TNT – “Tidbits From TNT” Friday Morning 5-3-2024


Tishwash:  Specialist: Floating the dinar is economic suicide

Economist Muhammad Hashem Helou confirmed that the central bank cannot float the dinar exchange rate.

Helu said, “The Central Bank of Iraq cannot think about floating the exchange rate because it will abandon its only influential tool in light of the weakness and disruption of other economic tools.”

He added that the exchange rate is the nominal stabilizer of monetary policy in Iraq, and thinking about abandoning it is economic suicide, and the bank cannot even think about that.

He continued, adding that floating the exchange rate in the presence of a parallel market and large speculators, and the presence of people who own billions of dinars and others who own billions of dollars, will lead to a sharp decline in the value of the currency, high levels of inflation, and rising prices  link

Tishwash:  Economic: The fixed dollar exchange rate depletes Iraq’s foreign currency reserves

Economist Manar Al-Obaidi confirmed that the fixed dollar exchange rate adopted by Iraq depletes the country’s foreign currency reserves.

Al-Obaidi said, “The only thing that is completely under the control of the Iraqi state is the exchange rate, which forcefully drains all foreign reserves to maintain an imaginary fixed price that traders benefit from to increase their profit margin.”

He added, “I never called for following a free-float policy. Rather, I called for a start to follow a compensation policy managed with a small volatility factor and gradually work to increase it until complete liberalization is reached.”

He continued, “The alternative to maintaining the fixed exchange rate is to continue depleting the reserves until they run out and the oil market is exposed to very expected future fluctuations. Then, will we be forced, not given the choice, to an absolute floatation of the currency or a shocking reduction in the exchange rate, as happened in 2020, and then the risks will be greater and greater   link


Tishwash:  Al-Sudani: There is no alternative to upholding the state’s word, protecting the constitution, and enforcing the law in Iraq

 Prime Minister Muhammad Shiaa Al-Sudani stressed, on Friday, the necessity of what he called “upholding the word of the state, protecting the constitution, and enforcing the law” in Iraq.

This came in a speech he delivered during the celebration held today in the capital, Baghdad, on the occasion of the anniversary of the founding of the Asaib Ahl al-Haq movement.

Al-Sudani said in the speech, “The government is moving, supported by broad parliamentary and popular will, towards achieving sustainable development.”

He added, “Our country is moving today to the stage of production, building infrastructure, stimulating the economy, creating job opportunities, confronting challenges, and consolidating sovereignty.”

Al-Sudani also stressed that “we all bear the task of enforcing the law, and building the edifice of justice, equality, and institutional stability,” stressing that “there is no alternative to upholding the word of the state, protecting the constitution, and enforcing the law in the country.”    link


Tishwash:  In Financial Inclusion Week, Al-Rafidain encourages the use of electronic payment in citizens’ transactions

Rafidain Bank participated in the activities of the Financial Inclusion Week in the presence of a wide range of financial and banking institutions.

During the participation of its special pavilion in commercial centers, gatherings and other places, the bank reviewed its services and products, including opening bank accounts, adopting electronic payment and collection, encouraging the use of electronic cards to reduce cash transactions, and introducing the importance of citizens saving their money in the bank instead of hoarding it at home. 

In addition to the presence of a specialized team to answer citizens’ inquiries about other services.

Participation aims to educate the public about the importance of financial inclusion and the spread of banking culture to the furthest reaches of the country to include all segments of society.   link