Friday Morning Iraq Economy News Highlights 1-27-23

Friday Morning Iraq Economy News Highlights 1-27-23

A Leader In The Framework: Russia Will Intervene In Resolving The Urgent Dollar Crisis In Iraq

Baghdad today – Baghdad   The leader in the coordination framework, Jabbar Odeh, said today, Thursday, that Russia is moving to contribute to mitigating the effects of the US dollar on the Iraqi markets.  Odeh said in an interview with (Baghdad Today), "The level of trade exchange between Baghdad and Moscow is related to multiple files, most notably grain and military equipment and other files, and they vary from year to year, but they reach billions of dollars annually."

He added, "Russia is an important supplier of grains in Iraq in addition to military equipment," stressing that "Moscow has officially approached Baghdad that it is possible to move to paying dues for trade exchange through the ruble or the Chinese yuan, in an important step that will lead to mitigating the effects of the US dollar crisis on Iraqi markets.

He pointed out that "Iraq's payment of the value of Russian deals in rubles or Chinese yuan will greatly mitigate the effects of the dollar and give flexibility in the multiplicity of hard currencies available to avoid any vibrations in the economic market."

He continued, "Paying Russia's ruble dues means the possibility of the Iraqi dinar entering the list of foreign currencies that can be dealt with by the Russian Central Bank, such as the Egyptian pound, and the possibility of transferring money to Iraqi students directly by their and even merchants without any families suffering."  LINK

4 Parliamentary Questions Looking For The "Secret" Of Depositing Iraq's Money In The US Federal Reserve

Baghdad today – Baghdad Foreign Minister Fuad Hussein received 4 parliamentary questions, aiming at a greater understanding of the issue of depositing Iraq's money from oil sales with the US Federal Bank instead of coming to Iraq directly.

A letter addressed by Representative Raed al-Maliki to the Minister of Foreign Affairs showed 4 parliamentary questions for oversight purposes, including the question about whether there are international obligations on Iraq related to the invasion of Kuwait and the Gulf War that have not yet been fulfilled , as well as whether there are effects on Iraq that have been going on since previous sanctions imposed on the country, and what are the requirements that make money be sent from the US Federal Reserve to the Central Bank of Iraq?    LINK

Parliament Asks Foreign Minister Fuad Hussein About The Reason For Depositing Iraq's Money In The US Federal Reserve

Baghdad-Iraq today:   Foreign Minister Fuad Hussein received 4 parliamentary questions, aimed at a greater understanding of the issue of depositing Iraq's money from oil sales with the US Federal Bank instead of coming to Iraq directly

A letter addressed by Representative Raed al-Maliki to the Minister of Foreign Affairs showed 4 parliamentary questions for oversight purposes, including the question about whether there are international obligations on Iraq related to the invasion of Kuwait and the Gulf War that have not yet been fulfilled , as well as whether there are effects on Iraq that have been going on since previous sanctions imposed on the country, and what are the requirements that make money be sent from the US Federal Reserve to the Central Bank of Iraq?   LINK

America Calls On Iraq To Abide By Its Sanctions Against Iran And To Prevent The Transfer Of The Dollar

Baghdad - Iraq today:  US State Department spokesman Ned Price confirmed the continued implementation of US sanctions against Iran, noting that the United States looks forward to its partners' commitment to these sanctions.

This came during a press conference, regarding the concerns of the United States about the transfer of the dollar from Iraq to Iran, and whether his country has taken measures against the Central Bank of Iraq.

Ned Price emphasized in his response that his country considers Iraq a "partner" and is in constant communication with its partner governments and the private sector, to inform them of the scope of its sanctions and to "ensure that governments and companies around the world abide by these sanctions."

According to US media, the US Federal Reserve has reduced electronic transfers to Iraq by 80%, as a result of some Iraqi commercial banks sending dollars to Iran and other countries subject to US sanctions.   LINK

Presidency Of The Council Hinder The Discussion Of The Exchange Rate

with video  2023-01-27 | 02:00  Source:  Sumerian   The crisis of the high exchange rate continues in the country after the demonstrations that took place in the capital in front of the Central Bank, at a time when the deputies of the Presidency of the Council were urged not to include the dollar item on the agenda despite collecting more than eighty parliamentary signatures.

Conditions seem to be inIraqGoing towards complexity, a mass demonstration in the capital over the rise in the exchange rate coincided with parliamentary statements indicating that the Council Presidency was obstructing the discussion of the file despite collecting the signatures of more than eighty deputies.

The popular demonstrations in front of the Central Bank are only the beginning of what is to come, according to observers, who pointed out to the possibility of complicating matters more if the situation remains as it is by ignoring the demands of the angry street.  LINK

Sudanese Financial Advisor Offers New Solutions To Reduce The Dollar Crisis

Economy   01/27/2023 09:51 Number of readings: 162   Baghdad - Iraq today:  The Advisor to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, presented two proposals to ensure the stability of the national market.

Saleh said in a press statement, "The proceeds of small trades constitute about 70% of the total import units to the Iraqi market, as they deal with highly diversified specialized trade clauses, and these trades previously directed their requests through parallel financing tasks undertaken by exchange companies and mediated by a large trader.

He added, “Therefore, the adaptation of small trade and its direct entry into the world of foreign trade at once is an issue that needs time to adapt to the use of new financing mechanisms based on the (facilitated) opening of documentary credits, which requires only the submission of minimal documents, including freezing a licence.Importing and being satisfied with the identity of the Chamber of Commerce as a natural person instead of a commercial company as a legal person, which are requirements that were previously imposed, in addition to the customs and tax collection facilities.

Saleh continued, "Nevertheless, it is inevitable for the state to enter as a large trader at the present time to help balance the market with the goods supplied at the official exchange rate of 1450 dinars per dollar, in addition to allowing cooperatives of all kinds." to enter the import trade as an additional pattern that helps the stability of the national market in general and the exchange market in general.” in particular.”  LINK

The Oil And Gas Law Has Been Faltering Since 2008, And The Federal Council Is At The Center Of A Dispute

January 27, 2023  Baghdad / Obelisk: Legal expert Ali Al-Tamimi points out the most prominent obstacles to the legislation of the oil and gas law, pointing to the importance of the law for Iraq and regulating the relationship between the center, the region and economic life, while the head of the Kurdistan Democratic Party, Massoud Barzani, said that it is unfortunate that the Iraqi Federal Court has once again expressed Another hostile position against the Kurdistan Region, and prevented the transfer of money to the region that was to be sent from the federal government.

The region's salaries are controversially linked to the region's oil imports.

Al-Tamimi told Al-Masalla, “The oil and gas law has not been legislated since 2008, despite its importance and Iraq’s need for it, as Prime Minister Muhammad Shia al-Sudani pledged to pass this law during his time in power.”

He added, "The aforementioned law regulates economic life and the relationship between the center and the regions," explaining that "the point of contention in this law lies in the Federal Oil Council, so is it managed by the Prime Minister or by an oil expert?"

And that "the Federal Oil Council is better to be managed by the Prime Minister, being the executive responsible for the general policy of the country in accordance with Article 78 of the Constitution, and it is expected that its legislation will be in the coming days."

And the legislation of the oil and gas law, and the activation of the Article 140 Committee will resolve the relationship between the center and the region.

Under a political agreement that led to the formation of the Sudanese government, Baghdad transferred $400 billion to the Kurdistan region, despite the continuing problems over the file of oil dues and other files.

On Wednesday, the Kurdistan Regional Government described the decision of the Federal Supreme Court as unfair and contrary to the agreement to form the current Iraqi government.

And the government said in a statement received by Al-Obelisk, “Unfortunately, the Federal Court renewed again today, its hostility to the rights of the citizens of the Kurdistan region and their constitutional financial entitlements, and this new position of this court represents confirmation of the continuation of its unfair and hostile policy towards the Kurdistan region, and at a time when there is a positive atmosphere.”

And rapprochement between the regional government and the federal government to reach an agreement and solve problems under the umbrella of the constitution, but what is unfortunate is that the court today, instead of supporting this positive atmosphere, prevented the federal government, by an arbitrary decision hostile to the people of Kurdistan, from sending the sums that were supposed to be sent to the region Kurdistan.   https://almasalah.com/archives/38938

Washington Surprised Baghdad With The Restrictions Of The Dollar.. A Dutch Network Talks About "Deliberate" US Targeting Of Iraq

Baghdad Today - Translator    The Dutch Fanak Chronicles Network confirmed, today, Friday, that Iraq does not suffer from any actual financial crisis within its economy, which enjoys the highest growth rate in its history, reaching 9.2% during the past year, in addition to a large financial stock. of more than one hundred billion US dollars, revealing that the country You are being "targeted".

The network said during its report, which was translated by (Baghdad Today), that "the society, the World Bank, specialists and analysts did not fully expect what the situation of the Iraqi economy will be like now, given the great growth and development." data that it witnessed last year, in contrast to the economies of the rest of the countries in the region that were subject to contraction or decline.” , where the Iraqi treasure recovered and the local markets developed until they were targeted by the United States.

And she continued, "The United States shocked everyone by imposing restrictions targeting the Iraqi economy in an attempt to implement the sanctions it imposes on other countries through Iraq, the most important of which is Iran," stressing that "given the large financial reserves, Iraq can fill its domestic need of dollars for a period of twenty months without any action.” Or trade if the current storage in New York is used only, which is prohibited by the United States," as she put it.

The network indicated, according to the report, "the need for the government to take the necessary measures to prevent the continuation of those benefiting from the dollar trade outside the framework of its authority from manipulating prices, in addition to switching to the electronic banking system." And reducing bureaucratic procedures to reduce the severity of the crisis, which it said caused a reduction in the purchasing power of the citizen. "In a big way," calling for "immediately fixing the situation with the US government."      Source: Click here      LINK