad, also recorded a rise, as the exchange rate reached 145,750 dinars, for each $ 100 bill.

The prices of buying and selling dollars in banking and local markets in Baghdad increased, as the selling price reached 146,250 dinars for every $ 100 note, while the purchase prices reached 145,000 thousand dinars, for each $ 100 bill. Ended 29 / p4

An Increase In The Kurdistan Region’s Budget Share .. Is This How Much?

Political| 05:00 – 19/01/2021   Baghdad – Mawazine News  MP Khaled Al-Jushami revealed an increase in the Kurdistan region’s share of the current year’s budget bill.

“The share of Kurdistan is one trillion and 500 billion per month in the budget, and this number is exaggerated, as its share is only about one trillion,” Al-Ghashmi said in a television interview.

He added, “Kurdistan says that I have 800,000 employees and is calling on Baghdad to pay their salaries, and when the verification is not clear, it is not clear that these numbers are actual.” Ended 29 / h

Learn The Details Of The Cabinet’s Decision To Postpone The Elections

Political| 03:44 – 01/19/2021   Baghdad – Mawazine News   The media office of the Prime Minister, Mustafa Al-Kazemi, revealed, on Tuesday, the details of the decision to postpone the elections.

The office stated in a statement that Mawazine News received a copy of, that “the Council of Ministers voted unanimously in its session held today, Tuesday, during which it hosted the head and members of the Independent High Electoral Commission, to set the tenth of October next, as the date for early elections.”

He added, “The decision came after studying a proposal submitted by the Electoral Commission to the Council of Ministers, which includes important technical reasons, which would ensure the integrity of the elections and equal opportunities for everyone to run in the elections freely and fairly.”

The council affirmed, according to the statement, to “continue its support for the commission and to overcome all obstacles facing its work.”

Oil Announces Revenues And Exports Last Month

Time: 01/19/2021 13:09:33 Read: 2,925 times  {Baghdad: Al Furat News} The Ministry of Oil announced the total oil exports and revenues achieved for the month of December, according to the final statistics issued by the Iraqi Oil Marketing Company (SOMO).

According to a statement issued by the ministry, the Euphrates News received a copy of it that “the amount of exports of crude oil amounted to (88) million and (211) thousand and (750) barrels (eighty-eight million two hundred and eleven thousand seven hundred and fifty barrels), with revenues It amounted to (4) billion and (235) million and (313) thousand dollars (four billion two hundred thirty-five million three hundred and thirteen thousand dollars), and he continued,

“The total quantities of crude oil exported for the month of last December from the oil fields in central and southern Iraq. It amounted to (85) million and (195) thousand and (608) barrels, with revenues amounting to (4) billion and (89) million and (41) thousand dollars, while the exported quantities of Kirkuk oil through the port of Ceyhan were (3) million and ( 16) one thousand and (142) barrels, with revenues amounting to (146) million and (272) thousand and (112) dollars.

It is worth noting that the quantities and revenues of the exported crude oil shipments that were marketed at a price premium to achieve additional revenue during the month of December last year amounted to more than (96) million and (443) thousand and (633) dollars.

The average price per barrel was (48,013) dollars.

The statistics indicated that the exported quantities were loaded by (31) international companies of different nationalities, from the ports of Basra and Khor Al-Amaya, and the unilateral buoys on the Gulf and the Turkish port of Ceyhan.  It is noteworthy that the Ministry, through its belief in informing the people about export operations and the revenues generated from it, has taken this monthly measure.   LINK

6 Years Imprisonment For A Former Retirement Manager

Time: 01/19/2021 15:09:19 Read: 2,808 times   {Baghdad: Al Furat News} An Iraqi court has sentenced the former director of the General Retirement Authority, Ahmed Abdul Jalil Al Saadi, to prison for corruption cases.

A judicial source stated that “the sentence on Al-Saadi was 6 years due to the corruption of the health insurance contract, and there are 7 other cases awaiting completion of the trial procedures.”

On September 15, a security force arrested the former director of the General Retirement Authority, Ahmed Al-Saadi.

A security source said that “the Anti-Corruption Agency arrested Al-Saadi,” noting that “the arrest was based on the investigations of the committee formed by the order of Prime Minister Mustafa Al-Kazemi.”   LINK

Oil Prices Rise As Optimism About The Economy Outweighs Fears Of Fuel Demand

Pratha News Agency91 2021-01-19   Oil prices rose today, Tuesday, as optimism that the government stimulus will support global economic growth and oil demand outweighed fears that renewed public isolation measures to combat the global Corona virus pandemic may slow fuel consumption.

Brent crude for March delivery rose 40 cents, or 0.75 percent, to $ 55.19 a barrel, after dropping 35 cents in the previous session.

US West Texas Intermediate crude oil reached $ 52.48 a barrel, up 6 cents, and West Texas Intermediate futures contracts for February delivery for the month of February expire on Wednesday.

Investors are optimistic about demand in China, the world’s largest importer of crude oil, after data published on Monday showed that refinery production increased 3 percent to a new record level in 2020.

China is the only large economy in the world that avoided a contraction last year at a time when many countries were struggling to contain the Covid-19 pandemic.

Investors are now awaiting US President-elect Joe Biden’s inauguration speech on Wednesday for details on a $ 1.9 trillion aid package.

“Like other asset classes, oil has received support from the US stimulus in Asia,” said Jeffrey Haley, senior analyst at Oanda for the Asia-Pacific region.

ANZ analysts say prices are being supported by an additional Saudi cut in supplies over the next two months, which is expected to cause global inventories to drop 1.1 million barrels per day in the first quarter.

Concerns about a surge in Covid-19 cases globally and renewed lockdown measures are putting pressure on demand for fuel, dampening crude prices.

ANZ analysts pointed to concerns about a decline in fuel sales in India in January compared to December and a rise in COVID-19 cases in China and Japan, which could dampen demand for crude.

“In Europe and the United States, the slowdown in vaccine distribution also raises concerns that the recovery in demand will remain elusive,” the bank said.

MP Salam Al-Shammari Participates In The International Conference On Strategies For Transitioning From A Rentier Economy To A Multi-Resource Economy

01/19/2021   MP Salam Hadi Al-Shammari, Chairman of the Agriculture, Water and Marsh Committee, participated on Monday 01/17/2021 in the conference held at the Wealth of the Prophets University under the title (Strategies for Transformation from a Rentier Economy to a Multi-Resource Economy).

During the conference, the Chairman of the Committee presented a set of advice for workers in the sectors of agriculture and industry and the method of international economic dealings, urging the attendees to work on ending import from outside Iraq and developing the local product and making it competitive for the importer.

For your part, the price of the conference organizers is the role of MP Salam Al-Shammari in presenting him with concepts and opinions that contribute to supporting the national product and preserving the components of the Iraqi economy in a way that contributes to providing job opportunities and reducing unemployment. House of Representatives   Media   Department 01/19/2021    LINK

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