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Tishwash: Find out the oil prices that countries need to balance their budgets

Oil-producing countries need specific prices that differ from one country to another to balance their general budget. These prices have been determined according to the International Monetary Fund through economic studies for each country.

First: Iraq, according to the International Monetary Fund, Iraq needs a price of 54.60 dollars to balance its budget for the next year.

Second: Iran, according to the International Monetary Fund, Iran needs 244,389 to balance its budget for the next year.

Third: Kuwait According to the International Monetary Fund, Kuwait needs $ 60.61 to balance its budget for the next year.

Fourth, Saudi Arabia: According to the International Monetary Fund, Saudi Arabia needs the price of 66.76 dollars to balance its budget for the next year.

Fifthly, the UAE: According to the International Monetary Fund, the UAE needs a price of $ 61.69 to balance its budget for the next year  link

Tishwash:  Representative Finance: The policy of the central bank behind the high exchange rate of the dollar

On Tuesday, the Parliamentary Finance Committee attributed the high exchange rate of the dollar in the markets to the floundering policy of the Central Bank.

A member of the committee, Abdul Hadi Al-Saadawi, said in a statement to “the information”, that “the rise in the exchange rate of the dollar is not according to a governmental approach and an economic policy. Rather, it occurred as a result of confusion in the management of the central bank,” noting that “the committee called for measures to be put in place to control the sale of the dollar.”

He added that “some parties have monopolized the sale of the dollar, and this matter must be resolved and not allowed to monopolize the sale,” noting that “the high selling prices of the dollar returns to the confusion of the central bank’s policy, and the rise will continue if the same policy remains.”

The dollar exchange rate for the past two days witnessed an unprecedented rise, as the exchange rate reached 131 thousand dinars against 100 dollars.  link

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Tishwash:  7 Things and things” responsible for the “dollar and dinar crisis” in Iraq: 145 thousand dinars per 100 dollars .. Who is behind the scenes?

Asher, the economic expert, Nabil Al-Marsoumi, today, Wednesday, 7 points and important things are responsible for the decrease in the price of the Iraqi dinar in front of the US dollar in the Iraqi market, noting that one of them is a statement by one of the representatives to accept the International Monetary Fund to change the exchange rate in Iraq to reach 145 thousand dinars per 100 Dollars.

Al-Marsoumi wrote, on his Facebook page: Who is responsible for the low exchange rate of the Iraqi dinar? … and mentioned the following seven points:

  1. The Central Bank of Iraq, which owns foreign monetary reserves resulting from the purchase of the petroleum dollar from the Ministry of Finance, and the Central Bank is the only financing agency for government and private sector imports. As well as his responsibility to manage the monetary block in dinars by purchasing dinars to finance imports in dollars. Accordingly, the two financing functions are linked to monetary stability in order to control the monetary supply and hence inflation. But it is noted that the Central Bank of Iraq has left the exchange rate management to the market without having an active role in bridging the large gap between the official and parallel rates. And he could have exercised a better role in overseeing the exchange offices and the private banks to which the dollar is sold.
  2. The Ministry of Finance has a major role in the decline of the dinar exchange rate as a result of its delay in completing the 2021 budget, which usually includes several assumptions, including the exchange rate adopted in the budget, which gave indications in light of the uncertainty of the financial situation to the possibility of a reduction in the exchange rate of the dinar.
  3. The governmental white paper and the reform paper presented by the Parliamentary Finance Committee, which contain recommendations for the necessity of reviewing the exchange rate of the dinar.
  4. Frequent statements, the most recent of which was a statement by a member of the Parliamentary Finance Committee, in which he stated that the International Monetary Fund had agreed to amend the exchange rate of the dinar to become 145 thousand dinars per 100 dollars.

5- Private banks and exchange offices had an important role in the decrease in the exchange rate of the dinar, which made them enormous profits.

  1. Speculators who are active in cases of extreme volatility in the exchange rates of the dinar in order to obtain more profits.
  2. Some citizens, as a result of the uncertainty in the exchange rate of the dinar and the possibility of reducing it, directed to switch their savings from the Iraqi dinar to another dollar to preserve the real value of their savings, which led to an exacerbation of the demand for dollars in the Iraqi market.

Pressures raised the exchange rate?

For his part, the economic expert, Majid Al-Suri, revealed, today, Wednesday, that there are pressures exercised by the United States of America recently 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 dollars at 119 thousand dollars per hundred dollars.

In statements monitored by Yass Iraq, Al-Suri said: “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,” indicating 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 explained that the reason for the aforementioned decrease in the sale is “the US Treasury’s pressure on Iraq, because the dollar is part of the US Treasury’s policy, so it put pressure on Iraq, so the possibility of the dollar reaching Iraq was determined, which has very large limitations.”

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

He stressed that the issue of speculation comes “because of fear of the future, such as if 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.”

With regard to 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 is deficient in the supply of dollars, it is forced to resort to foreign currency reserves, to secure the market’s needs for the dollar.”  link

Tishwash:  Arrest warrants issued against a number of officials in Iraq

The Federal Integrity Commission announced, on Wednesday, the issuance of arrest and summoning orders against a number of officials in Babil Governorate, while it made clear that these orders came against the background of granting an investment opportunity to one of the continuing employees.

According to a statement, the Investigation Department of the Authority stated, according to a statement, which “People” received a copy of, (December 16, 2020), that “the Hilla Investigation Court, which is competent to examine cases of integrity, issued arrest and summoning orders for a number of former and current officials in the governorate, against the background of granting an investment opportunity.” For an employee who continues in public service, which contravenes investment laws.

The department pointed out that “its investigations in the case have found that the property (the subject of the investment opportunity) is constructed over which the lease contracts are still ongoing, and have not expired yet, which resulted in a waste of public money by depriving the state treasury of those imports.”

The department indicated that “the orders issued based on the provisions of Article (340) of the Penal Code included a summoning order for a former governor and deputy head of the Governorate Investment Authority, as well as an arrest warrant for a former governor and municipal director.”

According to the statement, the commission previously announced, “on the twenty-third of last August, the issuance of an arrest warrant and investigation against the former governor of Babylon, and a summoning order for the former governor, based on the provisions of Article (340) of the Penal Code, against the background of violations of granting an investment opportunity in another case. In the province. ”  link