Tuesday Morning Iraq Economic News Highlights 2-7-23
Al-Sudani Directs To Reformulate The 2023 Budget At An Exchange Rate Of 1,350 Dinars
money and business Economy News / Baghdad The Prime Minister directed, on Tuesday, to prepare the 2023 budget, according to an exchange rate of 1,350 dinars per dollar.
An informed source told “Al-Iqtisad News” agency, “Prime Minister Muhammad Shia’a al-Sudani assigned Finance Minister Taif Sami to reformulate the 2023 budget at the exchange rate of 1350.”
Since this morning, the dollar selling markets witnessed a clear and continuous decline until the selling price reached 155,000 dinars for every 100 dollars. LINK https://economy-news.net/content.php?id=32333
Financial Expert: Iraq’s Budget Will Not Be Affected By The Reduction In The Dollar Exchange Rate
2023-02-07 03:00 Shafaq News / An economist and financial expert confirmed today, Tuesday, that Iraq’s budget will not be affected by the reduction of the dollar exchange rate, pointing out that Iraq is able to pay all its debts.
The expert, Hilal Al-Taan, said in an interview with Shafaq News agency, “If the study presented by the Central Bank is approved to adjust the exchange rate of the dollar in the budget, the results will be positive because it will lead to a decrease in the price of the dollar in the parallel market, which in turn will lead to lower prices and stability.” Markets and the preservation of the poor class and their livelihood after they were negatively affected by the rise of the dollar.
He added, “Iraq has a huge budget, and oil is sold at good prices of up to $80, and there is a cash surplus in Iraq, and therefore there is no negative impact on the budget if it is approved.”
And the economist preferred that “the price of the dollar be reduced to 1,350 dinars, within the limits of (10 tigers) in the general budget,” adding that “Iraq is also able to pay all its debts under a good financial shadow that it currently enjoys.”
Yesterday, Monday, the Board of Directors of the Central Bank submitted to the Prime Ministry the results of its study regarding the adjustment of the official exchange rate to the dollar.
And the exchange rate of the dollar rose against the Iraqi dinar in the parallel market to more than 170 thousand dinars compared to 100 dollars at a time when the government was unable to stop this deterioration in the value of the dinar, after the large withdrawal of dollars from the market to smuggle them abroad. LINK
The Central Bank Completes Its Study On Reducing The Exchange Rate Of The Dollar And Submits It To The Sudanese
Money and business Economy News – Baghdad An official source revealed, on Monday, that the Central Bank of Iraq had completed its study on reducing the exchange rate of the dollar and submitted it to the Prime Minister.
The official news agency quoted the source as saying, “The central bank completed its study on reducing the exchange rate of the dollar and submitted it to Prime Minister Muhammad Shia’a al-Sudani.”
And the Governor of the Central Bank, Ali Al-Alaq, announced, yesterday, Sunday, that a second package will be issued in the middle of this month to control the exchange rate, while stressing that there are no internal or external restrictions on external transfer or cash sale of dollars.
https://economy-news.net/content.php?id=32311
Parliamentary Leaks Reveal The Content Of A Plan To Reduce The Exchange Rate
2023.02.07 – Baghdad – people The Central Bank, under its new administration, launched a new campaign to lower the price of the dollar against the dinar, in repeated efforts against a parallel and speculative market, after fierce American insistence following the meeting of the Federal Treasury delegation in Istanbul for one thing, which is to stop the smuggling of the currency that benefit countries sanctioned by Washington, Iran and Russia for particular.
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According to sources that spoke to the official agency, followed by “NAS” (February 7, 2023), the Central Bank put on the table of Prime Minister Muhammad al-Sudani a study to reduce the exchange rate of the dollar, which was also confirmed by the Sudanese advisor, Diaa al-Nasseri.
The Governor of the Central Bank, Ali Al-Alaq, announced that a second package will be issued in the middle of this month to control the exchange rate, while stressing that there are no internal or external restrictions on external transfer or cash sale of dollars.
As for the House of Representatives, there are political attempts to set the exchange rate of the dollar at a rate lower than that of the parallel market, ranging from 135 to 137 due to the damage caused by the change in the exchange rate and the rise in prices.
The head of the Parliamentary Rights Bloc, Saud Al-Saadi, said in a statement to the official newspaper, followed by “Nass” (February 7, 2023), that “there are attempts to set the exchange rate at a lower rate than the previous one and set it in this year’s budget to be between 135 to 137.”
Al-Saadi added that “the political forces that formed this government according to a political agreement and platform that did not include this issue, have endeavors to determine the exchange rate, according to a ceiling lower than the current one, to seriously confront this crisis,” ruling out “hosting the prime minister as a result of satisfaction with the government measures taken and changing The governor of the central bank and the set of measures on the ground, the results of which we await.
https://www.nasnews.com/view.php?cat=101588
The Price Of The Dollar Decreased By 5% After The Central Bank Directed To Devalue The Dollar
Market Economy News – Baghdad Dollar prices fell in the parallel market, by about 5% since yesterday, after the Central Bank directed to reduce the value of the dollar to 1,350 dinars.
The Central Bank submitted to the government a study, including devaluation of the dollar, especially since the Ministry of Finance a few days ago prepared the budget at the price of 1350 dinars per barrel of oil.
The exchange rate of the dollar fell from 1660 dinars to 1580 dinars, which is the lowest decline during the current week.
The dollar’s rise in the parallel market is due to the elimination of exchange companies that carry out financial transfers away from the requirements of the Swift system.
According to informed sources, to “Al-Iqtisad News”, “The intention of Prime Minister Muhammad Shia’a al-Sudani, more than a month ago, is to reduce the exchange rate of the dollar in the financial budget from 1450 dinars to 1350 dinars.”
She added, “The budget is set at a price of 1,350 dinars, and the reason for its delay is the issue of the exchange rate, and not another issue.”
And she explained that after approving the new price in a meeting of the Board of Directors of the Central Bank, the budget will be approved by the Council of Ministers and sent to Parliament.
While, specialists confirmed, decreasing the value of the dollar will increase the purchasing power of the owners of the Iraqi dinar. https://economy-news.net/content.php?id=32321
The Exchange Rate And A Barrel Of Oil Restrict Budget Legislation
The first 2023/02/06 Hoda Al-Azzawi Politicians, observers, and experts in economic and financial affairs have warned of the possibility of a rise in the exchange rate of the dollar and the consequent rise in the markets in the event of legislation and approval of the state budget 2023 without precedent by real procedures and treatments that contribute to the stability of the dollar exchange rate, indicating that this factor and calculating the price of a barrel of oil They are delaying so far the enactment of the upcoming budget law.
And the rapporteur of the Parliamentary Finance Committee for the fourth session, Dr. Ahmed Al-Saffar, suggested in an interview with “Al-Sabah” that the “budget” would be delayed even if it was sent by the Council of Ministers to the House of Representatives, “because it needs a period of time due to its problems.”
He explained, “According to information, Prime Minister Muhammad Shia’ al-Sudani – as a good first step – carried out a simple restructuring of the budget in line with his government approach, especially with regard to finding solutions to address poverty, unemployment, inflation, and others.”
And he noted that “the problem that will face the budget (the price of a barrel of oil) on which the budget is prepared and built, and in light of the fluctuation of oil prices between high and low, the legislator faces a problem on which price the budget will depend on, in addition to the problem of the exchange rate of the dollar, and this is a big problem, especially There is talk that the government will change the exchange rate approved in the budget.
Al-Saffar warned that if the budget is approved and money is pumped into the market through public expenditures while maintaining the same ineffective measures, this “will amplify and exacerbate the problem of the exchange rate, given that an increase in the amount of cash in circulation leads to greater demand.” on the dollar, which in turn leads to further increases if the necessary measures are not taken by supplying the dollar.
And regarding the recent measures taken by the Central Bank of Iraq after the special meeting with the deputy head of the US Treasury in Istanbul, Al-Saffar saw that it was a “good” preliminary package of measures, calling for appending it to a “firm and swift” package of measures, and he also called for focusing on the “smuggling issue”.
In addition to the government’s intervention in monitoring the market and the government’s entry as an exhibitor and seller of commodities, especially basic ones, at cost, he added, “On the other hand, the central bank is facing a great challenge and it must be strict and unified in the banking sector, especially with some private banks and speculators,” whom he accused of causing In confusing the market and thwarting every attempt by the central bank.
For his part, the expert on economic affairs, Prof. Dr. Jaafar Baqir Alloush, said in an interview with “Al-Sabah”: “The delay in approving the budget is related to the crisis of the rise in the exchange rate of the dollar in the parallel market,” explaining that “the relationship lies in the extent to which expenditures are compatible with the price gap.”
Exchange and an attempt to bridge it by increasing expenditures directed to support foreign trade, and this was announced in the official speech of the state.
He noted that the exchange rate is not linked to the budget, “on the contrary, the budget is affected by the exchange rate of the dollar.” With regard to the volume of estimated expenditures in the budget (200 trillion dinars) compared to the exchange rate, Alloush explained that it is “a price equation that helps increase the mass Dinar cash directed to restrict aggregate demand (of this size) with limited dollar revenues, and thus will contribute to raising the value of the dollar against the Iraqi dinar.
The expert called for finding a simultaneous treatment of the crisis through three real starting points: the first is controlling liquidity levels and not inflating them, and the second is finding a new mechanism that governs the relationship between the two currencies (the dinar and the dollar) outside the rules of the old currency window, and the third is controlling foreign trade and directing it towards the necessary commodities.
The average, they are: directing demand towards the interior, closing the real outlets for smuggling, and creating a sound economic environment for national production, and there is nothing wrong with returning to activating industrialization strategies to replace imports.
Alloush said, “The temporary patches that help expand the base of dollar provision create fragility in the exchange market, and the crisis may exacerbate at any time. Monetary and financial policies must be reformulated and the current method of financial hegemony, which has proven incapable of addressing emergency crises, must be abandoned.”
As for the economist, Nabil Al-Marsoumi, he explained in an interview with “Al-Sabah” that “the launch of the budget will lead to spending in both its consumption and investment parts, which will lead to spending additional funds, which generates inflation in money and government spending, and this leads to an increase in imports funded by dollars, and the pressure increases.” On the hard currency,” noting that “if the exchange market in Iraq does not stabilize, it is possible that approving the budget will lead to a rise in the exchange rate at higher levels than it is now.”
Edited by: Muhammad Al-Ansari https://alsabaah.iq/71408-.html
Mazhar Muhammad Salih: The Iraqi Economy Is Able To Withstand Foreign Currencies
Money & business Economy News / Baghdad The financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed, on Tuesday, that the exchange rate will soon be strong against other currencies.
“The new strategy began with reforming the national currency management system and the Iraqi payment system,” Saleh said in a scientific symposium on the exchange rate, adding that “this will be the basis for implementing the currency reform strategy in the foreseeable future.”
And Saleh indicated that “the Iraqi economy is strong and has large resources that qualify it to stand in front of foreign currencies if there is a correct economic and monetary policy and political, economic and security stability.”
He expressed optimism that “the Iraqi economy will stabilize, which will be reflected in the rise of the dinar against foreign currencies.”
The symposium discussed “the objective reasons that affected the fluctuation of the exchange rate of the dinar against foreign currencies, up and down, according to the effects of the overall situation in Iraq and treatments to achieve balance and reduce the gap between supply and demand in the market.”
https://economy-news.net/content.php?id=32334
Advisor To The Prime Minister: A New Strategy Began With Reforming The Currency Management System And Optimists
Time: 02/07/2023 {Economic: Al Furat News} The Advisor to the Prime Minister for Economic Affairs, Mazhar Muhammad Salih, revealed the start of a new strategy to reform the currency management system in the country.
A statement by the Ministry of Finance, which {Euphrates News} received a copy of, stated that Saleh participated during his participation in the scientific and analytical symposium held by the Financial and Accounting Training Center in the ministry today, Tuesday, entitled “The exchange rate of the Iraqi dinar against the dollar … problems and solutions” in cooperation with the Economic Studies Forum in The House of Wisdom, in the presence of Ahmed Al
– Dahlaki, Director General of the Financial and Accounting Training Center, and with the participation of a group of researchers, academics and specialists in financial and economic affairs, and under the supervision of Falah Thuwaini. Up and down, according to the effects of the overall situation in Iraq and the treatments to achieve balance and reduce the gap between supply and demand in the market.
Saleh explained, “The new strategy began with reforming the national currency management system and the Iraqi payment system,” adding, “This will be the basis for implementing the strategy for reforming currency conditions in the foreseeable future.”
And the advisor to the Prime Minister stated that “the Iraqi economy is strong and has large resources that qualify it to stand in front of foreign currencies if there is a correct economic and monetary policy, and political, economic and security stability,” expressing optimism that “the Iraqi economy will stabilize, which will be reflected in the rise of the dinar against foreign currencies.” https://alforatnews.iq/new
