Iraqi News Monday Early AM 9-20-21
Iraqi News Monday Early AM 9-20-21
TLM724 Administrator BondLady’s Corner
The Yuan And The Dollar
Sunday 19 September 2021 211 Yasser Al-Metwally China said that the world should prepare from now on to buy our goods in Chinese yuan, and the decision will be implemented after a month.
This remarkable early warning raises several questions, including: Will the yuan affect the value of the dollar? Or, in other words, will the Chinese currency replace the US currency?
It is known that global trade as a system through which the global market deals in dollars (fixed pricing), and on this basis, economists find it difficult for the Chinese yuan to replace the dollar or affect its value in the short and medium term.
This came during a discussion with someone in this regard, but he added that the Chinese yuan could affect the value of the dollar in the long run.
I found in this vision tangible facts on the ground, based on the speed of economic growth that China is leading over all global economies, and if this growth continues at a rapid pace as it is happening now, the yuan may outperform the dollar in the long run.
I find here in the Chinese decision and its new approach that it used its cunning in order to raise the value of its currency (the Chinese yuan) by imposing its currency in trade exchange operations, and thus will create a price balance with the dollar in the medium term.
The reason we expect the yuan to be able to compete with the dollar in the long run is that it follows the transactions of the oil market globally until China is able to contain all oil-exporting countries in accepting cooperation in the Chinese yuan, of course it needs a period of time, if it manages to acquire the oil market, and this depends Who will win the big fight next?
What is the extent and size of the implications for the Iraqi economy?
The percentage of Iraqi trade dependence on Chinese goods and commodities is 75 - 80% of the Iraqi market imports.
This means that the impact of the Chinese decision to impose its currency will be the largest on Iraqi trade.
In other words, the demand for the Chinese yuan will rise to the equivalent of the dollar, or they will gradually share the demand for them between the short and medium term stages.
Here, those in charge of monetary and fiscal policies must take into account the extent or size of the impact on the national economy as a result of this sudden decision, so as not to enter into the cycle of providing the two currencies in parallel with the demand for them.
The private sector, with its commercial and banking sectors, will be the one that will be most affected by this transformation, and it has to deal with the expected effects of this measure.
I expect that if the Chinese decision is implemented so quickly, it will cause chaos in the Iraqi market at first, and it is required to address it in advance.
For this reason, we said that Iraq needs to diversify its dealings with the countries of the world according to its interests; Because the struggle of adults continues in all aspects of life, and we have to play with adults. https://alsabaah.iq/54584/
Amending Economic Laws Is A Necessity To Finance Development Projects
Monday 20 September 2021 97 Baghdad: Mustafa Al-Hashemi The expert in economic affairs, Dr. Hussein Al-Khaqani, urged the banks to move towards the State Council on the issue of amending paragraphs of the Banking Law No. 94 of 2004, especially after the Central Bank amended Article 28 and a number of other articles of the law, years ago until it reached the State Council, It has not been approved yet, despite the passage of more than 4 years.
Al-Khaqani indicated to Al-Sabah that "follow-up on this issue has become necessary, because the current stage requires encouraging investment, and since the funds are in the banks,
but the final decision regarding determining banking investments and their percentage has not yet been issued by the State Council, which calls on the relevant authorities { Government banks, and the Association of Private Banks {to move to resolve this issue}.
He explained that {banks play an important role in attracting investments or financing them if the amendments submitted by the Central Bank and the Association of Banks are approved to the State Council, as this would achieve a rapid leap in the economic activity of Iraq, especially at this stage.}
Al-Khaqani called on the State Council “not to delay the review of laws, especially economic ones, because they contribute to improving the country’s economic reality and achieve a kind of welfare for the citizen, especially after attracting investments that create sufficient job opportunities for the unemployed.”
In turn, banking expert Samir Al-Nusairi stressed the role of banks in granting loans and banking facilities and issuing letters of guarantee to investors, but they are prohibited from direct investment in projects due to restrictions imposed by the articles of the Banking Law.
Al-Nusairi believed that the State Council should expedite the consideration of the important amendments submitted by the Central Bank, especially as they enhance the reality of banks’ work, and develop their performance in line with the need of the current stage, which the country is going through, to support legislation aimed at advancing the economic reality.
The specialist in economic affairs, Muhammad Ali Al-Rubaie, called earlier to bypass bureaucracy and expedite the reconsideration of legislative experts, in economic and investment laws, in particular;
Because Iraq is a land full of diverse investment opportunities, which, if supported by legal legislation quickly, will achieve a qualitative leap for the economy. Iraqi.
And he indicated the need to amend laws, which are the basis of the economic process in Iraq represented by the Banking, Investment and Securities Law, in addition to the Companies Law, which has become incompatible with the updates that the world is witnessing, and with which the economy must be in harmony. Iraqi.
It is noteworthy that the economic process in Iraq depends on the implementation of investment laws No. 13 of 2006 and its amendments, Companies Law No. 22 of 1997 and its amendments, Banking Law No. 94 of 2004, and the Law of the Iraqi Market for Securities Finance. https://alsabaah.iq/54683/
The Housing Sector Is Key To Developing The Economy
Sunday 19 September 2021 70 Baghdad: morning Member of the Federation of Businessmen Mahmoud Mahdi confirmed that "the serious approach to reconstruction, construction and development of the housing sector leads to activating the joints of other important sectors such as education, health and services."
He pointed out that «the housing sector is a wealth, and works to contain many of the problems of the national economy and needs a huge amount of labor and has great guarantees, and it is possible to benefit from global experiences in this sector, and when we look at the Singaporean experience, we find that every citizen owns a housing unit that is considered Millionaires, for adopting a housing and construction policy that is being studied in countries around the world thanks to guarantees that double the value of property.”
He stressed that "developing the housing sector means spending for the national economy, and thus a major economic development has been achieved in Southeast Asia, which has become an important economic experience in the world."
It is worth mentioning that the successful experience of Dubai Economic City started entirely from the urban development that led to the establishment of construction industries and service industries, including banks, health, education, and all these sectors were related to housing.
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