Al-Kazemi’s advisor proposes solutions to reduce the value of the dollar

08:50 - 04/10/2021

Baghdad - Mawazine News, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, determined today, Monday, the extent of the possibility of relieving pressure on the operating budget and addressing the financial situation in the country, while proposing solutions to support the private sector, reduce unemployment and reduce the value of the dollar against the dinar.

The financial advisor to the Prime Minister, Mazhar Muhammad Salih, said, "It is possible to benefit from the recovery in oil prices by moving stalled projects, attracting a workforce, and solving the problem of unemployment, which averages 450 thousand work force willing to work, and this results in an entire society."

He pointed out, "The importance of spending additional rentier resources on projects to relieve pressure on the operating budget," noting that "the operational budget includes dozens of decisions and laws and bears financial burdens, and needs to double the 2021 budget to implement all its requirements."

Saleh explained, "There is poor planning, as well as the accumulation of unemployment, and treatment cannot take place unless the state sets laws for the private sector, such as the Social Security Law, which grants privileges to its workers, including guaranteeing his retirement rights or transferring an employee from the private sector to the government and others."

He added, "The additional resources of oil cannot be benefited from without directives to manage them," noting that "the private sector has the ability and leadership, and money must be disbursed to it within a specific plan and be in the form of soft, recoverable loans to preserve wealth, as for the disbursement of amounts as consumption. It's just a big loss for the future."

And he continued, "The government today is shackled by thousands of decisions and laws that carry consumer spending burdens par excellence, and cannot be applied even if the price of a barrel of oil reaches $ 160," referring the reasons to "the adoption of legislation without studying the financial burdens and thus costing the state to carry out a review of those legislation, and therefore Today, the Ministry of Finance is unable to implement dozens of legislation due to the financial burdens.

And he indicated, "The transfer of problems from one cycle to another has caused a major imbalance, and long-term plans must be developed and adhered to, governed by laws, to rebuild the country properly," noting that "Iraq in recent years has followed a policy of deportation and it must be replaced by a policy of communication, meaning that the government is changing With the continued implementation of the drawn plan, an example of this is the electricity sector, which has spent about 120 billion dollars and so far the country is unable to produce 20 thousand megawatts per day.

And on the extent of the possibility of reducing the value of the dollar against the dinar, the financial advisor said, "The monetary policy depends on the amount of foreign reserves supporting the Iraqi dinar, that is, the efficiency of the reserves and their escalation towards safe lines."

He added, "There are expectations that the Iraqi dinar will improve with the development of reserves, and this is up to the monetary policy, especially since the timing is appropriate and the opportunity is appropriate, provided that there is financial discipline and correct development, and without them there is no value for any attempts."

He pointed out that "the 2022 budget will be subject to great pressure, especially since the 2021 budget is built on a deficit," stressing that "the improvement in oil prices will reduce the deficit in the 2022 budget, but there is an expansion if it is achieved, the spending ceiling will be fixed, meaning that the increase in revenues with The increase in operational spending does not achieve anything.” Ended 29 / h

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