Early Saturday Morning Iraq News 4-30-22

The Quality Of Production And The Volume Of Exports Determine The Strength Of The Currency

Saturday 30 April 2022 70The quality of production and the volume of exports determine the strength of the currency Alsabaah-138531

 Baghdad: Mustafa Al-Hashemi   The strength of any currency in the world is determined by a set of factors, some of which are external and internal, perhaps the most important of which are production and export, and a currency cover filled with the cash reserves in the central banks of countries.

Since Iraq has a good currency cover, but it lacks the other factors to sustain sufficient production and export the surplus, and although it exports oil, this is not a commercial commodity that can be exchanged, according to the World Trade Organization.

 In this regard, economic researcher Firas Amer believes that “there are a number of reasons that make this currency strong.”

And those are weak and a third on the verge of collapse.

Amer added that “the currency is a coin or a monetary paper with a specific value that is guaranteed by law by its issuer and usually issued by the central banks of countries, and that there are a set of factors that determine its value, some of which are external and internal factors.”

 He explained that “economic factors, in addition to political and military factors, also have a role in determining the value of the currency in the global currency market, and the value of the currency is determined by the country’s wealth and natural reserves (gas, oil, minerals) and the state’s assets, whatever their source.” The value and strength of the currency is also based on the size of the monetary reserves, and the country's production and export capacity.

He pointed out that there are political factors that support  the position of the currency, such as the military power and the geographical spread of the country and linking the trade of some important commodities in the world to a specific currency, as is the case with the dollar.

For his part, economic affairs specialist Jassim Hadi believes that “what determines the price of the currency in the markets is the supply and demand for this currency, like any commodity in the markets, as there are many factors that control this supply and demand, some of which are related to the performance of the real economy of the state and its production and service sectors, and the other It relates to dangerous practices such as speculation on currencies and debt securities, in addition to political factors.

Hadi said that “among the factors that control the currency price, the country’s trade balance situation is, the stronger the exports are the imports, the greater the demand for the local currency, and the more the trade balance is imbalanced in favor of the trading partners, the more the demand for the currency decreases and its price falls against the currencies. other foreign.

He continued, “When a country exports more than it imports, it achieves a financial return, and this leads to an increase in demand for its currency and increases the market value of this currency, but when it imports more than it exports, this leads to a decrease in the trade balance, and in return the balance of payments (financial operations between countries) As a consequence, the market value of the currency will decline, and possibly its collapse if the imbalance worsens.”

And the more the trade deficit worsens and the state is unable to cope with it, the more this affects the value of the currency in this country, and this is justified by the fact that the authorities are forced to increase the resort to loans and thus increase the interests and then inflation.

For her part, economic researcher Lubna Al-Shammari confirmed the possibility of supporting the strength of the Iraqi currency after studying and analyzing the reasons for its decline, and standing up for real treatments.

Al-Shammari added that “one of the reasons for the current situation of the Iraqi currency is the weakness of the volume of production, and therefore it must be increased by putting an end to imports and making them limited to what cannot be produced locally, whether it is food production, consumer or other.”

She pointed to "the need to enhance non-oil exports and activate investments, in addition to providing government support  to the private sector in the agricultural, tourism and other supporting sectors, which would raise and increase the strength of the dinar and adjust the exchange rate to make it compatible with Iraq's capabilities, history, relations and geographical location, which qualifies it to be Its currency is strong with the currencies of neighboring rich countries.”   LINK

We Do Not Have A Magic Wand!".. Al-Kazemi Clarifies About The Change In The Dollar Exchange Rate,

Article  at link   https://baghdadtoday.news/ar/news/187646/A

The 2022 Budget And The Uncontrolled Weapon.. Alsumaria News Publishes The Text Of A Detailed Dialogue Conducted With Al-Kazemi
Policy  2022-04-30 | 04:02  Source:  Alsumaria news

So, I think the solution is not in political rhetoric, but in trying to restore confidence. And trust, here, does not mean the necessity of participation or the formation of the government or not. Rather, restoring confidence means that everyone in the government or in the opposition considers the constitution, laws, national constants, and state institutions to be the basic foundations on which it rests.

We need a new atmosphere and deep discussions regarding the overall political situation, including agreement on fundamental constitutional amendments in order to begin steps to restore confidence, and then end political blockages, whether today or in the future.

White Paper

* Do you think that the White Paper was able to overcome financial difficulties? Is it possible to pass this paper to complete what you started?

  First, we must bear in mind that the current government, which was honored to preside over it, came in an exceptional situation, and it had a basic and main task, which was to reach free and fair elections. . Everyone remembers the exceptional circumstances under which the government came: a stifling economic crisis, low oil prices, and the outbreak of the “Corona” epidemic that affected all countries of the world and in all walks of life in an unprecedented way.

In fact, from the first month of the government’s life, I was required to provide the necessary funds to pay the salaries of employees, retirees, beneficiaries of social welfare benefits, basic state expenses, measures to combat the Corona epidemic, and basic security requirements, which are about 10-12 trillion dinars per month.

On the other hand, the state's resources at that time, especially in the oil sector, did not exceed one trillion dinars only due to the collapse of oil prices.

Yes, we have overcome this bitter reality by all possible means and by all available methods, but I cannot be a false witness in front of our people, and I am not the type to bet on deceiving people and misleading public opinion. So I said and always say that the economic structure in Iraq You need a comprehensive reform in order to face the future and prepare for all crises and obstacles, if they are repeated.

During the two years of the government's work, we succeeded in achieving the highest economic growth rate in the Arab countries, according to the reports of the International Monetary Fund, which expected the economic growth rate to reachIraq to 9.5% during 2022 and 2023.

This growth came on the basis of reformist beginnings, and we are not saying that they were without errors, but it was the foundation of a scientific reformist approach that laid down the white paper for its building blocks.

Unfortunately, many of those who criticized the white paper did not bother reading it and did not try to discuss it, and in the end it is not a sacred text, but rather an attempt to save the economy of this country, and this (white paper) is subject to amendment, addition and update according to local and international economic developments.

We said that the continued dependence on oil, which finances 95% of the country's general budget, is a great crime and an unacceptable injustice to the right of this generation toIraq and future generations, that is why we tried to reduce the budget’s dependence on oil and succeeded in part, and this reduction must continue so that the oil resources would be in the interest of

[url=https://www.alsumaria.tv/Entity/1767315046/%D8%B5%D9%86%D8%AF%D9%88%D9%82 %D8%A7%D9%84%D8%A3%D8%AC%D9%8A%D8%A7%D9%84/ar/]Generation Fund[/url] Not for non-strategic monthly consumption.

Dollar exchange rate

* How has changing the dollar exchange rate affected economic reforms? How did you face its repercussions?

  It must be said that we did not set any electoral or promotional goals in our economic work, and we say that real reform will not be achieved without suffering and damage, and this is the reality. But we are with real, balanced reform that needs to address the collateral damage caused by important decisions.

Therefore, in the 2021 budget, for example, and in conjunction with the change in the dollar exchange rate, we raised the social welfare allocations in the General Budget Law to 3 trillion dinars, and this number was allocated to the groups that we expected to be most affected based on specialized studies, and we were not bidding on the No one, but we were dealing with the negative effects of the appreciation of the exchange rate and improving the living conditions of the low-income people. But the brothers in the previous parliament refused to listen to our arguments in this regard and reduced the amount to less than 700 billion dinars only.

At the same time, they also reduced the investment budget, which aimed to revive the labor market, motivate projects, spin the wheel of the local economy, and activate the role of the private sector.

That is why we say once again, returning to the concept of trust in political action, that the country cannot advance without building trust at all levels, especially in the relationship between the executive and legislative authorities to achieve harmony in reform steps and prevent clashes or jurisprudence that may have consequences. negative.

Everyone knows that changing the exchange rate was neither a qualitative decision nor the decision of this government, but was preceded by studies that lasted for years, and all political forces and the House of Representatives participated before taking it, based on the fact that oil prices may not meet in times of crisis the minimum requirements of our people, and that we We need to work together to correct the Iraqi economy.

loose weapon

  * You started the way to confront the uncontrolled weapons, but there are those who believe that nothing has been achieved in this file?

This accusation lacks two qualities, credibility and fairness. Credibility because whoever launches it must first review all the steps taken by the government in the file of loose arms, and invoke the fact that this is not a temporary and immediate decision taken by the authorities, rather it is a thorny and complex file that contains political, social and religious dimensions, and the government must confront it at several levels and with a patient and cumulative vision In the act of security.

Whoever reviews the conditions in 2020 with credibility and away from an atmosphere of opportunism and review, must admit that there has been a significant development in the security file at all levels, starting with resetting the outcomes of the social crisis produced by the popular demonstrations between 2019 and 2020, and then restoring the trust that was broken between the people and the security institutions, by drying up the sources of terrorism, breaking its thorn, besieging the outlaws, and working to apply the law to everyone without exception.

And I say that this accusation is also unfair, because every fair person has to review the activities of murder, terrorism, organized crime and security turmoil in 2019-2020 and compare them with the reality we live in now.

We do not have the magic wand to change reality in one fell swoop, but we laid the foundations of normal life, and these foundations were achieved after many steps and several legal accounting.

Today, there are officers, associates, and employees who are sentenced to death or life after the law has been applied to them, and there are criminals who are being tried for transgressing the law, as is the case with death squads in Basra province and murderers

[url=https://www.alsumaria.tv/Entity/1357825219/%D9%87%D8%B4%D8%A7%D9%85 %D8%A7%D9%84%D9%87%D8%A7%D8%B4%D9%85%D9%8A/ar/]Hisham Al Hashemi[/url] Organized crime gangs and many more, not to mention the lurking terrorism.

The question is: is all of this enough? Answer: No. Certainly we need more work to get things back in full order and bring everyone under the rule of law. And the other question: Has nothing been achieved in this file? Here I leave the answer not to political jurisprudence or media reviews, but to the Iraqi people, who have become more adherent to the law and more adherent to the state and an understanding of the complex circumstances and the minefield in which this government has walked. Therefore, I do not ask for media or political justice because I am certain and confident that our people are just.

Farewell Tweet

* After the elections, you launched a tweet that the media considered a farewell tweet, and that you have accomplished what you had to do and will not engage in politics again, and the proof is that you did not compete in the elections. Was it really a farewell tweet?

  I say frankly that I personally, and I bear the responsibility, opposed and rejected all the requests that wanted me to participate in the elections, some of which were from my work team, political forces and representatives. Everyone believed that the natural context was the participation of the Prime Minister in the elections and the achievement of a difference in the seats in Parliament.

But I said at the time, and I repeat that day, that I was tasked with forming a government in light of a severe social, political and economic crisis that threatened all Iraq The goal was to reach a special road map that would lead to fair and transparent elections and lead the country to safety.

The decision I took at the moment of commissioning this government to be the organizer of the elections and not a party to them. And if I had participated in the elections, I would have broken the pledge before the people, and I claim that I am not breaking the pledge. With regard to the first part of the question, his answer is also related to the second part.

The tweet you launched translates the basic principles of any democratic system, which is that elections represent the natural way out of political crises, and that government formation mechanisms must be completed as defined by the constitution. I headed a government for a transitional period and did what satisfied my conscience in carrying out my duties at this stage. On the political level, however, it is still early days in this regard.

Social Activities

* It has been noticed recently that there are extensive activities for the Prime Minister at different levels. Is this an introduction to a new political role?

In fact, the activities I carry out are part of my natural duty as Prime Minister, and there is continuous work at all levels that has never stopped.

But with regard to social activities and meeting people, in fact, I admit that I do more of them for a personal reason. Sometimes I deal with the personal pressures that I face in government work, whether political or security, by returning to people by inviting them or visiting them in their places.

This represents my personal stability. And if I may say, it's more like a cure. Our people and our people are good and patriotic and suffer a lot, but they are also intelligent in every sense of the word, and they are honest, and that is why they know who is honest with them and who is not.

2022 budget

 * As a caretaker government, you face obstacles related to preparing the 2022 budget. Parliament gave you the authority to prepare it, but there are those who say that you will transfer it to the next government?

This topic has been under discussion during the past period, and we believe that it would be better if there was a government with full powers to present the draft budget law for the year 2022 with the conditions and specifications required by the economic reform project and the political and economic transformations and challenges taking place in Iraq and the world.

As for its transfer to the next government, the matter depends on the speed of formation of that government, and there are immediate legal solutions that can overcome the damages that occur due to the absence of the budget.

Food Security Law

* The above order applies to the Food Security Law. You supported this law as it covers the absence of the 2022 budget, how accurate is that?

The truth is that the preparation of this law and its submission to the House of Representatives was due to the global economic crisis caused by the war between Russia and Ukraine and the rise in oil prices, and consequently the high prices of goods and services globally and the inability to legislate the budget at the present time. Obstacles of the current crisis and providing cover to support the poor classes, support the ration card, and finance many strategic projects that are threatened with suspension due to lack of funding.

Password

* What is the password with which you were able to resetIraq How did you achieve this difficult equation by establishing good relations with all the important countries for Iraq without exception?

If I may use the term “password”, then this word is the word I use internally, trust and credibility as well. Some people understood politics as an opportunistic project, and this is a completely wrong concept. I believe that politics has many ethical aspects, and the most important of these aspects is building on commonalities and building trust.

A country cannot develop naturally apart from its neighbors, and all countries of the world must have good and sound relations with everyone. Iraq May God endow it with an important geostrategic position in the region and the world, and this site requires us to be a meeting point and not a point of intersection.

But unfortunately we were a point of intersection for many decades before 2003, and we reached dangerous limits with a threat Iraq To be an arena for a direct war between different countries, so we tried to devote the concept of convergence.

And by the way, we did nothing other than what the Iraqi constitution mentioned, which stipulates that it be preserved Iraq Balanced relations with other countries and away from the policy of international axes, and not to be a source of threat to its neighbors and the world, and the establishment of external relations on the basis of interest and mutual respect,

and in addition to all that we tried to build those relations in a state-to-state manner and in an institutional and not individual style, and thank God we were able to achieve relations Distinguished with all the countries that felt the seriousness of what he was proposing Iraq From visions and projects based on partnership in interests, and refusing to transfer Iraq Rather, we tried to create a positive and healthy atmosphere with everyone that ultimately leads to creating investment opportunities and economic integration.

And work is still going on in the file of foreign relations, and it needs more effort to complete what we started.

Mediation between Iran and Saudi Arabia

* You have made great efforts to achieve rapprochement between the Kingdom of Saudi Arabia and the Islamic Republic of Iran. What is the extent of development regarding this mediation, and are there upcoming rounds?

  yes,Iraq He has a direct interest in achieving understandings between the countries of the region and achieving regional stability.

And because we have good relations with both parties and with various regional and international parties, we were able to create a positive dialogue atmosphere on the ground. Iraq Many of them have not been announced.

The brothers in the Kingdom of Saudi Arabia and the Islamic Republic are dealing with the issue of dialogue with a high responsibility and the requirements of the current situation in the region, and we are confident that the understanding is soon, God willing, and there is a real and wide breakthrough in the relations between all the countries of the region, backed by a firm conviction and sound intentions that the future of the region depends on the beginning Looking at it as a system of converging and not intersecting interests, and that this system cannot devote itself to economic construction and catch up with global development without solving its problems and zeroing its crises.   LINK