Iraqi News Wednesday AM 9-15-21
Iraqi News Wednesday AM 9-15-21
TLM724 Administrator BondLady’s Corner
Devaluation Of The Currency..And Its Repercussions On The Iraqi Economy
Dr. Bilal Al Khalifa364 2021-09-13 Dr. Bilal Al-Khalifa || The increase in the exchange rate of the US dollar against the Iraqi dinar has been raised since the end of last year, and the Federal General Budget Law was finally approved at an exchange rate of (1460).
One of the benefits of increasing the exchange rate is to prevent the leakage of hard currency, especially the US dollar, outside Iraq, in addition to supporting the local product of industry and agriculture, as well as increasing the state's ability to pay salaries and reduce the budget deficit.
Their evidence that raising the currency is to reduce its leakage outside the country is the figures published by the Central Bank of Iraq and the decline in sales significantly from 250 million dollars per day to 50 million dollars per day. We note in the past months that sales of hard currency in the Central Bank began to rise again, until it reached 250 million dollars per day, as it was before the devaluation of the exchange value.
It is also strange that the exchange rate also rose with the increase of the central bank in its sales of hard currency (the dollar) and it was supposed to decrease as a result of its abundance, and we also note that the value of the dollar in the market is slightly higher than the price set for it.
This step has benefits and disadvantages, especially for the first and last affected citizen, and we have talked about that in more than one article. But after the return of the increase in sales, this shows us the following
1 - that the increase in the exchange rate of the US dollar failed to achieve one of its very important goals, which is to prevent the diversion of the dollar outside Iraq and the exploitation of the direct sales window to launder the money of the corrupt by buying trivial, fake and big things, and an example of That is the purchase of (Al Nabq, for $90 million, according to a statement by one of the officials).
2 - The other goal of increasing the exchange rate of the dollar against the Iraqi dinar is to support the Iraqi industry and the local product, but unfortunately the local product of the Iraqi industry has also increased, as a result of that industry’s dependence on raw materials imported from abroad and in hard currency, and an example of this is the price of The champion of local oil, which also rose, because local factories depend entirely on imported raw materials.
3 - The decline in the sale of the dollar by the Central Bank is the result of traders' fear of the decline and rise of the dollar, and therefore they acted in the previous months with what they owned of the dollar.
4 - The World Bank recommends raising the price of the dollar to 1600 Iraqi dinars, and therefore the increase in sales may be another scenario or a prelude to raising the exchange rate again, but next year so as not to be an uproar and for the Iraqis to forget to raise the current exchange rate. **
Recommendations 1 - Activating the National Product Support Law
2 - Adding fees and taxes to products that have a local competitor from agricultural, industrial and other products
3 - Controlling border crossings, especially the northern ones, as we noticed in the previous period that the government decided to prevent the import of some goods, but the region He did not abide by the decision, and therefore those goods entered via the north.
4 - Great interest in the agricultural and industrial sector through investment
5 - Extension of security and protection of the investor from extortion and bribery that are taken from him in the event of applying for an investment license by opening a single window to simplify procedures and reduce time.
6 - Protecting the investor from blackmailing the economic committees of the parties
7 - Supporting some important matters by selling the dollar to them at the old price, with an emphasis on the places of exchange for them, including: A - the raw materials that are used in the manufacture of consumer goods necessary for the Iraqi citizen, thus ensuring that the price of the Iraqi citizen does not rise The national product, for example, is sugar and oil. b- Necessary imported consumer goods that enter the daily life of the citizen, such as rice and flour. C - Medicines and materials, such as medicines, so as not to harm the poor citizen
http://burathanews.com/arabic/economic/399682
Planning Minister: We Will Reduce External Borrowing To Its Lowest Level
Economie| 02:17 - 09/15/2021 Baghdad - Mawazine News, Minister of Planning Khaled Batal Al-Najm confirmed, on Wednesday, that the ministry's policies and the government's directions are moving towards reducing external borrowing to its lowest levels.
A statement by the ministry stated, "Mawazine News" received a copy of it, that "Minister Khaled Batal Al-Najm chaired an expanded meeting, which included representatives of the ministries of Finance, Electricity, Construction, Housing, Municipalities, Transport, Water Resources, Agriculture, the Municipality of Baghdad and the Reconstruction Fund for liberated areas, with the representative of the World Bank in Iraq, Ramzi Numan." , indicating that "the meeting was attended by the Undersecretary of the Ministry of Planning, Maher Hammad, and the general directors of the departments of international cooperation and sector planning, and government investment in the Ministry of Planning."
According to the statement, the minister stressed that "external borrowing will be absolutely necessary, and in only two cases, the first is the great importance of the project, and the second is the lack of cash to implement this project."
Al-Najm stressed that "the ministry will not list or approve any project, unless it meets all the requirements, foremost of which is the feasibility study," calling on "the concerned ministries that have projects funded by the World Bank loan, to expedite the completion of these projects, and to benefit from the funds." Currently available loans.
The statement pointed out that "the meeting discussed the problems and obstacles facing the implementation of projects financed by the World Bank, focusing on projects with low rates of implementation, and the reasons for delaying their completion."
He pointed out that "the minister directed the formation of a joint committee that includes representatives from the Ministry of Planning, the World Bank and the relevant authorities, to follow up the implementation of these projects, and to develop mechanisms and proposals that contribute to the speed of completion." Ended 29/A43 https://www.mawazin.net/Details.aspx?jimare=167527
Dollar Exchange Rates In Local Markets Today
Market Economy News _ Baghdad Today, Wednesday, the exchange rates of the US dollar against the Iraqi dinar recorded a decline in the main stock exchange in the capital, Baghdad, while prices stabilized in the exchange shops.
Prices fell on the Al-Kifah and Al-Harithiya central stock exchanges in Baghdad this morning to 147.350 Iraqi dinars against 100 US dollars, after recording 147.400 dinars on Tuesday morning.
Buying and selling prices have stabilized in banking shops in the local markets in Baghdad, where the selling price amounted to 148,000 Iraqi dinars per 100 US dollars, while the purchase price amounted to 147,000 dinars. Views 63 Date Added 09/15/2021 https://economy-news.net/content.php?id=26310
Oil Prices Rise Above $74
Pratha News Agency84 2021-09-15 Oil prices jumped today, Wednesday, after industry data showed a larger-than-expected drop in crude oil inventories in the United States, the world's largest oil consumer, and on expectations of a recovery in demand with the widespread spread of vaccines.
Brent crude rose 44 cents, or 0.60 percent, to $74.04 a barrel by 05:09 GMT, while US West Texas Intermediate crude rose 41 cents, or 0.58 percent, to $70.87 a barrel.
Crude oil inventories fell by 5.4 million barrels for the week ending Sept. 10 in the United States last week, according to two market sources, citing American Petroleum Institute figures on Tuesday, after Hurricane Ida shut down several refineries and offshore drilling production.
Meanwhile, the International Energy Agency (IEA) said on Tuesday, after global oil demand fell for three months due to the spread of the delta type of the Corona virus and the renewal of epidemic restrictions, that the introduction of the vaccine is set to lead to a recovery, and also help raise prices.
However, details of China's plans to sell crude from strategic reserves pressured prices, with China's Government Reserves Administration saying it would auction 7.4 million barrels of crude on Sept. 24.
http://burathanews.com/arabic/economic/399787
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