Iraqi News Monday Afternoon 1-10-22
Iraqi News Monday Afternoon 1-10-22
TLM724 Administrator BondLady’s Corner
Changing The Exchange Rate.. Economic Additions And Dangerous Social Effects
Monday 10 January 2022 262 Baghdad: Haider Falih Al-Rubaie
The opinions of specialists in economic affairs varied, with regard to the results achieved by the decision to change the exchange rate, which was taken by the Central Bank nearly a year from now. And its role in addressing the structural distortions of the economy that impoverished public finances and restricted the ability to reform
And among opponents confirming that the decision directly affected low-income people and contributed to doubling the number of the unemployed, increasing poverty rates and raising the rate of inflation, most of those opinions polled by “Al-Sabah” were divided.
Against the dollar” with the launch of the “reform white paper” adopted by the government with the aim of addressing the imbalances in the Iraqi economy, which, according to Prime Minister Mustafa Al-Kazemi, during the cabinet session held on 12-30-2021 contributed to maximizing state revenues and cash reserves, and providing more than 12 billion dollars from the reserves of the Central Bank of Iraq, and raise the global credit rating of Iraq internationally
Additional Revenue
The financial advisor to the Prime Minister, Dr. Mazhar Muhammad Salih, and despite his defense of the decision, which confirmed its contribution to enhancing Iraq’s financial revenues, and filling an important part of the budget deficit, but he believes that the financial policy should move towards a fair compensation for income to reduce the effects of the decision.
Saleh told “Al-Sabah” that “reducing the exchange rate of the dinar in relation to the general budget, such as the birth of the so-called (cash adjustment), that is, achieving additional revenues of 23% of the value of the government’s annual dollar oil revenues as a result of transfer differences, which is considered in all cases a door Inflationary taxes, as inflationary tax revenues helped fill an important aspect of the deficit in the operating budget for the year 2021, amounting to nearly 20 trillion Dinar.
And the government advisor pointed out, "After subtracting the consequent reduction in foreign government payments, the net inflationary tax revenues are no less than 21 trillion dinars annually."
Financial Adjustment
As a result of the effects left by the decision to change the exchange rate, Saleh shows the need to “remediate” two issues. The first is to achieve financial adjustment inherent in monetary adjustment in the non-oil revenues of the government. The indicators show that what is planned of non-oil revenues in the 2021 budget is about 20 trillion dinars, but In practice, only 8 trillion dinars were achieved, meaning that (non-oil revenues did not achieve the necessary financial adjustments), but the net inflationary tax replaced the weak collection in traditional financial taxes, which is a matter that falls on the shoulders of the financial administration in all cases.
Saleh pointed out that the second issue, which should be “remedied” is “the high rates of inflation and its creep to the edge of 8-9%, which generated an effect called the effect of falling cash income and a decrease in the purchasing power of the poor, disadvantaged and low-income classes, calling for a fair compensation for income or Adopting appropriate distributive foundations by expanding the ration card program in terms of quantity and area, as well as enabling programs to address poverty within the framework of social welfare in a tangible and broader way to reduce poverty rates that have escalated.
Damages And Justifications
For his part, the economic expert, Dr. Bilal Al-Khalifa, pointed out that “the decision caused clear damage to important segments of the people, especially the middle and poor classes, and led to an increase in the prices of consumer goods in local markets and increased the suffering of the simple citizen due to the increase in the value of materials in the local market by a percentage It approached 23% and therefore damaged more than 60% of Iraqis.
But the Caliph attributed the decision to a number of reasons, including strengthening the financial budget by providing 23% of the employees’ salaries, increasing the size of the cash reserve, supporting industry and agriculture, and reducing sales of hard currency.
Despite the many reasons that prompted the Central Bank to take the decision, however, the economic expert identified a set of negatives produced by the move to “change the exchange rate”, putting at the forefront of those negatives the rise in overall prices in the country, the increase in the unemployment rate and the level of inflation, as well as the decline in the value of the Iraqi people’s revenues in public and private sectors by 23%.
Consumer Needs
As a result of Iraq’s dependence on imported consumer goods, at a rate of up to 90%, according to the expert, the Caliph, he sees the need for the government to “exempt raw materials (which are not available locally) entering the local industry from taxes and customs, and thus reduce the burden on the Iraqi citizen,” pointing out At the same time, "the increase in financial reserves did not come as a result of the exchange rate change only, but also because of the recovery in oil prices globally, and therefore one of the justifications used by the Central Bank has vanished," according to the spokesman.
The speaker concludes that the decision, despite the benefits that it achieved for the government, especially the contribution to raising the reserve of hard currency, also has negatives that affected the Iraqi economy, such as high inflation and increased unemployment rates, as well as its damage to citizens of the poor and middle classes.
Social Bumpers
In turn, the economic researcher, Bassam Raad, explained that the decision, despite achieving an important economic positive, represented in supporting the state’s general budget and strengthening the reserves of the Central Bank during the Corona pandemic crisis, but the “currency devaluation” had a painful impact on the general community, due to the lack of Social buffers to protect the poor.
Raad said during an interview with “Al-Sabah” that “the change in the exchange rate had negative effects in the private sector significantly, and also led to a rise in the prices of imported goods, and inflation due to the lack of a commodity production base, as the reliance on imports makes the exchange rate one of the influencing variables. In the general level of prices in the market as the coefficient by which the prices of imported goods are converted into currency prices local. LINK
Washington calls for the speedy formation of the Iraqi government
Today, Monday, the US embassy in Baghdad congratulated the election of the presidency of the Iraqi parliament, while expressing its hope to speed up the process of forming a government.
A statement by the embassy stated that it "welcomed the convening of the fifth session of the Iraqi parliament, which is an integral part of the Iraqi democratic process and national sovereignty."
"We extend our warmest congratulations to the re-elected Speaker of the House of Representatives, Muhammad Al-Halbousi, as well as the First Deputy Speaker of the House of Representatives, Hakim Al-Zamili, and the Second Deputy Speaker of Parliament, Shakhwan Abdullah," he added.
He pointed out that, "Given the important role that Iraq plays in regional stability and security, we share the hope that Iraq's leaders and the new parliament will speed up the process of forming a new government so that it can carry out the important work of continuing to protect democracy, support national sovereignty, and address urgent challenges." currently facing Iraq and the region.
She expressed her hope that "the new government, once formed, will reflect the will of the Iraqi people and work to address the challenges of governance, human rights, security, and the economy in Iraq."
https://www.radionawa.com/all-detail.aspx?jimare=27475
The House Of Representatives Determines The Conditions For Nomination For The Post Of President Of The Republic
Today, Monday, the House of Representatives announced the opening of the nomination for the position of President of the Republic, while setting the conditions for nomination for the position.
The Council stated in a statement, that "according to Articles (2 and 3) of Law No. (Cool of 2012 (Law on the Provisions of Candidacy for the Post of President of the Republic), the door for nomination for the position of President of the Republic has been opened.
And she added that "those who wish to nominate who meet the conditions listed below must submit their written applications, accompanied by official documents proving the fulfillment of those conditions in them, along with their CVs, to the Presidency of the House of Representatives and hand them over to the Legal Department in the House of Representatives - Conference Palace during the hours from nine in the morning until three in the morning."
On the afternoon of the days (Tuesday, Wednesday, and Thursday) corresponding to (11, 12 and 13/1/2022), for a delivery receipt that proves the submission of the application, the date of submission and its accompanying documents.
He continued, "The conditions for nomination for the position of President of the Republic, based on Article (1) of the law, are the following:
First: An Iraqi by birth and of Iraqi parents.
Second: He is fully qualified and has completed forty years of age. Third: He has a good reputation, political experience, and is known for his integrity, integrity, justice, and sincerity. For the country
Fourth: His academic achievement is not less than the initial university degree recognized by the Ministry of Higher Education and Scientific Research in Iraq
Fifth: He has not been convicted of a crime involving moral turpitude
Sixth: He should not be covered by the provisions of the Accountability and Justice Law procedures or any procedures that replace them The Council continued, "The election of the President of the Republic will take place no later than the end of February 8, 2022, in implementation of Article (72/Second/B) of the Constitution."
Yesterday evening, Sunday evening, Parliament Speaker Muhammad Al-Halbousi announced the opening of the nomination for the position of President of the Republic.
Al-Halbousi said in his speech that "the nomination period for the post of President of the Republic extends for 15 days, and on the last day the voting session for the candidates takes place."
Today, in its fifth legislative session, the House of Representatives elected Muhammad al-Halbousi as speaker, Hakim al-Zamili as first deputy, and Shakhwan Abdullah as second deputy.
https://www.radionawa.com/all-detail.aspx?jimare=27481
Iraq And America Discuss The File Of Al-Hol Camp
Political | 05:08 - 10/01/2022 Baghdad - Mawazine News, the US ambassador to Baghdad, Matthew Tueller, stressed, on Monday, during his meeting with National Security Adviser Qassem Al-Araji, the importance of partnership with Iraq.
And the media office of the National Security Adviser stated, in a statement that Mawazine News received a copy of it, that "the National Security Adviser, Qassem Al-Araji, received in his office today, Monday, the American ambassador in Baghdad, Matthew Tueller," noting that "at the beginning of the meeting, the ambassador presented The American congratulated the election of the speaker and two deputies of the Iraqi parliament.
The US ambassador expressed his "hope that the new Iraqi government will be formed as soon as possible," stressing "the importance of partnership with Iraq."
He pointed out that "his country hopes to expand this partnership to include the fields of energy, health and education." According to the statement, the two sides discussed,
https://www.mawazin.net/Details.aspx?jimare=181206
Al-Amiri And Al-Kazemi Discuss The Developments Of The Political Crisis In The Country
Political | 02:27 - 10/01/2022 Baghdad - Mawazine News,Head of the Al-Fateh Alliance Hadi Al-Amiri discussed with the caretaker Prime Minister Mustafa Al-Kazemi the latest developments in the political crisis in the country.
And he told Al-Amiri's office, that "Mawazine News" received a copy of it, that "the latter discussed with the caretaker prime minister when he received him in his office in Baghdad the latest developments of the political crisis."
The statement added that "the outcomes of the political process were discussed and appropriate solutions were found in light of the current differences." https://www.mawazin.net/Details.aspx?jimare=181183
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