Iraqi News Sunday AM 6-20-21
Iraqi News Sunday AM 6-20-21
TLM724 Administrator BondLady’s Corner
The Dollar Argument
Sunday 20 June 2021 152 Yasser Al-Metwally The ongoing debate regarding the exchange rate and the devaluation of the national currency "the dinar" against the foreign currency "the dollar" reflects the observation that there is a real crisis and it is, however. For the purpose of comparing the risks of raising the value of the dollar against the dinar and its advantages, it is necessary to review the merits, reasons and causes of the decision or action, something called. you will.
Calls to raise the value of the dollar to address the issue of weak resistance of local production to raise its ability to compete with imported production were rejected, and that was before the issue of the scarcity of the national currency “liquidity” exacerbated to cover operating expenses “salaries” on top.
Hence, the liquidity crisis worsened after the collapse of oil prices that accompanied the Corona pandemic and the signs of the global financial crisis and its effects on the economies of the world.
Therefore, the state resorted to the decision to reduce the value of the dinar against the dollar through the reform paper of the Ministry of Finance that was passed in Parliament with the aim of stopping the bleeding of external borrowing and relying on part of the cash reserve. Here the picture seems clear to know the advantages of the reduction from their point of view.
But what risks and defects did the decision leave behind, and what are the reasons behind these results?
The paper was somewhat hasty, as it dealt with the liquidity crisis with the impact of the shock, i.e. an unprecedented devaluation of the national currency against the dollar. This decision led to dire and unimaginable adverse results, through high inflation rates that exceeded the currency printing procedure as an alternative “for comparison and not to support this measure.” .
What happened from the rise in food and medicine prices, the most necessary and urgent needs, if we calculate the rates of poverty and unemployment and the volume of chronic diseases that raise controversy.
The reason is that this decision or measure, i.e. devaluation of the national currency, is taken in light of a stable economic situation and not in the same situation as the country's economy.
I cautioned here and on this page in particular, since discussing the issue of currency devaluation, that the devaluation should be thoughtful and gradual in order to mitigate the impact of the shock, but unfortunately the proposal was not taken seriously.
If the devaluation of the dinar against the dollar was gradual; When we reached these controversial results, and the fiscal and monetary policies were able to deal with the matter easily and easily, and without strong impacts affecting the standard of living of the citizen by gradually re-raising the value of the dinar and all problems were resolved.
Invitation to the Central Bank and the Ministry of Finance There is still time for a gradual adjustment of the exchange rate; Because the situation is intolerable, what is required is a satisfactory solution for all.
And the need for this measure to be accompanied by investing surplus oil revenues in activating the productive sectors to achieve the desired goal of economic stability.
https://alsabaah.iq/48860/%D8%AC%D8%AF%D9%84%D9%8A%D8%A9-%D8%A7%D9%84%D8%AF%D9%88%D9%84%D8%A7%D8%B1
Central Bank Sales Of Hard Currency Record More Than 240 Million Dollars
Economie| 01:05 - 20/06/2021 Baghdad - Mawazine News The Central Bank of Iraq's sales of hard currency, on Sunday, witnessed a significant increase, compared to last Thursday's prices.
Today, the Central Bank auction for the sale and purchase of foreign currencies witnessed an increase in its sales by 13.74% to reach 240 million and 769 thousand and 517 US dollars, covering it at a base exchange rate of 1460 Iraqi dinars per one dollar.
The purchases amounting to 204 million and 199 thousand and 517 dollars went to enhance balances abroad in the form of remittances and credits, while the remaining amount of 36 million and 570 thousand dollars went in cash.
36 banks responded to requests to enhance balances abroad, and 16 banks to meet cash requests, in addition to the participation of 11 exchange companies. https://www.mawazin.net/Details.aspx?jimare=157658
Dollar Exchange Rates In Local Markets Today
Market Economy News _ Baghdad The exchange rates of the dollar against the Iraqi dinar witnessed a slight increase in the local markets today, Sunday.
The selling prices of the dollar were 149,000 dinars per 100 dollars, while the purchase prices of the dollar were 148,000 dinars per 100 dollars. Views 178 Date Added 06/20/2021
https://economy-news.net/content.php?id=25459
The Stock Market Traded More Than One Billion Shares In The First Session
Stock Exchange «Economy News» Market Economy News – Baghdad On Sunday, the first trading sessions in the Iraqi Stock Exchange (the Stock Exchange) witnessed the implementation of 858 transactions, during which 1.07 billion shares were traded.
The value of traded shares amounted to 1.2 billion dinars.
These positive results contributed to raising the stock market index by 0.84%, after closing at 572.55 points.
Babylon Bank Company led the gaining companies, while Ishtar Hotels Company led the losing companies.
Foreign investors also sold 45 million shares, worth 100 million dinars, after executing 33 deals on the shares of three companies. Views 9 Date added 20/06/2021 https://economy-news.net/content.php?id=25466
The Council Of Ministers Approves A Special Recommendation Related To Import And Export Procedures
Economie| 10:41 - 20/06/2021 Baghdad - Mawazine News, the Secretariat of the Council of Ministers announced, on Sunday, that the Council approved the recommendation of the Ministerial Council for the Economy regarding government procedures in import and export. The General Secretariat said in a statement that "Mawazine News" received a copy of it, that "the Council of Ministers decided to open export to meet external demand, with the exception of Goods whose export is prohibited by law.”
She added that “the council also decided to reconsider the customs tariff schedules from the Ministry of Finance, and to submit its proposals to the government.”
https://www.mawazin.net/Details.aspx?jimare=157640
Two Directives From The Central Bank Of Its Two Branches In Nineveh And Erbil
Politica l| 03:17 - 06/20/2021 Baghdad - Mawazine News, on Sunday, the Central Bank of Iraq issued two directives to its branches in Nineveh and Erbil.
And the bank’s media office said in a statement that “Mawazine News” received a copy of it, that “the governor of the Central Bank, Mustafa Ghaleb, made an inspection tour of the two branches of the Central Bank of Iraq in Mosul and Erbil,” noting that he “was briefed on the progress of work in them and the level of services provided to the banking sector.”
He praised “the efforts of the workers,” stressing “the redoubling of efforts in the two branches, which reflects the role of the central bank and its branches in advancing the banking sector and overcoming any difficulties that may hinder the contribution of banks and non-bank financial institutions to the desired development process.” Ended 29/A43 https://www.mawazin.net/Details.aspx?jimare=157678
Central Bank Governor And Barzani Discuss Regulating The Banking Sector
Sunday 20 June 2021 256 Baghdad: morning The Governor of the Central Bank, Mustafa Ghaleb Makheef, discussed with the President of the Kurdistan Regional Government, Masrour Barzani, the reorganization of the banking sector and the fight against money laundering.
A statement by the Kurdistan Council of Ministers stated, "Barzani received a frightening, and during the meeting, they discussed ways to enhance coordination and cooperation between the federal government and the Kurdistan Region in the field of reorganizing the banking sector and combating the financing of terrorism and money laundering."
He stressed, according to the statement, that "the Central Bank deals with its branch in the Kurdistan region, which is based in Erbil, as the official concerned authority in supervising banking affairs in the region."
For his part, Barzani reiterated his "readiness to cooperate and coordinate with the Central Bank of Iraq," stressing that "reorganizing the banking system would constitute a strong and important pillar for developing the economic infrastructure, consolidating the investment process, and gaining the confidence of international banks and financial institutions." LINK
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