Iraq Economic News and Points To Ponder Wednesday Evening 8-14-24
Parliamentary Finance Committee Discusses With US Embassy The Financial And Banking System And The Lack Of Dollars In The Market
Local | 06:19 - 08/14/2024 Mawazine News – Baghdad The Parliamentary Finance Committee confirmed, on Tuesday, discussing the financial and banking system and the lack of the dollar in the Iraqi market with a delegation from the US Embassy in Baghdad.
A statement by the Parliament's media department received by Mawazine News stated that "the head of the Parliamentary Finance Committee, Atwan Al-Atwani, received at the committee headquarters, in the presence of Representative Khalil Al-Dawski, today, Wednesday, a delegation from the US Embassy in Baghdad, Minister Counselor for Economic and Trade Affairs Julie Jules, Deputy Counselor for Economic and Trade Affairs Angel Fintling, Macroeconomic Officer, Economic and Financial Section Michael Pinnell, and Economic Assistant/Economic Section, to discuss the financial and banking system in the country, Ammar Al-Ammar."
The statement continued, "The meeting discussed the financial and economic situation in the country and the repercussions of the parallel market issue and its negative impact on the government economically, in addition to the lack of the dollar currency in the market, and the sanctions imposed on some banks, as well as the issue of the electronic platform for exporting the currency.
The head of the committee stressed "the importance of high coordination between the two sides in order to solve the pending financial problems, in addition to the importance of transparent dealing to benefit from the capabilities, and not resorting to dealing in another currency," noting "the need to create an atmosphere of understanding and invest in building bilateral relations on this basis."
Al-Atwani stressed "the committee's keenness to commit to combating financial corruption and confronting money laundering, as they are the basis for building societies, in addition to coordination in order to make correct decisions in this regard."
For her part, the Minister Advisor for Economic and Trade Affairs said that "there is a real opportunity for cooperation and reform of the economic and financial system between the two sides," stressing "working together to find appropriate solutions to all problems for the stability of Iraq as a basic ally of the United States."
The statement noted "providing clarification on the three-year general budget and plans for banking regulation and reform of the spending process, and how to finance projects, in addition to the importance of supporting the private sector and involving it with the public sector, which confirms the importance of investing the revenues achieved and the possibility of providing the service."
According to the statement, Al-Atwani pointed out the "ambition to legislate a law on partnership between the public and private sectors and involve the private sector in the market, in addition to working to amend the tax law and shift from the paper system to the electronic system." https://www.mawazin.net/Details.aspx?jimare=253273
Banks Are Working To Keep The Exchange Rate High.. The Secrets Of The Dollar Crisis Against The Dinar
Buratha News Agency142 2024-08-13 Economic expert Omar Al-Halbousi confirmed that the crisis of the dinar exchange rate against the US dollar is due to many factors.
Al-Halbousi said in a press statement: “It is well known that the rise in the dollar exchange rate and the decline in the value of the Iraqi dinar have been ongoing for more than two years, and here we confirm that the value of the dollar is stable, but the value of the Iraqi dinar fluctuates between rise and fall, and most of the time it is a fall.”
He continued, "The rise and fall of the Iraqi dinar exchange rate against the dollar from time to time is due to several reasons, including the continuation of trade with the sanctioned countries, which requires financing from outside the platform by relying on the parallel market, which is the real controller of the exchange rate.
Until now, the Central Bank has no authority over it," noting that "there are countries that live on the dollar in Iraq in the absence of the role of the Central Bank to regulate the exchange rate and stop the currency bleeding, with the penetration of these countries through private banks that dominate the currency selling window."
He explained that "private banks also push for the exchange rate to remain high, as it benefits them. They have exploited the law of delivering dollar remittances to individuals and companies coming from abroad and delivering them to their owners in Iraqi dinars and at the official price, and then they sell the dollar at the parallel market price, which increases their profits.
Therefore, they are a stumbling block to the stability of the exchange rate and stopping the bleeding of the value of the Iraqi dinar."
He explained that "remittances and the currency sales window are monopolized by a few banks that control the exchange rate and manipulate it as they wish, which explains their achievement of imaginary profits from dollar remittances, which has begun to drain Iraqi oil revenues that finance the window, knowing that the volume of daily dollar sales is very suspicious and contradicts the volume of goods entering, which means the continued smuggling of dollars abroad, carried out by the banks controlling the window and remittances and with international collusion,
" noting that "the American sanctions and the continued threat of them are another reason for the continued decline in the value of the Iraqi dinar against the dollar with the inability of the Central Bank to solve the problem of sanctions with the American side,
as well as the inability to control the work of banks and control their fraudulent work that has caused Iraq problems with the Americans, in light of the continued smuggling of dollars in various ways practiced by banks owned by foreign countries."
The economic expert pointed out that "the government is still counting on the Central Bank and its management to control the exchange rate, which the Central Bank has not succeeded in, but rather has failed in all its steps with the arrogance of private banks and their control over the Central Bank with external support,
in addition to the influence of these banks within the Central Bank, which means that until now it has not found a solution to stop the decline in the value of the Iraqi dinar against the dollar, which will lead us into major problems in the coming days, especially if new American sanctions are imposed on Iraq,
in addition to the rise in the geopolitical conflict in the region that casts its shadow on Iraq in a multi-faceted manner." https://burathanews.com/arabic/economic/449618
Oil Prices Rise Amid Expectations Of A Decline In US Crude Inventories
Economy 08/14/2024 Mawazine News – Baghdad Oil prices rose on expectations of a decline in US crude and gasoline inventories, as the market monitored the possibility of widening tensions in the Middle East that could limit global oil supplies.
Brent crude futures rose 30 cents on Wednesday (August 14, 2024) to $80.99 a barrel, while US West Texas Intermediate (WTI) crude futures rose 38 cents to $78.73.
Market sources, citing data from the American Petroleum Institute (API) on Tuesday, expected US crude and gasoline stocks to fall last week and distillate inventories to rise.
The API figures showed crude inventories fell by 5.21 million barrels in the week to Aug. 9, the sources said, speaking on condition of anonymity.
Gasoline stocks fell by 3.69 million barrels and distillate inventories rose by 612,000 barrels.
The lower inventories could signal stronger demand in the United States, the world’s biggest oil consumer. Official government data from the Energy Information Administration is due later on Wednesday.
Markets are awaiting clues on Iran’s next steps after it vowed a harsh response to the assassination of Hamas leader Ismail Haniyeh late last month in Tehran, which it accused Israel of carrying out the assassination. The
US Navy has also deployed warships and a submarine to the Middle East to bolster Israel’s defences.
Analysts have warned that a widening conflict in the region could affect crude supplies from Iran and neighbouring producers, reducing inventories and supporting prices.
Meanwhile, the International Energy Agency left its forecast for global oil demand growth in 2024 unchanged on Tuesday, but trimmed its estimate for 2025, citing the impact of a weak Chinese economy on consumption, which has further limited price gains. https://www.mawazin.net/Details.aspx?jimare=253228
The Central Bank Sponsors A Meeting To Establish A National Company To Manage Electronic Payment In Iraq
Banks Economy News – Baghdad The Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, chaired the first preparatory meeting to establish a national company to manage central electronic payment systems in Iraq.
The Central Bank's media office stated in a statement received by "Al-Eqtisad News" that "the meeting discussed the importance of regulating electronic payment operations, keeping pace with rapid technological developments, and creating a competitive payment industry that provides safe, reliable, easy-to-access, widely interoperable payment services, and rapid response and high flexibility to technical and regulatory changes."
The meeting reviewed the company’s “main objectives and special requirements for initiating the establishment, as it will undertake the tasks of managing, operating and developing some of the central and basic electronic payment systems at the national level.”
The statement indicated that, "This step came in line with the strategic plan of this bank, which goes hand in hand with the government program in the field of electronic payment and its development in Iraq." 270 views Added 2024/08/14 -https://economy-news.net/content.php?id=46300
Nearly 200 Billion Dinars In "Fines" From The Central Bank Of Iraq On Banks And Exchange Companies
Economy | - 08/13/2024 Mawazine News – Baghdad The Central Bank of Iraq announced on Tuesday that fines imposed on banks and non-banking institutions (exchange companies) amounted to more than 181 billion Iraqi dinars during the past six months.
A table from the bank showed that "the fines imposed on banks and financial companies during the past six months, starting from January until the end of last June, amounted to 181 billion, 842 million, 854 thousand, and 458 dinars," indicating that "the fines also included 151 administrative penalties for these banks and non-banking institutions, distributed between warnings, alerts, and grace periods."
The table showed that "January witnessed the highest fines on banks and non-financial institutions, as these fines reached 98 billion, 277 million, 722 thousand, and 62 dinars, with 17 administrative penalties, while June witnessed the lowest fines, reaching 2 billion, 829 million, 157 thousand, and 288 dinars, with 30 administrative penalties."
The table did not show the names of the banks that were fined and the administrative penalties.
The Investors Association in the Iraq Stock Exchange had criticized the Central Bank of Iraq for increasing fines on banks, indicating that it would affect the profitability of investors in the shares of these banks.
https://www.mawazin.net/Details.aspx?jimare=253179
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