Iraqi News Highlights and Points to Ponder Monday AM 4-29-24

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Iraqi News Highlights and Points to Ponder Monday AM 4-29-24

To Address The Dollar Exchange Rate… Mazhar Muhammad Explains To Al-Zawraa The Dangers Of Floating The Iraqi Dinar

Posted On04-28-2024 By Sotaliraq  04/27/2024   Mustafa Falih:   The government’s financial advisor, Mazhar Muhammad Saleh, explained the dangers of the economic vision that wants to float the Iraqi dinar as a solution to address the double dollar exchange rate, while Provide an alternative economic vision.

Saleh said in an interview with “Al-Zawraa”: “The economic vision that wants to float the Iraqi dinar to end the gap between the official rate and the exchange rate parallel to it may be possible in an economy in which the free market is the only one influencing the movement of the balance of payments and not in an economy in which the government sector is dominant and rentier-generating.”

Reserves supporting foreign currency, in which the monetary authority is the main source of supply of foreign currency and meeting the desired demand for foreign exchange.”

He added, “Claims (for floating) mean in all cases adopting the prevailing exchange rate in the parallel market to achieve the goal of stability and balance in the official exchange rate itself at a new exchange point that the market will reach at the end of the supposed floating policy and return to stability again.”

He pointed out that “the scenario of demands for floating means, in all cases, the withdrawal of the monetary authority (as a primary central exhibitor) of foreign currency, and is replaced by new forces that exhibit foreign currency from free market makers, which certainly only have a weak, limited supply of foreign exchange, and at the same time they carry… An uncontrolled bundle of inflationary expectations is called the forces generating inflationary expectations.”

He explained that “the new hypothetical supply forces for foreign exchange adopted by the exchange market in that scenario will mean the dominance of supply forces from speculators with very limited quantities of foreign exchange available for supply in the parallel market, matched by an open demand for foreign currency on the part of the market that undoubtedly exceeds that limited parallel supply.” of foreign exchange, perhaps at least more than ten times.”

He stressed that “such a policy of floating to achieve a homogeneous equilibrium exchange rate will be an open and perhaps (unruly) situation as long as the central government supply of foreign currency will be absent from the market,

and we will not then obtain any equilibrium point in the exchange rate that the float seeks except with a widespread deterioration of the exchange rate as long as It is controlled by forces that generate inflationary expectations,

and it is an exchange rate whose mechanisms will move in a market that is incomplete in terms of productivity to compensate for the required supply of goods and services,” adding,

“Then no one knows how much the new price resulting from (floating) will be, which will undoubtedly be accompanied by a prior wave of expectations.”

Inflation is a dangerous wave whose trends are difficult to control, which may force monetary policy to intervene with excessive foreign reserves and unjustified extravagance in foreign exchange to impose a state of stability in the general level of prices.”

He noted that “the difference in the two prices did not come due to the limited supply of foreign exchange at the monetary authority, but rather came as a result of a sudden external factor imposed by the compliance platform and administrative audit restrictions on external transfer movements.”

He explained that “the alternative solution to the flotation scenario, which is a scene surrounded by inflationary risks in mono-economy countries, is to resort to reducing the exchange rate to create harmony in the exchange market.

It is possible to go to amending the customs tax schedules and imposing customs discipline with precise, studied conditions that protect the national economy, and here it depends.”

 To financial policy instead of the ease of delving into and risking the principles of stability in monetary policy to provide the required price homogeneity in exchange rates.”

He pointed out, “The high operating spending in the annual public budgets, which has always generated cash income from rentier sources that are not matched by the very limited productivity of commodity and service flows, has made the country essentially dependent on large-scale imported consumer goods, which requires a higher examination in Import policies inherited over the past twenty years.” LINK

A Sudanese Advisor Reveals The Reasons For The Decline Of The Dollar And Its Proximity To The Official Price

Time: 04/28/2024 19:11:58   Read: 4,134 times  {Economic: Al-Furat News} The financial and economic advisor to the Prime Minister, Muhammad Mazhar Saleh, revealed today, Sunday, the reasons for the dollar’s ​​decline and its proximity to the official price.

 Saleh said {to Al-Furat News} that: “The exchange market achieved a decline in dollar prices during the past six weeks with a rate of change in favor of the Iraqi dinar approaching 9%, and that all of these positive developments work in the interest of the strength and stability of the Iraqi dinar and this reflects positively on the general level of prices, which is still… It indicates annual growth that does not exceed 4% and is measured periodically.”

He added, “The efforts of economic policy have truly combined to impose a climate of stability in the general level of prices, which was indicated by the state of superiority of the official exchange market in financing Iraq’s foreign trade in the face of the decline in the effects of the parallel market and the decline of its illegal activities in a gradual and accelerating manner now.”

Saleh pointed out “a number of factors that contributed to this positive development in the exchange rate of the Iraqi dinar, as at the forefront of those factors comes the increased capabilities of operating banks to comply with external transfer rules and the high percentage of requests requested and executed in foreign currency by the private commercial sector to finance trade.”

 External transfer accounts for approximately 85% of the total requests from official transfer outlets.

He continued, “It is now being implemented with great speed and efficiency, compared to the previous period, which did not exceed 30% of the total desired demand for foreign currency, which then caused great pressure on the parallel exchange market, which means that the foreign currency window has now begun to meet most of the demands.

” The base is based on the desired dollar, at an official exchange rate of 1,320 dinars per dollar, with high flexibility and compliance, instead of illegally resorting to financing foreign trade using parallel market methods with high risks.”

Saleh added, “Also, the growing strength of Iraq’s foreign reserves, which exceeded 110 billion dollars, and at the same time indicates the high standard of Iraq’s commercial efficiency, which exceeds {eighteen months of imports} compared to the global standard of {three months of imports}.”

In light of the above, the Sudanese advisor affirmed, saying, “The stability of external transfer operations at this level of growth and improvement will undoubtedly provide sustainability in the state of stability in the exchange market, which will undoubtedly make the parallel exchange market approach the official market.”

Today, Sunday, dollar prices recorded a decline with the closure of the main Kifah and Harthiya stock exchanges in Baghdad, recording 145,200 Iraqi dinars against 100 dollars, while dollar prices recorded this morning 145,700 Iraqi dinars against 100 dollars.   From: Raghad Dahham   LINK

For The Second Day In A Row…A Noticeable Decline In Dollar Exchange Rates In Baghdad

Economy |Baghdad today – Baghdad  Today, Monday (April 29, 2024), the exchange rates of the dollar against the dinar recorded a noticeable decline in local markets in the capital, Baghdad.

The “Baghdad Today” correspondent said, “The selling price of the dollar today, in the banking offices in Baghdad, reached 145,750 dinars for every 100 dollars.”

While “the purchase price reached 143,750 dinars for every 100 dollars.”    LINK

A Final Suspension Of Cash Payments At The Nationality And Passports Departments

04-29-2024 | 3,030 views  Al-Sumaria News – Local Affairs   The Directorate of Civil Status, Passports and Residence announced today, Monday, the complete suspension of cash payments, and limited to electronic payments, starting next May 1.

The directorate said in a statement received by Al-Sumaria News, that it would like to “notify that it has completely stopped working with the electronic payment system only and stopped receiving cash payments permanently.”

She explained, “This decision will be effective from 5/1/2024, noting that the directorate’s departments are fully equipped with electronic payment devices, and this step comes to keep pace with development and facilitate procedures for honorable citizens.”   LINK

Civil Status: Cash Payment Will Be Permanently Stopped At The Nationality And Passports Departments

 April 29, 2024  The Directorate of Civil Status, Passports and Residence announced, on Monday, the complete cessation of cash payments, and limiting them to electronic payments, starting next May 1.

The Directorate stated in a statement that it would like to “advise the complete operation of the electronic payment system (pos) only and to stop receiving cash payments permanently.”

She explained, “This decision will be effective from May 1, 2024, noting that the directorate’s departments are fully equipped with electronic payment devices, and this step comes to keep pace with development and facilitate procedures for honorable citizens.”   LINK

Provoking Points To Ponder on Failures and Mistakes:

Half the things that people do not succeed in are through fear of making the attempt.- James Northcote

The man who fails because he aims astray, or because he does not aim at all, is to be found everywhere.- Frank Swinnerton

Half the failures in life come from pulling one’s horse in when he is leaping.- A. W. Hare

I cannot give you the formula for success, but I can give you the formula for failure: try to please everybody.- Herbert Bayard Swope

If your project doesn’t work, look for the part that you didn’t think was important.- Arther Bloch

Ninety-nine percent of the failures come from people who have the habit of making excuses.- George Washington Carver

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