Iraqi News Monday AM 12-28-20

Iraqi News Monday AM 12-28-20

TLM724 Administrator BondLady’s Corner

Al-Araji: The World Bank Asked Iraq To Raise The Dollar Exchange To 1660 Dinars

Pratha News Agency128 2020-12-27   Former Deputy Prime Minister Bahaa Al-Araji revealed that the World Bank had asked Iraq to raise the dollar exchange rate to 1660 Iraqi dinars in exchange for its help in solving the financial crisis.

Al-Araji said in a tweet on his Twitter page, today, "In order to help and support Iraq in solving its financial crisis ... The World Bank asked Iraq that the dollar exchange rate be (1660) dinars."  He asked whether the government and parliament "have a unified position, whether by rejection or acceptance?" Or will some political blocs take advantage of this to bid, as they did before ?! ”

It is noteworthy that Iraq requested assistance and loans from the International Monetary Fund, which provided Iraq with a number of conditions for the purpose of implementing its request, including raising the price of the dollar against the Iraqi dinar, raising fuel prices, in addition to other conditions related to the operational budget that includes the salaries of employees.   

 http://burathanews.com/arabic/news/383267

Parliamentary Finance Reveals Who Is Behind The Dollar's Rise ... Two Surprising Prices

Time: 12/27/2020 15:20:23  Read: 11,882 times   {Baghdad: Al Furat News} The Parliamentary Finance Committee revealed who is behind the raising of the dollar exchange rate against the dinar in Iraq.

Committee member Ahmed Hama Rashid said in a press statement, "The increase in the exchange rate of the dollar against the Iraqi dinar was based on a proposal made by both the Bank and the International Monetary Fund during a meeting between them and the Ministry of Finance two weeks ago to discuss finding solutions to the financial crisis that Iraq is going through." ".

And, "The World Bank suggested raising the dollar exchange rate to 1660 dinars, while the International Monetary Fund proposed that the exchange rate for one hundred dollars be 130 thousand Iraqi dinars, but Iraq decided that the price would be 1450 dinars per dollar."

It is noteworthy that the Iraqi Central Bank decided on 19 December to amend the dollar exchange rate, as follows:

1450 dinars per dollar, the price of buying foreign currency from the Ministry of Finance.

1460 dinars per dollar the selling price of foreign currency to banks.

1470 dinars per dollar is the selling price of foreign currency to the public.

The federal government attributes the decision to raise the exchange rate of the dollar to 1,450 dinars, after it was 1,190 dinars to fill the financial deficit that the state suffers from, which aroused the discontent of citizens as a result of the high prices in the local markets in general.   LINK

Saleh: There Is No Binding Program Currently Between Iraq And The International Monetary Fund

Money  and business  Economy News _ Baghdad  The financial advisor to the Prime Minister, Dr. Mazhar Muhammad Salih, revealed, on Sunday, the fact that a request has been submitted to Iraq to raise the price of the dollar to 1660 dinars per one US dollar.

Saleh said in a press interview, that "there is no binding program currently between Iraq and the International Monetary Fund, but the latter is following the current account deficit of the balance of payments of member countries."

He added that the IMF is following up on the current account deficit, "due to the recession of the global economy and its stable effects on the economies of member states," noting that what was mentioned "is one of the routine actions that the fund carries out in consulting with all countries."

Number of observations 136 Date of addendum 12/27/2020   https://economy-news.net/content.php?id=23331

Dollar Exchange Rates In Iraq

Pratha News Agency90 2020-12-28  The exchange rates of the dollar in the main stock markets decreased slightly, while it stabilized in the local markets, today, Monday (December 28, 2020).

The Kifah Stock Exchange recorded 141,900 dinars against 100 US dollars, while the exchange rates for Sunday on the Kifah Stock Exchange recorded 142,000 dinars per 100 dollars.

As for the exchange rate in the local markets, it stabilized, where the selling price was: 143,000 dinars per 100 dollars, the purchase price was 141,000 dinars per 100 dollars.   

 http://burathanews.com/arabic/economic/383335

An Economist Warns Against Adopting Dinars In Commercial Dealings With Other Countries And Explains Why

Baghdad Today – Special  Economic expert Rasem Al-Akidi warned, Monday (December 28, 2020), against adopting the Iraqi dinar currency in commercial dealings between Iraq and other countries.

"The announcement by some countries, including Iran, that they will deal in the Iraqi dinar in their commercial dealings with us, is a new economic catastrophe that will harm the Iraqi economy," Al-Aqidi said in an interview with (Baghdad Today).

He added, "Those countries will have control over the issue of selling the dollar at home, and this will be greatly reflected in the activities of the Ministry of Finance."

The economic expert noted that "the countries that will deal in the Iraqi dinar during commercial dealings with us, will not be harmed in the event that they decide to buy hard currency, from currency dealers and some private banks affiliated with them." LINK

Rafidain Bank Directs Its Branches To Adopt The Official Dollar Exchange Rate

Economy  The rise in the price of the dollar  Rafidain Bank

Shafaq News / Al-Rafidain Bank directed, on Monday, all its branches in Baghdad and the governorates to adopt the new exchange rate of 1460 dollars.

The bank’s media office said in a statement received by Shafaq News; According to the directives of the Central Bank of Iraq, it was decided to adopt the 1460 dollar exchange rate instead of the old price.

The statement called on all bank branches to adhere to the general directives regarding the dollar currency.

On Sunday (December 20, 2020), an official at the Central Bank of Iraq stated that the new price has been launched for the sale of the dollar in the public auction for the sale of the currency.

The source said to Shafaq News Agency, "The bank has started applying the new price to sell the dollar," adding that "it was sold in today's auction for 1,450 dinars per dollar."

According to a document received by Shafaq News; The governor of the Central Bank issued a directive to government and private banks informing them of the new dollar exchange rate. LINK

The Political Economy Of The Iraqi Dinar

Pratha News Agency  109 2020-12-28  Dr.. Maytham Al-Aibi Ismail *

In one of its aspects, the interpretation of the decision to raise the exchange rate of the American dollar against the Iraqi dinar refers us to what is known as the (Monroe) model that Chomsky focuses on in his vision of the contemporary Middle East, (this name reminds me of raising the air for the wonderful dress of Marilyn Monroe).

Chomsky's hypothesis defended in his book (Illusions of the Middle East) is based on the logic of American hegemony over the region as a region of influence by force, as Chomsky mentions, for example, in one corner of his book, that US Secretary of State Madeleine Albright declared during the Clinton administration; When, in her speech, she referred to US interests in the Middle East: "We will act collectively when we can, and we will act unilaterally if necessary, as we do not recognize borders or obstacles, or even international law or the United Nations."

And our hypothesis about the devaluation of the dinar against the dollar; From the standpoint of political economy, it revolves around the logic of US economic hegemony over the countries of the Middle East, within various economic tools such as controlling energy sources, oil prices and currency rates, adjustments to the rates of trade exchange to the detriment of some countries, and the use of methods of impoverishment, blockade and sanctions, and the circulation of oil revenues to the outside...

You have loaded the "white paper"; Which were presented recently yesterday, clear introductions to the measures presented and planned to be implemented today, under the pretext of economic reform according to the liberal logic,

and among those introductions is the focus on the risks of the cheap dollar and the necessities of reducing the value of the dinar on the pretext of competitiveness and budget sustainability.

The government, its advisors and some specialists also focused on the policies of the Central Bank of Iraq throughout The previous years did not serve the position of the Iraqi trade balance in exchange for strengthening the balance of payments of neighboring countries, which have become a net exporter to the country, taking advantage of the decline in Iraqi non-oil GDP, loopholes in customs and tax laws, and the weakness of the rule of law ...

Going back to the beginnings of the formation of the Al-Kazemi government and his team; After the hijacking of the October 2019 revolution, it is self-evident to say that the coming of this group to the top of the Council of Ministers came in a clear part of it as equivalent to curbing Iranian influence and confronting the growing forces of non-state, given the need to create “local policemen,” as Chomsky put it, represented in our case by a man. Al-Kazemi Intelligence and his team, by "world policeman", America.

The decision to change the dollar exchange rate cannot be read far from the kitchen of Al-Kazemi’s policy and his local and international advisory team and its implementing tools that have been chosen to manage the Central Bank and the Ministry of Finance, and which have been promoted as the main ribs of the "Golden Triangle" carrying the pillar of financial and monetary reform ... Measures to reduce provisions, raise tax rates, increase fuel prices, and change the exchange rate at a high rate;

Although it aims primarily to bridge the budget deficit and address the problems of financial sustainability and debt intolerance, it naturally aims to improve the Iraqi trade balance, which was in favor of the neighboring countries (Turkey, Saudi Arabia, Kuwait, Jordan and Iran ...) over the past years.

From the political economy point of view, all neighboring countries could be affected by the decision to change the exchange rate, to its disadvantage,

but countries such as Saudi Arabia and Kuwait have many buffers of protection so that their damages will be the least, as they are countries that have high oil shares in OPEC, as they have secured their economies With sovereign hedge funds against crises, the situation is no different for Turkey, a rising country that has great economic diversity, while the decision to manipulate exchange rate meters could be more harmful to neighboring Iran, which has been exhausted by successive US administrations with embargoes and sanctions,

making the decision to raise The value of the dollar is another tightening in the field of sanctions that Iran has long been able to evade from, and leads to a set of negative effects expected on it, whether by moving the balance of payments in favor of the Iranian economy, as well as the expected negative effects of activating customs taxes on the decline of Iranian exports to Iraq, which is also driven by expectations The decline in aggregate demand and stagflation in the Iraqi economy as a result of imposing multiple taxes on incomes and cutting proportions of salary allocations.

The weakness of such an analysis stems from the question about the future of the Al-Kazemi government and the contradiction in its supposed support by the American administration, and the possibilities of failure of its next electoral project, as it fell into the trap of confronting economic reforms with positive results that are inconclusive in the long term and that depend on improving the competitiveness of the economy Al-Iraqi, and among confirmed negative results in the short term, as it faces cutting salaries and raising prices and the resulting reduction in the purchasing power of money, which is something the Iraqi street will not forgive, which represents live ammunition that this government delivered to the voters who would use it against it during the election days to topple it.

Most of the political parties opposed to the Al-Kazemi government and his team rejoice over him ... which are now watching comfortably for this dilemma.

Perhaps the answer to this contradiction requires a return to the starting point of this article, related to the "Monroe" model, which is the logic of American economic hegemony that is not related to the interests of the Middle East countries or their people, as much as it relates to the American supreme interests, and this principle is not strange to American policy.

America in the nineties, for example, is contributing to the siege and starvation of the Iraqi people through the imposition of sanctions, in exchange for its support and continuation of Saddam's regime.

When Madeleine Albright was asked about her feelings about the killing of half a million Iraqi children under sanctions, she replied, "It was a difficult choice, but we believe The price was worth it."

Who is Al-Kazemi and his team, for example, so as not to be overthrown, in exchange for weakening the Iraqi economy and continuing its fragility, or considering it merely a stick to strike the economies of rogue neighboring countries and weaken them, overthrowing him and his team later, or granting him in the best case a few seats in the next elections, and joining him to the choir of client politicians The role of the neighborhood and the outside, and the continuation of the fragile and fractured political system, sectarian, ethnic and national...*

Economic Researcher    https://burathanews.com/arabic/economic/383323

Sumaisem: America Will Not Pump Dollars Into Iraq, And Dealings Will Be In The Digital Currency .. And Baghdad Is Forced To Comply With The Recommendations Of The International Monetary

Baghdad / Obelisk: Economic expert Salam Sumaisem said on the devaluation of the Iraqi dinar, that the dollar will be drained from its source in the US Treasury, which will replace it with digital electronic money, Digital Dollar.

Sumaisem added to the obelisk: We will then see how the smuggling of dollars continues, noting that only Iraq and its people will be the losers, and that whoever trades in the Iraqi dinar will not benefit in anything.

Sumaisem told Al-Masalla that draining the sources requires that there be a shortage of dollars that are pumped into the markets, referring to the issue of pursuing political money, as the financial decision-makers say that they cannot dry up the sources, but America, for example, has gone through the same crisis, especially after the decline The US dollar fell a week ago on the global market by 8%, which prompted the Treasury to stop pumping more dollars into the US market itself.

Sumaisem considered that the Iraqi concerned authorities do not know how to act with the crisis.

Rather, they acted in a bad way in reducing the price of the Iraqi dinar against the dollar.

Sumaisem said, "It is true that this provides liquidity, but it will not solve the crisis."

And she continued: America, for example, is now moving to the stage of digital money, which is digital money, and thus it will not pump more dollars into Iraq until it becomes scarce, and then it can pump a dollar digitally and when it pumps a dollar digitally, dealing in it will be different from dealing in the cash dollar because it will not be within reach.

That every dollar has a number and circulation in it between the seller and the buyer is known and limited.

It will also change the whole world, and for Iraq it will be a pivotal change.

Sumaisem revealed that the Minister of Finance signed a blank statement that he would implement all the recommendations of the International Monetary Fund.    Obelisk LINK

Demonstrations exit in front of the Central Bank to demand the dismissal of the bank governor

Pratha News Agency114 2020-12-28

Large demonstrations took place in front of the Central Bank to demand the dismissal of Mustafa Ghaleb, governor of the Central Bank

A press source said that hundreds of people took to the streets in a demonstration demanding the dismissal of Ghaleb because he wants to starve the people, as described by the demonstrators, and are demanding accountability for corruption banks.    http://burathanews.com/arabic/news/383339

In pictures ... protesting in front of the Central Bank to demand the dismissal of its governor

Time: 12/28/2020 10:06:32  Read: 2,860 times       

(Baghdad: Al Furat News) Protesters organized demonstrations in front of the Central Bank, demanding the dismissal of Mustafa Ghaleb, the bank’s governor.

The demonstrators raised slogans describing the central bank governor as wanting to starve the people.

They also demanded that "corruption banks" be held accountable.

The head of the Parliamentary Wisdom Bloc, Faleh Al-Sari, had asked the Presidency of the House of Representatives to set a date for the questioning of the Central Bank Governor, Mustafa Ghaleb, after completing the questioning, the formal and substantive aspects of the file.

Al-Sari said in a statement seen by Al Furat News that "the committee charged with looking into the interrogations file has sent all its requirements to the presidential office," calling on the latter to "set the date for the interrogation next week, especially as there are serious repercussions on monetary policy."   LINK

The Dollar Is Rising In The Local Markets ... And A Demand For The Dismissal Of The Governor Of The Central Bank Of Iraq

Today, Monday, December 28, 2020, dozens of citizens demonstrated in front of the Central Bank of Iraq, demanding the dismissal of the bank’s governor, Mustafa Ghaleb, and raising slogans describing the governor of the Central Bank that he wants to starve the people, demanding accountability for "corruption banks."

And the local markets recorded, today, the exchange rate of the dollar rose against the Iraqi dinar, and the exchange rate of the 100-dollar note on the Al-Kifah Stock Exchange in Baghdad reached 141,900 dinars, and in the Erbil Stock Exchange 141,700, Basra 141,700, Sulaymaniyah 141,750, Najaf 142,000, Nasiriya 142,000, Mosul 141,700.

While the Rafidain Bank directed all its branches, today, in Baghdad and the provinces, to adopt the new official price for the exchange of the dollar, (1460 dinars) against one dollar, instead of the old price. "

https://www.radionawa.com/all-detail.aspx?jimare=22843

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