Iraqi News Highlights Wednesday Afternoon 12-21-22
Tlm724 Administrator Bondlady’s Corner
Parliamentary Finance: Controlling The Price Of The Dollar Needs Time And New Procedures
Posted On2022-12-21 By Sotaliraq Baghdad / Firas Adnan Yesterday, Tuesday, the Finance Committee in the House of Representatives called on the central bank to take more measures to control the emergency rise in dollar exchange rates, stressing that the process takes some time, accusing speculators and political parties of exploiting the crisis to reap profits.
A member of the committee, Representative Rebwar Abdul Rahman, said, “A meeting was held between the Central Bank of Iraq and private banks yesterday; To discuss the issue of the repercussions of the rise in dollar prices in the local markets and to control it.
And Abdul Rahman continued, “The results have not reached us to the committee until now,” explaining that “the central bank is responsible for pumping larger amounts of hard currency to control the dollar.”
He pointed out, “A measure was taken last week to increase the sale of the dollar in exchange for Iraqi cash, but this did not help to contain the crisis.”
Abdel Rahman pointed out, “There is a kind of deficit in the needs of remittances,” stressing that “the cumulative escalation in the exchange rate occurred after the shortage that the market suffered from in the dollar.”
He noted that “everyone is waiting for the central bank to address this crisis,” expressing his belief that “the central bank needs some time in order to fully control exchange rates.”
Abdel-Rahman believes that “the next two weeks will witness stability in the exchange rate,” stressing that “the role of the House of Representatives is through enacting laws to unify customs tariffs or forming committees on border crossings and customs, but the issue of the dollar is the prerogative of the Central Bank.”
Abdel-Rahman concluded, “There are political parties that have taken advantage of the dollar crisis in order to benefit financially, and we look forward to the Central Bank’s procedures finding their way to proper implementation.”
For his part, economic expert Bassem Jamil Antoine said, “The basis of the problem is linked to the Iraqi economy, which is of a consumer and import nature.”
Antoine continued, “Reliance on imports imposes the existence of the dollar,” and he talked about “mismanagement of the hard currency,” stressing that “the problem started with it.”
He pointed out that “some of the speculators took advantage of this process in order to raise the price of the dollar,” noting that “the US Federal Bank had suspicions that foreign currency trading was marred by suspicions.”
Antoine noted, “The American Bank has sent inquiries that include an audit of those who buy dollars in the currency auction.”
And he stressed that “taking the audit for a period of time helped to create a scarcity in hard currency,” adding that “this led to a contraction in supply with an increase in demand.”
And Antoine continues, “Iraq does not produce locally, and depends on consumption on 90% of imports, and this means that we need large quantities of dollars in order to buy consumer goods from abroad.”
And he believes that «the central bank had no idea of what would happen at the present time, although it is responsible for protecting cash by pumping larger quantities into the markets so that we have more supply than demand and prices have increased with it».
Antoine went on to say, “This omission is currently being addressed by pumping $138 million into sales, although it was previously $200 million, with other measures to reduce the price of the dollar for import purposes by opening credits.”
He revealed, “New measures will be taken next week by the Central Bank, as a whole, we will be facing a kind of balance.”
Antoine accused, “Speculators of exploiting this crisis to achieve large profits,” and advised to “find other outlets to sell the dollar other than the currency auction.”
Yesterday, the Central Bank took a number of decisions regarding the dollar crisis, including “allowing banks participating in the buying and selling window of foreign currency to buy any amounts in foreign currency and deposit them with this bank in accounts used for external transfer purposes, and pay interest / returns on those balances according to what this bank decides.” ».
The bank indicated, according to an official statement, to “facilitating the financing of private sector trade through Iraqi banks and meeting the request for foreign transfers by strengthening the balances of banks with their correspondents in other currencies as well as the US dollar (Chinese yuan, the euro, the UAE dirham, the Jordanian dinar and others).”
The statement pointed out, to “opening outlets for selling foreign currency in government banks to the public for the purposes of travel (treatment, Hajj Umrah, study, etc.)
And the statement went on, to «reduce the price of selling dollars to the beneficiary (the card holder) that he uses while traveling or paying his purchases via the Internet, to be at a price of (1465) dinars to the dollar instead of (1470) dinars to the dollar. The dollar will be sold to electronic payment companies for the above purpose at a price of (1455) dinars to the dollar instead of (1460) dinars to the dollar. LINK
Speculators And Owners Of Financial Companies Are Behind The Rise In The Price Of The Dollar In The Iraqi Markets
An economist for / Nina /: Wednesday 21 December 2022 11:15 | Economical Number of readings: 316 Baghdad / NINA / The expert in economic affairs, Salam Sumaisem, attributed the rise in the exchange rate of the dollar in the Iraqi markets to several reasons, the most important of which are “speculators” while calling for a review of the country’s monetary policy.
Sumaisem said in a statement to the National Iraqi News Agency ( NINA ) that “the dollar in the recent period, due to the recent US sanctions imposed on some countries, and the market’s fear of the presence of uncertainty in the future, led to speculators and owners of financial companies acquiring the dollar and collecting it from the markets, and this matter led to its high price.”
And she pointed out that “this rise led to a very important issue, which is an impact on the standard of living for individuals, especially since Iraq is a country that imports everything from simple commodities to large commodities, and the most dangerous thing is that it is a major importer of foodstuffs and medicines, and this issue harms the Iraqi economy.”
And she added: We need to reconsider monetary policy and rebuild it in a correct way that serves the reality of the economy and breaks the monopoly link that exists with the dollar-financing parties that control the market at the present time. / https://ninanews.com/Website/News/Details?Key=1021672
Speculators And The Increasing Demand Led To An Increase In The Price Of The Dollar Against The Dinar
Economist for / NINA /: Wednesday 21 December 2022 10:11 | Economical Number of readings: 305
Baghdad / NINA / – The economist, Raad Twij, confirmed that speculation in the exchange rates of the dollar and the increasing demand for it led to a significant rise in front of the Iraqi dinar, while he called for the development of real measures to limit this rise.
Twigg said in a statement to the National Iraqi News Agency / NINA /: There are many reasons behind the rise in dollar prices, including the increasing demand for the dollar as it is the most used saving and investment financial asset, and the presence of expensive financial liquidity for the Iraqi dinar and the attempt to replace part of it with the dollar led to this. The rise, and the attempt to speculate on exchange rates and profit from it, in addition to the import contents of individuals and society funded by dollars, played a major role in its rise.
He added, “Therefore, it is necessary to limit the phenomenon of unjustified consumption of hard currency, calling for finding precise measures to limit this rise.”/ End 8
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