Thursday Morning Iraq Economic News Highlights 12-29-22
Thursday Morning Iraq Economic News Highlights 12-29-22
Will The US “Dollar” Policies Affect The Items Of The Next Year’s Budget?
America continues to impose its policies on Iraq since it started about two years ago by pushing the Al-Kazemi government to change the exchange rate in line with the policy of the US Federal Bank and achieves its interests, to return and impose new policies under the pretext of legalizing the exit of foreign currency from Iraq and controlling the outlets for currency smuggling and punishing some countries, which It caused a significant rise in exchange rates and negatively affected the citizen's living conditions, and it may lead the government to review the budget items to determine the exchange rate and make some changes in its paragraphs.
Former MP Jassim Al-Bayati said in a press interview seen by “Takadam” that “the delay in the budget was not due to the high exchange rate of the dollar because the government will spend the money according to the Central Bank rate of 1465, as the delay is related to political and administrative problems, especially regarding the ministries’ claims to pay off their debts and complete the stalled projects.” ".
On the other hand, the representative of the Sadiqoun Parliamentary Bloc, Ahmed Al-Moussawi, confirmed that “Iraqi oil exports are subject to American control, as the US Federal Bank worked to send a small part of the oil money, which caused a rise in the exchange rate of the dollar, and therefore the United States of America controls the Iraqi market and does not It is necessary to get rid of this dominance, and in the event that the Federal Bank continues to send insufficient funds to the market, it will make the government have the option of reducing the quantities of oil exported.
On the other hand, the head of the Rafd Center for Strategic Studies, Abbas al-Jubouri, said in a press interview seen by Taqaddam that “the American practices imposed on Iraq will reach the exchange rate of the dollar to 1,700 dinars in the next week, indicating that some outlets selling the currency have the upper hand.” in implementing the American project in Iraq. https://takadum-news.com/archives/139746
Does The US Federal Reserve Intervene To Reduce The Exchange Rates Of The Dollar In Iraq?
December 29, 2022 Baghdad / Obelisk: Legal expert Ali Al-Tamimi said that the United States is obliged to help Iraq economically and in times of crisis, especially when the price of the dollar rises, which Washington controls through the US federal system.
Al-Tamimi added, in a statement to Al-Masalla, that “according to the bilateral agreement between Iraq and the United States of America for the year 2008 in Article 27 of it, the United States of America committed itself to assisting Iraq economically and in times of crisis, especially if the price of the dollar, which is controlled by the US federal government, and foreign remittances rise.”
He stressed that "Iraq can approach America by implementing this agreement directly, or through the United Nations, as this agreement is international and deposited with the United Nations under Article 102 of the Charter of the United Nations."
And he continued, "The United States of America is obligated under the Fourth Geneva Convention to help Iraq, as it is an occupied country, and according to this agreement, it is obligated to help the country that occupied it."
Representative Mustafa Sanad, on Sunday, accused America of leading international colonialism and blackmail against Iraq by causing a rise in the exchange rate of the dollar, criticizing the silence of the political blocs on this matter.
Sanad said that the rise of the dollar these days is completely different. It came because of America itself, without a mediator, and the purpose is to prevent the dollar from entering Iraq in the first place, for the purpose of punishing it lightly, and it is waiting for it at the dialogue table in early 2023 for the purpose of understanding about hot files such as the Iranian file and the file Energy and the future of US forces and security agreements.
There is popular dissatisfaction with the rise in prices in the Iraqi markets, after the exchange rate of the US dollar rose against the Iraqi dinar, at a time when the Iraqi street was waiting for government decisions leading to the return of the exchange rate to its previous state.
The Central Bank attributed the rise, in a statement, to temporary pressures resulting from external and internal factors that led to the rise of the dollar against the Iraqi dinar.
However, Iraqi economists question the justifications of the Iraqi Central Bank, pointing to fears of a possible continuation of the increase in exchange rates during the coming period, which may mean that Iraq enters a new phase of inflation, especially with its dependence on imports for everything.
Experts point out that what was known as the “theft of the century” had consequences that affected the movement of liquidity and remittances, and prompted an unjustified increase in exchange rates.
The economic expert, Dr. Diaa Mohsen, says, “The rise in the exchange rates of the Iraqi dinar against the US dollar cannot be considered economic as much as it is political, because after the advent of Prime Minister Muhammad Shia al-Sudani, developments took place in the Iraqi economic system, especially with regard to fighting corruption.
The US Treasury Department and the Central Bank of Iraq monitor dollar transactions in Iraq through an electronic system that will take 10 to 15 days, which in turn will affect the dollar's appreciation, according to deputies. Prepared by Mohamed Salah https://almasalah.com/archives/35160
The Storm Of The High Price Of The Dollar Is Blowing In The Face Of The Governor Of The Central Bank Of Iraq
December 29, 2022 Baghdad / Obelisk: After the level of criticism of the performance of the Central Bank of Iraq rose, in the face of the rise in the exchange rate of the dollar, which occurs from time to time, calls are escalating for the dismissal of the bank's governor, Mustafa Makhaif.
The head of the awareness movement, Salah al-Arabawi, said that the central bank governor had failed to control the dollar and the government should dismiss him and appoint a competent person capable of managing the crisis.
Representative Majid Shankali explained that the reason for the dollar's rise is the central bank's failure to draw up monetary policy, to stop illegal foreign transfers, and to combat money laundering and laundering of some facades of blocs and parties, who were falsely named businessmen.
He wondered: Where is the central bank that did not make any statement on the subject, especially the governor who has nothing to do with money and the economy, but this is our case in which a legal person can assume the highest banking position in the state!
A member of the European Institute of Corporate Governance (ECG), Wadah Taha @waltaha, said that the Central Bank must exercise its role in accordance with the law in applying all means to achieve the national economic interest of Iraq and impose strict control on banks and transfers instead of imposing sanctions from abroad, which we are indispensable.
In an examination of the causes of the crisis, the advisor to the Prime Minister, Mazhar Muhammad Salih, explained, on Thursday, regarding fluctuations in the exchange rate of the dollar in the Iraqi market, that the external transfer platform meets 90% of the market demand for foreign currency.
On Thursday, the judge and politician, Wael Abdel Latif, spoke about the fact that political parties and armed factions have a major role in raising the price of the dollar recently in the Iraqi market.
Abdul Latif confirmed in a televised statement, followed by (Baghdad Today), that “there are three opinions regarding the rise of the dollar, including those who say that the Federal Bank has begun to audit private banks and 4 banks have been suspended from work, indicating that “these banks belong to political parties and figures.”
He added, “The second aspect is represented by the opinion that $4 billion was paid to Iran, represented by gas and electricity debts, but it was paid in Iraqi dinars, so Iran has lowered these amounts to the Iraqi market to buy dollars at any possible price, which caused the withdrawal of large quantities of dollars and an increase in its prices.”
He explained that "the opinion and the third scenario, it lies in the existence of a lot of money in the Iraqi dinars with the political parties and some factions get them, and they do not deposit money in banks, so they put it in the market to convert it into dollars."
Professor of Economics at the University of Basra, Nabil Al-Marsoumi, pointed out that the central bank is unable, until now, to use cash reserves to support the dollar, despite the insane rise in Iraq.
Coinciding with the wave of criticism, calls for the dismissal of the central bank governor, Mustafa Makhaif, rose, due to his failure to perform his duties after the current crisis.
And the former member of the Parliamentary Finance Committee, Abdul Hadi Al-Saadawi, called for changing the governor of the Central Bank, indicating that the current governor is not qualified to manage the Central Bank.
A member of the Finance Committee in the former parliament, Rahim al-Darraji, said that the central bank is the cause of all the problems in Iraq, revealing the reason for canceling a frightening interrogation.
Al-Darraji made it clear that many personalities called and intervened to cancel Al-Darraji's interrogation, and indeed that happened.
Representative Kazem Al-Sayyadi called for the dismissal of Makhaif and for not defending him from political forces.
Social studies teacher Hatem Al-Ajibi said that the failure of the governor of the central bank to maintain the stability of the exchange rate of the dollar necessitates that the Sudanese dismiss him for failing in his duties.
Representative Basem Khashan said that the governor of the Central Bank is legal and has no experience in managing banks, funds, accounting, or any specialization close to banking.
He added that Mustafa Makhaif reached this position through a political party and influential bank owners, while he remains in his position and expands in the government of Muhammad Shia, surprisingly: we do not know the reason for his survival or the reasons for his expansion!
Prepared by Sajjad Al-Khafaji https://almasalah.com/archives/35170
To Prevent The Collapse Of The Dinar.. The Deputy Speaker Of Parliament Calls For "Not Enabling" Speculators In The Black Markets
2022-12-28 08:12 Shafaq News/ The Second Deputy Speaker of Parliament, Shah Wan Abdullah, called today, Wednesday, to "not enable" those who control the "black markets" to take advantage of the exchange rate disturbances, and to enhance the demand for the Iraqi currency through the state's spending on infrastructure projects to counter the rise of the dollar against the dinar. .
The media office of the second deputy speaker of parliament said in a statement received by Shafaq News agency, "The deputy speaker of the Iraqi parliament, Shahe, and Abdullah Ahmed, called on the cabinet in the federal government, the Ministry of Finance, and the Central Bank of Iraq to reconsider financial policy, take sound measures and decisions, and increase the opening of sales outlets." Foreign currency in banks and at the government rate, in order to prevent a rise in the exchange rate of the US dollar.
Abdullah added that this rise "has recently negatively affected markets and basic food commodities, which has burdened the citizen."
The Deputy Speaker of Parliament pointed out, "The need to implement precautionary financial policies to maintain the exchange rates of the dollar against the Iraqi dinar, and to enhance the demand for the national currency through the continued state spending on infrastructure projects, the acceleration of economic growth rates and the increase in internal demand."
Abdullah continued, "Those who control black markets must not be enabled to benefit from exchange rate turmoil, and to surround wrong monetary practices that harm the economy and commercial activity throughout the country."
The economic and financial advisor to the Iraqi Prime Minister, Mazhar Muhammad Salih, confirmed today, Wednesday, that the exchange rate of the dollar against the Iraqi dinar is on its way to stability in its normal state.
Yesterday, Tuesday, Prime Minister Muhammad Shia al-Sudani directed the Central Bank of Iraq to activate steps to sell foreign currency at official rates to the population, with the aim of curbing the rise in the exchange rate of the dollar against the local currency in the markets.
The rise of the dollar in the Iraqi local markets led to an increase in the prices of foodstuffs in the wholesale markets, which are considered the main artery of the citizen's life. LINK
An Emergency Meeting Of The Ministerial Council For The Economy And The Central Bank Announces The Facilitation Of Procedures For Travelers To Obtain Dollars
2022-12-28 08:23 Shafaq News/ The Deputy Prime Minister - Minister of Planning, Muhammad Ali Tamim, chaired, on Wednesday, an emergency session of the Ministerial Council of Economy, during which he hosted the Governor of the Central Bank of Iraq, Mustafa Ghaleb Makhaif.
According to a statement by the Ministry of Planning received by Shafaq News agency, Makhaif reviewed the measures taken by the bank's management to control monetary policy and limit the rise in the exchange rate of the dollar in the local markets.
"The measures taken will contribute to achieving monetary stability in Iraq," he said, stressing "the bank's keenness and readiness to fully cover the documentary credits for food imports and to provide foreign currency to citizens."
The members of the Ministerial Council for the Economy expressed the government's full support for the Central Bank's measures that would achieve a state of stability and reduce the exchange rates of the dollar in the markets.
In addition, the Ministerial Council of Economy discussed the Ministry of Commerce's procedures regarding securing foodstuffs, and praised the ministry's simplification of its procedures by granting import licenses within one day, and securing strategic storage of foodstuffs. The council also discussed a number of recommendations related to amending the customs tariff in accordance with economic requirements, with the exception of foodstuffs and medicines from those procedures.
For his part, the Central Bank of Iraq announced facilitating procedures for travelers to obtain foreign currency (dollars) for travel purposes by expanding the outlets for selling foreign currency (dollars) in cash by increasing the shares of bank outlets.
A bank statement indicated, "The increase in the shares of the banks mentioned in the table published by Shafaq News Agency, below, will begin.
And the statement continued, “As for the outlets of the rest of the banks, they will be expanded later. The employees of this bank will follow up the performance to support the banks’ efforts to enable customers to obtain foreign currency (dollars) easily, and the bank branches shown in the table below will meet customers’ requests starting from Thursday 12/2022 29/ And during the upcoming official holidays (Friday, Saturday and Sunday) and throughout the following working days: LINK