"Tidbits From TNT" Tuesday 7-25-2023
TNT:
Tishwash: Expert: The exchange rate of the dollar depends on a political decision, not an economic one
Strategist Mahmoud Dagher emphasized the difficulty of monetary policy keeping pace with the criteria of political opinions without disturbing the dinar's relationship with the dollar.
Dagher indicated in his tweet that reviewing the figures for dollar sales on the one hand, and comparing them with the level of domestic demand for remittances and cash, shows the existence of a gap that indicates that demand exceeds supply.
He added, when analyzing what is offered through the platform, it is sufficient for remittances and credits. As for the money supply, it does not cover the official demand for travel, whether for study, or exchanges between speculative local merchants, which are all legitimate, noting that there is an informal demand related to covering large border trade that may annually reach $10 billion.
And Dagher expressed his perception that the decision, according to these data, is possible to cover remittances and regular credits that are in conformity with the platform and rules that make Iraq sound, and it is also possible to cover the official cash demand only to keep Iraq sound.
He continued by saying that it is not possible to cover the unofficial cash demand that violates the rules due to its large size and its violation of the rules, explaining that the result of this will be a decrease in the value of the dinar by the amount of not covering the informal cash demand, that is, in the language of the market, the rise of the dollar.
He pointed out that here monetary policy decisions differ with political opinions, the first is consistent with the previous analysis, while the second (political opinions) seeks to cover all official and unofficial monetary demand and at the same time keeps the value of the dinar to the dollar stable so as not to lose its audience on the one hand and its allies on the other hand.
And he stressed that logic says, “It is difficult to keep pace with monetary policy with the criteria of political opinions without disturbing the relationship of the dinar with the dollar,” noting that the matter remains subject to the political decision, not the economic one. link
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CandyKisses: Central Bank takes action to get out of dollar crisis
Baghdad - NAS 2023.07.25 - 09:07
Only days after the United States imposed sanctions on fourteen Iraqi banks, the market became inflamed and the crisis of the dollar's exchange rate rising against the dinar came to the fore again.
In an attempt to cover rising demand and oversupply, the central bank decided on Monday to allow exchange companies of categories A and B to open deposit accounts to subscribe to a window for the sale and purchase of foreign currency.
According to a document issued by the central bank, this measure comes within the framework of facilitating the sale of cash in US dollars to travelers.
The Finance Committee, headed by Atwan Al-Atwani and attended by its members yesterday, hosted the Governor of the Central Bank Ali Al-Alaq, to discuss the banking sector and the rise in the exchange rates of the dinar against the dollar, and the reasons for the sanctions imposed on a number of Iraqi banks.
Al-Atwani said that there is optimism in the process of reforming the economic reality, managing funds, and the path of controlling the exchange rate, adding, "We hope to achieve economic stability and improve performance."
He pointed out that there is a problem related to the existence of sanctions imposed on some banks, which leads to challenges that must be faced and measures must be found to control the labor market and the exchange rate.
For his part, Ali Al-Alaq reviewed a number of issues related to the work of the Central Bank and monetary policy, indicating that the mission of the Central Bank is to achieve monetary stability and control prices.
He stressed the need to strike a balance between supply and demand for foreign currency, and to monitor the cash currency entering and leaving through ports and emphasizing its entry in a fundamental manner, adding that the general principle of monetary stability is the link between the exchange rate and cash.
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Tishwash: The President of the Republic: Establishing security and stability in Iraq is a priority in the government program
The President of the Republic, Dr. Abdul Latif Jamal Rashid, confirmed today, Tuesday, during his meeting with the Prime Minister of the Hashemite Kingdom of Jordan, Bishr Al-Khasawneh, that the consolidation of security and stability in Iraq is a priority in the government program.
The media office of the President of the Republic stated in a statement received by Earth News Agency, that the latter "received, at the Baghdad Palace, the Prime Minister of the Hashemite Kingdom of Jordan, Bishr Al-Khasawneh, who is visiting the country at the head of a high-level delegation, stressing" the depth of historical relations and common bonds that bind the Iraqi and Jordanian peoples, and the need to work to improve and develop them to serve the aspirations and interests of the two countries.
The President of the Republic stated that “establishing security and stability in Iraq occupies a priority in the government program, as it is an important factor for the future of the country and an urgent necessity for the stability of the region, and in this context he also expressed his optimism about the government program and its focus on basic goals.”
He praised "plans and good management of water resources, health, and the pharmaceutical industry in the Kingdom of Jordan," stressing "the need to benefit from Jordanian experiences and expertise in this regard."
Rashid pointed out that "Iraq is looking forward to more coordination and economic cooperation to enhance joint work in order to complete joint projects between the two countries, especially in the fields of energy, industry and investment."
In turn, the Jordanian Prime Minister renewed his country's support for Iraq in its continuous efforts to strengthen security and stability, stressing that Iraq's security is a fundamental factor for the security of the region.
The Prime Minister expressed his "thanks and appreciation to the President and the First Lady for attending the wedding ceremony of Crown Prince Hussein bin Abdullah II."
He pointed to "the importance of strengthening brotherly relations between the two countries and expanding horizons of constructive cooperation in the fields of energy, economy and industry in order to serve the common interests of the two brotherly peoples," stressing that "Iraq and Jordan participate in efforts to confront terrorism, expressing his appreciation for Iraq's role in confronting terrorist gangs."
The Prime Minister reviewed his talks with the Prime Minister and the agreements signed between the two sides. He also touched on the positive developments in Iraq and what he felt of the return of normal life in Baghdad while touring the streets of the capital.
The meeting was attended on the Iraqi side by His Excellency the Minister of Interior, Abdul Amir Al-Shammari, while on the Jordanian side, His Excellency the Minister of Interior, Mazen Al-Faraya, and the Ambassador of the Hashemite Kingdom of Jordan to Iraq, Muntaser Al-Zoubi, in addition to a number of officials and advisors in the two countries. link
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