Iraqi News Thursday AM 12-30-21

TLM724 Administrator BondLady’s Corner

Al-Kazemi's Advisor: The Next Government May Make Changes To The Exchange Rate

The economic advisor to the Prime Minister, Mazhar Muhammad Salih, said that the next government may make amendments to the 2022 budget bill, although the project was prepared correctly by the Ministry of Finance, indicating that those covered by Resolution 315 will continue to pay their dues because they approved a law in the 2021 budget.

He added, "The next government will discuss the budget, amend and add and may make changes to the exchange rate according to the oil markets, and may add new projects to the investment budget," noting that "all these things will not be delayed because the budget is prepared correctly, but there are some adjustments here and there that may The next government will do it."

Mazhar pointed out that "Kuwait's money was deducted from oil money and Iraq's revenues, and these funds will be added to the budget, which makes a good financial space."

https://www.radionawa.com/all-detail.aspx?jimare=27341

Dollar Exchange Rates Against The Dinar

Economie| 11:28 - 30/12/2021  Baghdad - Mawazine News, the selling prices of the dollar stabilized, today, Thursday, in the local markets.

And the selling prices of the dollar were 148,000 dinars per 100 dollars, while the purchase prices of the dollar were 147.750 dinars per 100 dollars, which are the same prices recorded by local markets yesterday, Wednesday. Ended 29/N33    https://www.mawazin.net/Details.aspx?jimare=180078

The Government Describes 2021 As The Year Of Diplomacy And Confirms: Local And International Approval Of The White Paper

Political | 05:55 - 30/12/2021   Baghdad - Mawazine News, a spokesman for the Council of Ministers, Minister of Culture, Hassan Nazim, described the current year as "the year of diplomacy."

Nazim said in a press conference attended by / Mawazine News / that "the white paper was well received locally and internationally, and the government has spared no effort to confront the Corona pandemic."

He added, "The government has made an effort to dismantle crises and ease tensions."

He pointed out, "The year 2021 was called the year of diplomacy due to the great openness that Iraq witnessed in the countries."

He continued, "We are trying to join the global ranks in relying on alternative energy." Ended 29 / h

https://www.mawazin.net/Details.aspx?jimare=180129

Al-Kazemi Enumerates His Government's Achievements At The End Of The Year

Political | 04:29 - 30/12/2021   Baghdad - Mawazine News, Prime Minister Mustafa Al-Kazemi announced, on Thursday, the achievements made by his government at the end of the Gregorian year.

Below is the most important thing that came in the speech of Prime Minister Mustafa Al-Kazemi, in the cabinet session that took place today, Thursday:

🔵 Today we are in the last days of the current year, and every year and you are a thousand good, you and your families and all our Iraqi people in every part of the land of Iraq.

🔵 During the year and a half of the life of this government, we have passed through great challenges, we have succeeded in overcoming them, and some of them required more time.

🔵 All the achievements that have been achieved have been achieved with the support of all the ministers, as well as with the support of our honorable Iraqi people, their patience, wisdom and endurance in these circumstances, and what we have succeeded in is cherished and we will protect it, and that the next government works with what can protect this approach.

The White Paper for Reform is one of these achievements, as it provided many financial returns to the state, and despite some attempts to confuse it, but it was approved by many national sectors in industry and agriculture and in maximizing state revenues and cash reserves.

🔵 As a result of the white paper, despite the difficult circumstances, the Corona pandemic and the collapse of oil prices, and we were on the verge of the collapse of the political and social system, but we succeeded in providing more than $ 12 billion from the reserves of the Central Bank of Iraq, and raising the global credit rating of Iraq internationally.

🔵 Iraq was close to being classified as a rogue state, but we succeeded in foreign relations, and within a short period, Iraq regained much of its regional, international, Arab and Islamic role, and we succeeded in improving our relations, as well as in embracing more than one meeting of brothers, friends and neighbors on the land of Baghdad. The land of peace.

🔵 We succeeded in taming the atmosphere regionally, and our international relations succeeded in bringing our views closer and sparing the region from the effects of a war that, God forbid, may be devastating to Iraq and the region.

🔵 We have worked hard to protect our people from the Corona epidemic, even though this crisis is an international crisis, and we have provided the best vaccines for the Iraqi people, and we are still continuing to employ the best companies to work in this field.

🔵 Our work in the field of energy, and for the first time, we worked to rely on clean energy, and we changed the name of the ministry to the Ministry of Electricity and Alternative Energy, and we signed many contracts with companies interested in alternative energy and clean energy such as solar energy, in order to be an opportunity to conform with the changes of the times.

🔵 Yes, there were some challenges that we did not succeed in, due to economic conditions, and because of political conditions, and we will certainly re-address these matters in the future, and we will present a paper to the next government on the measures that can benefit from our experience that pertains to some of the difficult challenges we went through and what We diagnosed him with failures; To cross to safety.

🔵 Our relationship with the Kurdistan Region of Iraq during this government was the best since 2003, and we are proud of this relationship, tensions were few and we had many interpretations, and thank God through dialogue and building elements of trust, we succeeded in crossing this tense relationship in the best possible way.

🔵 I say to all the honorable Iraqi people, we need to secure the future by believing in belonging only to Iraq.

🔵 At the end of this year, the combat role of the coalition forces will end, and the combat forces have already withdrawn, and today there is not a single soldier of the coalition forces with the status of a fighter, but a group of advisors arrived to support our forces and our needs in the war against terrorism and against ISIS.

🔵 We record great achievements for our heroic Iraqi army, as well as for our forces in the fight against terrorism, the Popular Mobilization Forces, the Peshmerga and the Federal Police for their success in challenging the remnants of terrorism. We killed many of the heads and leaders of the terrorist remnants, and the important elements in these groups, and we continue to kill them wherever they are in every part of the land of Iraq. Ended 29 / h    https://www.mawazin.net/Details.aspx?jimare=180122

Specialists Warn: Inflation Will Undermine Development Processes

Thursday, December 30, 2021  312   Baghdad: Haider Falih Al-Rubaie   Specialists in economic affairs expressed their fears of the continued growth of inflation rates, whose annual rate rose to 8.4%, indicating that the continued increase of these rates could directly affect sustainable development processes, and create more economic disruptions, and while they attributed the reasons for that increase to a change The exchange rate, the weak local production in Iraq, and the almost total dependence on imported goods and materials, stressed the need to resort to the tools of the two policies (financial and monetary) in the event of continued increase in inflation rates, especially controlling cash flow, reducing government spending rates, and increasing interest rates. imposed by banking institutions.

The Ministry of Planning announced, during a statement received by {Al-Sabah}, that there was a slight increase in the inflation rate during the month of last November, where the rate of increase was (0.5%), compared to the previous month of October, while the annual inflation rate witnessed a rise by

(8.4%), compared to the same month last year 2020.

Double Output

The process of weak local production, and the change in the exchange rate that the Central Bank made, are the main reasons for the growth in inflation rates, according to a member of the Iraqi Economists Association, researcher Miqdam Al-Shaibani, who sees during his speech

For {Al-Sabah} that {the value of the local currency is less than the value of foreign currencies, the prices of imported goods and goods will be very high, and costly for consumers, indicating that the decrease in purchasing power leaves significant and numerous effects on all members of society, from producers, consumers, importers and exporters.}

Al-Shaibani also attributed the reasons for the increase in inflation rates, to the increase in the costs of producing some commodities inside Iraq, due to the lack of energy and the high prices of transport and labor, which led to an increase in the price of the final product, as well as the increase in the population without being matched by an increase in local production that meets what has increased From demand, as well as, the rise in the prices of products globally, resulting from the repercussions of Corona, which directly affected Iraq due to covering most of the local needs through imports.

Lack Of Planning

The researcher believes, that {the reasons that led to the increase in annual inflation rates in this way are due to the poor performance of the financial and monetary departments, the absence of strategic planning and the true identity of the Iraqi economy, especially since the constitution stipulates the need to move from a directed economy to a free one, which is contrary to what is happening.

At the same time, he pointed out that {the rise in the state’s internal debt also contributed to the increase in inflation rates, as governments resort to paying off the debt through taxes, and when taxes are increased, companies or traders will be forced to raise prices to compensate for the tax rate imposed on them, and thus inflation occurs.

Use {Politics}

In order to reduce the effects of inflation, Al-Shaibani suggested the use of financial policy tools, represented by government spending, as the government can put pressure on spending, especially consumer spending, because it leads to increased demand and then inflation, while investment spending can lead to a reduction in inflation, While he pointed out that monetary policy can raise the interest rate, which leads to the withdrawal of cash from the markets in order to reduce inflation.

Budget Financing

For his part, the economic expert, Abdul Rahman Al-Sheikhli, called, during a statement to Al-Sabah, to the need to expand the circle of financing the state’s general budgets, and move it from rentier budgets wholly dependent on oil revenues, to budgets that are financed by industry, agriculture, trade and tourism, stressing that this step It is capable of significantly reducing the percentage of imported goods, meeting market needs, and thus controlling prices and avoiding inflation.

Al-Sheikhly also urged the importance of “exploiting the state’s tools, both financial and monetary, which can control inflation rates, and control the cash flow that is directly proportional to that inflation, as well as reducing government spending rates, raising taxes and increasing interest rates imposed by banking institutions on the whole. credits}.

The economic expert stressed, “The inflation phenomenon began to emerge effectively after the decision to change the exchange rate, which directly affected the overall economic and productivity movement in the country, and led to a rise in the prices of all goods, materials and services, especially imported ones, which directly harmed the country.” People with low incomes and a large percentage of their salaries employees.

The economic expert, Manar Al-Obaidi, had previously suggested to Al-Sabah three immediate solutions to address the inflation that occurred in various aspects of life, putting at the forefront of those solutions {the trend towards a gradual change in the exchange rate to ensure a reduction in the rate of inflation} while noting that The second solution lies in "starting to financially support local projects to enable them to compete, especially in important basic sectors such as food and medicine."

The expert Al-Obaidi pointed out that the third solution includes “a trend towards reviewing import prevention policies and turning them into support mechanisms for local projects with the aim of enhancing their competitiveness, instead of the ban that led to a reduction in supply versus demand, which caused prices to rise for many products and contributed to an increase Inflation rates.    LINK

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