MilitiaMan "It's Time To Adjust The Excange Rate" Sunday 1-9-2022

KTFA:

MilitiaMan:  This is looking so so good!! I agree, it is time to adjust the exchange rate. Let the first task in the Parliament today be in the cards.. lol Ease the burden of the Citizens by changing the exchange rate to enhance the value of the national currency against the dollar. Imo, the CBI can adjust the rate when ready or not the government is. However, lets note that they are still in session in todays meeting in Parliament, aside from the antics they resumed the session. Oh ya… ~ MM

Don961:  Exchange rate first

Sunday 09 January 2022  Yasser Al-Metwally

It is time to adjust the exchange rate to enhance the value of the national currency (the Iraqi dinar) against the dollar.

And now that the reasons that prompted the decrease in the exchange rate of the dinar against the dollar as a monetary treatment to overcome the obstacle of the country being forced to borrow externally and internally have disappeared, there is no justification for sticking to this painful measure that touched the lives of all segments of society.

The direct reason for this tight monetary policy was the drop in global oil prices with the effects of the Corona pandemic, and the world has largely overcome this difficult ordeal.

With the return of oil prices to the rise, a cash surplus was achieved that contributed to supporting and strengthening the Iraqi cash reserve, the safety valve for periodic financial crises and natural disasters.

In addition to the above, Iraq was able to close the curtain on the debts imposed on Iraq forcibly to Kuwait. These factors and indicators are encouraging to readjust the exchange rate to what it was before the revaluation of the dollar against the Iraqi dinar 

Perhaps one of the most important reasons and justifications for the demand to return the exchange rate to its normal state is the situation and the painful effects that the citizen has endured, forcing him to give the government the opportunity to address the already dire financial situation.

The measure to reduce the exchange rates of the Iraqi dinar against the dollar has caused chaos in the market and broke down the stability that the market enjoyed at the previous rate.

The prices of materials and goods have been inflamed, which has affected the purchasing power of the citizen. You can imagine the extent of the suffering caused by the prices of medicines and basic materials for all segments of society, especially the poor, the retired and the employees.

The measures taken by the government to treat the poor segments were not equivalent to the effects of the exchange rate difference.

Accordingly, one of the tasks of the new government is to take decisions to restore the price and take strict measures against price manipulators, especially medicines and important commodities that touch the citizen’s livelihood by activating the role of careful monitoring of the market. 

In mentioning the prices of medicines, the Pharmacists and Physicians Syndicates must activate their role in monitoring and accountability.

For this reason, let us make readjusting the exchange rate the first task of the next government and parliament to relieve the burden of the citizen.

And a question that comes to mind, can the concerned authorities begin to gradually reduce the exchange rate until the formation of the government to mitigate the double effects on both sides of the equation?  LINK

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Don961:  Dinar file

Saturday 08 January 2022  Thamer Al-Haims

Fitch International, the international credit rating agency, expected that Iraq will witness the highest growth in the Gulf oil-exporting countries next year, to rates that may reach 1.8%.

Undoubtedly, the national product as a whole is affected by the infrastructure of the stability and strength of the national currency. It is known that the rise and fall of currencies in light of the relationship with economies is dealt with, most notably the dollar.  

We hear, for example, about the decline of the Turkish lira and the Iranian toman, and this is done through a central decision, as is the case with the Iraqi dinar, as happened recently from a reduction, to counter the bleeding of the dollar, as a result of excessive importation, not as is the case with the two neighbors, as we imported the cheapest in hard currency and what competes with the national product.

 Grape leaves, yellow corn stalks and even molasses were imported, while the aim was to reduce external transfer for the purposes of the importer, which means that the flotation door is still wide open, as we did not notice a difference or reduction in external transfer for import purposes in its excessive aspect when we compare it with Devaluation of the dinar.

The sales of the currency window did not decrease by a quarter, as did the dinar, as on the contrary, the product was keeping pace with and matching the price of the importer, in addition to the costs that made it rise compared to its imported counterpart, which is not covered by the standards of the Iraqi specification, as a privilege for the importer to be applied only to the national product.  

According to the Ministry of Finance and its standards, the country should receive 7 billion from customs annually, but in fact, only 12% of customs resources reach the Ministry of Finance, and the smuggled funds since 2003 amounted to 350 billion dollars, which is equivalent to 32% of the revenues Iraq in 18 years. The question is, was the smuggled plus the seven billion annually in customs waste sufficient to prevent the dinar’s value from depreciating? Let’s prepare for our oil resources with which we will compete with oil countries in OPEC, and allocate a special fund for lawsuits to follow up on smuggled money in safe and unsafe international havens.

We can also reach an understanding with the Turks with a reasonable commercial offer in exchange for water that has been reduced by half to secure our food security, which is not only represented by wheat, but also related to Devices and equipment that raise the level of our agriculture while it faces a water crisis in any case, despite the presence of an advanced Iraqi industry for sprinklers in Alexandria factories.

An equal economic relationship with neighboring countries, in general, may develop from barter valued in dollars, then move towards monetary exchange in national currencies, in addition to political and security stability and the consequent of integrated projects bilaterally or regionally in the light of international projects, which enhances a stable dinar. 

In any case, the process of floating the dinar was and still does not reflect the accounts of the threshing floor, but rather the calculation of a field that has long been exposed to the factors of corruption, and the result was an increase in the poverty rate while we face the challenges of organized smuggling and the water file, meaning that monetary policy requires transparency through which it is presented in the next budget and a return to the system of opening credits Documentary, to end the stage of exceptions and emergencies, which have become a fundamental reason for the fragility of the dinar.  LINK

MilitiaMan:  It sure looks like they have every intention to be in line with the region when it comes to dollar value and monetary exchange in national currencies. There is belief that there will be stability and security from international projects now and that they will enhance the Dinar.

They go onto say that their monetary policy (exchange rate, imo.) requires transparency (digital) that will be presented in the next budget (2022). Thus, they will return to the system of opening documentary credits (internationalism) that will end the stage for exceptions and emergencies and return the Dinar back to strength and stability. imo.. WOW.. 100% Article 8 here we come.. imo~ MM

Samson:  Al-Kazemi receives the European Union ambassador to Iraq

9th January, 2022

Prime Minister Mustafa Al-Kadhimi received, on Sunday, the Ambassador of the European Union to Iraq, Mr. Fillet Variola, and his accompanying delegation.

According to a statement by his office, Mawazine News received a copy of it, Al-Kazemi said during the meeting: The participants that bring Iraq together with the European Union open more opportunities for cooperation in the future, and his sovereignty described the relations with the European Union countries as long-term strategic relations.

Ambassador Variola congratulated His Excellency on Iraq’s success in removing its name from the list of high-risk countries in the field of terrorism financing and money laundering. It will pave the way for a greater degree of trade and investment exchange between Iraq and European countries.

The Ambassador of the European Union pointed to the growing positive regional role of Iraq, pointing to a seven-year European plan aimed at providing institutional support to Iraq, assigning programs to develop financial competencies and the work of the Central Bank of Iraq.   LINK

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Samson:  The Ministry of Foreign Affairs announces Iraq’s exit from the European Union’s list of high-risk countries

01/09/2022 18:48:24

The Ministry of Foreign Affairs announced the removal of Iraq from the European Union’s list of countries with high risks in the field of combating money laundering and terrorist financing.

This came in a letter delivered by the European Commission mission today 9/1/2022 to Prime Minister Mustafa Al-Kazemi, in which it congratulated Iraq on the great measures and efforts that have been taken to improve the anti-money laundering system and combat the financing of terrorism.

The Ministry also commended the positive and continuous cooperation provided by the European Union, the countries that voted on the resolution, and the Union mission in Iraq, after Iraq raised its procedures to the level of international requirements. 

The Ministry also thanks the cooperation of the national authorities that contributed to this achievement, from the Ministry of Finance, the Central Bank of Iraq and the rest of the supporting bodies.  LINK
 
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Iraq is out of the list of countries with high risks in the field of combating money laundering and terrorist financing  LINK

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MilitiaMan:  It sure looks like this is an announcement for the entrance into the global economy and the interlinking to international banking.

The road map is in place now for international trade and all because the Central Bank has shown their excellence in the work of anti-money laundering and financing or terrorism.

 Iraq has raised their procedures to meet the International requirements and therefore, they achieved the results to be removed from the high risk status.

The world has now been put on notice that Iraq is ready to go global.

That will require an exchange rate change. imo..

Which is possibly at anytime now, as from the sounds of it they have an exchange rate already, as there are calls to use it to help relieve the burden from the citizens… imo.. ~ MM

“Yasser Al-Metwally It is time to adjust the exchange rate to enhance the value of the national currency (the Iraqi dinar) against the dollar.”

“For this reason, let us make readjusting the exchange rate the first task of the next government and parliament to relieve the burden of the citizen.”