Latest topics
Economist: floating the currency will lead Iraq to 4 negatives at the same time - urgent
Dinar Daily :: DINAR/IRAQ -- NEWS -- GURUS and DISCUSSIONS :: IRAQ and DINAR -- ARTICLE BASED INFORMATION and DISCUSSIONS
Page 1 of 1
Economist: floating the currency will lead Iraq to 4 negatives at the same time - urgent
The economic expert, Rasim al-Akidi, identified 4 negatives that would arise at the same time if the Iraqi government went to float the dollar. Al-Aqidi said in an interview with (Baghdad Today), "The float of the dollar, or what is known as the liberalization of the exchange rate, takes place through two methods, the first is pure or free, and the second is the controlled or controlled method, and in both cases the price of the dollar will rise against the Iraqi dinar and will lead to the withdrawal of a large amount of the monetary block." in the markets".
He added, "Withdrawing a large cash block is offset by 4 disadvantages at the same time, and the affected will be large segments, including the increase in prices in the markets in addition to the factories’ reluctance to produce because the value of profits will decrease in front of costs in addition to the absorption of per capita income and the increase in rental prices, so the interest will be limited by analogy. Other damages. ”
Al-Aqidi pointed out that "Iraq needs an economic rescue plan that starts from maximizing non-oil revenues, which are many and keeping the influential parties away from them because a large part of the financial resources does not go to the state treasury, and this is part of the causes of the current financial crisis in the country."
Economists ’opinions differed on“ floating the dinar ”in front of the dollar exchange to face the deficit crisis that the financial budget suffers from. One party believes that the measure will serve the Iraqi economy in the medium term by activating the sectors of industry and agriculture, but another party believes that it will eliminate the poor and middle classes.
The Central Bank of Iraq rejected the idea of "floating the dinar" during the next stage to increase government revenues and be able to pay employees' salaries during the coming days, citing its fear of increasing prices and harming the vulnerable classes.
The estimated budget for 2020 suffers from a large deficit of 50 trillion dinars. Observers expected the deficit to rise with the oil market losing about 50% of its prices.
Central Bank Governor Ali Al-Alaq said, in a study published on the Central Bank’s website, that “the devaluation of the Iraqi currency stems from an attempt to reduce the budget deficit due to growing expenditures at unprecedented rates. Prices of imported materials and goods in light of the weakness of institutions and the general turmoil.
Al-Alaq added that "Iraq's exports are limited to crude oil, and therefore the devaluation does not affect its exports, nor does a significant additional value materialize," noting that "Iraq's local industry is weak and unable to compensate for imports." He revealed that the number of employees, retirees, and those covered by social care reach 6 million, and that they will be negatively affected by this measure.
The Governor of the Central Bank of Iraq confirmed that "the external debt of Iraq will rise after the devaluation of the currency, the amount of 5.9 trillion dinars will become 7.1 trillion dinars, while the domestic debt remains unchanged."
"The devaluation of the currency will undermine confidence in the national currency as a result of the absence of reforms and the general instability, and the demand for the dollar will increase, as well as the weak demand for deposits in local currency and conversion to foreign currency," Al-Alaq said.
https://iraqakhbar.com/2782191
GirlBye- VIP NewsHound
- Posts : 1484
Join date : 2018-07-09
Location : So Cal
claud39 likes this post
Dinar Daily :: DINAR/IRAQ -- NEWS -- GURUS and DISCUSSIONS :: IRAQ and DINAR -- ARTICLE BASED INFORMATION and DISCUSSIONS
Page 1 of 1
Permissions in this forum:
You cannot reply to topics in this forum
Fri May 10, 2024 5:03 pm by kenlej
» Go Russia
Sun May 05, 2024 11:37 am by kenlej
» Go Russia
Sun May 05, 2024 10:51 am by kenlej
» Textbook Tony
Mon Apr 29, 2024 4:13 pm by Mission1st
» The Rockefellers and the controllers are freaking out right about now
Fri Apr 26, 2024 11:16 am by kenlej
» Phony Tony sez: Full Steam Ahead!
Sat Apr 13, 2024 11:51 am by Mission1st
» Dave Schmidt - Zim Notes for Purchase (NOT PHYSICAL NOTES)
Sat Apr 13, 2024 11:45 am by Mission1st
» Russia aren't taking any prisoners
Fri Apr 05, 2024 6:48 pm by kenlej
» Deadly stampede could affect Iraq’s World Cup hopes 1/19/23
Wed Mar 27, 2024 6:02 am by Ditartyn
» ZIGPLACE
Wed Mar 20, 2024 6:29 am by Zig
» CBD Vape Cartridges
Thu Mar 07, 2024 2:10 pm by Arendac
» Classic Tony is back
Tue Mar 05, 2024 2:53 pm by Mission1st
» THE MUSINGS OF A MADMAN
Mon Mar 04, 2024 11:40 am by Arendac
» Minister of Transport: We do not have authority over any airport in Iraq
Mon Mar 04, 2024 11:40 am by Verina
» Did Okie Die?
Mon Mar 04, 2024 11:34 am by Arendac
» Hello all, I’m new
Wed Jan 31, 2024 8:46 pm by Jonny_5
» The Renfrows: Prophets for Profits, Happy Anniversary!
Wed Jan 31, 2024 6:46 pm by Mission1st
» What Happens when Cancer is treated with Cannabis? VIDEO
Wed Jan 31, 2024 8:58 am by MadisonParrish
» An Awesome talk between Tucker and Russell Brand
Wed Jan 31, 2024 12:16 am by kenlej
» Trafficking in children
Mon Jan 29, 2024 7:43 pm by kenlej