Iraqi News Highlights and Points to Ponder Friday AM 11-10-23

A Parliamentarian Answers... Will Restarting Factories Reduce Demand For The Dollar?

 Information / Baghdad    Today, Friday, a member of the House of Representatives, Salem Al-Anbuki, explained the impact of restarting factories on the dollar in the Iraqi markets, while pointing to the factors of pressure on the parallel market.

Al-Anbaki said in an interview with “Al-Ma’louma” that “the most important factors putting pressure on the parallel market and pushing dollar prices to rise are the lack of national products that enable them to contain market demands for many goods, which leads to the import of approximately 95% of needs, which requires the availability of hard currency.” To the dollar.

He added, "Reconsidering the national economic strategy, pushing factories and laboratories to produce, and closing the large gap in the import balance will reduce the demand for the dollar by no less than 70%, which means a greater decline and gives greater flexibility in the markets."

He pointed out that "the rise in the dollar causes severe harm to more than 13 million people who are below the poverty line because of its impact on raising prices, especially basic food items."

The currency market in Iraq is witnessing a rise in the dollar exchange rate in recent weeks, especially as it approaches breaking the barrier of 170 thousand dinars per 100%.  LINK

Expecting A “Jump In The Exchange Rate.” The Chamber Of Commerce Proposes A “Salary Dollar” Proposal.

The price of the dollar continues to rise in the parallel market amid expectations of a “new jump” in the exchange rate, especially since many private banks are “a front for political parties,” according to specialists.

“Salary Dollars” Proposal

The Diyala Chamber of Commerce introduced what it called the “salary dollar” temporarily to limit the rise in the parallel market.

The head of the Diyala Chamber of Commerce, Muhammad Al-Tamimi, said in a press interview seen by “Taqaddam” that “the rise in the dollar exchange rate in the parallel market in recent days is worrying, especially with assurances from experts that the rise will not remain at limits ranging between 160-170 thousand dinars for every 100 dollars.” “In fact, it may jump to higher numbers.”

He adds, “The rise in the exchange rate in the parallel market indicates the presence of influential parties, some of which are deeply embedded in state institutions, and do not want to abandon the river of money that flows into the pockets of politicians and elites under various titles.”

He pointed out that “a not insignificant portion of the banks are fronts for political parties and blocs,” noting that “the psychological state constitutes another factor in raising the dollar, with many refusing to give it up. Some of them even began to push to change the cash they have in Iraqi dinars into dollars out of greed.” In other profits, and for fear that the national currency will lose more strength in the face of the rise of the parallel market.”

Al-Tamimi called for “adopting the experience of granting part of employees’ salaries in dollars temporarily and according to the official price of the dollar, away from the currency auction, which is subject to powerful banks and financial forces that profit daily tens of billions of dinars within seconds with the difference in currency between the official and the parallel.”

 He stated that “giving employees the dollar will achieve stability and prevent the auction from being exploited to increase the wealth of powerful parties.”

In recent days, the exchange rate of the dollar against the Iraqi dinar has witnessed a significant rise, approaching 170,000 dinars for every 100 dollars, which has become a burden on the Iraqi citizen who is struggling to provide a living.  https://takadum-news.com/archives/191189

An Economic Vision To End The Dollar’s ​​Dominance Of The Iraqi Market

447  The head of the Diyala Chamber of Commerce, Muhammad Al-Tamimi, presented an economic vision to end the crisis in the parallel market for the dollar in Iraq.

Al-Tamimi said in a press interview seen by “Taqaddam” that “the rise in the dollar exchange rate in the parallel market was not surprising, but rather it was indicated through our expectations a month ago from now for multiple reasons, some of which are external related to Washington’s position on the Sudanese government and others are internal related to the Central Bank and the extent of its implementation.” for actual procedures.

He added, “The Chamber of Commerce put forward a 7-dimensional vision to contain the parallel market, starting with investigating the mechanisms for granting the dollar at the official rate at the specified outlets and seeking to end the dollarization of several sectors at home and emphasizing this measure, pointing out that the crisis is not temporary because there are accumulated factors that caused its exacerbation.” Recently".

He pointed out that “70% of the dollar is exported abroad because Iraq is devoid of industries that supply its markets with basic needs. This is a catastrophic matter that was overlooked after 2003, which makes the country’s economy dependent on external conditions, and any crisis will hit hard internally, requiring a comprehensive review to revive the industry again.” https://takadum-news.com/archives/191191

Economist: It is not possible to mint an Iraqi coin currently, and inflation is a thousand times high

11/09/2023 Read: 546 times  {Economic: Al-Furat News} The economic expert, Abdul Rahman Al-Sheikhli, ruled out minting an Iraqi coin at the present time due to the high inflation of the dinar by 1,000 digits.

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Al-Sheikhli said: For the program {Free Speech} broadcast by Al-Furat satellite channel this evening, it was said: “The issue of importing the dollar is not new. It was approved in 2010 by a measure by the Central Bank, and the new decision came at the request of merchants to cover the needs of the local market.”

He added, "The dollar in banking offices is either legitimate or through acquisition, and cash is sold to travelers, students, and patients abroad. The reality of the situation requires the presence of another source to provide the currency, and the Central Bank has obliged the import of the dollar exclusively through airports."

Al-Sheikhly stressed that "the central bank will not be an intermediary in importing the dollar, but rather the banks that have relations with foreign banks and rely on their stock of the dollar."

He also stated, “The political influence is very great on the economic process, which hinders its flexibility, and the entry of the imported dollar will be a competitive factor in the Iraqi street for the black and will have a very significant impact on reducing the price of the currency.”

Al-Sheikhli pointed out, “The most important factor in the fluctuation of the dollar is supply and demand, and the rise of the dollar and oil on balance contributed to raising the currency in the local market,” adding, “The US Federal Reserve does not delay remittances, but it audits them, and international standards for money laundering and supporting terrorism delay some attempts.”

He added, "Some banks operate in unprofessional ways, which led citizens to hoard currency and the need to restore confidence between the citizen and the banking system. The Prime Minister agreed with the Minister of Commerce to import materials at the official price and sell them at a discount."

Al-Sheikhli added, "Iraq has inflation in the dinar, which is more than 1,000 and it is not possible to print coins at the present time. The Iraqi citizen must be educated to use the Visa card in his transactions."

While he noted that “the Ministry of Finance’s intervention in raising the price of the dollar created a major problem,” calling on the Central Bank to “use its full independence and powers to control the price of the dollar, as the Central Bank is still deficient in resolving some of the existing problems,” concluding, “The American Federal Reserve has no authority over the Central Bank of Iraq.” Rather, it issues recommendations regarding violations.”   Wafaa Al-Fatlawi   LINK

Provoking Points to Ponder From Daily Reflections For Highly Effective People By Stephen Covey:

The word proactive means more than merely taking initiative -- It means that as human beings - we are responsible for our own lives -- Our behavior is a function of our decisions - not our conditions -- We can subordinate feelings to values -- We have the initiative and the responsibility to make things happen -- p. 71

If you're proactive -- you don't have to wait for circumstances or other people to create perspective expanding experiences -- You can consciously create your own -- p. 131 

The law of the harvest governs: we will always reap what we sow -- no more - no less -- The law of justice is immutable - and the closer we align ourselves with correct principles - the better our judgment will be about how the world operates and the more accurate our paradigms -- our maps of the territory -- will be -- p. 305

When two people in a marriage are more concerned about getting the golden eggs , the benefits, than they are in preserving the relationship that makes them possible -- they often become insensitive and inconsiderate - neglecting the little kindnesses and courtesies so important to a deep relationship -- They begin to use control levers to manipulate each other - to focus on their own "wants" - to justify their own position and look for evidence to show the wrongness of the other person -- The love - the richness - the softness and spontaneity begin to deteriorate -- The goose gets sicker day by day -- p. 55