Weekend UPDATE for November 21-22, 2020
Some bankers were disappointed Saturday, they were expecting to exchange us……we look forward to Sunday for the next opportunity! TIME WILL TELL
Tishwash: An interesting time to release this article the last sentence says a whole lot IMO
Deleting 3 zeros from the currency .. Parliamentary finance is suspended and determines the size of the cost and the economic effects
Recently, a proposal to delete 3 zeros from the Iraqi currency has been put forward to provide a cash value in the Iraqi market in order to face the financial crisis, which has abounded proposals aimed at reducing its effects, especially with regard to low oil prices and the .lack of liquidity in the state to finance basic salaries and expenditures
The reporter of the Parliamentary Finance Committee, Ahmed Al-Saffar, said in an interview with (Baghdad Today), that “deleting zeros “.from the currency does not affect financially and does not get the country out of the crisis, and it is only a psychological aspect
He added, “Deleting zeros will affect the government because it will destroy the currency it has and issue a new currency without zeros, and this will be in printing houses outside the country and this will cost the government a lot, and the current time is not suitable for “.this procedure As for a member of the Finance Committee, Ahmed Hama, he told (Baghdad Today), ”
Exiting the financial crisis is not only by deleting zeros from the Iraqi currency because the crisis is mainly economic,” indicating that “deleting zeros from the Iraqi dinar needs to print a “.new currency
He pointed out that “the cost of printing a new currency of different denominations of cash amounts to 60 trillion dinars, and this is difficult for Iraq to bear at the present time, because each denomination or every banknote of the currency requires 6 cents to be “.issued again
The Iraqi economist Khalifa Al-Zubaidi says in an article that deleting zeros from the local currency is the process of replacing the old currency with a new one whose price is less than the old currency by the number of zeros that will be deleted. For example, deleting ” .three zeros from the Iraqi currency means that one dinar from the new currency is equivalent to 1000 dinars from Old currency
He adds, “The idea of deleting zeros from the local currency began after the First World War. In 1923, Germany deleted 12 zeros from its currency, followed by Hungary in 1946 by deleting 29 zeros from its currency, as well as China in the same year where 8 zeros were deleted, and in the present day several countries have done such things.”
Step like Zimbabwe, Sudan, Venezuela, Argentina, Brazil, Netherlands, Turkey and other countries, according to the University of North Carolina, that 70 countries have done this procedure since 1960, when 19 countries got rid of zeros once and ten countries twice, and it is considered the most country that got rid of zeros is Brazil, where it took this step six times and got rid of 18 zeros, which means that some countries
They succeeded in this step and other countries failed. Therefore, they took this step more than once without success. Iran may be the last country that decided to delete 4 zeros from its currency after the significant decline in the value of the toman against the dollar, although some believe that there will ” .be no positive impact on the Iranian economy because of Economic sanctions imposed on the country
Al-Zubaidi asserts that “the aim of this step is to control inflation and high prices and facilitate the process of selling and buying, especially when dealing in millions, which creates many problems for citizens carrying large quantities of currencies, difficulty reading .prices, and mathematical errors in reading the large number of zeros, as was the case in Turkey.”
In addition to the costs of printing it ” He points out that “the Netherlands succeeded in this work in 1960 because it put in place a strict policy to control prices and liquidity. Turkey also succeeded in this measure, with the testimony of the International Monetary Fund, for taking effective measures to combat inflation and was able to raise the value of the Turkish lira through the economic reforms taken by the government in all fields.”
It led to economic stability in the country and got rid of printing large numbers of its currency, as well as making it easier for citizens to read numbers and commodity prices. On the other hand, there are many other countries that, when taking such a step, failed to address the economic problem, especially inflation, such as Zimbabwe, Argentina and Brazil, as inflation continued to rise and so.
For not taking correct economic measures, which forced these countries to take this step more than once without any positive results, and some of .them eventually resorted to abandoning the local currency and using hard currencies in local transactions
He adds, “Therefore, in general, it can be said that deleting zeros from the local currency without meaningful and effective economic reforms in all economic sectors will be negative and have no positive impact on the national economy and does not contribute to reducing inflation, although some may delude that prices have decreased and the purchasing power of the currency
Accordingly, it can be said that what was mentioned above applies to the Iraqi economy, and this step will have a negative impact if it is not carefully planned and is associated with effective economic measures, revitalizing the national industry and supporting the private sector to .advance the national economy lin
Tishwash: Finance launches November financing for all institutions
The official Al-Sabah newspaper reported, on Sunday, that the distribution of employees’ salaries will begin today.
The newspaper stated, “The Ministry of Finance launches financing for the month of November for all ministries and departments, and the distribution of salaries will start from Sunday.”
The Ministry of Finance announced, on Thursday (November 12), the launch of employees’ salaries for the month of last October, after Parliament voted, at dawn that day, on the borrowing law to cover salaries link
Tishwash: Parliamentary integrity hosts the Governor of the Central Bank of Iraq
Today, Sunday, the Parliamentary Integrity Committee hosted the Governor of the Central Bank of Iraq against the background of the violations witnessed by the bank’s work
An informed source in the committee said to the Tigris channel that the hosting shed light on the work of the Central Bank and the mechanism of its dealings with intermediary banks with regard to the currency auction, which parliamentarians say has become a way to drain the Iraqi currency.
It is worth noting that a political bloc began collecting parliamentary signatures in preparation for questioning the governor of the Central Bank, Mustafa Ghaleb, on the background of his failure to answer the question posed to him by MP Faleh Al-Sari. link
Tishwash: Parliamentary trend towards sacking the governor of the Central Bank
Informed sources revealed that there is a parliamentary intention to dismiss the governor of the Central Bank of Iraq, Mustafa Ghaleb, against the backdrop of the fluctuation in the exchange rate, and the sources said that it has become clear that the Iraqi Central Bank lacks a clear policy in managing the financial file in the country.
Noting that the difference in the exchange rates of the US dollar against the Iraqi dinar is in favor of some private banks.
The sources clarified that the lack of conviction by members of Parliament with the governor’s response to the verbal question regarding this crisis, given that a large parliamentary bloc refuses to remain in office link
Tishwash: Iraq owns 30 joint investment companies with Arab countries
The Iraq Fund for External Development announced, on Sunday, that Iraq has 30 investment companies with Arab countries, indicating that they diversified in all economic sectors.
“Iraq has 30 investment companies with Arab countries and in various economic sectors,” the fund said in a schedule seen by “Al-Eqtisad News”, indicating that “these sectors varied between agriculture, livestock, mining, communications, transportation and oil services.”
He added, “The highest percentage of these investment companies in Iraq amounted to 50%, such as the Arab Iraqi Dairy Company, headquartered in Iraq with a capital of 14 billion and 500 million dinars, the Iraqi-Jordanian Bahaus Company, based in Jordan with a capital of 10 million Jordanian dinars, and the Iraqi-Syrian Company for Maritime Shipping, based in Syria, with a capital of 25 Millions of euros. ”
He pointed out that “the lowest contribution rate for Iraq with these companies was the Arab Company for Saudi Fisheries, where the percentage of Iraq was 0.5%, based in Saudi Arabia with a capital of 57 million and 840 thousand Saudi riyals, and the Arab Company for Petroleum Services in Libya, where the percentage of Iraq’s contribution in it reached 3 It is headquartered in Libya with a capital of 49 million Libyan dinars, in addition to the Arab Shipbuilding and Repairing Company (ASRY) in Bahrain, where the Iraqi shareholding amounted to 4.72%, with a capital of $ 170 million link