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 * * 1. I would like to mention that the Paris Club Agreement signed on November 4, 2011, which dropped 80% of the total debt of Iraq, which was arranged before 1990. ۰ and was estimated at about 128 billion dollars at the time (which was led by Mr. Adel Abdul-Mahdi) and participated in it until the day it was signed by Dr. Sinan al-Shabibi And Mr. Aziz Jaafar, myself and a number of women, committed Iraq to historical stages for writing off debts before the expiry of the next 6-year grace period provided that a corrective program is signed with the International Monetary Fund. As I canceled 30% of Iraq’s debt immediately after signing the Paris Club agreement in 2004, and another 30% struck as soon as Iraq signed the SBA Credit Readiness Agreement with the International Monetary Fund that was signed in the last month of the year 2005 to be completed
Monetary policy papers write off another 20% when Iraq succeeded in implementing its agreement with the fund at the end of the year, so that the total debt written off amounted to 80% 2. In the first consultations that took place in Amman (Oman) with the International Monetary Fund, annual inflation was at that time more than 20%, and the economic model adopted by the Fund in implementing its program with Iraq has required reducing inflation to one decimal place to become about 6%, and this reduction needs to have a nominal fixed approval The Iraqi dinar increases the external value of the nominal anchor, which is the gradual increase of the Iraqi dinar exchange rate by about 20% over the years of the program, as well as raising the internal value of the Iraqi dinar, that is, the interest rate by adopting the monetary policy interest rate that the central bank lends and borrows with local banks by at least 20% This is to address the forces generating inflationary expectations, which specifically mean the importing forces. In both cases, the Central Bank was forced to follow a deflationary monetary policy to reduce inflation, called it tighten policy, and as a witness to the history of events, and in a closed meeting that included the head of the Iraq mission at the International Monetary Fund and Mr. Minister of Finance and Mr. Aziz Jaafar In my presence personally, the head of the mission asked, explaining that the conduct of that international program required preconditions, namely the acceptance of the amendment of the value of the internal and external Iraqi dinar for the interest rate exchange assistant.
Mutaqq meeting, deaf president of Baal Iraq in the International Monetary Fund and Mr. Finance Minister and Mr. Aziz Jaafar, in person in my presence, the head of the mission asked, explaining that the progress in that international program required pre-conditions, namely acceptance of adjusting the value of the internal and external Iraqi dinar, i.e. interest rates and the exchange rate. Dr. Sinan has categorically refused to adopt such a restrictive monetary policy (a policy inconsistent with advancing development after Dr. Sinan spent a year in UNCTAD and is one of the development organizations that ideologically intersect with the International Monetary Fund). Dr. Sinan left the meeting and left, saying, with the text: I will not accept With such oppressive conditions for development, I had to talk to him to return to the closed meeting because the head of the Fund’s delegation indicated that the program should be stopped with them and then the Paris Club agreement should be stopped! And to re-load Iraq’s debts before 1990 while continuing to delay benefits that are the product of the previous regime, making the damage even greater. So everyone had to accept the fait accompli in improving the exchange rate of the dinar,
To reach at the end of the program at the end of 2008 by about 1182 dinars against the dollar, after it was 1560 dinars per dollar at the end of the year 2005. 3. The problem in my estimation is not only to raise the value of the dinar at the time, despite the annual inflation decrease from 22% to 6% within the phenomenon of disinflation, that is, to have low or decreasing increases in the general level of prices at the time, but the biggest problem has remained in increasing the number of government workers to five times today compared to In the year 2003 and the increase in the value of government wages 7 times, which made the average government employee’s salary equal to approximately twice per capita gross domestic product, which added double benefits to the first government job that came from monetary policy and exchange rate stability and the second from higher wages and salaries as well as high Banking interest on the savings of the savings available to him. In addition, the increase in the allowances in government salaries, which constitute 66% of the salary components today, have been exempted (those allocations) from income taxes and by a government decision in the year 2009 until today.
To reach at the end of the program at the end of 2008 by about 1182 dinars against the dollar, after it was 1560 dinars per dollar at the end of the year 2005. 3. The problem in my estimation is not only to raise the value of the dinar at the time, despite the annual inflation decrease from 22% to 6% within the phenomenon of disinflation, that is, to have low or decreasing increases in the general level of prices at the time, but the biggest problem has remained in increasing the number of government workers to five times today compared to In the year 2003 and the increase in the value of government wages 7 times, which made the average government employee’s salary equal to approximately twice per capita gross domestic product, which added double benefits to the first government job that came from monetary policy and exchange rate stability and the second from higher wages and salaries as well as high Banking interest on the savings of the savings available to him. In addition, the increase in the allowances in government salaries, which constitute 66% of the salary components today, have been exempted (those allocations) from income taxes and by a government decision in the year 2009 until today.