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Crileyhome: Iraqi Govt Setting New Exchange Rate

Setting a new exchange rate for the Iraqi dinar against the US dollar is part of the economic reform programme adopted by the @IraqiGovt , which aims to address the immediate financial crisis and placing the Iraqi economy on a sustainable path.

https://twitter.com/IraqiGovt/status/1365285738019844098 

Tishwash:  Parliamentary Finance reveals: The amendment of the official exchange rate of the dollar in the last amendment of the budget: 1300 Iraqi dinars and no more.!

Member of the Parliamentary Finance Committee, Muhammad al-Shabaki, announced, on Thursday, a parliamentary-government movement to amend the exchange rate of the dollar to 1,300 dinars, confirming that there is a parliamentary refusal to pass a budget bill in 2021 without modifying the exchange rate of the dollar against the Iraqi dinar.

Al-Shabaki said in a press statement yesterday (February 25, 2021) that “there are political forces and deputies from different political blocs, working to adjust the exchange rate of the dollar against the Iraqi dinar, in the 2021 budget, and these forces and MPs refuse to pass the budget without this amendment.”

He added, “There is a parliamentary proposal that the exchange rate of the dollar against the Iraqi dinar be (13000) Iraqi dinars for every $ 100, but the validity of the amendment remains in the hands of the Iraqi government, and there are contacts between parliamentary and governmental parties to discuss the possibility of such an amendment, before voting on the budget.” .

A member of Parliament, Inaam Al-Khuzaie, had earlier submitted a proposal to restore the old exchange rate of 1,200 dinars against the dollar without affecting the value of money added to the budget as a result of changing the new exchange rate.

A member of the Parliamentary Economic Committee, MP Mazen Al-Faili, announced that there is a trend within the House of Representatives to reduce the dollar exchange rate to 1300 dinars against the dollar in the 2021 budget, and

added, “Signatures were collected by 113 deputies to reduce the dollar exchange rate to 130 thousand. Dinars in the budget.     link

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Tishwash:  Al-Sudani: It is necessary to review the exchange rate of the dollar

On Thursday, a member of Parliament, Muhammad Shiaa al-Sudani, stressed the necessity of reviewing the exchange rate of the dollar, especially with the continuing high oil prices.

Al-Sudani wrote in a tweet on Twitter today (February 25, 2021), that “with the continued rise in oil prices and the increase in revenues, which reduces the budget deficit.”

He added, “In the absence of a real will to promote national agriculture and industry, it has become imperative to reconsider the exchange rate of the dollar and raise the value of the Iraqi dinar, especially since the affected are the poor and middle-income class.”  link

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Tishwash:  Oil fell 1% due to the rise in the US dollar and expectations of an increase in supply

Oil prices fell on Friday as the collapse in bond prices led to gains for the US dollar and expectations have grown that as oil prices return to pre-pandemic levels, more supply will likely find its way into the market.

US West Texas Intermediate crude futures fell 96 cents, or 1.5 percent, to $ 62.57 a barrel, giving up all Thursday’s gains.

Brent crude for April delivery, which expires on Friday, fell 86 cents, or 1.3 percent, to $ 66.02 a barrel, after losing 16 cents on Thursday.

May’s more active contracts fell to a low of $ 65.04 a barrel earlier, dropping 93 cents, or 1.4 percent, to $ 65.18.

“Crude oil has modestly retreated from recent highs amid an atmosphere of risk aversion as Asian stocks fell broadly to follow the weak performance of Wall Street,” said Margaret Yang, strategy at Singapore-based Daily Fix.

She added that the selling in the bond market, which led to the rise of the US dollar and increased returns, puts pressure on primary commodities that do not yield returns.

The rise in the US currency increases the cost of oil priced in dollars to buyers of crude in other currencies.

Despite the drop in prices today, Brent and West Texas Intermediate crude oil is on its way to achieving gains of about 20 percent since the beginning of this month, as markets are experiencing turmoil in the United States, while optimism about improved demand increases with the distribution of vaccines against the Corona virus.

Investors are betting that a meeting next week of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, the group known as OPEC +, will result in more supplies returning to the market.

US crude prices are also facing adverse factors due to the loss of refinery demand after the closure of several facilities on the coast of the Gulf of Mexico during a winter storm last week   link