Iraq News Highlights and Points To Ponder Wednesday Evening 7-31-24
A Parliamentarian Reveals Gold Smuggling In An “Innovative” Way.. What Is Its Relation To The Rise Of The Dollar?
Economy News – Baghdad Member of Parliament, Alia Nassif, revealed today, Wednesday, innovative gold smuggling operations, while she mentioned the story of the death of Qarun.
Nassif said in a post on the Aks platform, followed by “Al-Eqtisad News”, that “after more than 5,000 years since the death of Qarun, a new Qarun is born, to become the crocodile of corruption in Iraq,” adding: “In short, there is currently an innovative method to destroy the Iraqi economy, which is to buy gold (local and imported), melt it, turn it into ingots, and smuggle it abroad!”
She continued: “I call on the Central Bank, the Anti-Money Laundering and Terrorism Financing Office, the Organized Crime Directorate, the Federal Integrity Commission, and all regulatory agencies to investigate the sources of funds transferred through the currency sales window to purchase gold and precious metals during 2024, and to verify the validity of the procedures in customs and the Central Agency for Standardization and Quality Control, and to verify the sales operations in the markets and who are the beneficiaries of buying gold.”
She pointed out that "the reason for the increase in dollar sales is the import of large quantities of gold (which are not sold in the markets), but are remelted and smuggled out of Iraq, taking advantage of the difference between the official and parallel exchange rates, in addition to financing suspicious operations and giving legitimacy to money coming through financial corruption and extortion." 2024/07/31 - https://economy-news.net/content.php?id=45778
Experts: Dollar Stability Depends On Creating A “New Platform” With Iran And Syria
Economic 2024/07/31 Financial and economic experts believe that the stability of the dollar exchange rate depends on creating a new platform for trade with Syria and Iran, and dealing with countries banned from the dollar in another currency.
Like the euro or the Chinese yuan.
The exchange rate yesterday in the parallel market was recorded at 149 thousand dinars for every 100 dollars, although the official rate at the Central Bank is 132 thousand dinars for every 100 dollars. Economic researcher Mustafa Al-Faraj said in a statement to “Sabah” that “the parallel market for the dollar is facing great pressure
By traders and travelers to Iran, Syria and other countries banned from using the dollar,” noting that “this increases the demand for the dollar and thus prices rise.”
He pointed out that "the solution to this problem lies in finding a new platform with these countries and dealing with them in a currency other than the dollar, such as the euro and the yuan, with the importance of finding an appropriate formula for the US Treasury that removes sanctions from our banking sector."
Al-Faraj explained that “Iraq lacks economic diversity and is completely dependent on oil, which has weakened other economic sectors,” explaining that supporting the productive sector can limit the drain on hard currency for imports.
For his part, the official spokesman for the currency market in Sulaymaniyah, Jabbar, explained:
Kuran said that “the rise of the dollar this time is not linked to a political or economic crisis or external factors, but rather is linked to the measures of the Central Bank of Iraq, and it is possible that the bank will control this.” Height".
The Central Bank called for "taking measures that could reduce the dollar shortage in local markets."
In addition, economic researcher Alaa Al-Fahd expected the dollar exchange rate to gradually decrease in the coming days, explaining that this increase is common with the implementation of any new policy by the Central Bank of Iraq, as speculators try to exploit this in order to increase their profits.
He added,"The Central Bank of Iraq has discussions and procedures with the US Federal Reserve in order to control the exchange rate in the parallel market, and we hope that these discussions will yield positive results." https://alsabaah.iq/100272-.html
Economist Explains The Objectives Of Monetary Policy: Reducing Unemployment And Achieving Stability Of The Local Currency
Posted On2024-07-30 By Sotaliraq Economic researcher Diaa Al-Mohsen explained the objectives of monetary policy in the country, explaining that it reduces unemployment rates and achieves stability for the local currency against foreign currencies.
Al Mohsen said, “Monetary policy is adopted to control the profit rate paid for short-term borrowing, to allow for a reduction in inflation rates or interest rates, ensuring price stability and high confidence in the value and stability of the local currency.” He noted that “monetary policy has other objectives, the most important of which may be achieving GDP stability and reducing unemployment rates.”
Al Mohsen added that “monetary policy aims to achieve stability of the local currency against foreign currencies, as the monetary authority is responsible for implementing monetary policy, which includes two types of policies that differ from each other. The first is called an expansionary policy, as it works to reduce interest rates imposed on loans.
Here, this mechanism works to increase demand for loans for investment purposes, which results in increased demand for investment goods and increased demand for goods and commodities.” He pointed out that “this mechanism works to increase demand for labor for the purpose of expanding production to meet the growing demand, as we notice here the consumer’s lack of interest in keeping cash. ‘
This policy ensures the decline of the local currency against foreign currencies, and then the foreign investor can put his money in to buy local goods at a lower price than usual, which increases demand for these goods, which increases the accelerating multiplier, which results in an increase in wages and a decrease in unemployment rates.”
“The other policy is the opposite of the first, and we call it a contractionary policy. Here, the monetary authority works to raise interest rates to withdraw the largest amount of local currency available in the market.
When interest rates are high, we find that consumers are less willing to buy goods and services. On the other hand, we find that consumers are more willing to save because interest rates are rewarding. ‘
However, this negatively affects investment, due to the high interest rates imposed on loans, which results in reducing opportunities for increased production and increasing unemployment rates. We also notice that investors are not willing to buy locally produced goods because their prices are high compared to their foreign counterparts,” Al Mohsen added.
He continued, “Monetary policy is a necessity undertaken by the monetary authority, in order to maintain the stability of the monetary system. The above is also fundamentally linked to the ability of the monetary authority to monitor the market in the cases of expansion and contraction. It is also necessary to remember the necessity of having a developed financial market.”
The problems of the banking sector and its urgent need for radical reforms in the monetary and supervisory policy of the Central Bank, and the creation of effective mechanisms to reduce corruption and ensure transparency in the management of public funds to achieve real and sustainable economic development in Iraq, are highlighted. With the ongoing dollar crisis and the absence of effective solutions, there must be a real need to establish a monetary policy that establishes the foundation for creating economic stability while preserving the country’s interests and putting an end to the US Federal Reserve’s sanctions against Iraqi banks. LINK
MP: The Iraqi Banking Sector Is Being Executed In Favor Of Arab Banks
Policy , 07/31/2024 10:38 , Number of readings: 168 Baghdad - Iraq Today: MP Alia Nassif Jassim expressed her dissatisfaction with the current situation of Iraqi banks, considering that there is an “execution” of these banks.
The MP wrote in a recent post on the X platform, “This is how Iraqi banks are being executed! A license was granted to the Jordanian Arab Bank and the Emirates Union Bank to work in #Iraq and they will start their work at the beginning of next September alongside the National Bank
The license will also be granted to two banks (Kuwaiti and Qatari), while many Iraqi banks continue to stop and more of them will stop due to the management of the Central Bank of Iraq, which did not. address the problem during the past period, but rather worked to enter them into contracts with K2 and pay them money without result!
The banking sector is being punished for mistakes made in previous years during which it was under the supervision of the same current management of the Central Bank, so why was this management not punished for failure to fulfill its duty to supervise the work of these banks?”
These statements come at a time when the banking sector in Iraq is witnessing major challenges, with increasing criticism of the Central Bank's management. LINK
Parliamentary Integrity: Transparency Is Absent In The Dollar Auction
July 29, 2024 Baghdad/Al-Masala: The Parliamentary Integrity Committee accused, on Monday, the Central Bank of Iraq of not being transparent regarding the dollar auction, and not providing data on the destinations where hard currency is spent, stressing that it will hold the bank’s governor, Ali Al-Alaq, accountable.
Committee member Hadi Al-Salami said, “There is a lack of transparency in the dollar auction, and the daily bulletin is not disclosed to know where the dollar goes and is sold through the auction. The bulletin is still secret, and only the amount of dollars sold is announced, and we do not know where this amount goes.”
He pointed out that "there is a parliamentary movement to hold the Central Bank Governor, Ali Al-Alaq, accountable, and the first step is to direct an oral parliamentary question, and we are waiting for his presence inside the parliament dome for the purpose of holding him accountable."
He added, "There is an effort by some representatives to question the Governor of the Central Bank, Ali Al-Alaq, due to the failure, especially in the issue of controlling the dollar exchange rate, which is still significantly higher in the parallel market than the official price."
Al-Salami stressed that “some blocs and parties refuse to question the governor of the Central Bank, as there is political protection for him, despite the failure in tasks and work, and there are indicators and observations in the work of the Central Bank, especially the currency auction.” https://almasalah.com/archives/97046
Advisor: Budget Implementation Instructions {Procedural Issue}
First 2024/07/31 Baghdad: Shaima Rashid The Prime Minister's Financial Advisor, Mazhar Muhammad Salih, stated that the budget schedules have become a reality, and that issuing implementation instructions to institutions is a "procedural matter" that does not affect financial obligations.
Saleh told WAA: “The legal options available to implement the provisions of the federal general budget have become more flexible for the federal financial authority, in addition to the availability of the federal financial management law itself, which allows financial transactions - even if any approval of the general budget formalities is delayed in principle - especially allowing the continuation of spending or disbursement on investment projects approved in the three-year general budget as ongoing projects, as well as operational spending, or any financial transactions.” https://alsabaah.iq/100297-.html
Al-Sudani's Advisor: Budget Implementation Instructions Are A Procedural Matter
Money and business Economy News – Baghdad The Prime Minister's Financial Advisor, Mazhar Muhammad Salih, stated that the budget schedules have become a reality, and that issuing implementation instructions to institutions is a "procedural matter" that does not affect financial obligations.
[rtl]Saleh said: “The legal options available to implement the provisions of the federal general budget have become more flexible for the federal financial authority, in addition to the availability of the federal financial management law itself, which allows financial transactions –
even if any approval of the general budget formalities is delayed in principle - especially allowing the continuation of spending or disbursement on investment projects approved in the three-year general budget as ongoing projects, as well as operational spending, or any financial transactions.”
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