BondLady’s Corner

  In Bondlady’s Corner 

Iraqi News Sunday AM 3-1-21

TLM724 Administrator BondLady’s Corner

Economic specialist for / NINA /: The recovery of oil prices eliminates the need for a new exchange rate

Monday 01, March 2021 10:25 | Economical Views: 336  Baghdad / NINA / Economic specialist Dergham Muhammad Ali confirmed that the recovery of oil prices and the injection of the Corona vaccine around the world will increase the economic recovery and reduce the need to change the exchange rate.

Muhammad Ali told the Iraqi National News Agency ( NINA ) that “the pretexts for reducing the exchange rate of the dinar, and the costs of inflation, stagnation and increase in poverty rates on the Iraqi market were negated by the recovery of oil prices, which creates growth in budget revenues.”

He added: “The costs of eliminating the effects of the change in the exchange rate are severe and ineffective and do not effectively target the most affected groups, indicating that” the closure caused by the second wave of Corona virus has exacerbated the already deteriorating economic situation from the government’s unmetered economic behavior that affected its lower income groups. / Ended 8

Representative Finance: The Central Bank Is Responsible For Changing The Exchange Rate

Today, Monday (01 March 2021), the reporter of the Parliamentary Finance Committee, Ahmed Al-Saffar, said that the desired goal of changing the exchange rate of the dollar against the Iraqi dinar has not been achieved, indicating that what is being said about the interference of political forces to restore the exchange rate to what it was before Change an order outside the powers of the blocs and parliament.

Al-Saffar added in a televised interview, that determining the exchange rate is the exclusive jurisdiction of the Central Bank of Iraq and it is not permissible to interfere in the bank’s work.

He emphasized that setting the new exchange rate was based on a government decision and negotiations with the World Bank.

On the results of the devaluation of the currency, Al-Saffar commented by saying: The direct effects of changing the exchange rate caused inflation in the market and raised prices by 20-25%, because citizens were supposed to turn to local goods after the imported goods rose, and this means that the desired goal has not been achieved. Suspect

He continued: But the problem is that there is no competition that favors local goods until the change in the exchange rate achieves significant local results.

Regarding the existence of a political move to restore the exchange rate of the dollar to before the change decision, the representative of the Parliament stressed that what is said about the intention of political forces to intervene to determine the exchange rate is a conversation outside their powers, because it is exclusively within the government’s authority and will not be permitted.

Dollar Exchange Rates In The Iraqi Market And Global Minerals

Economie| 09:39 – 01/03/2021  Baghdad – Mawazine News publishes / Mawazine News /, a list of the price of the dollar against the Iraqi dinar for this day, Monday (March 1, 2021).

The dollar against the Iraqi dinarprices , exchange offices:

dollar sale price 145.500  purchase price of the dollar 144,500   approximate price of the dollar against the Iranian Altoman

Baghdad $ 100 2.43 million Toman  approximate global foreign currencies 100 euros 120.85 dollars 100 pounds 139.80 US $ 100 to $ 738, 60 Turkish Liras     Metal price of an ounce of gold  $ 1751.40 global oil price of a barrel of Brent crude oil to $ 65.35   per barrel of crude oil to $ US 62.41

Financial Planning And Poverty Alleviation

Monday 01st March 2021  74  Dr.. Ahmed Al-Husseini

It seems that financial planning in Iraq has not taken upon itself seriously to address the main societal issues, such as trying to reduce poverty rates. Despite the official announcement of two strategies to alleviate poverty (2010-2014) and (2018-2022), the Ministry of Planning recently announced the possibility of higher rates of poverty. Poverty in Iraq reached 32 percent, and she attributed the reason to the effects of the Covid-19 pandemic.

Perhaps the effects of the pandemic are clearly visible and its aftermath of a general stagnation in the Iraqi market, disruption of economic activity and high unemployment rates, especially among vulnerable groups that depend on their daily work to earn a living, but it seems that the Ministry of Planning has overlooked other reasons that may be more rhythmic and influential than the effects.

The pandemic, the most important of which is the decisions of the Supreme Committee for National Safety and Health, to impose a curfew that lasted for quite some time, which affected the entry levels of those groups, which represent most of the Iraqi people, and this led at a later stage to an increase in the rates of economic recession in the markets, because these groups are the most consuming It is driving aggregate demand in Economy.

The aforementioned committee was supposed to recommend the necessity of covering the living expenses of those groups, if they wanted to achieve the maximum benefit from the health curfew decision, but we did not notice this thing, in addition to the recent decisions of the Iraqi government related to reducing the value of the dinar and imposing progressive taxes targeting certain groups without Others, and the proposal to reduce allocations to more than 3 million employees within government institutions, all of these factors are expected to negatively affect the movement of economic activity,

and then negatively affect the vulnerable and poorest groups in Iraq, especially if we know that most of the groups are classified within the poverty line NBK or below it works in simple businesses related to local markets, transportation, and retail stores.

As a result, the reduction in the pace of personal spending due to the decisions issued will indirectly affect the generation of recession waves in the local markets, which will later affect the entry of vulnerable and poor groups, and according to this analysis it was imposed on the financial planner, especially when he drew the financial plan for the current year 2021, which Translated into the general budget, it takes into account those effects and the reflection of the financial plan on those groups of Iraqi society.

It is also expected that if the House of Representatives passes the draft budget proposal for 2021 in its current form, poverty rates will rise to more than 38 percent in the first quarter of 2021, and what reinforces our expectation is the emergence of a new strain of the Corona virus under the name of Covid-20, which recorded many countries Confirmed cases of infection with this type of virus, not to mention the political influence, whether at the local, regional or international level, which is a major driver and influence in the movement of economic activity in Iraq.   LINK

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