Economist: Kurdish Merchants Entering The Dollar Selling Platform Contributed To Lowering The Exchange Rate - Urgent

 Economy ​ 08-31-2024, |Baghdad today – Baghdad  An economist and academic at Cihan University, Nawar Al-Saadi, said today, Saturday (August 31, 2024), that Kurdish merchants benefited from the Iraqi government’s official dollar selling platform and contributed to lowering the exchange rate. 

Al-Saadi told "Baghdad Today", "There is entry for merchants from the Kurdistan region to the official dollar selling platform, and these merchants benefited from obtaining the dollar at the official exchange rate, instead of buying from parallel markets that witness higher prices," indicating that  "this influx The dollar supply to the market contributed significantly to the increase in supply, which led to a reduction in the price.” 

He added,  "The matter is not limited to this factor alone, as the Iraqi markets suffer from frequent fluctuations as a result of economic and political instability, and

speculators exploit any change in the market to achieve quick gains, which increases the chaos in the exchange market," noting that

 "rumors about possible changes in The exchange rate prompted many to sell the dollar at low prices for fear of future declines, which increased pressure on the dollar price.”  Al-Saadi stated that

  “there are ongoing discussions between the Central Bank of Iraq and the US Federal Reserve, which could have a significant impact on the exchange rate,” stressing that

 “the results of these meetings will be decisive in determining the future direction of the price of the dollar in the Iraqi market, if agreements are reached.”

Certainly, we may see significant changes in the exchange rate based on those results.”

 It is noteworthy that the specialist in financial affairs, Nabil Jabbar Al-Tamimi, confirmed on Saturday (August 3, 2024) that the

 exchange rate of the dollar in the parallel market will remain higher than the official price due to the failure to find solutions by the Central Bank for black transfers.  Al-Tamimi told "Baghdad Today",

 "The continued rise in the dollar exchange rate in the parallel market is due to the continuation of black transfers to finance some foreign trade by some merchants, without finding any solutions for these merchants by the Central Bank of Iraq." 

He stated, "The Central Bank of Iraq is required to find solutions and quick procedures for these merchants, especially small merchants, who have almost daily trade with Iran, Syria, and some other countries prohibited from dealing in dollars."  He pointed out that

"these merchants move to the black market for the purpose of financing their trade, and

 this is what leads to the exchange rate remaining high in the parallel market with a large difference from the official rate, and this matter is borne by the Central Bank, as it is responsible for this file."

 Today, the dollar exchange rates returned to a relative rise, touching 150 thousand dinars on the stock market, maintaining this level since Eid al-Adha, where it rose from 1,450 dinars to around 150 thousand dinars or less, and has stabilized in this range until now. https://baghdadtoday.news/256839-اقتصادي-دخول-التجار-الكرد-لمنصة-بيع-الدولار-ساهم-بخفض-سعر-الصرف-عاجل.html    

US Treasury Praises Iraq's Progress In Monitoring Transfers And Selling Dollars

September 1, 2024   Proposal to cancel SWIFT and replace it with relations with the international banking network

Baghdad - Qusay Munther   New York - Morsi Abu Touq  The US Treasury Department praised the remarkable progress made by the Central Bank of Iraq in strengthening control procedures over foreign transfers and cash sales of the dollar, while considering that these steps contribute to strengthening financial and economic stability in the country.

Auditing Companies

A statement by the bank received by (Al-Zaman) yesterday said that (a high-level negotiating delegation headed by Governor Ali Mohsen Al-Alaq held a series of intensive meetings in New York City, USA, which included discussions with the US Treasury Department and the Federal Reserve Bank,

in addition to meetings with a group of companies, including international auditing companies, who praised the major transformations achieved by the Central Bank, represented by the remarkable progress in the procedures for monitoring foreign transfers and cash sales of the dollar currency),

adding that (this led to improving systems, policies and procedures in accordance with international and local standards, enhancing transparency in covering foreign trade and providing protection for the banking and financial sector from the risks of money laundering, financing terrorism and financial crimes),

and pointed out that (a meeting will be held between bank officials and its international partners by the end of this year regarding the major transformation in ending the work of the electronic platform for foreign transfers and replacing it with direct banking relations between Iraqi banks and the network of international correspondent banks, according to the plan developed by this bank,

and implemented internationally, which will allow the Central Bank and the Federal Reserve Bank to exercise their supervisory roles Away from the executive procedures, this transformation will have important repercussions on the stability, fluidity and transparency of the country’s foreign trade financing operations,” he continued, adding that “this step will contribute to achieving the required stability in exchange rates, which in turn will enhance the efficiency of the financial system in Iraq.

” The statement stressed that “the meetings also addressed mechanisms for expanding the network of international correspondent banks and qualifying Iraqi banks to meet the necessary requirements for opening their accounts with international correspondent banks, with the aim of enabling them to complete their financial transactions, whether through external transfers in US dollars or other foreign currencies.”

A source had previously revealed an unannounced visit by the Central Bank to the United States of America to discuss developments in the Iraqi banking sector.

Banking Sector

The source said in a statement yesterday that (a delegation from the Central Bank, led by Al-Alaq, and a number of general managers, visited the United States of America, since the 26th of last month, to discuss developments in the banking sector and the restrictions on the use of the dollar imposed on a large number of private banks),

and he continued that (the Central Bank delegation discussed canceling the platform at the beginning of next year, and relying on correspondent banks, which will increase the imposition of restrictions on Iraqi private banks, and completely eliminate competition in favor of Jordanian banks that have American correspondent banks),

noting that (the Central Bank is close to signing a contract with Oliver Wyman, the consulting company for the Iraqi Development Road, to conduct a study on reforming the Iraqi banking sector, and in order for it to be approved by the bank as a roadmap for reforming the private banking sector).

The dollar exchange rate rose slightly in the Baghdad and Erbil stock exchanges. Money exchange office owners said yesterday that “dollar prices rose with the opening of the Al-Kifah and Al-Harithiya stock exchanges to record 149,200 dinars for every hundred dollars.

” They added that “selling prices in exchange offices in the local markets in Baghdad stabilized at a selling price of 150,000 dinars, while the purchase price reached 148,000 dinars for every hundred dollars. As for Erbil, the stock exchange does not trade on official holidays, but the dollar recorded a slight increase there.”   LINK

Ministry Of Finance: Iraq Maintains Its Credit Rating And Foreign Exchange Reserves Level

Money and business  Economy News – Baghdad   The Ministry of Finance confirmed, on Sunday, that Iraq has maintained its credit rating and the level of foreign currency reserves.

The ministry said in a statement, seen by "Al-Eqtisad News", that "in the latest report issued by Standard & Poor's Credit Rating Agency (S&P), Iraq maintains its credit rating at B- / B with a stable outlook, indicating financial and economic stability in Iraq."

It added, "The new rating reflects the ongoing economic and financial reform policy pursued by the Ministry of Finance, in addition to maintaining the level of foreign currency reserves that exceed the external public debt and fulfilling other external financial obligations as a result of the stability of crude oil prices." It continued,

"The agency's report indicated the possibility of improving Iraq's credit rating in the event of an increase in the economic growth rate, diversification of the state's oil and non-oil public financial revenues, an increase in the per capita income share of the national income, and the continuation of financial and economic policy reform measures."   https://economy-news.net/content.php?id=47044

Next Week.. An Arab Transparency Meeting In Baghdad

 The first 09/01/2024  Cairo: Esraa Khalifa   Under the patronage of Prime Minister Muhammad Shiaa Al-Sudani, the Arab Administrative Development Organization - affiliated with the League of Arab States - will hold the second forum for promoting transparency and good governance under the slogan

 “Integrity is an essential component in the era of complexity and opportunity,” for the period from 10 to 12 September in the capital, Baghdad.

 An elite group of officials and experts from many international and regional organizations concerned with development, anti-corruption and oversight bodies, as well as university professors and researchers interested in the field of anti-corruption, from various Arab countries, participate in the forum. A source in the Arab Administrative Development Organization told Al-Sabah:

 “The forum aims to draw a unified road map to

      contribute to achieving integrity and transparency,

     strengthen the political agenda to combat corruption in the region, and

     build paths for cooperation between governments, the media, civil society and the private sector.”

 https://alsabaah.iq/101952-.html    

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