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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

Follow-up cell: The government may resort to borrowing and printing currency to provide salaries

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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty A member of the Parliamentary Finance reveals the size of Iraq's debts and is likely not to approve the 2020 budget

Post by claud39 on Wed May 20, 2020 9:59 pm

A member of the Parliamentary Finance reveals the size of Iraq's debts and is likely not to approve the 2020 budget


05/20/2020


Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 121874


Baghdad today - Baghdad Member of the Parliamentary Finance Committee, Muhammad Sahib al-Daraji, confirmed on Tuesday (19 May 2020) that Iraq’s debts amounted to 124 billion dollars, while the budget of 
.2020 was unlikely to be approved Daraji said during his hosting of the program (the shortest path) 

(https://www.facebook.com/NabilJassim.Official/videos/2458849454428390/) presented by Dr. Nabil Jassem on Al Sharqiya Channel News, "Iraq’s debts currently amounted to 124 billion dollars, while expenditures in 2019 amounted to approximately 116 trillion dinars," ".noting that "the debts owed by Iraq include what is due to us from the Kuwait war


He added that "the previous government erred when it agreed to reduce oil production because it caused great losses," calling on "Prime Minister Mustafa Al-Kazemi, to take a decisive position on this decision after the appointment of a new oil minister, even if we had ".to leave the OPEC agreement He pointed out that "there are many solutions that must be followed to save the country from the economic crisis it is going through, including preventing speculation with food and not importing products except the necessary things, as well as imposing control on the border ports by the Iraqi government to ensure that unnecessary products are not imported." It is "possible to achieve this by supporting the anti-terror agency because there are large ".(militias) controlling these outlets He continued: "The exchange rate of the currency must be changed, and the direct sale to the citizens should be taken instead of the auction, and external relations must be exploited and worked to improve them," stressing that "it is necessary to review Iraq’s decision on ".reducing oil, and to return from it regardless of circumstances On the budget, Darraji commented: "The circumstances Iraq is going through are difficult, ".and the possibility of passing the 2020 budget, so far, is not certain



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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty A proposal on the government table to face the !parliamentary economic and financial crisis warns

Post by claud39 on Wed May 20, 2020 10:06 pm

A proposal on the government table to face the !parliamentary economic and financial crisis warns


05/20/2020 


Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 121911



Baghdad today - special The decision of the Parliamentary Finance Committee, Ahmed Al-Saffar, on Wednesday (May 20, 2020), warned against demands to raise the price of the dollar against the Iraqi dinar to confront the financial crisis and maintain the hard currency, stressing that this decision is not .in the interest of the Iraqi financial system Al-Saffar said in an interview with (Baghdad today) that "raising the dollar exchange rate to face the financial crisis and preserve the hard currency is one of the proposals and monetary ".

measures that the state may take to avoid the liquidity crisis He added, "It is not in the interest of the financial system to raise the exchange rate of the dollar because it will lead to a decrease in the Iraqi dinar price and a decrease in purchasing power and will lead to inflation," noting that "the classes with limited income and those with ".salaries will be the first affected by this decision


Al-Saffar pointed out that "raising the price of the dollar depends on the government's ability ".to apply the necessary public spending from other sources The economist, Rasem Al-Akidi, warned, Thursday (14 May 2020), of floating the Iraqi dinar against the dollar, that is, reducing the value of the Iraqi dinar against the dollar according to a proposal put forward by economists to provide additional funds for the Iraqi budget to be .paid as salaries for employees Al-Aqidi said in an interview with (Baghdad Today), "The issuance of any decision to float the dinar against the dollar in light of the current conditions in Iraq is very dangerous for the country which is basically suffering from uncontrollable losses, namely fees, customs, taxes ".

and many other financial resources And that "the flotation does not constitute an increase in the value of the Iraqi dinar, but rather we will see an increase in the exchange rates of the dollar due to the lack of its ".acquisition in the global market, especially with the decline in global oil prices He added that "the flotation will lead to a significant increase in prices, and will be paid by the poor," noting that "the flotation is taken in light of the stable financial conditions of the state, as well as the diversification of the economy and its dependence on resources other ".

than oil Al-Akidi said that "floating the dinar against the dollar is launching the process of buying and selling without any limits, and the country will face an unprecedented rise in prices with limited and steady salaries, so conditions will be more difficult, especially in the humanitarian ".context


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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Financial and Banking Adviser Professor Abdel-Nafea Al-Zirri for Time: The crisis will last, Iraq’s options are difficult, and the solution will be in an authorized economic council. On a round table

Post by claud39 on Thu May 21, 2020 12:28 pm

Financial and Banking Adviser Professor Abdel-Nafea Al-Zirri for Time: The crisis will last, Iraq’s options are difficult, and the solution will be in an authorized economic council. On a round table
 
April 26, 2020



Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 56.46-388x462
 
The interview was conducted by: Saad Al-Sayegh

April 26, 2020
 
The financial and banking expert, Professor Nafie Al-Zirri, revealed huge economic failures that cannot be covered using   economic patterns And the current management of the current, and that the country needs urgent remedies, including the establishment of a higher economic council on A round table with effective powers and decisions in force, and Al-Zuhri is a banking and financial consultant and an Iraqi professor In banking and finance.

  
He served in Iraqi universities and research centers for three decades  and now works at a Jordanian university until he returns Oil prices will do great harm to economic and financial frameworks in the country with a clear unilateralism in the economy. He added, in an interview with Al-Zaman newspaper in its international edition, that it is The depletion of financial resources will continue in the future, and the economic situation in Iraq will remain unstable, if management changes remain Political, economic and financial The country's cash operates in the same current fashion. 


He called for reducing salaries, especially special grades and excess spending, in the context of measures to be taken to reduce harm On the country.
 
Al-Zirri suggested that the next government would resort to borrowing from the World Bank or the Central Bank in the current period Because there are no options before it, as the current economic and financial policies will put the next government in place In front of this option, which will increase the proportion of the net debt burden on the government, which will bear the results of the citizen in the future . 


The consultant Al-Zirri stressed the necessity of activating and implementing the anti-corruption system and recovering the stolen or possessed funds Certain. In the text of the interview follows : ‭ ‬ 


... Iraq is one of the countries that was greatly affected by the drop in world oil prices due to the Corona pandemic It will stop the commercial, financial and economic movement in Iraq. What is your assessment of that? ...

Iraq received significant revenue from the sale of oil, estimated at more than one trillion dollars, which was not invested in any way A sound economist is accompanied by a decline in the performance of the economy. Rather, financial and administrative corruption and mismanagement have played a role Great in deepening this great burden. The unemployment rate has risen to more than 30% ( and this ratio varies between provinces )On the one hand, and the existence of inflationary pressures, on the other, the most profound economic and social problems, which constitute a challenge Great for comprehensive economic and social development. The Iraqi economy has become among the tough options in fighting unemployment, inflation, administrative and financial corruption. Sagging successive governments and mismanagement at the center and provincial levels, not to mention the failure of industrial production systems Including agricultural and waste in human, natural and financial resources. Therefore, the containment of these repercussions became not an easy or easy matter in the light of quotas and corruption; this requires A true political administration for Iraq is based on wisdom, efficiency, and logic to emerge from this long-running crisis.  Events came recent decline in oil prices due to international political and economic conflicts , including Fsad oil supply;   then followed by the occurrence of the global epidemic ( Corona ) ; led to a decline in global demand for oil On the one hand, with the increase in the conflict, which resulted in an increase in the oil supply, as we indicated, it led to a significant decline Surprisingly, oil prices have resulted in a significant drop in oil revenues Iraq     ( which accounts for about 90 % of its revenues )It has contributed to the deepening of the crisis. This all led to an increase in the public budget deficit, which is estimated at more than sixty billion dollars within the budget 2020 . In addition, there are very modest alternative resources in the contribution of non-oil sectors to GDP And the achievement of financial resources; this puts us at a critical juncture, which will have economic, political and social consequences Do not thank her in Iraq. 


We have become the employees ' salaries close to 4 billion dollars a month; this means that the oil revenues , according to The current prices will cover approximately one third for a period of only three months. Not to mention the dumping of the Iraqi market with goods from various countries of the world, especially the neighboring countries; Almost completely local industrial production with the deterioration of the conditions of the agricultural sector despite the availability of water and fertile land. All of this creates pressure and drain on the hard currency reserve.


The bottom line . Iraq will suffer from a host of problems and challenges, and it will swirl in a whirlpool, which is held hostage by chaos, corruption and misfortune Financial, economic, and even political management, under successive flaccid and weak government administration.


... Designated Prime Minister Mustafa Al-Kazemi faces a major economic crisis that will limit his ability to implement his government program for a while He assumed the premiership. What is the way to face this crisis? ...


He will face the next prime minister - designate ( Mustafa Kazmi ) several crises , real deep; deepened Its roots during the past few years, including a major economic and financial crisis in addition to the unemployment and inflation crisis Recession, where unemployment will remain an imbalance in the human security system in Iraq in light of the increasing population Poor economic and financial planning and rentier economy remained the only provider Not more than 1% of available employment. 


  Since the Iraqi economy is the yield economy , which depends on oil revenues, making fiscal ( especially spending power )Highly affected by the decline in current oil prices, which will affect spending on development projects.


This oil shock will affect the structure of public expenditures, and above all, investment expenditures in a way Deep and clear, which will deepen the economic recession and unemployment and constitute an economic and social instability in addition to the existence Political chaos originally. 


It will also adversely affect current expenditures, but its relative importance will remain very high by comparison With investment expenditures; for this reason, the depletion of financial resources will continue in the future and the economic situation in Iraq will remain unclear Stable, if the   state's political, economic, financial and monetary management variables remain operating in the same current pattern.


... In the budget 2020 prepared by the government of Abdul - Mahdi article before falling oil prices and the fiscal deficit is estimated at 40 billion. What will be the next mechanism that will be followed by the Al-Kazemi government? ...


Iraq has many economic non - oil resources (natural, human and financial ) if It exploited efficiently ( as the efficiency of government management of the economy   appear under the scarcity of resources )  Where the government can work to activate and develop non-oil income sources and find hedging means from This would make public revenues safer, more stable and more independent than unilateral domination of state treasury resources.


 Activating the development of the agricultural sector, both plant and animal, with interest and focus on manufacturing industries in small industries Medium and even large and the adoption of a policy of import substitution in the current and upcoming period; would stimulate development and creates significant financial resources to the state treasury ( that successive governments have neglected the supply side , a production and investment )As well as interest in the tourism sector. The next government should set a future hedging policy that will address future imbalances in the nation's public resources. It also requires the rehabilitation of projects and companies that existed and neglected ( due to war conditions ) Which depends on the available local raw materials, which must be supported in order to enhance local production to meet the demand The market while reducing the dependence on the importer; rather, developing a strategy for future export purposes for these commodities Where its raw materials are available in Iraq.   It also requires reduction of current expenditures ( special grades and salaries Rafha salaries )As well as travel and Alaivadat administrative expenses and expenses ( rationalization of public expenditures ) down to the optimal use Available financial resources.   It also requires activating the general economic policies in order not to leave the burden of confrontation only on fiscal policy. Here, the private sector must be supported and investment opportunities stimulated to become an active participant in building development projects Economic support and providing all means of support for it; this should be in line with the restructuring of the body’s work National investment and its mechanisms of work, with its leadership assuming skilled economists who are competent and experienced in investment management.


... Will the next government resort to borrowing from the World Bank to meet its need for salary insurance and card voucher insurance? Supply and general services. What is the alternative to borrowing from the World Bank? ...


Yes, the next government will resort to borrowing from the World Bank or the Central Bank in the current period, because it is There are no options before it, as the current economic and financial policies will put Al-Kazemi’s government in front of this option Which will increase the proportion of the net debt burden on the government, which will bear the results of the citizen in the future. Here, I stress the necessity of activating and implementing the anti-corruption system and recovering the stolen or possessed property of certain entities . ‭ ‬ 


... The Central Bank of Iraq is managed by more than one political party, and the bank is subject to partisan quotas and imposition of ill-considered mechanisms In buying and selling hard currency, and this led to the bank not keeping a balance allocated to meet the emergency conditions ? ...

I have raised many issues about the independence of the Central Bank of Iraq and the role and function of the reserve on the one hand and financing the budget deficit The public on the other hand. This issue is one of the most contentious issues in the sense of removing influences or interventions from monetary policy decisions And fiduciary. 



It is necessary to make monetary policy and central bank measures even independent of fiscal policy.


... How is it going? ...


To be under the influence of the pressure of the blocs and parties that are in fact the executive branch, especially when the government is Weak; therefore, the factors affecting the independence of the central bank, which is the backbone of the system, must be identified Iraqi banker.


 The existing problem is the immaturity of relations between legislative and economic indicators on the one hand and the independence of the Central Bank of On the other hand, and therefore the need to address it. The appointment and dismissal of the governor and members of the council is by a decision of the government that implements its policies according to the pressure of the blocs and parties Influential. 


The independence of the central bank is the independence of the administration and its ability to set monetary policy goals away from political pressure Partisan and sectarian interests and their external links. 


[size=24]The problems of the Central Bank of Iraq began with the government when the government requested funds from the bank's reserves; the former governor of the Central Bank   ( Shabib ) , who resigned this was rejected as rejected style Auctions on the dollar and the influence of floating commercial banks from well-known political parties,which has led to pressures on it To his resignation. 

[/size]
One of the documented studies on the independence of the Central Bank of Iraq shows that there is a weakness in the degree of independence, especially Appointing and dismissing the governor and the council. 


This indicates the presence of negative effects in the index of appointing and dismissing the governor and members of the council, as well as what is related to drawing And formulating monetary and credit policies, especially the policy related to currency auctions, and as a result of the current circumstances and restricting hard currency due to The decline in oil revenues from the dollar; the sale of the currency must be limited to both Rafidain Bank And the rational; and that commercial banks can take their share of these Banks in proportion to the volume of trade transactions.   

The fixed exchange rate system ( approved realistically by the Central Bank )It was in the interests of the heavily influential private commercial banks and helped to foreign exchange the hard currency and in favor of certain parties ( the activities of the hidden economy and state deep ) .



 The monetary policy adopted by the Central Bank of Iraq by selling the dollar in daily auctions on the pretext of valuable support The Iraqi dinar is an old traditional policy that is not fooled by professionals.

The dinar values of support and stability of its value is achieved through the creation of a local commodity and service expenses to the market ( ie activation and support for the industrial sector and agricultural production ). 

... Where is the central role through its policies to support these sectors to create stability in the value of the Iraqi dinar? ...




The dollar amount sold has remarkably increased by more than 400% .   And documented studies have also proven that the continuing differences between the parties and the political blocs influencing their interests and implementation Certain agendas negatively reflected on this phenomenon. Therefore, I think it is necessary to stop dollar sales through the auction due to the decline in oil revenues from the dollar It is not logical to increase oil sales, decrease the proceeds of the dollar sale on the one hand, and keep the auction on Currency in this way that leads to depleting reserves of hard currencies. 


... Iraq lacks an integrated economic and financial council of expertise, competence, and integrity to develop economic policies to counter crises Future and avoid fiscal deficit. What is your assessment; and what are your proposals to get out of the crisis, in the absence of specialized economic and financial personalities? To develop an integrated economic and financial strategy? ... 

Certainly, the presence of an integrated economic and financial council of specialists with competence and experience is important for formulating strategies and setting The procedures to achieve this goal, provided that this council is in accordance with the round table until it is Each member has an active role in discussions and expressing opinions in order to diagnose problems and obstacles with full transparency Place and place the procedures subject to implementation and follow up and monitor their implementation




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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Re: Follow-up cell: The government may resort to borrowing and printing currency to provide salaries

Post by Jayzze on Fri May 22, 2020 8:00 am

if they are so broke as they claim how can they pay for the printing of new money number one and number two this takes time as iraq tanks unless they do something elsee
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