Iraqi News Sunday AM 6-6-21
Iraqi News Sunday AM 6-6-21
TLM724 Administrator BondLady’s Corner
Parliamentary Finance To / Nina /: The Rise Of The Dollar To 150 Thousand Dinars Will Negatively Affect The Citizen And The Employee In General
Sunday 06 June 2021 18:30 | Economic Number of readings: 82 Baghdad / NINA / - Member of the Committee, Representative Ahmed Hama Rashid, confirmed that the Central Bank and the Ministry of Finance are responsible for the rise in the dollar exchange rate to 150 thousand dinars against 100 dollars, noting that this rise will negatively affect the income of the citizen and the employee in general.
Rashid said in a statement to the National Iraqi News Agency / NINA /: “The government, the Central Bank and the Ministry of Finance are the ones who can deal with the dollar’s rise against the dinar, noting that the Finance Committee can recommend the Central Bank to pump more hard currency into the market to reduce its value in front of demand. However, the central bank is not obligated to take this recommendation.
Rashid stressed that "this rise will negatively affect the income of the citizen and the employee as a result of the increase in the prices of imported goods, merchandise and foodstuffs in dollars, indicating that the Finance Committee is not specialized in this issue and is within the competence of the Ministry of Finance." The exchange rate of the dollar rose today, Sunday, to 150 thousand dinars. / End 8
https://ninanews.com/Website/News/Details?Key=908473
Speculators And Exchange Rate Stability
Articles * Sameer Al-Nusairi Several days ago, a new wave of criticism began from some media outlets affected by rumors launched and driven by speculators in the currency exchange market with the aim of creating a state of confusion and instability and trying to drag the money market into instability and thwarting the Central Bank's plans to control the rates announced by the Central Bank of exchange rates Specific to the Ministry of Finance, banks and the public, and from these rumors is that the Central Bank will make a new change to the current rate.
Although the stability of the exchange rate is determined by supply and demand according to the effects and repercussions of the economic reality in a country like Iraq that suffers from challenges, repercussions, economic and financial crises, and structural and systematic defects in the management of the economy and money that the central bank does not bear alone because its role is clear, specific and independent focused on stimulating the economy according to the tools and applications of monetary policy But this cannot be achieved without joint coordination with fiscal policy and other economic sectors, activating the real economy, diversifying sources of national income, and leaving the unilateral economy based on oil as a major resource, which constitutes 93% of the revenues of the general budget and 57% of GDP.
Therefore, those who criticize the Central Bank must return to the statement of the Central Bank in which it determined the new exchange rates on December 2020, and in which the Bank clearly and transparently specified the reasons and rationales for determining the price, what measures it will take and what other parties must take in order to maintain the stability of the new rate Because the bank cannot work alone without a coordinated economic and financial approach supported by the Central Bank in accordance with the tasks and objectives stated in Law 56 of 2004, and here we can repeat what was mentioned in the Central Bank’s statement, which is the definitive answer to those who hold the bank responsible for the instability in the exchange rate
Where the bank announced in its statement that during the last months of 2020, intensive deliberations took place with the Prime Minister, the Minister of Finance and the legislative authority, regarding the economic situation in general and the financial crisis that the public finances are going through due to the decline in oil prices and production, and the economic and health challenges.
The Board of Directors of the Central Bank also held a number of meetings, some of which hosted the Minister of Finance for the same purpose. He explained that the reasons for adjusting the exchange rate and maintaining its stability in the future are as follows:-
1- It is the structural distortions in the Iraqi economy that have impoverished public finances and restricted the ability of reform that the government and the Ministry of Finance are seeking.
It is not a coincidence that the financial situation is so bad, but it took root more than a decade and a half ago due to the political leadership of the economy, the priority of political thinking over economic thought, development priorities and the rules of the relationship. Thus, fiscal policy failed to perform its roles, and monetary policy was preoccupied with restoring the confused financial policy outcomes.
2- The dependence of economic and financial policy on the ambitions and concerns of politicians led to the latest accepted models of financial management in Iraq, and the role of that administration was limited to distributing oil resources to life-sustaining requirements such as salaries and operational requirements.
3- Because of these combined conditions, the Central Bank had no choice but to intervene on more than one occasion to support public finances and save critical public spending requirements.
4- The Central Bank understands the difficulties facing the government’s reform intentions, but this does not prevent it from tying any steps that the monetary authority can take to effective steps to carry out reforms that inevitably affect the institutions of the financial authority, especially the effective collection institutions, customs and tax institutions, and other institutions. The other public levying, and that spending be streamlined and rationalized, all of which depends on the political will of the higher state institutions that support the financial authority’s directions to achieve this.
This requires the government's direction to support the vulnerable groups, which will inevitably be directly affected, especially by any measure to change the exchange rate.
5- The legislative authority will have an important role in supporting the Central Bank’s direction to adjust the foreign exchange rate, as failure to take such a decision may make us obliged to take difficult decisions that may put Iraq in a situation similar to what neighboring countries have been exposed to.
It should also be emphasized here that this change (devaluation) in the value of the Iraqi dinar will be for one time only and will not be repeated.
6- The financial crisis that Iraq was subjected to due to the Corona pandemic and the resulting deterioration in oil prices and the decline in oil revenues, this led to a large deficit in the general budget and the Ministry of Finance had to borrow from banks and re-discount them with the Central Bank in large amounts, for the purpose of paying salaries. And meet the other spending needs related to services provided to citizens. * Economic and banking consultant Views 96 Date Added 06/06/2021 https://economy-news.net/content.php?id=25301
The Dollar Rises To 1500 Dinars, And The Central Bank Sells 207 Million
Time: 06/06/2021 15:57:24 Reading: 2,652 times {Economic: Al Furat News} The dollar exchange rate in the local markets rose today, Sunday, to 1500 dinars.
Prices fluctuated at this rate during the past hours on local stock exchanges, between stability or slight decline.
While the Central Bank of Iraq sold, today, Sunday, in its auction to sell the currency, more than 207 million dollars, of which 180 million were for the purposes of strengthening balances abroad (remittances, credits), and 26 million and 700 thousand dollars in cash. LINK
Labor And Central Bank Are Preparing To Launch The “Financial Inclusion” Initiative
Sunday 06 June 2021 134 Baghdad: Batoul Al-Hasani The Ministry of Labor and Social Affairs, in cooperation with the Central Bank, is preparing to launch the financial inclusion initiative to support youth and provide financial services, while the Director of the Employment and Training Department in the Ministry, Raed Jabbar Bahed, revealed to Al-Sabah, the existence of “fake offices” for employment offices across the country.
Bahed said: "Article 23 of the effective labor law allowed the Ministry of Labor to grant licenses to private employment offices, and these offices have the powers to employ youth and foreign workers," noting that "the ministry has so far granted only 40 licenses to offices in Baghdad and the provinces."
He added, "There is a ministerial committee headed by the Ministry of Labor and membership of the Intelligence Service, the Ministry of Interior and National Security and the Residence Department, which suddenly visits the fake offices and arrests the owners of those offices, as well as the Ministry's inspection committees, as they refer the violators to the judiciary and the Labor Court to take legal measures against them." .
He revealed that "an extensive meeting was held with representatives of the Ministry of Interior and the Directorate of Residence to discuss the closure of the fictitious employment offices that have spread remarkably, which called for strict intervention by the responsible authorities to curb this phenomenon in violation of government laws and instructions," noting that "there are two million And 600,000 unemployed are only registered in the ministry's database, and there are many others They did not register.
On the other hand, the Director of the Employment and Training Department in the Ministry stated, "An agreement was concluded with UNICEF to cooperate in the field of youth support and launch the financial inclusion initiative in cooperation with the Central Bank to provide host communities of women and men and small businesses with much-needed financial services that will help them start and develop their own business." LINK
An Economist For / Nina /: Investment Is The Real Entrance To Economic Reform In Iraq
Sunday 06 June 2021 18:57 | EconomicNumber of readings: 22 Baghdad/ An expert in economic affairs, Safwan Qusay, confirmed that investment is the real entrance to economic reform in Iraq, stressing the need to activate the role of accounting and its infrastructure.
Qusai said in a statement to the National Iraqi News Agency / NINA / that "adopting the government's economic reform approach requires an orientation towards investment, which is a real entrance to economic reform by activating the role of accounting in Iraq by accelerating the adoption of international financial reporting standards for all companies operating in Iraq and whose shares are listed in the stock market."
Iraq because the process of preparing accounting information according to those standards will develop confidence in accounting information and move the Iraqi stock market to attract foreign investments and thus expand economic activity in the shortest way and at low costs.
He added: Activating the role of accountability in leading the oversight process with all agencies concerned with combating corruption will enhance the ability of the Iraqi economy to rise away from the hands of the corrupt.”
The economist stressed the need to invest accounting minds with international orientations to lead the control and investment process. https://ninanews.com/Website/News/Details?key=908478
Parliamentary Economy Launches An Invitation Based On A Report From The Financial Supervision
Time: 06/06/2021 17:12:33 Reading: 1,352 times {Economic: Al-Furat News} Member of Parliamentary Economy and Investment, Mazen Al-Faili, called on Sunday the House of Representatives to reconsider contracts for oil licensing rounds.
Al-Faili said in a press conference, “The reports of the Financial Supervision Bureau indicated a set of observations on the oil licensing rounds contracts, and those reports showed that these companies have greatly harmed the Iraqi economy,” calling on the government and the House of Representatives to “adopt the recommendations of the Financial Supervision Bureau and set a timetable.” It is clear to implement those recommendations because of their impact in boosting the country’s economy and reducing the effects of the financial crises that it has suffered. Below we list the most important observations that we have made about those contracts, in addition to the observations of the Financial Supervision Bureau:
1. We call for responding to the recommendations of the Financial Supervision Bureau by re-examining Oil licensing contracts by Parliament and amending their formulation in light of the requirements of the national interest
2. The absence of a special law regulating these contracts and that they are not subject to the Government Contracts Law No. (87) of 2004 and the instructions for implementing contracts, in addition to the fact that they are not subject to the Investment Law No. (13) of 2006 amended, which excluded investment in the fields of oil and gas extraction under Article (29) Therefore, we call on Parliament to respond to the recommendation of the Financial Supervision Bureau to adapt the legal status of contracts for licensing round companies.
3- The Office of Financial Supervision was not provided with copies of foreign and local labor contracts for the Halfaya oil field, so the salary amounts were not verified and matched with the signed contracts and the amounts actually received.
4- A genuine financial member was not included in the joint management committee of the Maysan and Halfaya oil fields due to the importance of his role in discussing budgets submitted by foreign companies, determining the costs of petroleum operations, and his involvement in the analysis of standard documents of contracts and tenders for petroleum operations.
5- A foreign auditing company has been assigned to audit the accounts of foreign companies operating in the Halfaya and Maysan fields without the involvement of an Iraqi authority licensed in the profession of auditing and has not been certified by the Board of Audit and Oversight Profession - in contrast to the system of practicing the profession of auditing.
6- Paragraphs of the contract with foreign companies operating in the Halfaya oil field were amended with an increase in its duration from (20) years to (30) years, although no material obligations were added to the operator, and the share of the Iraqi government partner was reduced from (25%) to (10%). Of the gross profitability wages and increase the profitability of foreign companies!.
7- The audits carried out by the Oil Licensing Expenses Division were limited to documentary audits only, without conducting an audit on the accounting system.
8- The report of the international auditor was accepted despite the fact that foreign companies did not submit some documents that justify the costs of petroleum operations, contrary to Article (4/20/e, d) of the contract. LINK
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