Iraqi News Monday Afternoon 2-21-22
Iraqi News Monday Afternoon 2-21-22
TLM724 Administrator BondLady’s Corner
With Documents.. The Central Bank's Response To A Parliamentary Question Regarding The Price Of The Dollar
Political | 04:34 - 02/21/2022 Baghdad - Mawazine News, the response of the Central Bank of Iraq to a parliamentary question regarding the dollar exchange rate.
In its response, the bank stated, "The current exchange rate is acceptable to the Iraqi government to meet expenses and pay off debts." He pointed to "a competitive advantage for local goods compared to imported goods." https://www.mawazin.net/Details.aspx?jimare=185314
The Central Bank Confirms That There Are No Intentions To Change The Dollar Exchange Rate
The Central Bank confirmed that the dollar exchange rate is stable and there are no intentions to change it. The bank's media office said in a statement, "There are no intentions to change the current exchange rate, especially after the positive results it achieved during the past period."
He added that "the discussions that took place during the hosting of the Governor of the Central Bank of Iraq in the House of Representatives on Saturday corresponding to February 19, 2022 emphasized the need for concerted efforts by all government institutions to improve the economic and living standards of the poor classes that were affected by the high rate of inflation."
And the office called, "not to deal with news that indicates the possibility of a price change."
He stressed that "the central bank possesses sufficient foreign reserves to stabilize the current exchange rate." https://www.radionawa.com/all-detail.aspx?jimare=28129
Deputy: The dollar game has become a crude cover for a political conflict.. October is coming
Political | 05:36 - 21/02/2022 Baghdad - Mawazine News, MP Muhammad Shiaa Al-Sudani considered, on Monday, that the dollar game has become a crude cover for a political conflict in which the only loser is the citizen. Al-Sudani said in a tweet via Twitter, "The curse and the dollar game has become a crude cover for a political conflict in which the only loser is the citizen."
He added, "It is better to expedite a comprehensive political agreement to form a national government capable of meeting the needs of the citizens burdened with crises. Other than that, all of them are precursors for the coming October that does not remain or falter." https://www.mawazin.net/Details.aspx?jimare=185320
Specialists: The Decision Harmed A Large Segment Of Citizens, But It Boosted Revenues
Monday 21 February 2022 156 Baghdad: Haider Falih Al-Rubaie The economic controversy over the calls to return the exchange rate of the dinar against the dollar, which was demanded by the leader of the Sadrist movement, Muqtada al-Sadr, as a result of the apparent rise in all goods and services in the local market, especially foodstuffs and health, resulting from the increase in import costs covered by the dollar.
This exacerbated the inflation and poverty, and led to the erosion of a large percentage of the purchasing value of the salaries of employees and workers in the private sector.
Despite the significant negatives left by the resolution voted on by the House of Representatives in the previous session, economists see some “positives” in other corners of the move, which “created a wide debate in political and economic circles,” stressing that the devaluation of the dinar led to confronting the financial crisis that It resulted from the collapse of oil prices during the Corona pandemic and the restrictions imposed by that pandemic on all countries of the year, indicating that the matter also achieved financial liquidity that led to securing the salaries of employees.
Parliamentary Position
Immediately from Mr. Al-Sadr’s calls, the House of Representatives hosted the Governor of the Central Bank, while the Minister of Finance “refused” to accept the invitation that was sent to him by the legislative authority, to discuss ways to reduce the value of the dollar against the dinar. ,
Governor of Al-Zamili, chaired an expanded meeting attended by a number of heads of political blocs and representatives, and witnessed hosting the Governor of the Central Bank, Mustafa Ghaleb Mikheeb, while Finance Minister Ali Abdul Amir Allawi refrained from attending, to discuss the issue of currency smuggling and the dollar exchange rate, and some banks controlled the currency auction and the most effective situation Solutions to mitigate their impact on citizens.
While Al-Zamili called on the Public Prosecution to take the necessary legal measures to prevent the travel of Finance Minister Ali Abdel Amir Allawi, he confirmed that this week will witness an emergency parliamentary session to question the minister.
Alternative Proposal
In order not to create an economic “confusion” that might be caused by decreasing the exchange rate of the dollar, the economic expert, Nabil Jabbar Al-Ali, suggested that the reduction be gradual, at a rate of 1% or 2% per month, through a clear and announced exchange policy for all, in other words 1000-2500 dinars per 100 Dollars depreciate per month by setting the price in the coin auction regulations.
Al-Ali believes that “a return to the previous exchange rate may not be reasonable so quickly, due to the recent monetary policy of the Central Bank, which strengthened and raised the cash in circulation by a large percentage, and the price of 1300 dinars per dollar may be reasonable.”
The economic expert called for the necessity of "sending messages of reassurance to traders, importers and savers by clearly clarifying the foreign exchange policy for a period of one year or more."
And the Governor of the Central Bank, Mustafa Ghaleb, pledged during the parliamentary hosting, to hold banks that do not comply with regulations and manipulate exchange rates to account.
Big Mistake
The economic expert, Raed Al-Hashemi, did not depart much from the previous opinion, when he described the move to change the exchange rate as a “big mistake” that directly harmed citizens, especially those with limited income.
Al-Hashemi said: “I think that returning the dollar exchange rate is never that easy. Reality to support basic services and reduce pressure on the citizen, such as subsidizing the ration card items and reducing electricity, water and internet wages and mobile recharge cards, and this is better for the market in general and for the citizen secondly.
Exchange Rate Stability
In turn, the researcher in economic affairs, Issam Salem, confirmed that “the uproar that is being raised about the exchange rate has no real justification, as the consequences on which it was built are great and cannot be addressed now or in the foreseeable future, and that this confusion directly affects trading in the local market.” It paralyzes the market movement and allows speculators and money holders to reap additional profits.
Salem stressed the need for “the exchange rate policy to be fixed and not subject to change, while achieving some support for the ration card items, maintaining food security and supporting basics, such as electricity, water, services and roads, stabilizing internal security, encouraging local production in all its aspects, and finding real solutions to save currency.” Difficulties at home through tourism and export.
The financial advisor to the Prime Minister, Dr. Mazhar Muhammad Salih, had suggested a mechanism to address the side effects of changing the exchange rate.
Saleh told the Iraqi News Agency (INA), that "the time has come for fiscal policy to play its active and important role in addressing the side effects that resulted from the exchange rate change and its effects on income, especially the poor and low-income classes being negatively affected by price failures without compensation."
He added, "This aspect directly bears the importance of significantly reducing customs taxes on imported foodstuffs, pharmaceuticals and local production supplies, as well as restructuring government support for goods and services that directly affect the poor social classes." LINK
Central Bank Sales Of Dollars Exceed 210 Million
Economie| 02:09 - 21/02/2022 Baghdad - Mawazine News, the Central Bank of Iraq's sales of hard currency rose, on Monday, to exceed 210 million dollars.
And the Central Bank auction for the sale and purchase of foreign currencies witnessed a rise in dollar sales to reach 212 million and 648 thousand and 771 dollars, covered by the bank at a base exchange rate of 1460 dinars per dollar.
Foreign remittances also increased today compared to cash sales, as remittances amounted to 155 million and 248 thousand and 771 dollars, while the remaining amount of 57 million and 400 thousand dollars went in cash.
This has been 27 banks to fulfill requests to enhance balances abroad, and 20 banks to meet cash requests, in addition to 195 mediation companies. https://www.mawazin.net/Details.aspx?jimare=185297
Dollar Exchange Rates Are Rising Again In Local Markets
Economie| 10:31 - 21/02/2022 Baghdad - Mawazine News, Monday, the dollar exchange rates rebounded after a series of declines in the past days on the main stock exchange and local markets in the capital, Baghdad.
The dollar exchange rate on the Central Kifah Stock Exchange in Baghdad rose today, recording 145,000 thousand dinars, for each $100 bill.
The prices of buying and selling the dollar also increased in exchange companies and local markets in Baghdad, where the selling price reached 146000 thousand dinars, for each denomination of 100 dollars, while the purchase price amounted to 144,000 thousand dinars, for each paper denominations of 100 dollars. Ended 29/A 4 https://www.mawazin.net/Details.aspx?jimare=185275
The Foreign Minister Arrives In New York To Attend The Security Council's Special Session On Iraq
Next Thursday, the UN Security Council will hold a special session on the developments in the situation in Iraq. The United Nations Mission in Iraq (UNAMI) said in a statement that "the United Nations Security Council will hold a session on the situation in Iraq on Thursday, February 24, at 6:00 pm Baghdad time."
Today, Monday, Foreign Minister Fouad Hussein arrived in New York to attend the Security Council session.
A Foreign Ministry statement stated that "the session is devoted to listening to the briefing to be presented by the Chairman of the Board of Directors of the United Nations Compensation Committee, during which the final report of the Board of Directors on the work of the Compensation Committee will be presented."
The statement added that "the Minister of Foreign Affairs will deliver Iraq's speech in this session."
https://www.radionawa.com/all-detail.aspx?jimare=28132
For The Month Of December Of The Year 2021.. The Increase In Iraq's Possession Of US Treasury Bonds
Economie| 09:10 - 20/02/2022 Follow-up - Mawazine News, the US Treasury announced, on Sunday, that Iraq's possession of US bonds increased to more than 1.250 billion dollars during the month of December.
The Treasury said in its latest schedule, which was reviewed by Mawazine News, that "Iraq's possession of US Treasury bonds for the month of December of the year 2021 increased by 1.264 billion dollars, or 5.95%, to reach 22.502 billion dollars, after it was 21.238 billion dollars last November." indicating that "these bonds also rose from the same month of last year 2020, when Iraq's possession of bonds amounted to 17.1 billion dollars."
She added that "Iraqi bonds, including long-term guarantees amounting to 9.602 billion dollars and short-term guarantees amounting to 12.900 billion dollars," noting that these bonds represent 0.4% of the world's bonds. Ended 29/A4 https://www.mawazin.net/Details.aspx?jimare=185153
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