Iraqi News Highlights Sunday Afternoon 11-13-22
Tlm724 Administrator Bondlady’s Corner
Observers issue serious warnings against resorting to adjusting the dollar exchange rate
Posted On2022-11-13 By Sotaliraq Translation: Hamed Ahmed Observers warned of the danger of reconsidering the dollar exchange rate, stressing that this greatly affects the investment environment.
A report by Al-Monitor, translated by Al-Mada, stated that “Iraqi political figures called on the new government of Prime Minister Muhammad Shia Al-Sudani to increase the exchange rate of the Iraqi dinar in the coming days against the dollar by 5.5%, amid warnings from economic experts that such a move might put The economy is in a recession.”
The report added, “The previous government headed by Mustafa Al-Kazemi launched an initiative for a financial and economic reform project called the (White Paper) project.”
He pointed out that “the aim of the project was to restore balance to the economy, reduce the size of the public sector, and invest financial resources in improving public services and developing productive sectors,” noting that “the white paper stated that the previous exchange rate was harmful to the agricultural and industrial sectors.”
The report pointed out that “the Central Bank of Iraq, on December 19, 2020, reduced the value of the Iraqi dinar against the dollar, down from 1,182 dinars to 1,450 dinars per dollar.”
He noted, “This measure was caused by the financial crisis that struck Iraq, following the drop in oil prices in global markets to less than $30 a barrel.”
And the report stated, “Iraq, and due to the increase in the Iraqi government’s spending on securing the entitlements of public sector salaries and retirees, has resorted to borrowing from banks and to the Ministry of Finance’s bonds, which amounted to more than 30 trillion dinars ($20.6 billion).”
And he indicated, “The Central Bank had issued a statement at the time, in which it said that the structural distortions in the Iraqi economy are what impoverished the public finances and restricted the reform ability sought by the government and the Ministry of Finance, due to the policy leadership of the economy and the priority of political thinking and the priorities of politicians over economic thought and development priorities. and stability.”
The report added, “After reconsidering the exchange rate, a strong current emerged led by a number of politicians, most notably the Sudanese who called for a return to the previous exchange value,” continuing that “the Sudanese insisted at the time that the devaluation of the dinar might stimulate the launch of a hungry revolution.”
He finds, “The new value of the dollar exchange rate has been poured into the interest of a number of local industrial sectors that were able to compete with imported goods and achieve financial self-sufficiency.” The report spoke of “a decrease in imports from $21.5 billion in 2019 to $15.6 billion in 2021.”
He stated, “Foreign investors rushed to invest in private and mixed companies with more than $35 million in 2021.” The report continues, “Iraq’s exports of other goods, except for crude oil, increased by more than 400 million dollars during the same year to reach 4.6 billion dollars, after it was at a rate of 3.8 billion dollars in the year 2020. In 2022, this rise in the graph receded slightly.
In front of expectations of the emergence of a new mutant of the Corona virus.” And he cautioned, that “the Sudanese, upon his assumption of power, retracted his opinion, and he is now confirming that the Central Bank of Iraq, which is an independent body, is the authority authorized to decide on the issue of the exchange value and that the government does not interfere in this matter.”
The report added, “The Prime Minister, on October 31, met with the Governor of the Central Bank, Mustafa Ghaleb, and the two discussed financial policy developments.”
The report continues, “The Sudanese since he took office and the market has witnessed a kind of stagnation stage,” noting that “businessmen and citizens are concerned that the devaluation of the dinar prevented them from buying assets for fear of future losses in the event of any change in the exchange rate.” He stressed, “Al-Kazemi’s government was not able to treat the negative consequences of devaluing the currency, especially those that affected the poor segment.”
He pointed out that “the government allocated more than 6 billion dollars to support the affected groups, but Parliament reduced this support to less than one billion dollars only.”
The report noted, “The Governor of the Central Bank confirmed that the devaluation of the dinar has added to the general budget 23.5 trillion dinars (16.2 billion dollars).”
And he added, “The Central Bank warned that reconsidering the exchange rate may create a state of instability in the currency market, threaten investments, lead to economic stagnation, weaken confidence in financial policy and the value of the local currency, increase speculation in foreign currencies, and encourage hoarding of foreign currencies as a safe haven.”
The report stated, “The Central Bank indicated that the previous exchange rate had given a competitive advantage to imported goods against the local and prevented this from making any progress for local products in the market.”
Economic researcher Muhammad Dagher said, “Treating a mistake with another mistake could certainly harm the national currency,” adding that “the economy will collapse, and all goods will be sold and bought in dollars only.”
Dagher added, “The increase in the value of the dinar will also lead to problems with regard to contracts between the government and the private sector, as well as between companies and owners of retail and retail stores.” Dagher pointed out that “these problems cannot be solved easily,” and he believed that “the instability of the exchange rate will also affect the investment environment.”
Dagher urged, “the Iraqi government to reduce public sector salaries, which amount to more than 63 trillion Iraqi dinars (43 billion dollars),” and called for “allocating what is saved from this reduction to achieve economic development.” In addition, the government financial advisor, Mazhar Muhammad Salih, spoke about the option of “a gradual increase in the value of the dinar.”
Saleh said, “Any future adjustment of the dinar exchange rate must be implemented gradually and over a period of time that takes more than a year, in order to provide an appropriate atmosphere for the financial adjustment.” The report went on to say that “returning the value of the dinar to its previous exchange rate against the dollar is impossible, because this would dry up financial reserves and increase the burden of public finance by more than 16 billion dollars.” LINK
A New Rise In The Exchange Rates Of The Dollar Against The Dinar
Economie| 10:07 – 13/11/2022 Baghdad – Mawazine News , the dollar exchange rates rose slightly in the local markets, today, Sunday. Selling price: 147.700 dinars per $100 purchase price: 147.600 dinars per $100 https://www.mawazin.net/Details.aspx?jimare=211099
Iraq’s Oil Exports To America Rise Within A Week
Sunday, 13 November 2022 9:24 AM Baghdad/National News Center Today, Sunday, the US Energy Information Administration announced a significant increase in Iraq’s oil exports to America, reaching more than 500,000 barrels per day during the past week.
The administration said in a report seen by the National News Center, that “the average US imports of crude oil during the past week from nine countries amounted to 5.503 million barrels per day, an increase of 38,000 barrels per day from the previous week, which amounted to 5.465 million barrels per day.”
She added that “Iraq’s oil exports to America reached an average of 503,000 barrels per day last week, up from the previous week, when oil exports to America reached an average of 134,000 barrels per day.”
She pointed out that “most of America’s oil revenues during the past week came from Canada, at a rate of 3.235 million barrels per day, followed by Saudi Arabia at a rate of 519,000 barrels per day, and oil revenues from Mexico at a rate of 503,000 barrels per day, and then Colombia at a rate of 341,000 barrels per day.”
According to the administration, “the amount of American imports of crude oil from Brazil amounted to an average of 140,000 barrels per day, from Nigeria at a rate of 119,000 barrels per day, from Ecuador at a rate of 102 thousand barrels per day, and from Libya at a rate of 41,000 barrels per day, while no amount of and Russia.” https://nnciraq.com/164134/
Hakim Stresses The Fight Against Corruption
The head of the National Wisdom Movement, Ammar al-Hakim, stressed the need to prioritize projects that achieve job opportunities in the budget, while calling for attention to banks and diversification of service sources.
Al-Hakim said in a statement, “We congratulated the Minister of Finance, Taif Sami, for the confidence of the House of Representatives, and wished her success in her mission. We stressed the fight against corruption and the adoption of automation and modern technology in all departments of the Ministry of Finance, especially customs departments.”
During the meeting, Al-Hakim called for paying attention to Iraqi banks and diversifying the sources of services they provide to citizens, especially the file of loans provided for housing projects and small projects, stressing the need to pay attention to the budget and that its doors be consistent with the government program, and that priority should be given to projects that achieve job opportunities and provide services. https://www.radionawa.com/all-detail.aspx?jimare=32121
Al-Sudani: The State’s Economic Paths Cannot Be Corrected Unless The Private Sector Is A Key Partner
Prime Minister Muhammad Shiaa Al-Sudani announced today, Sunday, that the state’s economic paths will not be corrected unless the private sector is an essential partner in this correction and reform.
The media office of the Prime Minister said in a statement that Al-Sudani met with a number of businessmen, investors and entrepreneurs in the private sector.
During the meeting, according to the statement, they discussed the national economic reality, the prospects for the work of the private sector and its contribution to expanding job opportunities and development, and the most important obstacles and challenges facing it.
Al-Sudani revealed, in a speech during the meeting, the government’s intention to end wrong practices that represent an obstacle to the development of this vital economic sector, calling for private sector projects to be consistent with the nature of economic challenges and the needs faced by citizens.
He expressed his conviction that the state’s economic paths cannot be corrected unless the private sector is an essential partner in this correction and reform.
Al-Sudani stressed that the opportunity will be available and supported by the government to enter into a constructive partnership with this national sector, which is highly relied upon to reduce unemployment and provide sustainable national development that contributes to ensuring stability and social peace, stressing that projects will be subject to fair competition on the basis of the principle of equal opportunities. away from monopoly. https://www.radionawa.com/all-detail.aspx?jimare=32124
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