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Article: “the World Bank has nothing to do with determining the exchange rate in any of the countries it deals with,” DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

Article: “the World Bank has nothing to do with determining the exchange rate in any of the countries it deals with,”

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Article: “the World Bank has nothing to do with determining the exchange rate in any of the countries it deals with,” Empty Article: “the World Bank has nothing to do with determining the exchange rate in any of the countries it deals with,”

Post by RamblerNash Wed Jun 02, 2021 10:19 pm

World Bank: 5 million Iraqis are at risk of poverty, and we support the purchase of additional quantities of vaccines

Article: “the World Bank has nothing to do with determining the exchange rate in any of the countries it deals with,” 27732

Economy News _ Baghdad

The World Bank revealed that about 2.7 to 5 million Iraqis are threatened with poverty as a result of the Corona pandemic and the drop in the price of a barrel of oil, and while confirming its intention to provide support to Iraq to purchase additional vaccines against Corona, he indicated that there is a portfolio of 1.8 billion dollars to support multiple sectors in Iraq.

Dr. Wael Mansour, a senior economist for the World Bank, said in an interview with the Iraqi News Agency, and followed by “Economy News”, that “the World Bank has nothing to do with determining the exchange rate in any of the countries it deals with,” noting that “the World Bank has no position on it.” Regarding the change in the exchange rate in Iraq, he did not talk about it with any Iraqi party, whether it was the government, the central bank or the parliament, but the decision is sovereign with distinction.

Exchange prices

He added, "The bank looks at these prices from an economic perspective, and sees whether the downward or upward movement helps increase the country's competitiveness and growth, and this is not a unilateral measure that should accompany other reforms related to economic growth and investments in infrastructure and human capital."

He pointed out that "the financial budget resources from outside the oil sector are estimated at 8% of the total budget resources," stressing "the need to proceed with real reforms, as in the white paper proposed by the government, including improving collection from customs and taxes, and how to benefit from these resources to increase revenues." non-oil.

He continued, "This requires a plan to increase the fiscal space for the state to invest these resources in strategic sectors such as education, health, social protection and infrastructure. Non-oil revenues must be raised to meet the needs and provide quality public services to citizens, and the need for policies and investments should not be overlooked." in environmental sustainability, especially as the future is heading towards the so-called green growth.”

Diversified wallet

Regarding loans, he pointed out that "the World Bank did not grant this year any new loan to Iraq," noting that "there is a diversified financial portfolio estimated at $1.8 billion of projects in multiple sectors, including the reconstruction of areas liberated from ISIS, including for the sectors of electricity, education, health and aid. Technology for the Ministries of Finance, Planning and Social Safety Nets.

He added, "We always look forward to working with the Iraqi government in case it requests new projects," noting that "the World Bank is moving forward with a project that helps speed up the vaccination process by bringing in additional quantities of vaccines so that Iraq can confront the pandemic, and we are always by Iraq's side." When asking for new projects.

downturn in the economy

He explained, "Iraq suffered two shocks during the year 2020, one from the drop in oil prices, and the other due to the Corona pandemic," stressing that "the World Bank estimated the contraction of the Iraqi economy during the past year by 10.3%, due to the contraction of oil production as a result of the OPEC + agreement, as well as the pandemic." Which affected the service sector, which represents about a third of the Iraqi national economy, due to frequent closures.

He pointed out that "the Corona pandemic and the drop in the oil price have affected poverty rates and raised them between seven to fourteen percentage points, or about 2.7 to 5 million Iraqis who are threatened with poverty as a result of the pandemic and the fluctuation of the oil price."

Speed ​​up the pollination process عملية

He pointed out that "the World Bank is now in the process of discussing with the Iraqi government the issue of accelerating the vaccination process, purchasing additional quantities of vaccines, and supporting the health sector to confront this pandemic, and through our current portfolio, we are helping with issues related to growth so that the Iraqi economy can recover quickly, especially the recovery of the private bottom."

Conditions for granting loans

Mansour indicated that "the World Bank does not impose sovereign conditions on any country in return for granting it loans," stressing that "the bank's mechanism for granting loans depends on three things. The first is related to the economic, social and environmental feasibility of the project. The return must be high."

He continued: "As for the second, there are caveats related to governance. We stress the issue of governance, especially those related to the projects that we finance, if it is in terms of combating corruption, transparency, and access to information in order to avoid any obstacles or problems," noting that "the third is related to the request of any government to support the budget, so the condition There, it will be accompanied by a clear reform plan, and the macroeconomic framework must be sustainable in order to ensure that such a loan actually contributes to confronting any crisis that arises or contributes to growth or reducing poverty rates.”

Iraq is not a bankrupt country

He stressed that "Iraq is not a bankrupt country as it is the fourth largest oil-producing country and has great economic and human capabilities, and a large market, but Iraq suffers from economic structural problems, including excessive dependence on the oil sector, which constitutes 95% of its exports and 90% of budget revenues, It also constitutes about 60% of the real economy, so any fluctuation and decline in oil prices leads to financial obstacles and a deterioration in growth."

white paper

He went on to say: "Iraq also suffers from an inflated size of the public sector in the economy, losses in the electricity sector, which requires increasing support every year, and a weakness in the volume and type of public and private investment," stressing that "Iraq is aware of these obstacles and has already begun to focus on solutions. to these structural problems.

He concluded by saying: "The solutions were mentioned in the white paper, and this is an ambitious plan for reform, as it accurately diagnoses the economic problem in Iraq, and we hope that Iraqi officials will speed up its implementation."


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