Iraq Economic News and Points to Ponder Wednesday Evening 10-18-23
Tlm724 Administrator Bondlady’s Corner
The Dollar Crisis In Iraq… “Poor” Government Measures And “Psychological Anxiety” Afflict Citizens
Economy |Today, 20:57 |Baghdad today – Baghdad There are many measures that the government has taken in order to control the price of the dollar, but day after day it proves its failure to control it, which reflects negatively on the lives of citizens day after day because it is closely linked to their trade and their ability to purchase consumer goods.
The Dollar Is On The Minds Of Iraqis
Professor of Psychology, Ali Al-Zubaidi, confirmed in an interview with “Baghdad Today” today, Wednesday (October 18, 2023), that “the dollar occupies 30% of Iraqis’ minds 24 hours a day.”
Al-Zubaidi adds, “The dollar, for several reasons, has become the compass of market movement in Iraq, and any rise or fall leads to impacts, some of which are harsh on millions of simple people and those with limited income because of its direct impact in determining the compass of prices up and down, and is accompanied by speculation and the attempt of some to create any crises to earn more money.””. He confirms,
“The dollar occupies the minds of Iraqis by 30% 24 hours a day, and the percentages rise, especially for professions directly related to the currency market, and large losses may lead to a psychological state that sometimes leads to suicide.”
The Dollar Crisis “Worries” The Poor
Al-Zubaidi pointed out that “even simple people, the dollar has become a source of concern for them because it leads to an increase in financial burdens by raising the prices of basic materials and medicines.” He continued,
“The salaries of state employees lost 25-30% of their value after the price of the dollar was 125 thousand dinars per 100 dollars, and
now the barrier of 160 thousand dinars per 100% has been broken, meaning that
their salaries have weakened and they must pay a higher price to purchase materials,” adding:
“The dollar crisis creates varying psychological states resulting from overthinking, but it does not lead to chronic diseases.”
High Dollar Contributions
Last Saturday (October 14, 2023), economic expert Farman Hussein confirmed that
transfer cards and Western Union contributed to the smuggling of millions of dollars abroad, considering that the
Association of Private Banks is responsible for the rise in dollar exchange rates for the benefit of the private banks affiliated with it. Hussein said in an interview with “Baghdad Today” that
“millions of dollars were smuggled out of Iraq, especially the Emirates and Turkey, and
contributed to the wealth of hundreds of merchants, money changers and private banks.” He added,
“The Association of Banks is the first and last responsible for the dollar crisis, and
it is the one who created the large difference in the official and parallel rates with the aim of achieving benefit for banks and private companies.”
The dollar exchange rate has witnessed a noticeable increase in recent days, exceeding the barrier of 160 thousand dinars per 100 dollars,
while the Central Bank is taking many measures and decisions to prevent the circulation of the dollar in local markets above the official price (1320), but to no avail, despite the fact that the dollar is its only source.
The Central Bank, although those who take the dollar, namely private banks and exchange companies, are known to it,
but it is unable to control them and oblige them not to leak dollars through fake transfers, according to observers.
Rafidain Bank Announces A Noticeable Increase In The Number Of Bank Accounts During The Current Year
18/10/2023 192 views Rafidain Bank announced today, Wednesday, that it has achieved clear growth in the number of bank accounts opened during the current year, indicating that
this growth reflects its success in enhancing public confidence and achieving its goals in promoting the principle of financial inclusion in accordance with the strategy of the Central Bank of Iraq.
The bank explained in a statement, a copy of which NRT Arabia received, that
it “witnessed a remarkable development in the number of its customers, which contributed to increasing the number of bank accounts opened during the current year,” pointing out that
“based on official statistics, the number of bank accounts opened reached 36,694.”
A diverse bank account, including savings, current, and fixed deposit accounts,during the period from
January 1, 2023 until September 30, 2023. He pointed out that “this major shift in the increase in accounts reflects his efforts to enhance the principle of financial inclusion and increase confidence between the citizen and the banking sector,” praising “the positive impact of this growth on the increase in the volume of deposits and the ability of the banking sector to finance projects in the country.”
He noted that “simplifying its procedures and expanding, developing and diversifying its banking services has contributed to facilitating the procedures for opening bank accounts, which has given impetus to increasing accounts and expanding the scope of financial inclusion.”
https://www.nrttv.com/ar/detail3/16289
Al-Kadhimi: The Decision To Increase The Interest Rate Will Activate The Banking System Inside Iraq
Information / Baghdad.. Today, Tuesday, the Parliamentary Finance Committee considered the
decision of the Central Bank of Iraq to raise the interest rate for bank depositors as a correct direction towards revitalizing and organizing the banking system.
A member of the Finance Committee, Moeen Al-Kadhimi, said in a statement to Al-Maalomah, “The
Central Bank’s decision to increase the interest rate falls within banking reform measures and in
implementation of Prime Minister Muhammad Shia’a Al-Sudani’s directive to move towards organizing and revitalizing the banking system in Iraq.”
He added, “The decision to raise the interest rate will certainly encourage citizens to deposit in banks, which will stimulate financial movement and turn to investment projects, in addition to its positive repercussions by reducing the exchange rate of the dollar against the Iraqi dinar.”
Al-Kadhimi pointed out that “the Central Bank of Iraq is moving towards real automation in financial transactions inside Iraq.”
Yesterday, Monday, during the 31st session of the Ministerial Council for the Economy, the Governor of the Central Bank of Iraq, Ali Al-Alaq, announced raising the interest rate for amounts deposited in banks to 7.5% to encourage citizens to deposit their amounts in banks, and to withdraw the cash mass outside the banks. Ended / 25 AD
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Points to Ponder on FEAR:
- Fear isn’t so difficult to understand. After all, weren’t we all frightened as children? Nothing has changed since Little Red Riding Hood faced the big bad wolf. ~ Alfred Hitchcock
38. The cave you fear to enter holds the treasure you seek. ~ Joseph Campbell
39. Fear is a manipulative emotion that can trick us into living a boring life. ~ Donald Miller
40. It’s all right to be afraid. You just don’t let it stop you from doing your job. ~ Jim Butcher
42. It frightens me, the awful truth, of how sweet life can be. ~ Bob Dylan
43. Power is of two kinds. One is obtained by the fear of punishment and the other by acts of love. Power based on love is a thousand times more effective and permanent then the one derived from fear of punishment. ~ Mahatma Gandhi
44. Power does not corrupt. Fear corrupts… perhaps the fear of a loss of power. ~ John Steinbec
45. A kind of light spread out from her. And everything changed color. And the world opened out. And a day was good to awaken to. And there were no limits to anything. And the people of the world were good and handsome. And I was not afraid any more. ~ John Steinbeck
46. When we think we have been hurt by someone in the past, we build up defenses to protect ourselves from being hurt in the future. So the fearful past causes a fearful future and the past and future become one. ~ Alfred Hitchcock