More Iraqi News Sunday PM 10-18-20
More Iraqi News Sunday PM 10-18-20
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Nawar Al-Saadi: It Is Not In Iraq’s Interest To Float Its Currency
Dr.. Nawar Al-Saadi, Professor of International Economics
Dialogues Economy News – Baghdad Economist Nawar Al-Saadi said that the floating of the Iraqi dinar is a big mistake during this period, because that will greatly harm the poor and those with limited income.
He added in an interview followed by "Al-Eqtisad News", that "the financial crisis in Iraq is the result of economic problems and mistakes that have spanned from 40 years until now."
The dialogue came as follows:
Do you think that the Iraqi financial crisis is very dangerous and will cause social problems if it continues?
The current crisis is the result of economic problems and mistakes that spanned from 40 years until now. Iraq, since 1980, has been suffering from a decline in the economic chart due to the use of the economy to serve the authorities and not to serve the public interest. This has led to the depletion of its financial resources in the purchase of weapons, economic sanctions, and debt repayment, etc.
Therefore, the current situation is not a new thing because the Iraqi economy, with any drop in oil prices, puts the government in front of a difficult test in the possibility of securing the salaries of employees and retirees, the fact that the financial crisis still exists without any government solutions, as the economy now lives on a single source of income In a commodity being manipulated by huge waves in international markets.
As for social problems, the procedures of successive governments have left the fever of deprivation and social injustice due to the failure to realize the importance of managing the economy according to sound scientific and objective patterns. Caused a large social gap in the absence of the middle class and the creation of a large generation of the unemployed who are difficult to contain in the aging public sector which suffers from great slackness.
In Iraq annually more than 100,000 people enter the labor market. The government is now unable to contain a quarter of this number. If there are no radical and quick solutions to remedy the situation, Iraq is on the verge of a serious societal and economic collapse.
What do you think of the reform paper that the Finance Minister started working on?
Frankly, until now, I have not seen the terms of the (white paper) as it was released because it is not yet clearly announced and has not been approved by the House of Representatives yet, but I expect it will be according to the conditions of the World Bank, which always emphasizes reducing salaries, expenses and public waste.
According to the words of the Minister of Finance, that the white paper will be implemented over a period of three years to reform the financial and economic situation in the country, and that the paper also includes reform points that will be implemented in the long term, and other reform materials that must be applied in the licensing rounds, and the oil agreement with OPEC, given that the global economic situation has I differ from the previous one, but until now this is all talk, and I do not know how serious it is to implement it in light of these internal political conflicts and divisions.
Do you think that the Kurdistan region will abide by the economic agreement on oil and financial revenues?
The problems between Baghdad and Erbil have been for many years, on top of which are the file of managing oil wealth and dividing its revenues, and the disputed areas between the two sides. But last month, a high-ranking delegation from the Kurdistan region arrived in Baghdad to resume discussions with the federal government on the outstanding differences, especially the oil and financial revenues files. And that the agreement focused mostly on delivering the region a quantity of crude oil in return for sending Baghdad its share of the federal financial budget.
So I think this time the negotiations will be positive regarding the economic commitment, as the Kurdistan region has emerged as a main supporter for Al-Kazemi's assumption of the presidency of the Iraqi government, which may contribute to bridging the gaps between Baghdad and Erbil, and create the atmosphere for reaching agreements, which confirms this is the success of the recent Sinjar agreement between the two parties and the return Displaced people to their homes.
Why is Iraq unable to activate its industry, and are there countries that stand an obstacle to that?
It has become clear today to all Iraqis that the file of industry in Iraq is more political than economic, meaning the problem is not in the lack of material or human resources, but there are political problems and interventions from regional countries standing in front of the wheel of industrial sector development, because Iraq was one of the most prominent countries in the region Which relied on the food industry, such as dairy products, vegetable oils, etc., to achieve its self-sufficiency.
Today, the factories of these industries suffer from low production and poor quality when compared to the importer, such as the Iranian and Turkish, who largely filled the local markets, as the volume of imports for these products amounts to billions of dollars annually.
In addition to that, there are also other reasons, including financial corruption in the ministries, weakening industrial production, random importation and the absence of control over product and quality. And also not to shed light on support for industrial professions and crafts, in addition to the low wages for workers in this sector, and do not forget also the wars that the Iraqi street witnessed were responsible for closing the largest factories.
Do you support floating the dinar during the current stage?
The demand to float the dinar is a big mistake, because the poor will pay the price. It is not in the interest of the Iraqi financial system to raise the exchange rate of the dollar, because it will lead to a decrease in the price of the Iraqi dinar and a decrease in purchasing power and will lead to inflation, and that the classes with limited income and salaries will be the first affected by this decision.
In a simple arithmetic operation, if $ 100 = 120,000 dinars after the float, it will be = 150,000 dinars at the very least, and therefore if your salary is 600,000 dinars, its real value is 400,000 dinars. This is called a decrease in real income while the cash income remains constant .. the amount of goods and services that you can afford Obtaining it or the habit of buying it here leads to a significant increase in inflation, with the rest of the current problems such as facing Corona, unemployment, poor services, security challenges and debts all lead to a complete economic collapse.
Is corruption or mismanagement behind the failure to end the electricity crisis?
The two are with some corruption and mismanagement, as with every summer crisis in the electricity sector, government promises are poured in and pledges to improve conditions in the following summer. However, what actually happens is the addition of some prosthetic solutions that the Iraqis do not see a trace of, and this confirms that what Iraq is actually suffering is not A shortage of electric power generation, but rather financial and administrative corruption.
Because financial corruption is linked in contracts to the money spent on the electricity sector, commissions and others, and administrative corruption is in its simplest form, which is that many general directors, technicians and engineers in the ministry are still in office throughout these years despite the great failure in the electricity sector and that the sums spent On this sector (of maintenance and installation of stations) is estimated at 35 billion dollars, in addition to another 30 billion dollars in operational expenditures. These figures are equivalent to the budgets of neighboring countries for two years, such as Jordan and Lebanon.
What is your interpretation of the phenomenon of the presence of millions of employees in the public sector?
Indeed, I could not find an explanation for the phenomenon of mobilizing millions of employees in the public sector, which is sterile and unproductive. Despite the throats of researchers and specialists about this issue, and there was no response until the situation arrived now. There are more than 6 million and half employees with retirees who receive salaries from the state treasury and consume 65% of the budget.
Everyone in this topic talks about activating the partnership with the private sector, but the issue cannot be solved in this way only, but rather by creating effective economic policies and procedural means to address the problems and needs of society by opening new scientific departments that are compatible with the modern labor market and providing an appropriate environment for investment, and most importantly, stability In laws and legislation, and providing security and protection for capital owners.
Why does the state not pay attention to the private sector and its workers by activating social security for them?
There are attempts by some MPs to activate the Social Security Law, but so far nothing has been issued, and the reason behind this is the parties' struggle among themselves to obtain personal gains more than interest in the public interest. These differences reflected negatively on all the joints of the Iraqi economy, despite the fact that the Social Security Law is very important, because it will ensure the employment of a large segment of the unemployed, and will guarantee workers in the private sector the pension salary, which will banish the ghost of appointments that has become the dream of all young people in the government sector.
Economically, how would you describe the Iraqi-Kuwaiti relations?
Iraq and Kuwait have a historical opportunity to form very large economic relations in the region due to the existence of many common ties between the two peoples, including affinity, language, nationalism, religion, kinship and borders ... and so on, but unfortunately this relationship was not at the level of these ties, and for old and well-known political reasons and unfortunately also the governments could not Iraq after 2003 correcting the course of this relationship, although there was a good step by the government of Kuwait in the conference in support of the Iraqi economy, but soon this relationship worsened due to Kuwait's role in disrupting work in the port of Faw to support Port Mubarak to be the most dominant of international trade in Region.
Therefore, it is very necessary that there be negotiations from the two countries to strengthen the bonds of the economic relationship and achieve the possible benefit for both parties.
Number of observations 112, date of addendum 10/18/2020 https://economy-news.net/content.php?id=22307
Central Bank: The Dollar’s Exchange Rate Is Fixed And Our Foreign Currency Reserves Are Very Good
Pratha News Agency79 2020-10-18 The Central Bank confirmed, on Sunday, that the exchange rate of the dollar against the Iraqi dinar is fixed and has not changed, indicating that its foreign currency reserves are "very good and enable it to overcome the current crisis" that the country is going through.
The bank said in a statement that "the statements that have spread recently regarding the reduction of the Iraqi dinar exchange rate against the dollar represent the viewpoint of those who stated it and do not represent the official position of the Central Bank. This was accompanied by a number of rumors launched by speculators, which temporarily affected the price."
He added, "The exchange rate is fixed and unchanged, and its monetary policy is clear and transparent, noting that its foreign currency reserves are very good according to all international indicators and in a way that enables it to overcome the current crisis the country is going through."
The Central Bank called on the media to "exclusively approve the sources of the Central Bank in this regard." http://burathanews.com/arabic/economic/378644
Finance Minister Shows The Goal Of The "White Paper"
Time: 10/18/2020 09:51:44 Read: 4,316 times
{Baghdad: Al Furat News} The Minister of Finance, Ali Allawi, stated that the reform paper (the white paper) "diagnosed with a scientific and objective vision the economic and financial problems that have accumulated over decades, which were not the result of the current stage due to wrong policies that were tired in the past."
Allawi said in a press release that the Euphrates News Agency received a copy of it, that "these problems and cracks are a real challenge that can be overcome or overcome by the method of strategic planning based on objective analysis of reality and extracting strategic goals as urgent priorities to address these problems."
He added that "the reform paper boldly identified the most important productive, economic and financial sectors, expanding the field of investment and upgrading the private sector in the short term to advance it quickly in support of improving income and creating decent job opportunities, which would reduce unemployment and poverty rates in society."
He stressed that "the ministry will also work to activate official institutions and civil society organizations to support the wheel of production, raise the level of productivity that is highly reliable, and reduce consumption rates." LINK
Minister Of Finance: The Reform Paper Identified The Economic And Financial Problems Due To The Wrong Previous Policies
Money and business Economy News _ Baghdad Today, Sunday, Finance Minister Ali Allawi said that the reform paper was "bold" by identifying the most important productive sectors and reducing consumption rates.
Allawi said in a statement received by "Al-Eqtisad News", that "the reform paper diagnosed with a scientific and objective vision the economic and financial problems that have accumulated over decades and that were not the product of the current stage due to wrong policies that were followed in the past."
He added that "these problems and cracks are a real challenge that can be overcome or surpassed by a strategic planning method based on an objective analysis of the reality and extracting strategic goals as urgent priorities to address these problems."
And he indicated that "the reform paper boldly identified the most important productive, economic and financial sectors, expanding the field of investment and upgrading the private sector in the short term to advance it quickly in support of improving income and creating decent job opportunities, which would reduce unemployment and poverty rates in society."
He stressed, "It will also work to activate official institutions and civil society organizations to support the wheel of production, raise the level of productivity that is highly reliable, and reduce consumption rates."
Number of observations 117 Date of addendum 10/18/2020 https://economy-news.net/content.php?id=22300
Central Bank: The Dollar’s Exchange Rate Is Fixed And Our Foreign Currency Reserves Are Very Good
Banks Economy News _ Baghdad The Central Bank confirmed, on Sunday, that the exchange rate of the dollar against the Iraqi dinar is fixed and has not changed, indicating that its foreign currency reserves are "very good and enable it to overcome the current crisis" that the country is going through.
The bank said in a statement that "Al-Eqtisad News" received a copy of it, that "the statements that have spread recently regarding (reducing the exchange rate of the Iraqi dinar against the dollar) represent the viewpoint of those who stated it and do not represent the official position of the Central Bank. This affected the price (temporarily). "
The bank added that it "declares that the exchange rate is fixed and has not changed, and that its monetary policy is clear and transparent, noting that its foreign currency reserves are" very good "according to all international indicators and in a way that enables it to overcome the current crisis the country is going through.
And he continued, "This bank hopes that the media will exclusively approve the sources of the central bank in this regard." Number of observations 152 Date of addendum 10/18/2020
https://economy-news.net/content.php?id=22299
Dollar Exchange Rate After The Central Bank Statement
Time: 10/18/2020 10:27:49 Read: 8,853 times {Baghdad: Al Furat News} The exchange rate of the Iraqi dinar against the dollar recorded a variation this morning, Sunday, despite reassurance to the Iraqi Central Bank about the exchange rate.
On the Kifah Stock Exchange in Baghdad, the dollar exchange rate reached 1256 dinars, and in the Al-Harithiya Stock Exchange, 1256.5 dinars.
In exchange offices in Baghdad, the purchase price is {approximate} 1250 dinars, and the sale 1260 dinars.
In the governorates:
Basra 125,800 Najaf 125,700 Karbala 125,700 Babil 125,750 Diwaniyah 125,700 Maysan 125,850
Wasit 125,800 Muthanna 125,900 Dhi Qar 125,900 Erbil 125,700 Sulaymaniyah 125,750
Nineveh 125,650 Kirkuk 125,600
The Central Bank of Iraq announced this morning, Sunday, “the stability of the dinar exchange rate against the dollar is fixed and has not changed.
This is a number of rumors launched by speculators, which has affected the price (temporarily). ”The bank confirmed that“ its monetary policy is clear and transparent, ”noting that“ its foreign currency reserves are very good according to all international indicators and in a way that enables it to overcome the current crisis it is going through. The country. LINK
Low Dollar Exchange Rates In The Iraqi Market
Pratha News Agency88 2020-10-18 The exchange rates of the dollar decreased in the main stock markets and local markets, today, Sunday (October 18, 2020).
The Kifah Stock Exchange recorded 125,000 dinars compared to 100 US dollars, while the stock exchange prices yesterday recorded 125.700 dinars. Sales price: 125,500 dinars per $ 100. Purchase price: 124,500 dinars per $ 100.
http://burathanews.com/arabic/economic/378641
The Stock Market Index Declined In The First Session
Iraqi Stock Exchange «Economy News» Market Economy News – Baghdad The stock market index ended its first session, Sunday, down by 0.57%.
Pressure on the performance of the index was 13 losing companies, led by Dar Al Salam Insurance shares with 16.28% and Islamic Tender shares by 6.67%. The session witnessed the circulation of 1.3 billion shares, worth 1.6 billion dinars.
And in today's trading, the shares of two companies, namely the Iraqi Company for Land Transport, rose by 0.67%, and the shares of the Iraqi Company for Seed Production, by 0.29%.
The shares of Baghdad Bank Company were the most traded, with 514.1 million shares traded.
Number of observations 82 Date of addendum 10/18/2020 https://economy-news.net/content.php?id=22308
$3.3 Billion Iraqi Exports During The Year 2019
Petrol station Material use Economy News – Baghdad The Central Bureau of Statistics announced that Iraq's commodity exports amounted to $ 3.3 billion during the year 2019, up by 218.4% over the year 2018.
The agency said in a report on Iraq's exports during the year 2019, seen by "Al-Eqtisad News", "The value of commodity exports reached 3.9 trillion dinars for the year 2019, equivalent to $ 3.3 billion, registering an increase of 218.4% over the year 2018, reaching 1.2 trillion dinars, equivalent to one billion dollars. Dollars ".
He added that "the Arab countries accounted for the highest rate of 88% of total merchandise exports for the year 2019," noting that "the most important commodity exports are gasoline, oils and preparations."
The report emphasized that the UAE imported $ 2.8 billion from Iraq, then India with $ 366.3 million, followed by Iran, $ 10.27 million. Number of observations 99 Date of addendum 10/18/2020
https://economy-news.net/content.php?id=22302
Assigning A Central Bank Official To Another Acting Position {Document}
Time: 10/18/2020 13:10:29 Read: 4,238 times Baghdad: Al Furat News} The administration of the Central Bank of Iraq assigned a senior official in the bank the duties of an agency advisor.
According to an administrative order for the Administrative Department / Department of Human Resources Management in the Central Bank, the Euphrates News Agency obtained a copy of it, and based on the direction of the governor, it was decided to assign the Director General of Accounting in the Central Bank, Ihssan Shamran, with the duties of the advisor and the agency in addition to his duties and authorizes all powers Fundamentalism. " The administrative order issued today, Sunday, indicated that its implementation begins from the date of its issuance. LINK
Investors 'Association: Investors' reluctance to purchase shares due to non-distribution of profits
President of the Investors Association in the Iraqi Stock Exchange, Dr. Alaa Al-Mousawi
Market Economy News – Baghdad The Association of Investors in the Iraqi Stock Exchange confirmed that the reasons for the reluctance of investors to buy shares of companies are due to the non-distribution of profits as a result of the losses they are exposed to annually.
The head of the Investors' Association in the Iraqi Stock Exchange, Dr. Alaa Al-Mousawi, said in his speech to "Al-Eqtisad News", that "the most important reasons for the weakness of the stock exchange in Iraq are the size of investors from buying shares of joint-stock companies listed on the Iraq Stock Exchange."
He added that most of the industrial companies are companies that have stopped production and have a large deficit due to their inability to compete with foreign import and the lack of government support. As for the producing companies, most of them do not make profits and do not distribute profits to shareholders with the exception of a few distinguished companies that distribute profits to shareholders such as Baghdad Products Company. Invasive, and the sewing company.
He explained that most of the private banks suffer from the deteriorating economic situation and their inability to retrieve the loans they provide to customers, and therefore profits are not distributed to shareholders, and some banks suffer from lack of liquidity.
Number of observations 128 Date of addendum 10/18/2020 https://economy-news.net/content.php?id=22303
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