News, Rumors and Opinions Tuesday 1-11-2022
KTFA:
Samson: Will we witness ‘currency wars’ in 2022?
11th January, 2022
The Russian economic expert, Yulia Vinogenova, indicated that there is a high probability of a currency war between the euro and the dollar, and the depreciation of the ruble during the current year.
The expert said: “If the geopolitical risks materialize, in particular, the escalation of the tone of sanctions against Russia and a new round of conflict with Ukraine, we can expect a relative rise in gas prices, which the European Union will have to deal with. This may lead to a strengthening of the dollar and a weakening of the euro.” At least in the first quarter of 2022.
The expert added that the main tool in currency wars is the devaluation of national currencies compared to foreign currencies. With regard to the Russian ruble, the expert expected that the value of the Russian currency will decrease by 5% – 6% by mid-2022.
For his part, Adviser to the Director General of Macroeconomics of Otkritie Broker, Sergey Khastanov, expected the dollar to rise significantly against the currencies of developing countries during the current year.
The economist added that the main factors behind the rise in the dollar exchange rate are the tightening of the monetary policy of the US Federal Reserve system, and the potential outflow of capital from emerging markets. According to Khastanov’s estimates, the tightening of monetary policy will slow the growth of the global economy, and the economy of the United States in particular. LINK
************
Samson: The government votes on two resolutions and confirms: Iraq has entered a new phase in the international community
11th January, 2022
The Cabinet voted, on Tuesday, on two decisions, one of which is related to desalination plants in Basra.
The council’s spokesman and Minister of Culture, Hassan Nazim, said in a press conference attended by / Mawazine News / that “186,000 housing plots have been distributed among citizens so far, and we are continuing to distribute more residential plots among citizens registered with the initiative of Dari.”
He added, “Iraq has entered a new phase in the international community after being removed from the European list of high-risk countries.”
He pointed out, “The Council of Ministers voted for Basra Governorate to take over the financing of the project to rehabilitate water desalination plants, and also agreed to increase the capital of the General Company for Maritime Transport.” LINK
************
Don961: exchange rate
Tuesday 11 January 2022 Dr.. Hamed Rahim
The economic theory reveals the details of the impact of the exchange rate on open economic activity through significant relationships in the quantitative specific sense.
The change in the exchange rate of the national currency in Iraq sparked great controversy, most of which took on a political aspect and polemics that made the public misunderstand this step economically, and the economic impact was clear in the increase in inflation rates from
(0.1%) in 2019 to (8.6%) in the last statistic, which expanded the poverty area. The declared goal of that step included a set of variables, including limiting imports, supporting the productive sector, and providing financial space for the government to finance the deficit, but the nature of the structural imbalance in economic activity made that goal not find an actual application space, so the currency window usually increases its daily sales, reaching as an average of Approximately (200) million dollar.
Investment is also a variable that is dependent on other factors, including security stability, infrastructure, and others, which makes the effectiveness of changing the exchange rate in this framework relatively limited.
Perhaps the only success is finding a financial space for the government to finance the planned deficit in the current world budget, and this was also accompanied by clear misinformation in The speech is represented by an attempt to depict that the value of the decrease in income amounted to (22%) in reference to the size of the devaluation in the currency exchange value, and this is not accurate because the low value is actually reflected in the indicated inflation rate, and the reason for the continuation of window selling rates to this extent is due to reasons related to corruption Accompanying the window’s activity referred to in the announced reports, and most importantly, the two trading partners of Iraq, namely Turkey and Iran, their national currencies are of low value in a way that far exceeds the value of the Iraqi dinar, even with the recent devaluation, which has kept Iraq low in the face of torrential goods imported from the outside.
The theoretically desired effect of devaluing the national currency includes addressing the deficit in the balance of payments by increasing exports and reducing imports, noting things that must be met, including the flexibility of the national production apparatus and control over trade outlets, and most importantly, the availability of accurate statistics on social groups and productive economic activities, which depend on The importer to feed the inputs, and then follow (social leverage) policies to reduce the potential negative impact on social groups as well as provide economic support through tax policies, subsidies and other policies provided to economic units.
Accordingly, development policies require that the exchange rate be dealt with and reduced, but on condition that all of this is taken into account, i.e. all these policies must be one basket, starting from the availability of accurate statistical data, leading to finding effective policies to counter the potential negative effects, and perhaps the advantage that we possess The government’s financial abundance resulting from oil sales, which enables the government to provide financial resources for processing LINK
Courtesy of Dinar Guru
Frank26 Article: "It is time to adjust the exchange rate to enhance the value of the national currency (the Iraqi dinar) against the dollar." Wow! Can we have a standing ovation? ...this is the CBI saying this...this is the mother of all articles. Quote: '...let us make readjusting the exchange rate the first task of the next government and parliament to relieve the burden of the citizen.' The CBI wants to show the Iraqi citizens the NSCNs/new exchange rate as soon as possible and if you GOI are not ready by the 15th then we the CBI will show the citizens to reduce any confusion...
Vital Brad Question: "Is the Kuwaiti dinar and the Iraqi dinar the same thing?" No. Two different countries. Kuwait is a small little country on the southern part of Iraq. Iraq's a much bigger country. Both their currencies are called dinar...one Kuwaiti dinar is like $3.47 or something. It's very valuable and the reason is because of their oil reserves...Iraq has so much more land mass with oil. How much should theirs be worth? It was devalued at...$3.22...
************
VitalBrad 2.0: Let's Chat Iraq
Streamed live 13 hours ago