Iraqi News Wednesday AM 3-31-21
Iraqi News Wednesday AM 3-31-21
TLM724 Administrator BondLady’s Corner
The Budget And The Dollar
Mohammed Abdul-Jabbar Al-Shabout105 2021-03-31 The Iraqi citizen was caught between two fires: the fire of the budget law with all its ills, and the fire of raising the price of the dollar with all its harmful effects.
There is no doubt that delaying the approval of the budget law for this year seriously harms the movement of the Iraqi state on the economic level, as it is the main contractor in an invalid rentier system. Failure to pass the budget law prevents state departments from spending (with the exception of paying salaries).
When the state stops spending, with it all economic activities cease. But adopting the law as it is now inflicts the most severe damage to the state, society and the citizen because of the loopholes contained in the law. The rise of the dollar is only a drop in the sea of evils of the deep, choppy waves of law.
The rise in the price of the dollar is another story. Although the economic experts differ in its evaluation from the economic point of view, as some of them see it as a correct decision, while others disagree, but it is what everyone agrees on that the right measure is more harmful to citizens, especially the poor and those with limited income, as well as businessmen and merchants, and led to a record speed Costs and price increases.
Meanwhile, the parliamentary blocs were sharply divided over the budget law and the dollar rate. Each group must have its reasons and convictions, but there is no doubt that among these reasons are conflicts and political quarrels between the blocs.
In turn, the sharp division descended to the public itself, but the majority of people, according to two preliminary surveys that you conducted, tend to refuse to increase the price of the dollar. It is natural that the public is not interested in the analyzes provided by economic experts for or against the decision, but rather thinks about the direct and tangible effects of the decision, which exacerbated the living difficulties of the citizen.
But the most important of all is that the entire law exposed the flaws of the rentier economic system on the one hand, and revealed the government's inability to deal with these defects and deal with them in ways that do not harm the citizen, on the other hand; Rather, the government resorted to the shortest methods and performed major surgery without using anesthesia, so that the hair of the originally sore citizen was with all the pain of the surgery.
Simply, the government has deliberately charged the citizen with all the costs of performing the surgery, and addressing the disadvantages of the economic system, for which the citizen is not responsible. Today, economic experts, even those who supported the decision to raise the dollar’sexchange rate in principle, unanimously agree that the government made a mistake in implementing this decision.
At the beginning of the current government assuming the reins of power, many experts and businessmen presented many practical ideas to help overcome the economic crisis and financial distress that the Iraqi society suffers from, ideas that the citizen does not bear the cost of the solution, but the government ignored these ideas and proposals, which made these experts withdraw From the scene and refrain from presenting more ideas, proposals and solutions.
Today the citizen stands between the anvil of the budget and the hammer of the dollar. Two things, the best of which are bitter. If the budget is approved as it is, it is harmed, and delayed approval is affected.
While the government stands helpless in the face of this dilemma, contenting itself with watching the suffering of the people, its president talks about the recovery of the Iraqi economy, citing funny indications.
There is no dispute that the crisis is deeply rooted and very complex, and it is clear that the current government, especially the person of its president, is unable to solve the crisis and break out of its cocoon. It is no longer feasible to repeat the possible practical solutions that were previously proposed, because the decision-maker is formally incapable of understanding solutions, adopting them and implementing them in a sound manner that does not harm people. The ball is now in the court of the people, who alone must decide the next step. http://burathanews.com/arabic/economic/389406
Parliamentary Finance Announces The Readiness Of The Budget To Vote
Wednesday 31st March 2021 497 Baghdad: Muhannad Abdul-Wahhab The Finance Committee in the House of Representatives announced that the budget is ready for voting, and indicated that the deficit in it could be filled by the difference between the price of a barrel of oil at 45 dollars and the official price at which oil is sold at the present time, which is 64 dollars.
Committee reporter Ahmed Al-Saffar told Al-Sabah: “The budget deficit has reached 28 trillion dinars, and it is possible that after the changes that may occur during the consultations on the petro-dollar budget and the provincial shares and regional development, the deficit will exceed 30 trillion dinars. “.
He stressed that "addressing the deficit begins through financial abundance, which is achieved from the difference between the planned price of $ 45 per barrel of oil and the official price at which a barrel of oil is sold of $ 64 per barrel, and from this difference the deficit is financed."
He added that "there are no new loans. Rather, old loans are continuing, and external borrowing has been stopped," noting that "borrowing in the economy is not a bad process."
On the financial allocations of the governorates from previous years that were returned to the treasury, he indicated that "the Council voted in Prior to the amendment of the Financial Management Law, the solution to the red tape between the governorates and the Ministry, which led to the inability to disburse financial allocations to the governorates and were returned to the state treasury,
and the vote to amend the law dealt with red tape and gave additional powers to governors, and a text was put in place that the allocations could be rotated and transferred to the year After that, on the condition that the project is continuing.
Al-Saffar continued: “The differences over the budget were resolved between the regional government delegation and the federal government, and this agreement was translated into Article 11 of the budget,” indicating that “the Finance Committee voted on all budget articles, and by voting, the opposing votes and the supporting votes will be clear.” LINK
Statement 03/30/2021 Legislating the Federal Budget Law for the fiscal year 2021 is one of the important steps, because of its prejudice to the interests of the citizen, and the paragraphs it bears that directly address his needs, as well as enabling the government to proceed with the implementation of its government program and support service projects that affect the citizen’s daily life.
Therefore, we call upon the distinguished members of the House of Representatives to come tomorrow, Wednesday, at 1 p.m., to hold the long-awaited vote session on the Budget Law, and we also note that the names of attendees and absences will be published in public opinion.
The agenda for tomorrow’s session will also include the presentation of the request submitted by the political forces, which is supported by the signing of more than 172 deputies to vote on the dissolution of the Iraqi parliament in its fourth session, in accordance with the provisions of Article 64 first of the Iraqi constitution, and this step comes in response to popular demands for early elections.
The House of Representatives will have completed all the requirements and practical steps for conducting early elections, including the formation of an independent commission of judges, enacting the House of Representatives election law, and voting on the First Amendment Law (Order No. 30 of 2005) the Federal Supreme Court Law.
Presidency of Parliament, March 30, 2021 https://ar.parliament.iq/2021/03/30/%d8%a8%d9%8a%d8%a7%d9%86-29/
Mustafa Al-Kazemi: The Decision On The Exchange Rate Of The Dollar Was Taken By The Central Bank
Wednesday 31st March 2021 258 Baghdad: Morning Prime Minister Mustafa Al-Kazemi demanded, on Tuesday, to stay away from auctions in the issue of the dollar exchange rate, stressing that the decision was taken by the Central Bank according to a targeted vision and strategy, and we began to see the results on the growth of monetary reserves, and on Iraq's international credit rating.
Al-Kazemi said, during the regular session of the Council of Ministers: “Challenges continue in the country due to the nature of the situation, which requires the solidarity and cooperation of everyone to overcome them,” expressing his “aspiration to expedite the passage of the Federal Budget Law, and the paragraphs it contains that address the needs of the poorest classes, and support projects. Service affecting the citizen’s life ».
He called on all ministries to "work with all their efforts to support the Ministry of Trade in order to distribute the ration card items among citizens and not give some merchants an opportunity to exploit the citizens' needs." Some dealers ».
He added that "the ministries must work diligently to support reform decisions according to the strategy prepared for them, and pressures must be faced with patience and work." On the other hand, a spokesman for the Prime Minister, Dr. Hassan Nazim, Minister of Culture and Antiquities, said that Al-Kazemi called on the Ministry of Trade to support the ration and that there are measures in the ministry to meet the ration now and at the beginning of the month Ramadan LINK
A Slight Increase In The Dollar Exchange Rates
Time: 03/31/2021 10:14:22 Read: 3,965 times {Baghdad: Al Furat News} The exchange rate of the dollar rose today, Wednesday, on the main stock exchange in Baghdad. The central Al-Kifah and Al-Harithiya Stock Exchanges in Baghdad registered 145,750 Iraqi dinars for 100 US dollars. While the Central Kifah Stock Exchange recorded 145100 Iraqi dinars during its opening on Tuesday morning.
It is noteworthy that the buying and selling prices rose in the exchange shops in the local markets in Baghdad, where the selling price reached 146,250 Iraqi dinars, while the purchase prices reached 145,250 dinars per 100 US dollars. LINK
An Economic Specialist To / NINA /: The Parties ’Struggle Over The Exchange Rate Of The Dollar Is A Troubled Struggle For Their Interests ... And The Government Must Compensate The Citizen’s Financial Losses.
Wednesday 31, March 2021 09:30 | Economical Views: 74 Baghdad / NINA / Ali Jabbar Al-Freiji, the specialist in managing state institutions in crises, stressed that the parties ’struggle over the exchange rate of the dollar is a turbulent struggle that does not come out of the circle of conflict of interests of all kinds, far from the benefits of the Iraqi economy, stressing the need to fairly compensate the financial losses to the citizen.
Al-Faraiji said in a statement to the Iraqi National News Agency / NINA / that: The struggle of the parties over changing the price of the dollar at this stage cannot be justified. Free from the benefit of the Iraqi economy. "
He pointed out that "the justifications (the Central Bank, the Ministry of Finance and the government) in raising the exchange rate for several considerations (its vision), including facing the financial crisis in 2020 (raising the size of the monetary block of the dinar to cover the salary bill, limiting imports, encouraging local industry, foreign currency more) To the state treasury, and other justifications) are all unconvincing excuses.
He stressed that "the size of the interest has not been achieved from their justifications more than 18% of the declared goal, noting that the most valuable value is for the budget spent and deals in dollars, including foreign debts, state contracts with foreign companies, the purchase of oil products and others - in addition to the absence of an economic program that helps those affected by this."
The jump in the exchange rate at this stage was also not associated with the process of reducing the waste and theft of public money, and was not accompanied by the process of diversifying revenues to create a sound financial surplus that would help in the coming years, not to mention the lack of austerity policy in the government's spending settings in the budget.
Al-Freiji stressed that "the government has set a time limit that is farthest from the end of this year, 2021, in adopting the exchange rate it has adopted, and starting a fair compensation program for financial losses."
He also stressed the parliament by resorting to appeal the government's decision (the central bank) to the Federal Court, and the government and parliament must work to tighten penalties and strictly on merchants and speculators in the local market by raising the price of foodstuffs, consumer goods and others that touch the needs of the local market and the individual.
He also called for a reduction in the (operational) budget of government expenditures in 2021 in proportion to the size of the financial crisis, preventing external borrowing of all kinds in 2021, and establishing a fund to monitor and manage loans in Iraq. https://ninanews.com/Website/News/Details?key=896329
Parliament Transfers The Budget From The Dollar To The Dinar To Overcome The Dispute
Time: 03/31/2021 17:10:06 Read: 3,575 times {Policy: Al Furat News} The House of Representatives decided in its meeting held today, Wednesday, to convert the federal budget for 2021 from the dollar to the Iraqi dinar.
A representative source said {for the Euphrates News} that "it was agreed to transfer the budget from the dollar to the Iraqi dinar, in order not to delay its approval and isolate it from the differences of the rise of the dollar."
He pointed out that "a proposal was made to follow up on the issue of the dollar with the central bank and finance in other sessions without marketing the crisis to the budget after it was agreed to transfer the budget from the dollar to the dinar." LINK
Representative Investment: Returning The Exchange Rate Will Cause Large Losses
Wednesday, March 31, 2021 3:46 PM National News Center / private Today, Wednesday, the Parliamentary Investment and Economy Committee confirmed that returning the exchange rate to its previous position will cause great financial losses.
The head of the committee, Ahmed Salim Al-Kinani, told the National News Center that "if the matter is done and the exchange rate drops, the government will challenge it and the decision will be in its favor."
He added, "What is happening now is confusion of the market with statements, the suspension of most businesses, and the lack of confidence of the citizen, merchants and businessmen in the dinar."
And Kanani said that "returning the exchange rate to the old will cause more financial losses than the current one, as some imagine it",
Noting that it will "give an opportunity for the speculators in the market to exploit and decline in production and import subsidies, and this is a big mistake that affects the economy in general."
https://nnciraq.com/59221/
To read more current and reliable Iraqi news please visit BondLady’s Corner: