KTFA (Samson & Don961)

  In KTFA 

Samson:  A source : The Central Bank sets a new price for the dollar, starting from Sunday

A private source revealed that the Central Bank of Iraq will soon set a new price for the dollar exchange in Iraq.

doubling the provision of hard currency in the market, and increasing interest rates on the Iraqi currency deposited in Banks.” “…after government and parliamentary assurances that the draft is not final and subject to modification.”  LINK

Ross:  This is my favorite line therein: Subject to modification.   Could the doubling of hard currency be related to the NSCN’s? (Lower Denoms)

Don961:  After it almost collapsed.” Parliamentary Finance: The Central Bank is the last bulwark for rebalancing the currency market

2,463 Policy 2020/12/18 18:14  Baghdad today – Baghdad

The Deputy Chairman of the Finance Committee, Muthanna Al-Samarrai, confirmed today, Friday, that the Central Bank is the last bulwark for rebalancing the currency market after it nearly collapsed, calling on the government to take responsibility after the leakage of the draft of the general budget.

Muthanna al-Samarrai said, in a statement received (Baghdad Today), a copy of it, that “the exposure of the Iraqi currency to an unprecedented depreciation recently came as a result of a set of urgent measures and their unprepared disclosure by the Ministry of Finance and their lack of coordination with the Central Bank, in addition to the previous financial policies that The increase in spending was adopted in parallel with the increase in the volume of borrowing, to be followed by the leakage of the draft budget in 2021, to be the straw that put the national currency on the brink of collapse.

Al-Samarrai pointed out that “financial reform must be adopted exactly the opposite by reducing expenditures and developing plans and mechanisms for austerity until the economic crisis that the country is going through, in addition to maximizing state resources, opening the door to investments, speeding up the implementation of automation programs and completing strategic projects of public benefit and not resorting to borrowing except according to Mechanisms studied to reduce the impacts and burdens they cause.

The Vice President of the Finance Committee emphasized that “the Central Bank is the last bulwark to restore balance to the currency market after it almost collapsed,” calling on the government to “investigate the circumstances of the leakage of the draft budget law in 2021, and hold those responsible accountable with the most severe penalties for what they caused.” The effects and repercussions of speculation in foreign currency rates. ”

Al-Samarrai expressed his hope that the Central Bank will take all necessary means to ensure the stability of the currency in a way that does not expose the country to the dangers of financial collapse and the ensuing economic collapse that exposes the segments of the people, especially those with limited income, to disasters and increases the poverty rate while the rich increase more and more super-rich.” .

He pointed out that “his confidence in the plans presented by the governor of the Central Bank at the joint meeting of the Finance Committee and the bank’s management in their ability to overcome the crisis if applied efficiently, professionally and impartially.”   LINK

************

Don961:  The dinar-dollar conflict in Iraq is “promised” that “decisive” measures will be taken by the Central Bank: The government is the reason and this is what will happen!

2020-12-18  Yes Iraq – Baghdad

Today, Friday, the Parliamentary Finance Committee confirmed that the central bank governor will take measures regarding the exchange rate of the dinar.

A member of the committee, MP Ahmad Al-Saffar, said according to state television: “The leaked budget project is unofficial, and no one knows who is behind its leak, what is the purpose of its diversion, and what is meant by the diversion,” pointing out that “the leakage of the budget has affected the market situation and Citizen Psychology ”.

Al-Saffar added that “the Finance Committee met with the Governor of the Central Bank, and that there are some measures that the governor will take.”

For his part, a member of the Parliamentary Finance Committee, MP Naji Al-Saeedi, said: “The governor of the Central Bank, during his hosting by the committee regarding the repercussions of the high exchange rates of the dollar towards the Iraqi dinar, indicated that this rise was caused by the government, not the central bank, considering that the dollar comes from Iraqi oil sales, which go down in the Development Fund for Iraq in the United States of America, thus the real owner of the dollar is the Ministry of Finance, which sells the dollar to the Central Bank as the government accountant.

He explained that “the Ministry of Finance, two months ago, refrained from selling the dollar in order to raise its price towards the Iraqi dinar to bridge the deficit of the general budget and achieve some developmental operations according to the government’s opinion. Therefore, the Central Bank’s justifications are that the high exchange rate is a government decision, and it was not a decision issued by the bank.” Central, ”pointing out that“ the Cabinet until this moment has not voted on the general budget, and that the Finance Committee has not received anything official from the government in this regard. ”

He pointed out that “it is not possible to deduct twice from the employee, as the first deduction will be through the rise in the exchange rate of the dollar towards the Iraqi dinar, and the second deduction is the allocations of state employees, and I think in economic terms this is absolutely untrue,” stressing that “the Finance Committee and Parliament have the power to amend And delete or add what he deems appropriate during this period.    link