Iraq Economic News and Points To Ponder Tuesday Evening 7-9-24
Sudanese Advisor: The Iraqi Central Bank Will Address The Rise In The Dollar.. What About The Inflation Rate?
Money and business Economy News – Baghdad Adviser to the Prime Minister for Economic Affairs, Mazhar Muhammad Saleh, said that the Central Bank of Iraq will address the recent rise in the dollar exchange rate, noting that annual inflation in the country only exceeds 3%.
In an attempt to control dollar smuggling, the Central Bank issued in previous times a number of measures with the aim of contributing to raising the value of the dinar or reducing the large demand for the dollar.
The difference between the official exchange rate of 1,320 dinars per dollar and what is sold in the market still encourages dollar smuggling networks to increase their activity to achieve profits, in addition to the impact of this matter on the daily life of the Iraqi citizen.
Recently, the exchange rate of the US dollar against the Iraqi dinar rose to about 1,495 dinars.
"Highest international reserve base"
Mazhar Muhammad Salih said, “The fixed exchange rate system in Iraq is based on a base of international reserves that are the highest in the history of Iraq and its monetary policy, and the foreign currency covers a percentage of more than 100% of the total currency currently exported.” He explained,
"In light of the strength of the official central exchange market, the exchange rate of the dollar to the dinar in the parallel market today in our country does not constitute any relative importance in influencing the stability of the general price level, which has become stable in its components and trends as a result of the influence of the exchange rate factor."
The official financing currently dominates foreign (import) trade financing, amounting to 1,320 dinars per dollar. Saleh pointed to
“the stable trend of the exchange rate, centered around the stable external value of the dinar, which is embodied by the state of stability in the relative prices of goods and services to a large extent, as annual inflation in our country does not exceed only 3%.” The Prime Minister’s Advisor for Economic Affairs noted that,
“In light of the strength of the foreign reserves supporting the Iraqi dinar, whose value as liquid foreign assets exceeds 100 billion dollars, the official exchange market, as a general trend, will remain dominant in containing any colored noise or ambiguous information that is affected by the parallel market.” For disbursement in short periods, due to urgent international or regional political events here and there, or in adapting some instructions regulating the monetary market. Saleh stressed that
"The decline of the phenomenon of dollarization"
“after the decline of the phenomenon of dollarization in internal transactions, especially in contracts, obligations and payments inside the country since last year and its legal ban, the parallel exchange market has begun to have its general impact today only on a narrow economic scope of prohibited transactions, practiced by informal markets at a rate of 10%.” “Of the total transactions of supply and demand for the currency.”
He explained that “the stability of the dinar-to-dollar exchange rate that the country is witnessing, even in the secondary markets mentioned above, is a real and established stability.
Rather, it is derived from the strength of the influence of the price and quantitative factors of the monetary and financial policies, and
their integration in imposing overall price stability in the country, and containing the inflationary expectations that they were causing.” Parallel exchange market forces during the past years.
The Prime Minister's Advisor for Economic Affairs pointed out that
"the informal secondary market, due to the freedom of external transfer, is under the influence of the official exchange market rate, whose operations are constantly expanding in the interest of dealing at the fixed official exchange rate. - https://economy-news.net/content.php?id=44995
91% Of The Iraqi Currency Is Outside The Banking System
Money and business Economy News – Baghdad Economist Manar Al-Obaidi announced that the monetary supply had risen to more than 102 trillion dinars as of last June. Al-Obaidi said,
“The cash currency issued by the Central Bank of Iraq increased to reach 102.3 trillion Iraqi dinars at the end of June, with an annual growth rate of 2.4% and a monthly growth of 3%.” He added that the
value of cash outside the banking system rose to 93 trillion Iraqi dinars after it was 90 trillion Iraqi dinars in March. He pointed out that the percentage of cash outside the banking system reached 91%.
observations 373 07/09/2024 - https://economy-news.net/content.php?id=45032
Adviser To The Prime Minister: Iraq Is In The Process Of Repaying Long-Term Development Loans To The World Bank
Economy 6-07-2024, 12:11 Baghdad - IA - Nassar Al-Hajj The financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed today, Saturday, that the zeroing of debts to the International Monetary Fund reflects the high and solid creditworthiness of Iraq, while he indicated that Iraq is in the process of repaying long-term development loans to the World Bank.
Saleh said to the Iraqi News Agency (INA): “Iraq entered into about 5 programs with the International Monetary Fund from the year 2004 until the end of the year 2018, including 3 credit preparedness programmes, and
all of them were characterized by providing loans whose function was to support a state of stability and economic reform in Iraq and in two directions: the
First: Loan Programs: Iraq received loans from the International Monetary Fund to help it overcome economic crises, as these loans included supporting the general budget and financing economic stability programs, especially during the war on ISIS terrorism.
He added: “As for the other trend: in the field of economic reforms, the International Monetary Fund usually requires countries that receive loans to implement certain economic reforms.
In the case of Iraq, these reforms included improving the management of public finances and the banking sector, enhancing transparency, combating corruption, and reforming the financial sector.” energy".
He pointed out that "these loans did not exceed $5 billion per loan, and the actual withdrawal from them would not exceed $3 billion or more in each case, according to a repayment program that takes place every 6 months with grace periods for two years before repayment, with moderate annual interest, which usually does not exceed 4.5%, and the terms of these loans do not exceed five years.”
He pointed out that "Iraq has repaid the loans that were withdrawn during the last twenty years and according to regular payment mechanisms, and stage of zeroing is approaching unless they are all zeroed today,
which reflects the high and solid creditworthiness of the Republic of Iraq in repayment before the international financial community in particular and before international financial organizations." multilateralism in general.
He continued: “But certainly there are long-term development loans belonging to the World Bank that are still in place, which is another development financial organization, and for a number of billions, they are in the process of being repaid, and
some of them are still in the process of committing to withdrawing them to be spent on completing the development projects contracted with the World Bank, and they are long-term soft loans as well.”".
He stressed that "cooperation relations continue between Iraq and the International Monetary Fund in various fields, including providing technical advice and supporting economic policies," noting that
"the relationship between Iraq, the International Monetary Fund and the World Bank is important for achieving economic stability and sustainable development in the country." He pointed out that
"Iraq is a founding member of the International Monetary Fund and the World Bank since 1945."
https://www.ina.iq/212088--.html
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Provoking Thoughts and Points to Ponder on Advice :
Be frank and explicit. That is the right line to take when you wish to conceal your own mind and to confuse the minds of others. - Benjamin Disraeli
Put all thine eggs in one basket and - watch that basket. - Mark Twain
It has seemed to be more necessary to have regard to the weight of words rather than to their number. - Cicero
Don't offer me advice, give me money. - Spanish proverb
If you aren't rich, you should always look useful. - Louis-Ferdinand Celine
He who can lick can bite. - French proverb
When a man comes to me for advice, I find out the kind of advice he wants, and I give it to him. - Josh Billings
We only make a dupe of the friend whose advice we ask, for we never tell him all; and it is usually what we have left unsaid that decides our conduct. - Diane de Poitiers
I give myself, sometimes, admirable advice, but I am incapable of taking it. - Mary Wortley Montagu