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Iraqi News Wednesday AM 2-3-21

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The Devaluation Of The National Currency Is Acceptable At 1,300 Dinars To The Dollar

Wednesday 03 February 2021  55  Baghdad: the pillar of the emirate

Economic calls continue to confirm that the devaluation comes to achieve purely economic goals, as this measure reduces the deficit ratios in the general federal budget, and supports the local product. This corresponds to another opinion, which favors the reduction rates of 1300 dinars per dollar to reduce the effects on the local markets and their supply prices.

Academic Abdul Karim al-Issawi told Al-Sabah: “The devaluation is achieving great success in countries that have an economic diversification represented in abundant industrial and agricultural production that covers local markets and is exported abroad. This means that there are foreign markets for national products.”

Sovereign funds

Concerning the cash reserve of Iraq, he stressed that it is “used to face emergency situations when sovereign funds are not available and to avoid borrowing from abroad. Otherwise, using it in other than these cases loses the confidence of creditors and investors.”

Deficit ratio

He warned that “crude oil represents 99 percent of the total Iraqi exports and is the source of supplying the general budget with money, and that the reduction of the national currency has a relatively impact on the citizen, and this corresponds to the reduction of the deficit in the general budget,” indicating that he sees the reduction of the currency to 1300 dinars The dollar is appropriate, provided that this is not accompanied by deductions and income tax on employees, but rather to reduce the operating expenses of the three presidencies and to work to maximize non-oil resources.

Financial revenue

As for the member of the Administrative Board of the Economist Association, Dr. Ikram Abdel Aziz, she said: “The state resorts to devaluing the currency in order to encourage an increase in exports. For the country ».

Abdel Aziz pointed out that «the reduction in the value of the local currency against the dollar must be based on realistic foundations, including standing at the real capabilities of the Iraqi private sector to produce and export any commodity or commodity, or what are the elements that the state relies on in development to meet the requirements and needs of national industry. And agriculture, just as most of the products manufactured inside Iraq need raw materials imported from abroad.   LINK

The Poor And The Dollar

Economic Page   100 2021-02-03  Dr. Nazem Al-Rubaie |Away from theorizing and media auctions declared by officials and advisers to the Prime Minister for Financial Affairs, the Minister of Finance and the Governor of the Central Bank of Iraq, which claim that the Central Bank of Iraq contributed 70% of the 2021 budget of 164 trillion dinars and that they contributed after difficult and difficult negotiations with banks to obtain loans Financial from those banks to cover the budget deficit to become the second largest budget after the budget of the Kingdom of Saudi Arabia

Despite its enormity, this budget will constitute a great burden on the Iraqi economy and will negatively affect the lives of citizens, as it will lead to a decrease in the cash reserves of the Central Bank, and the Iraqi government will carry new debts with large annual benefits

As for the poor citizens

Whether they are employees or workers in the private or mixed sector

The value of their monthly salaries or daily wages decreased as a result of the increase in the dollar exchange rate from 120 thousand to 146 thousand dinars for every hundred dollars

This increase caused most of the wholesale stores in Shorja and other stores to close their doors to the shoppers due to the lack of people coming and reluctance to buy. The unemployment rate increased among young people who live on their daily work in this sector to be added to the army of unemployed graduates as a result of not employing them under the pretext of not having sufficient financial allocations in the budget 2021 to be appointed

This was accompanied by a decrease in the purchasing value of the majority of people who earn and self-employed as a result of this increase in the dollar exchange rate.

What is striking, surprising and strange, despite the financial crisis that the government is going through, the lack of financial liquidity and the large deficit in the budget, we see that this budget has been calculated and retroactively according to Article 11, paragraph 1 of it.

Financial allocations for the Kurdistan region from 2014 until 2019 despite the fact that the Kurdistan region has not delivered imports of oil export or border crossings since 2003 until now to the central government

No, even worse than that, the region is demanding the central government to pay off large financial debts owed by it, as it claims, amounted to 128 billion dollars, under the pretext that the region received the displaced and the opposition and housed them in the Kurdistan region !!

As for the poor and impoverished people of the south and center, they are the victims of the wrong policies of the previous and current governments because they are out of the equation in all cases. If the price of selling a barrel of oil rose and the financial revenues increased because Iraq’s economy is a rentier economy, it goes into the pockets of the corrupt and those who hold power.

They impose taxes and fees on citizens and employees alike. Rather, it came to the point of deducting part of the salaries of retirees that do not exceed 500 thousand dinars under the pretext of filling the financial deficit during the time of the Al-Abadi government

As for the owners of Excellencies, Sovereignty and Highness, they in their ivory towers are not affected, whether the dollar exchange rate has increased or not, because they are the owners of banks and the holders of ministries and their resources, and they are the ones who control the exchange rate of the dollar and smuggle it outside the borders despite the issuance of court rulings from the Rusafa investigation court competent to look into issues of integrity and laundering Money and economic crime against thirteen private banks as a result of their entry into the auction of selling foreign currency without submitting valid permits supporting the entry of goods purchased by these banks and not being taxed, and recruitment orders were issued against the managers of these banks

But despite all this, the lack of seriousness of the government and parliament in holding the corrupt accountable and dealing with the exchange rate of the dollar and their insistence on maintaining the exchange rate as it is after the increase in the exchange rate by the Central Bank of Iraq, which generated popular anger and boiling among the general public and the poor in particular, being the only ones affected by the exchange rate that Accompanied by a sharp and crazy price hike, Suspect  this boiling is a message from the poor, which means that the fire is under the ashes because the poor have nothing to fear or fear,

so beware of the anger of the poor because you are speaking in their name in the media, especially since the elections are coming and on the doors because you are working for your own interests and to increase your funds and money only Without regard to Iraq or its poor, so fear God among his poor families and return the exchange rate of the dollar to a place on it before raising its price before it is too late

The Stability Of The Dollar In Iraq Today

Time: 02/03/2021 10:49:21 Read: 4,914 times  {Baghdad: Al Furat News} The dollar exchange rate stabilized in Iraq today, Wednesday.

The exchange rate on the Baghdad Stock Exchange reached 1452 dinars to one dollar, or 145 thousand and 200 dinars, which is the same price yesterday.  In Basra, the dollar also stabilized at 1450 dinars, while it rose slightly in Erbil and reached 1454.5 dinars.   LINK

The Iraqi Stock Exchange Rises Wednesday’s Trading Session

Economie| 03:17 – 03/02/2021 Baghdad – Mawazine News  The Iraqi Stock Exchange index rose, in Wednesday’s session, by 0.77%.  During the meeting, 1.2 billion shares were traded, worth 1,2 billion dinars.

Nine companies recorded positive results, as Al-Amin Real Estate Company came in the forefront of the winning companies with a rate of 6.67%.

While 8 companies recorded negative results. And the modern handicraft company came at the forefront of the losing companies, with a rate of 14.37%.

Likewise, foreign investors sold 49 million shares at a value of 36 million dinars, after executing 30 deals on the shares of four companies.

The Council Of Ministers Holds A Regular Session Headed By The Prime Minister, Mr. Mustafa Al-Kazemi

February 2 – 202 1  Prime Minister Mustafa Al-Kazemi chaired today, Tuesday, a regular session during which a number of issues and developments in the country were discussed.  Where they discussed the necessary preparations for holding the elections next October, and ensuring their success.

In this regard, the Prime Minister directed all ministries and state institutions to facilitate the work of the Electoral Commission and provide assistance to accomplish its work.

The session included a discussion of the developments of the work of the Committee for Promoting Governmental Measures, in the fields of prevention, health control and awareness, regarding the Corona pandemic, and the Minister of Health and Environment presented a detailed report on the Ministry of Health’s measures and efforts to confront the pandemic, and educating citizens about its danger.

After the Council of Ministers discussed the topics on its agenda, it issued the following decisions:

First / The Ministry of Finance authorizes the Ministry of Health to disburse the salaries of appointed doctors in 2020 from other sections of the Ministry of Health, or from the chapters of ministries and agencies not associated with a ministry, provided that the proportion of the disbursement does not exceed (1/12) of the state’s total expenditures.

Second: The Directorate of Roads and External Controls in the Ministry of the Interior is responsible for keeping the main checkpoints at the entrances to the governorates (exclusively), and with them the supporting services (Intelligence, National Security and others).

Third: Approval of the minutes (18) and the recommendations of the Diwaniya Order Committee (45 of 2018) attached to the linking of the Ministry of Planning letter numbered with the number (WS / 30/2/1 dated January 13, 2021) regarding the completion of public hospital projects, taking into account With regard to the observations of the legal department in the General Secretariat of the Council of Ministers

Fourth / Approval of the proposals confirmed in the book of the Ministry of Finance, No. (T / 1457 dated 11/15/2020), regarding Iraqi / Lebanese cooperation within the framework of a project to trade heavy fuel oil between Iraq and Lebanon in a fundamental way for a period of one year, and helping the Lebanese people by approving Selling fuel oil at a rate of (500) thousand tons annually at the price of the prospectus, and recovering the value of products in the form of services, medical goods, medicines and consulting services.

Fifth / Approval of the recommendation of the Ministerial Council for Social Services (7 of 2020), according to the following:

1- Canceling the decision of the Ministerial Council for Social Services (25 of 2019).

2- The introduction of an Iraqi company with expertise and specialization as a partner in implementing the Diwaniyah sewers project, provided that it is accepted by the Ministry of Construction, Housing, Municipalities and Public Works.

3- An exception for the Diwaniyah sewers project from Cabinet Resolution (170 of 2019).

Media Office of the Prime Minister  2 February-2021

Bank Accounts In Iraq Have Not Reached The Level Of Ambition

Wednesday 03 February 2021 57  Baghdad: Farah Al-Khafaf  The former director general of Al-Nahrain Bank, Abdul-Hussein Al-Mandhari, confirmed that the number of current bank accounts in Iraq, estimated at 4.8 million, “did not reach the level of ambition,” although it promotes financial inclusion … and the legislative and executive authorities are betting on the banking sector to achieve a boost to the suffering Iraqi economy

The state of most world economies is due to the repercussions of the Corona virus, but what made matters worse is that the economy of Iraq was built for decades on traditional concepts, and despite the attempts during recent years to free them and move to a market economy, which has always been repeated as a term and heard by citizens, but touched His results, in real terms, were not up to his ambition.

Al-Mandhari says: “4.8 million bank accounts means approximately one person out of ten owns a bank account.”

Financial inclusion

He added that “most bank accounts are for state institutions, and banking services according to financial inclusion must reach every Iraqi and citizen’s home,” indicating that “according to the statistics of the Central Bank and until August 31, 2020, the issued cash mass amounted to more than 62 trillion dinars, of which banks own As deposits up to 25 percent, or nearly 17 trillion dinars, and the remainder is outside the banks with the public ».

Regarding the recent move of some banks, especially the government, to raise the interest of savings accounts and fixed deposits and the extent to which they attract the hoarded funds, Al-Mandhari said: “Raising bank interest does not make a difference to the public, because of the citizen’s fear of the future vision of the currency, and the majority is directed to dollarization, in exchange for an economic threat, It is inflation, which is one of the reasons for the devaluation of the Iraqi dinar against the dollar.

Savings accounts

The Ministry of Finance had directed government banks to increase interest rates, as Rafidain Bank announced that savings accounts would be raised to 5 percent and fixed deposits reached 7 percent.

Regarding solutions and proposals, Al-Mandhari pointed out that, “In order to encourage citizens to go to banks and deposit their money, banks should reduce the conditions for depositing money with them.”

The Association of Iraqi Private Banks announced that the number of bank accounts in banks operating inside Iraq amounted to more than 4.8 million bank accounts.

High interest

The Executive Director of the Iraqi Private Banking Association, Ali Tariq, said in a statement: “Bank accounts amounted to more than 4.8 million accounts, which is a very good percentage, and is witnessing a great annual growth, which is more than 44 percent thanks to the program of localizing salaries of state employees and opening new companies, as well as On the need of citizens to save in banks because of the high interest rate for fixed deposits and purchases from the Internet and others.

He noted that the number of currently activated bank cards amounts to more than 11.2 million cards, while the number of ATMs is 1,170 devices, explaining that the point of sale devices known as POS amount to about 4,000 devices, and electronic payment companies are working on an increase to include all stores throughout the country during Coming years.

Tariq pointed out that the activated electronic wallets amount to more than 3.5 million wallets, and that the points of cash payment amount to about 13 thousand devices spread throughout Iraq.  LINK

Employees: The Instructions Of The Director Of Al-Rafidain Bank Regarding Advances Are Incapable And Legitimate For Corruption

Time: 02/03/2021 09:31:16 Read: 5,135 times   {Baghdad: Al Furat News} The employees of the General Manager of Al-Rafidain Bank (Hussein Ali) have criticized the recent arbitrary measures and the “strict and incapable” instructions and controls that he has put in place regarding granting advances to them.

The employees confirmed to Al Furat News Agency that “the bank’s general manager, in one of the chapters of corruption, returned the manual presentation of granting advances, a procedure that legitimizes the weak-minded who blackmail employees to give them money in exchange for granting them advances and the introduction of favoritism, patronage and intermediaries in granting them in new aspects of corruption.”

They also indicated that “the director of Al-Rafidain Bank was supposed to use electronic means in granting advances and uploading them electronically in a quick period, but he returned to issue decisions about manually granting advances in a step that almost receives the advance payment may take about two months to grant it after the current instructions talked about returning The submission is manual instead of electronic. ”

And they confirmed, “They applied to the advances 6 months ago electronically, but they were surprised to cancel the submission and return to manual.”

The employees called on the Minister of Finance and members of Parliament to intervene personally to stop the farce practiced by the bank manager regarding the controls of granting advances.   LINK

Supporting Economic Reform

Wednesday 03 February 2021  53  Dr. Hussein Jaber Al-Khaqani  In previous years, the government adopted an economic policy based on expanding public spending, and one of the most important manifestations of this expansion was to achieve an increase in the number of workers through the creation of government jobs during the past seventeen years with increases in salaries and allocations with the increase in the purchasing power of the Iraqi dinar to more than Weakness since 2003.

This has stimulated consumer spending among the public and led to the creation of a large commercial class to meet the increasing demand for consumer goods.

Stimulating domestic demand by the government is an economic policy to achieve economic goals that are reflected in development, employment, poverty alleviation, and increased state resources, but this policy did not contribute to stimulating productive activity, but rather contributed to disrupting it in favor of import activity to meet the growing consumer needs, relying on oil revenues to implement This policy.

To stimulate productive activity, the 2021 budget relied on raising the exchange rate of the Iraqi dinar against the US dollar to allow for greater competitiveness for the industrial sector. This achieves part of the required positive effect, but requires reducing taxes and fees on the productive sectors to avoid a contraction of both consumer and investment demand.

This reduction in financial burdens can be directed towards production centers that contribute to filling a proportion of the local need from production, operating a percentage of unemployment, using a greater percentage of the available raw materials, and exporting the product. Also, the increasing pressure on the entry of the employee and retired segment will discourage spending and investment.

From the increase in productive activity and the export of finished or semi-finished goods, foreign currency is available without total dependence on sales of crude oil, and the state’s resources will increase. A distinction should be made between importing consumer or luxury goods from other imports involved in the production process, such as capital goods, machines, equipment, spare parts, technology and intermediate goods.

The best way to differentiate is the adoption of a preferential exchange rate and financial incentives, which can be expressed by creating an account dinar as one of the financial assets that are used in the production activity. This dinar is granted to projects that achieve added value, occupy a percentage of unemployment and export a percentage of Its production.   LINK

A Market For The Capital Of Islamic Banks

Wednesday 03 February 2021  42  Baghdad: Morning  The expert on financial affairs, Dr. Sadiq Al-Shammari, called for establishing a market for the capital of Islamic banks and working to deepen this market.

He pointed out to «the importance of finding long-term financing tools that enable Iraqi Islamic banks to diversify their sources of financing, expand granting long-term financing, and address the existing imbalance in their budgets and how to manage liabilities. And the assets ».

And that “this measure encourages these banks to enter into many projects in a variety of formats available to banks.” Islamic ”.

He drew attention to “the importance of obliging Islamic banks to establish specialized departments for investment that search for investment opportunities, plan future financing and conduct economic feasibility studies, and this will certainly enable Islamic banks to make integrated investment decisions.”  LINK

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