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Investment and exchange rate
Economical 03/04/2024
Muhammad Sharif Abu Maysam
Among the most important elements of investment is the state of exchange rate stability, and
stability means the stability of the price in foreign exchange exchanges and trades with the national currency, and
this stability is extremely important in a business environment that attracts foreign investment and a basic goal among the goals of monetary policy, as it constitutes
Monetary stability is an important element in the calculations of feasibility studies, especially for foreign capital, as
feasibility studies for projects financed by foreign investment cannot be completed without financial stability, because
financial feasibility takes into account the stability of the exchange rate and the margins of change in this price during the project establishment period and the operating period, and those in charge of it seek
The financial feasibility study involves knowing the margins of change in the exchange rate to determine the final exchange rate during the life of the project, with the aim of arriving at perceptions of the equation of construction and operating costs and revenues with the surplus value and then making the appropriate decision regarding investment or not.
On this basis, promising investment environments cannot be considered attractive unless
monetary stability is achieved alongside security stability and the presence of an
effective executive apparatus with an integrated legal system that fights corruption,
contributes to protecting the investor and local production, and
puts an end to commodity dumping in a business environment in which the infrastructure is integrated.
It is certain that the state of monetary stability in light of the digital transformation of banking tools, exchanges, and financial transactions requires great effort and work, and requires sufficient time to complete these transformations in the episodes related to trading, most notably the mechanisms of the commercial system, including the financial transfer mechanisms for compliance with the anti-money laundering law and financing... Terrorism No. 39 of 2015 and
the application of international standards and instructions related to the integrity of the financial system mitigate the risks of this phenomenon in light of the many obstacles that still constitute the largest barrier to the lack of transparency and integrity of financial operations.
The continued state of inconsistency between the application of rules and standards in the external transfer process and
its consequences as a result of the growth of the black market and the difference between the official exchange rate and the selling prices of imported goods according to the market movement,
in addition to the sale of the dollar in various forms, will contribute to a state of monetary instability and the continued growth of black market parasites
in addition to the growth Capitals benefiting from the difference in the official exchange rate and the prices that fluctuate daily depending on the movement of the black market.
Therefore, the factors that will result from these disturbances that drive away investment constitute a danger that is no less harmful than the danger of rising prices of goods and services, if not more harmful due to the continued need of the business environment for investment and the revitalization of the role of the private sector.
https://alsabaah.iq/92803-.html
Economical 03/04/2024
Muhammad Sharif Abu Maysam
Among the most important elements of investment is the state of exchange rate stability, and
stability means the stability of the price in foreign exchange exchanges and trades with the national currency, and
this stability is extremely important in a business environment that attracts foreign investment and a basic goal among the goals of monetary policy, as it constitutes
Monetary stability is an important element in the calculations of feasibility studies, especially for foreign capital, as
feasibility studies for projects financed by foreign investment cannot be completed without financial stability, because
financial feasibility takes into account the stability of the exchange rate and the margins of change in this price during the project establishment period and the operating period, and those in charge of it seek
The financial feasibility study involves knowing the margins of change in the exchange rate to determine the final exchange rate during the life of the project, with the aim of arriving at perceptions of the equation of construction and operating costs and revenues with the surplus value and then making the appropriate decision regarding investment or not.
On this basis, promising investment environments cannot be considered attractive unless
monetary stability is achieved alongside security stability and the presence of an
effective executive apparatus with an integrated legal system that fights corruption,
contributes to protecting the investor and local production, and
puts an end to commodity dumping in a business environment in which the infrastructure is integrated.
It is certain that the state of monetary stability in light of the digital transformation of banking tools, exchanges, and financial transactions requires great effort and work, and requires sufficient time to complete these transformations in the episodes related to trading, most notably the mechanisms of the commercial system, including the financial transfer mechanisms for compliance with the anti-money laundering law and financing... Terrorism No. 39 of 2015 and
the application of international standards and instructions related to the integrity of the financial system mitigate the risks of this phenomenon in light of the many obstacles that still constitute the largest barrier to the lack of transparency and integrity of financial operations.
The continued state of inconsistency between the application of rules and standards in the external transfer process and
its consequences as a result of the growth of the black market and the difference between the official exchange rate and the selling prices of imported goods according to the market movement,
in addition to the sale of the dollar in various forms, will contribute to a state of monetary instability and the continued growth of black market parasites
in addition to the growth Capitals benefiting from the difference in the official exchange rate and the prices that fluctuate daily depending on the movement of the black market.
Therefore, the factors that will result from these disturbances that drive away investment constitute a danger that is no less harmful than the danger of rising prices of goods and services, if not more harmful due to the continued need of the business environment for investment and the revitalization of the role of the private sector.
https://alsabaah.iq/92803-.html
