KTFA (Don961 & Samson)

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Don961: Al-Darraji: Changing the exchange rate of the dinar must be through the central bank

December 15, 2020 10:58 pm |

Author: alzawraapaper  Baghdad / NINA:

Member of the Parliamentary Finance Committee, Muhammad Al-Darraji, said that any change in the exchange rate of the dinar must be through the central bank, so that the state and the citizen benefit, and not through currency dealers.

Today the central bank’s sales are $ 230 million, the difference in the selling price between the bank and the market is 110 dinars per dollar, meaning the profit is 25 billion dinars in one day!

Any change in the exchange rate must be through the central bank in order for the state and the citizen to benefit from it, not through currency dealers, so that they and those behind them benefit.   LINK

Samson:  Warnings of the collapse of the economy due to the government’s floundering in its financial policy

08:42 – 12/16/2020

The specialist in economic affairs, Muhammad Atiyah Al-Saadi, warned of an economic collapse due to the government’s floundering in its financial policy and its lack of control over the exchange rate of the dollar as for the Iraqi dinar.

Al-Saadi said to “the information”, that “the government’s standing idly by in front of the big jumps in the exchange rate is nothing but an attempt to feel the pulse of the Iraqi street to raise it officially in the currency auction, or it is confused and unable to confront speculators and controllers of banks, most of which belong to political parties and personalities.”

He added that “the state budget is losing nearly twenty billion dinars daily, due to the big difference between selling the dollar at the central bank’s window and selling it in the market.” And that “proceeding to increase the exchange rate formally will lead to a decline in the purchasing power of citizens, and the middle and poor will be the most affected.”    LINK

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Samson:  Parliament clarifies the fact that the government entered into negotiations with the international monetary to reduce the price of the dinar

16th December 2020

The Deputy Speaker of the Iraqi Parliament, Bashir Al-Haddad, denied, on Wednesday, what was circulated regarding the entry of the Iraqi government into negotiations with the International Monetary Fund to reduce the price of the Iraqi dinar against the US dollar.

Al-Haddad criticized, in a statement received by Shafaq News, “the irresponsible statements by some personalities and parties who claim that the Iraqi government has agreed and entered into negotiations with the International Monetary Fund and international institutions and sought to lower the exchange rate of the Iraqi dinar against the US dollar, which led to a decrease in its value between Global currencies in the past few days, and fears have arisen on the Iraqi street.” He added, “This is just untrue and untrue statements and statements.”

The exchange rates of the dollar against the Iraqi dinar rose again in the markets of Baghdad and Kurdistan, today, Wednesday, after witnessing fluctuations during the past days.

Shafaq News Agency correspondent said that the central al-Kifah and al-Harithiya stock exchanges in Baghdad registered 129,500 Iraqi dinars today, compared to 100 US dollars. Yesterday, Al-Kifah Central Stock Exchange registered 127,800 Iraqi dinars against 100 US dollars.

Our correspondent indicated that the buying and selling prices also increased in the exchange shops in the local markets in Baghdad, where the selling price reached 130,000 Iraqi dinars, while the purchase prices reached 129,000 dinars per 100 US dollars. In Irbil, the capital of the Kurdistan Region, the dollar prices also witnessed a rise, as the selling price reached 129,200 per hundred dollars, and the purchase by 129,000 per hundred US dollars.    LINK

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Samson:  Iraq is unique in the world with something strange .. What is it?

16th December 2020

The Economy and Investment Committee of the Iraqi Parliament revealed, on Wednesday, that Iraq is unique in something strange in the world.

Committee member Nada Shaker Jawdat told Shafaq News, “The Iraqi state, the only one in all this world, gives salaries to employees whose number is unknown.” She pointed out that “the government does not know the number of state employees, as there is no official or accurate statistic that reveals the number of these employees in real terms.”

Jawdat indicated that “keeping this file in this ambiguity is because of corruption,” adding that “there is great and dangerous corruption in the file of employees’ salaries.” She pointed to “the presence of aliens and double salaries, up to the fictitious employees.”   LINK

Samson:  Legal: The Central Bank offended the national currency … and the state left the citizen without protection!

12/15/2020 18:41:57

The legal advisor in previous governments, Fadel Muhammad Jawad, said on Tuesday that the Central Bank offended the national currency and the state left the citizen without protection from the policy of the Central Bank, currency speculators and the beneficiaries of the currency auction.

Fadel Jawad was surprised in a statement issued today, Tuesday, which was seen by {Al Furat News}, in which he stated, “It is unbelievable … The Central Bank continues to sell the dollar at the currency auction at 1190 dinars to the dollar and on the basis that securing the dollar through currency auction will deprive the value of the Iraqi dinar,”

While we see the opposite, the Iraqi dinar is in a continuous decline, and its price has decreased until today to 1,300 dinars per dollar, and it is likely to decline further in the coming days.” 

Jawad asked, “Where is the state from the policy of the Central Bank of Iraq while one of the powers of the federal government is to draw monetary policy and the central bank has to implement. Why do speculators determine the price of the dollar without state oversight, while we see in neighboring countries that the money changers get “One or two piasters when performing a currency conversion and on the contrary, they are subject to strict legal liability.

He pointed out that, “the central bank offended the national currency and the state left the citizen without protection from the policy of the central bank and the behavior of speculators in the currency and the beneficiaries of the currency auction.” 

At the end of his speech, Jawad called, “The prime minister, as the chief executive officer in the state, to intervene quickly to stop the deterioration of the Iraqi dinar, address the issue of currency auction and put an end to corruption and greed among the beneficiaries of the currency auction and currency speculators.”   LINK

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Don961:  An expert reveals US pressure exerted on dealing in dollars in Iraq that may be behind its rise

1,092 Economie 2020/12/16 10:33 am Baghdad today – Baghdad

Today, Wednesday (December 15, 2020), the economic expert, Majed Al-Suri, revealed that there were recent pressures exercised by the United States of America on the circulation of the dollar in Iraq, which may have contributed to raising the price of the dollar locally.

During the past month, the price of the dollar in the local market increased from 120 to about 130 thousand dinars per 100 dollars, while the central bank is still selling the dollar at 119 thousand dollars per hundred dollars.

Al-Suri said in an interview with (Baghdad Today), “The official price set by the Central Bank, meaning that the dollar money sent from the bank for specific purposes, must be sold at the maximum price of 1200 dinars per dollar, and it sells it for 1190, and this is a profit margin.” To cover administrative expenses. ”

He pointed out that there are “about 1500 banking companies in Iraq, and it is difficult to control them,” noting that “the central bank used to sell about 500 thousand dollars a week to banking companies and banks in cash, but now it went down to 250 and 100, until it reached 30 thousand dollars a week for cash sale.” For every exchange.

Al-Suri clarified that the reason for the aforementioned sale is the US Treasury’s pressure on Iraq, because the dollar is part of the US Treasury’s policy, and that is why it put pressure on Iraq. The possibility of the dollar reaching Iraq was determined, which has very large limitations.

He explained, “The issue in Iraq is supply and demand, and the central bank recently controlled the exchange rate, but now due to the financial crisis, and the statements and irresponsible decisions in the declaration, it led to a price increase, which is a psychological issue and speculation.”

He emphasized that the issue of speculation comes “because of fear of the future, such as that the government increases the exchange rate of the dollar and reduces the value of the dinar, which made traders beware of this issue.”

He pointed out that “the main issue is that the central bank cannot solve the problem radically, because of its inability, because the money in the central bank is the same money in the Ministry of Finance, which comes through oil imports when it comes in US dollars.”

Regarding the bank’s ability to solve the crisis, al-Suri said, “The Central Bank will deal with the crisis with the capabilities it has, and when the government’s supply of dollars is deficient, it is forced to resort to foreign currency reserves, to secure the market’s needs for dollars.”  LINK

Don961:  Experts: speculator rumors raised the dollar’s exchange rate

Wednesday 16 December 2020  Baghdad: Hussein Thughb – Shukran Al-Fatlawi

Two experts in financial and economic affairs confirmed that the continued sales of the central bank of the dollar undermines the methods of speculators in the dollar, as the sales achieve great financial benefits, as a result of the high exchange rates in the local market, which are affected by the rumors released, and the source of it is speculators, at a time when there are no trends To reduce the value of the Iraqi dinar.

The exchange rates have been witnessing for days a clear confusion that led to the raising of the exchange rate to 1300 dinars against one dollar, and then returned to gradually decline, amid the assurances of experts and specialists that the dollar sales were not affected and that this confusion is within controlled rates, and that it will return to its normal rates. During the coming period, the judgment on the extent of its effects on the economy can now be postponed “according to experts.”

Confidence in dinars

Vice President of the Businessmen Union Basem Jamil Antoine said: “The rise in exchange rates in the local markets is a result of the behavior of speculators, and the spread of rumors that reduce confidence in the Iraqi dinar, which had a major role in increasing the demand for the dollar, which led to the raising of exchange rates to levels that are not The citizen sees it as normal. ”

The value of the dinar

Stressing that “speculators have a large, chunky cash block that invested in buying the dollar in order to achieve large profits, but the Iraqi Central Bank’s continued sale of dollars proved to everyone that there are no tendencies to reduce the value of the dinar, and that the matter was subject to the behaviors of speculators, who adopted the rumor that raised from Exchange rates, “expecting that” the coming period will witness a return of exchange rates to normal rates. ” 

Antoine pointed out that “the Central Bank of Iraq and international organizations specialized in financial affairs do not agree on any directions to reduce the value of the Iraqi dinar against the dollar,” indicating that “Iraq’s revenues will rise with the rise in crude oil prices in global markets, and that the price of a barrel by one dollar means that One trillion dinars reduces the annual budget deficit. ”

Foreign currency

The financial expert, Dr. Ahmed Abrihi, speaking to Al-Sabah, said, “The price of the dollar depends on the Central Bank’s sales of foreign currency, and it is very well known to those interested in economic affairs. If the sales are less than the demand, the exchange rate rises in the market above the official price, now this is what happened which led to its rise.” Or its fluctuation, and this indicates the role of speculators within. ”

Its effect is limited

Abrihi pointed out that “the difference is still limited and not large between the market price and the official price, and the difference is not large, and did not last for long, so its impact is limited and unstable and does not leave chaos and its effects cannot be judged.”

Stressing that “the repercussions of the exchange rate are the first to be affected by imported goods, not domestic goods, which is also unstable in the current situation, which results in postponing judgment on its effects on the Iraqi economy as a whole.”   LINK