Dr.. The appearance of Muhammad Salih *: A testimony of history on the issue of raising the value of the Iraqi dinar in the year 2006-2008, as revealed by Professor Muhammad Allawi in his last lecture in Washington
► Banknotes in monetary policy
Dr. Masher Mohammed Saleh:* A certificate for Tari X on the subject
The value of the Iraqi dinar increased in 2006-2008, as
It was revealed by Professor Mohammed Alaoui, who has been in the best of his way.
1. I would like to note that the Paris Club Agreement signed on November 21, 2004, which dropped 80% of Iraq's total debt, which was incurred before 1990, estimated at around 128 billion douals (which was led by Mr. Adel Abdul Mahdi) (Until the day of its signing, Dr. Sinan Al-Shabibi, Professor Aziz Jaafar and I personally and a number of others, Iraq committed to historical stages of debt write-off before the end of the period of the next six years, provided that a corrective programme is signed with the International Monetary Fund.
It dropped 30% of Iraq's debt immediately after the signing of the Paris Club Agreement in 2004 and another 30% was written off as soon as Iraq signed it. SBA credit agreement with the International Monetary Fund (IMF) which took place in the best month of 2005 to be 20% write-off when Iraq succeeds in implementing its agreement with the Fund at the end of 2008 to have a total outstanding debt of 80%
2. In the first consultations held in Amman with the INTERNATIONAL Monetary Fund, the annual inflation at that time was more than 20%,
and the economic model adopted by the IMF in implementing its program with Iraq has required the reduction of inflation to one decimal level to about 6% and that this reduction needs to be approved nominally fixed for The Iraqi dinar increases the external value of the nominal anchor, which is the gradual increase of the exchange rate of the Iraqi dinar by about 20% over the years of the program,
as well as raising the internal value of the Iraqi dinar, i.e. the interest rate by adopting the interest rate of the monetary policy, which is loaned and borrowed by the Central Bank of local banks,
including In both cases, the Central Bank was forced to adopt a deflationary monetary policy called tighten policy and as a witness to the history of the modern era,
and in a closed meeting that included the head of the Iraqi mission in the International Monetary Fund, Mr. Minister of Finance and Mr. Aziz Jaafar, in my personal presence, asked the head of the mission, explaining that the conduct of this special program requires preconditions for accepting the adjustment of the value of the internal dinar and foreign exchange rate.
Dr. Sinan categorically refused to adopt such a restrictive monetary policy (a policy that runs counter to the payment of development after Dr. Sinan spent 20 years in Unctad, a development organization that intersects ideologically with the IMF Foundation).
Iraq's re-loading of debt before 1990 with its continued delayed interest, which is the product of the former regime, makes the damage Bigger.
So everyone was forced to accept the reality of improving the exchange rate of the dinar
At the end of the program at the end of 2008, it reached 1,182 dinars against the Doler, up from 1,560 dinars per doler at the end of 2005.
3. The problem in my estimation is not only to raise the value of the dinar at the time, despite the decrease in annual inflation from 22% to 6% within the phenomenon of disinflation, i.e. low or decreasing increases in the general level of prices at that time,
but the biggest problem remained in the rise in the number of government workers to five times today compared to the year 2003 And the increase in the value of government wages 7 times, which made the average salary of a government employee equivalent to nearly twice the per capita gdp of aesthetic, which added double benefits to the government job,
the first came from monetary policy and exchange rate stability and the second from high wages and salaries
In the meantime, the bank interest on the savings of those who have savings increases. In addition, the increase in allocations in government salaries (which make up 66 per cent of the salary components today) has been exempted from income taxes and by a government decision in 2009 to date.
Baghdad on December 14, 2019
(**) Video link of Mohamed Alawi lecture
(*) Iraqi academic researcher and writer
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