Iraq News Highlights and Points To Ponder Wednesday AM 7-10-24

What Is The Relationship Between Customs And The Rise In Exchange Rates In Iraq?

Local  Economy News – Baghdad  Today, Wednesday, economic expert Ahmed Al-Hedhal identified the relationship between the rise in the dollar exchange rate and the customs file, while stressing the importance of controlling the northern and southern borders.

Al-Hathal said, in an interview followed by "Al-Eqtisad News", that "the problem of the high exchange rate of the dollar in Iraq is customs," stressing the importance of "controlling the northern and southern borders."

He pointed out the "necessity of controlling fictitious invoices and facilitating the task of small traders, and involving the Central Bank in auditing invoices from the borders," adding: "Electronic payment and forcing people to use it and to deal in the dinar has nothing to do with the rise of the dollar."

The economic expert said, "Electronic payment has become a tool that facilitates the process of reverse transfers and black transfers," indicating that "the hasty decisions that are taking place are due to escaping from reality."

 Al-Hathal confirmed that "the domestic dollar is being smuggled out in 'trucks'."

Views 37  2024/07/10 - https://www.economy-news.net/content.php?id=45077#hathalyoum

5 Billion Riyals Is The Volume Of Trade Exchange Between Saudi Arabia And Iraq

Money  and business  Economy News – Baghdad  The Saudi-Iraqi Business Council estimated the volume of trade exchange between the two countries at 5 billion riyals, with an annual growth of 12%, according to the council’s chairman, Mohammed Al-Kharif.

The Council stated in a report reviewed by "Al-Eqtisad News" that the Council is working to develop Saudi investments in Iraq, in conjunction with the interest of the private and governmental sectors in the Kingdom in investing in Baghdad.

He pointed out that Iraq is preparing to propose a law to protect Saudi-Iraqi investment and discuss it before Parliament in preparation for its approval in the coming few months, to enhance economic cooperation between the Kingdom and Iraq, according to a statement issued by the Federation of Saudi Chambers.

In December of last year, Saudi Arabia and Iraq signed a partnership agreement in the field of private sector industrial investments, while the Kingdom’s ambassador at the time confirmed that there were many investment opportunities being studied.

Last November, Saudi Investment Minister Khalid Al-Falih also announced that the Kingdom is studying the launch of the first free economic zone with Iraq, in the border area of ​​Arar, expressing his hopes that the zone would be the first free economic zone with a neighboring country without taxes, fees or entry visas to serve investors in both countries.

5 Billion Saudi Riyals Equals 1,333,082,700.00 US Dollars. 2024/07/10 https://economy-news.net/content.php?id=45074

An Economic Vision That Defines The Relationship Between Neighboring Countries And The Rise Of The Green Currency In Iraq

Money  and business   Economy News – Baghdad  Today, Tuesday, economic expert, Dhurgham Muhammad Ali, identified the relationship between neighboring countries and the rise in the dollar exchange rate in Iraqi markets, while confirming that these countries opened factories inside the country as a result of the ban on importing their goods.

Ali said in a televised interview followed by "Al-Eqtisad News", "There is a demand for the dollar from countries with which Iraq has trade relations, from countries economically sanctioned by America, and therefore it is forbidden to make any financial transfers to them."

He added: "Therefore, cash is withdrawn from the markets, and payments are made directly to merchants for the goods from which the goods are imported, which are Iran, Syria and Lebanon," indicating that "these countries do not obtain the dollar officially, but they sell using the cash sales system."

He pointed out that "Syrian, Iranian and Lebanese goods are cheap, medium-cost and of high quality, so they are in great demand in local markets and dominate the Iraqi market, especially in the fruit and vegetable sector and food industries."

Regarding the goods whose import is prohibited, he said, “These countries have opened factories in Iraq in order to manufacture the goods whose import is prohibited during the government of Adel Abdul Mahdi, inside the country and transfer the profits to them.”

[rtl]Exchange rates in the Iraqi markets have witnessed a significant increase recently, reaching 150,000 dinars for every 100 dollars. 78 views 07/09/2024 - https://economy-news.net/content.php?id=45034

Calls To Put A Limit On Exchange Rates In Erbil

In video  2024-07-10 | 07:20  Dollar exchange rate: Discontent with exchange rate fluctuations and demands to put a limit on pricing

Currency traders in Erbil province expressed their dissatisfaction with the fluctuation of the dollar exchange rate, amid calls for the federal government to put an end to controlling the pricing.

Details in this report with Riyad Aziz.     LINK

MP Points Out 5 Government “Failures” In The Dollar Issue.. And Threatens To Hold The “Highest Authority” Accountable

Baghdad Today - Baghdad   Member of the Parliamentary Legal Committee, Representative Raed Al-Maliki, reviewed today, Tuesday (July 9, 2024), 5 joints in which the government failed in the dollar exchange rate file, which led to the instability of exchange rates, while he threatened to hold accountable "the highest government agency."

Al-Maliki said in a statement received by "Baghdad Today", that "after more than 18 months since the beginning of the problem of the decline in the value of the Iraqi currency and the occurrence of a large gap between the official dollar exchange rate and the parallel rate, it has been confirmed beyond doubt that the procedures of the Central Bank and the "procedures of the government" and its advisors have failed to achieve stability for the dinar and reduce the gap between the two prices."

He added, "Therefore, we have no choice but to hold the relevant authorities accountable, especially the (Central Bank Administration) and the (government) for this failure that costs the state huge sums of money (trillions) that are wasted outside the budget, and billions that go into the pockets of the corrupt, whose addresses are many, and the people bear a great burden as a result of the dependence of the prices of most goods on the exchange rate in the parallel market, which is much higher than the official selling price."

He stressed that "the government will be questioned at its highest level due to the failure to achieve important points in the government programme and the waste of huge sums of money that our people are in great need of."

He explained that "in order not to be accused of speaking without knowledge and without understanding the nature of the problem and diagnosing the governmental failure and negligence, I will specifically identify the most prominent sources of failure that the procedures of the Central Bank and the government caused in the continuation of the problem and the waste of money, and they are:

1- The failure of the Central Bank and the government to determine Iraq’s position towards America in dealing with countries that the United States prohibits from using the dollar and restricts trade with, such as Iran and Syria, unlike other countries that succeeded in agreeing with America on a formula for dealing with Iran, Syria and Turkey without facing restrictions like those facing Iraq.

2- The government’s failure to control the ports and informal trade that depend on the parallel dollar. This is due to the government’s failure to unify customs policy and prevent informal ports, especially in Kurdistan, where there are more than 32 unofficial and uncontrolled ports or crossings.

3- The government’s failure to address the issue of (small traders), whose number exceeds, according to government information, (400,000) four hundred thousand traders and suppliers of goods in Iraq, who practice trade outside the official framework, and rely on the parallel dollar to cover their imports, as they evade using platforms and official transfer for tax reasons and to bypass the delay resulting from auditing transfers.

4- The failure of the Central Bank and the government to address the problem of speculation and commissions received by banks, as they buy the dollar at the official price of 132 and sell it at a price exceeding 140, without showing this in their records, and without deterrent legal accountability procedures.

5- The failure of the Central Bank and the government’s procedures to provide travelers with dollars, and this file turned into a corruption file, the cost of which was estimated at (600 billion dinars) according to oversight data, due to the collection of dollars for travel purposes without verifying the travel or the actual need (fictitious cases).

These five points represent the most prominent reasons for the problem of the gap in the dollar price and its instability, and because of them billions are lost and wasted. In addition to that, Arab and foreign banks entered and took over the currency auction under the pretext of facilitating the procedures for dealing with international banks, so their profits increased at the expense of Iraq.

He explained that "in light of this, our responsibility as representatives who are not participating in this government and who oppose the quota system, and who have sworn to protect the interests of the people, requires us to take all constitutional, legal and popular means to stand up to this failure and mismanagement that has wasted the people's money and harmed the Iraqi economy.

We will join hands with all those who stand with us from the honorable representatives from the other blocs, who we know are not satisfied with the situation and we hope they will rise up against it."  LINK