Friday Afternoon Iraq Economic News Highlights 8-18-23

Friday Afternoon Iraq Economic News Highlights 8-18-23

Fear Of The Dollar Price Difference Between The Official And The Parallel

with video  2023-08-18 | Source:  Sumerian  153 views  While many fear the continuation of the gap in dollar exchange between the official rate and the parallel market, economists believe that there is an urgent need for more steps that would achieve stability.

After that, the stability required by the citizen regarding the exchange rates of the dollar was not achieved. The difference is still clear between the official rate and the parallel market, which increased the dominance of the currency sale auction, which caused an increase in the citizen's anxiety about the possibility of a new economic shock that confuses their situation.

Some believe that the procedures used for selling the dollar through specific outlets at the official rate may contribute to preventing a rise in exchange rates, but economists find that this procedure should be supported by a number of other government steps.

The market needs real economic treatments to balance it and ensure that the tremors are not repeated, from which only the citizen who is looking for his strength in light of these crises will be affected. LINK

Iraq.. The Dollar And The Limits Of Sovereignty

August 17, 2023 Baghdad / Obelisk event: Dr. Ihsan Al-Shammari  In 2018, former Iraqi Prime Minister Haider al-Abadi stated that Baghdad would abide by the US sanctions imposed on Iran, stressing that his country would not be able to deal in dollars except through the US Federal Bank and its requirements, and would not be able to deviate from the global economic system to protect the interests of its people.

Al-Abadi was then criticized by Iraqi forces allied to Iran, who considered this position contrary to the course of the relationship between Iraq and Iran and the levels of this connection (from their point of view), and some of them went to the political exploitation of this position to remove Al-Abadi and (with external support) from assuming the presidency of the Council of Ministers for a second term ,

which set a precedent in the political process that the obligation to prevent dollar smuggling or dealing with it with an American penalizing country would be influential in the Iraqi sovereign decision regarding the highest position in the executive authority in Iraq.

That incident indicated the entry of another factor for the violation of the sovereignty of the Iraqi state, which is represented by the US dollar and its impact on the making of events and decisions.

Sovereignty as a concept is a set of specializations (including sovereignty over national funds), which is unique to the political authority in the state and makes it a supreme authority that enables it to impose its will internally. Sovereignty is considered incomplete if a foreign country or an international body participates in the exercise of its basic competencies.

This is why we are faced with a precedent represented by internal-external servitude to prevent the state from exercising its sovereignty and exclusive powers, as well as political revenge against those whose interests it stands against.

The dollar crisis in Iraq has returned to turning into a new manifestation of the violation of sovereignty in the government of Muhammad al-Sudani, due to the scramble between the United States of America and Iran not stopping at certain borders.

The arrival of the dollar from Iraq to Iran, Syria, Lebanon and even Russia constitutes a source of danger and concern for Washington due to the non-enforcement of its sanctions against its opponents. And an indication of, on the other hand, Tehran's ability to circumvent measures to restrict the dollar's access to it, which prompted Washington to oblige Baghdad to a financial system that restricts the movement of dollar transfers and limits its smuggling.

Iraq paid off its debts, which amounted to nearly $11 billion, at the time of the collapse of the Iraqi electric power production system, and on the other hand motivated its allies, who constitute the Sudanese government, to attack Washington, according to what they considered a violation of Iraq’s sovereignty by controlling its money, which was reflected in a great embarrassment in the way it could Sudanese are treatedThis double challenge, as he does not want to lose the two influential countries in the Iraqi political scene.

The struggle of obligating American conditions to stop dollar smuggling and money laundering, or the desires of states and foreign parties to obtain dollar liquidity through official or unofficial means, is no longer the only challenge for the Sudanese government.

The value of the dinar has become a battle for internal sovereignty, especially since the decision-maker in Baghdad has not yet succeeded in imposing procedures through which the citizen can be notified of his ability to achieve absolute sovereignty of the state over financial policy, despite all the promises;

The rise in prices of basic materials in the markets, the decrease in the value of state employees’ salaries by 17%, and the loss of confidence in the Iraqi banking system, after Washington punished 14 banks accused of smuggling dollars, and the recession that afflicted the economy;

It led to an increase in poverty and unemployment rates, and to an increase in the feeling of diminishing opportunities for solutions to change the reality of life, and this also generates a state of lack of feeling of the sovereignty of the state.

The Sudanese Prime Minister has a national and constitutional responsibility to deal with this new factor that violates sovereignty, which dictates that he draw up a general policy that necessitates commitment to ensure the higher interests of the country and the people.

Any collapse or inability to control the movement of funds internally and externally will be disastrous for the economy. security, society and sovereignty.   https://almasalah.com/archives/63155

Romansky: The Fluctuation Of The Dollar Against The Dinar Is Caused By Smugglers And Money Launderers

August 18, 2023  Baghdad / Obelisk Al-Hadath: The US ambassador to Baghdad, Alina Romansky, said on Thursday that Washington is ready to help Baghdad in the water file with the upstream countries.

The ambassador said that Iraq's reliance on the legitimate banking system guarantees the stability of the dollar's exchange rates.

The US ambassador said in a televised interview that after my return from Washington, I met with Iraqi political leaders to follow up on matters.

She added: We will follow the provincial council elections and the extent to which they are free and fair, as well as the Kurdistan Parliament elections, and then the parliamentary elections.

Romansky attributed the fluctuation of the dollar against the dinar to the existence of a parallel financial system, smugglers and money launderers.

She said: There is a misunderstanding about the 14 banks, as no penalties were imposed on them, but these banks are not allowed at the present time to deal in dollars.

Regarding the visit of the Iraqi military delegation to Washington, Romansky said: This is the first joint military interaction that takes place under the Sudanese government between high-level officials in the defense ministries of the two countries. When Minister of Defense Austin came to Iraq in March, he called on the prime minister to send a delegation to Washington to talk about several issues. .

Romansky indicated that we made arrangements and gave exceptions to the Iraqis by paying money to Iran through restricted accounts in the Central Bank, and we continue to provide these exceptions to Iraq, realizing that Iraq must continue to receive electricity.

And she continued: Our coordination targets electricity payments, and the arrangements go back several years and do not include the exchange of oil or anything similar. We are studying what appears to be a proposal drawn up by the Iraqi government, but the details should be known from the Iraqi government.

The US ambassador commented on the news of an American military build-up to cut the borders between Iraq and Syria, stressing that “these issues were discussed between the US and Iraqi Ministries of Defense.”

The American ambassador responded to the accusation of the Iranian ambassador in Baghdad, the United States of using the electricity card to delay the street, by saying, "This is what the Iranians are doing.    https://almasalah.com/archives/63197

Al-Sudani And Al-Mandalawi Stress The Need To Expedite The Implementation Of The Budget Items

Baghdad today - Baghdad   Today, Friday (August 18, 2023), Prime Minister Muhammad Shia’a al-Sudani and First Deputy of Parliament, Mohsen al-Mandalawi, stressed the need to expedite the implementation of the provisions of the general budget.

A statement by Al-Mandalawi's office, received by "Baghdad Today", stated that "Al-Mandalawi and Al-Sudani agreed to expedite the implementation of the budget provisions and the need to implement strategic and service projects," noting that "Al-Mandalawi called for continued coordination between the legislative and executive authorities in a way that contributes to the enactment of laws of interest to the citizen and the development of Economy".

He added, "The two sides agreed to expedite the implementation of the tripartite budget provisions, especially those related to service and strategic projects and the mechanisms for their implementation and follow-up."

The two sides stressed, according to the statement, "the importance of continuing effective coordination between the legislative and executive authorities with the aim of accelerating the enactment of solid laws of interest to the citizen and meeting all his requirements, and focusing on laws that encourage economic and investment development, as well as revitalizing the industry and creating suitable job opportunities for young people."   LINK

A New Agreement Between Al-Sudani And Al-Mandalawi Related To The Items Of The General Budget

Policy  2023-08-18 Source:  Alsumaria News  1,530 views  Alsumaria News – Politics  First Deputy Speaker of the House of Representatives Mohsen Al-Mandalawi affirmed, during his meeting with Prime Minister Muhammad Shia Al-Sudani, the agreement to expedite the implementation of the tripartite budget provisions, especially those related to service and strategic projects and the mechanisms for their implementation and follow-up.

The media office of the First Deputy Speaker of the House of Representatives stated in a statement received by Alsumaria News, that Al-Mandalawi received Prime Minister Muhammad Shia Al-Sudani, and it was agreed to expedite the implementation of the tripartite budget provisions, especially those related to service and strategic projects and the mechanisms for their implementation and follow-up.

According to the statement, the two sides stressed "the importance of continuing effective coordination between the legislative and executive authorities with the aim of accelerating the enactment of solid laws that concern the citizen and meet all his requirements, and focus on laws that encourage economic and investment development, as well as revitalizing the industry and creating suitable job opportunities for young people."   LINK