Iraq Economic News Highlights and Points to Ponder Thursday AM 10-19-23

Decrease In Dollar Exchange Rates In Iraq

2023-10-19 | 7,395 views   Alsumaria News – Economy  Alsumaria News publishes the exchange rates of the dollar against the Iraqi dinar in Iraqi local markets for Thursday, October 19, 2023.

Dollar prices fell with the opening of the Al-Kifah and Al-Harithiya stock exchanges to record $159,800 for every $100, while selling prices in exchange shops in the local markets in Baghdad decreased, as the selling price reached 160,750 Iraqi dinars, while purchasing prices reached 158,750 dinars for every 100 dollars.

For more than 8 months, and specifically since the Central Bank began operating the electronic platform and the international financial transfer system ““SWIFT,” the dollar exchange rates in Iraq have not witnessed stability despite the attempts of the government and the Central Bank to control the exchange rate in the parallel (black) markets.

The Central Bank of Iraq decided earlier to adjust the exchange rate of the dollar against the Iraqi dinar, as the price of buying the dollar from the Ministry of Finance  reached 1,300 dinars per dollar and selling it at (1,310) dinars per dollar to banks through the electronic platform, and it is sold for (1,320) dinars per dollar. Dollars from banks and non-banking financial institutions to the final beneficiary.   LINK

Dollar Outlets At Baghdad Airport

The first  10/19/2023  Sabah   Central Bank Governor Ali Mohsen Al-Alaq opened new outlets to sell foreign currency (the dollar) to travelers at Baghdad International Airport.

A statement from the bank stated, “During his visit to Baghdad International Airport, the Governor of the Central Bank discussed with the Head of the Civil Aviation Authority, Imad Abdul Razzaq Al-Asadi, the strengthening of bilateral cooperation and the ongoing measures to open new outlets at all Iraqi airports.”

He added, "Al-Alaq was briefed on the mechanism of providing services that exchange companies will provide 24 hours a day to their customers," stressing "the speed of completing transactions by government banks and exchange companies that sell dollars to the traveler at Baghdad International Airport, as it is limited to a specific time."

Al-Alaq stressed, according to the statement, that “the step of opening new outlets at the airport will have positive effects, as it will take a short time for the traveler to receive his share of the dollar,” noting that “the work of exchange companies at the airport will be monitored by the Central Bank and the Civil Aviation Authority.” In addition to the open bank branches that provide services to customers, including selling foreign currency to travelers.    https://alsabaah.iq/85844-.html

After The Continued Crisis Of The Rise Of The Dollar... Accusations Against The House Of Representatives, And The Latter Is Justified By The “Lack Of Powers” ​​- Urgent

Economy |Baghdad today - Baghdad    For months, Iraq has witnessed a noticeable rise in the exchange rate of the US dollar against the Iraqi dinar, exceeding on some days the barrier of 160 thousand dinars for every 100 dollars.

The government, with continuous steps and meetings, tried to contain the crisis and control the parallel market, sometimes by striking smuggling gangs, and at other times by pursuing speculators and manipulators of exchange rates. Here, the position of the House of Representatives was not “clear,” as a large number of citizens accused Parliament of being “silent” in the face of a threat to the country. Their livelihood and aims for their livelihood.

Parliamentary Comment 

For his part, a member of the Parliamentary Finance Committee, Moeen Al-Kadhimi, commented today, Thursday (October 18, 2023), on the accusations of “the silence of the House of Representatives” regarding the rise of the dollar in the local market.

Al-Kadhimi said, in an interview with “Baghdad Today,” that “the House of Representatives is not silent about the rise in the exchange rate of the dollar in the local market, but it is working according to the constitutional powers it possesses,” noting that “the House of Representatives worked during the last period to host a number of The relevant authorities in the Central Bank will discuss this matter to discuss ways to find quick solutions.” 

Constitutional Powers

Al-Kadhimi explains that “the House of Representatives does not have any powers to make any decision related to the monetary authority, but it is a supervisory body that follows up and submits recommendations to the government and the relevant parliamentary committees are closely following the issue of the rise of the dollar in the local market and are in constant communication with those concerned.”

On (October 16, 2023), the Governor of the Central Bank of Iraq, Ali Al-Alaq, identified several factors that affect the dollar exchange rate, the most important of which is the leakage of the dollar to neighboring countries.

During his attendance at the meeting of the Ministerial Council for the Economy, headed by Deputy Prime Minister and Minister of Foreign Affairs Fouad Hussein, and hosting the Parliamentary Finance Committee, Al-Alaq provided “a detailed explanation of the tasks and objectives of the Central Bank and monetary policy in Iraq,” noting that “the exchange rate depends primarily on imports and not on local production, and that The exchange rate in Iraq has characteristics because it is linked to the price of oil, as it is the largest source of providing hard currency.”

He pointed out, "Many factors affect the exchange rate, the most important of which is the leakage of the dollar to neighboring countries, internal dealing in local markets in a currency other than the national currency, as well as the lack of complete control over ports and smuggling."    LINK

The Dollar Falls In Real Estate Prices In Kurdistan.. What Is The Relationship Between The People Of The Center And The South?

Baghdad today – Sulaymaniyah   After citizens in the central and southern governorates were fleeing from the high prices in their areas to the governorates of the region to buy real estate due to their relative decline, the rise in dollar prices affected the real estate market in the governorates of the region as well, which observers described as “clinical death,” as demand for property decreased. Purchasing real estate in the region for a percentage of up to more than 25%.

In an interview with Baghdad Today, the expert specializing in economic affairs, Miran Saeed, reveals the reasons for the decline in real estate prices in the region.

Saeed says, today, Thursday (October 19, 2023), that “there are a number of reasons behind the decline in real estate prices in the cities of the region, the most important of which is the dollar crisis and the instability of its exchange rate, since most residential complexes and houses are sold in dollars, and this led to the reluctance of Kurdish citizens, even from the center and the south.” To come to Kurdistan."

He added, "The economic crisis and the non-payment of employee salaries is also one of the most important reasons for the decline in the prices of real estate complexes, in addition to the presence of momentum in the number of complexes that exceed the needs of the residents of the cities of the region, especially in Sulaymaniyah. This confirms the existence of money laundering and random political investments, without regard to the need of the people." .

On August 23, 2023, economic expert Farman Hussein confirmed that the real estate sector in the Kurdistan region has been clinically dead for years, while reviewing 3 reasons that led to a 25% drop in prices.

Hussein said in an interview with "Baghdad Today" that "the real estate sector has suffered a major setback, and most real estate trading offices have begun to close their doors, due to the lack of sales or purchases of apartments and residential houses."

He added, "During the last two years, especially after the Corona virus crisis, and as a result of the continuing financial crisis and the non-payment of employee salaries, the real estate market suffered huge losses, and prices fell by 25%."

He stated that “this decline is natural, as a result of the absence of government loans or loans from banks, and there are no sales of apartments and residential houses in convenient installments, and most of the sales are only within residential complexes, and to people from outside the Kurdistan region, especially after the facilities provided by the regional government.” , which allowed those from outside Kurdistan to own property within the region.”

On the other hand, Iraqis are suffering from a significant rise in real estate prices in the central and southern regions, especially the capital, Baghdad, where nearly a quarter of Iraqis are concentrated. While the residential investment complexes that were supposedly established to solve the housing crisis have not succeeded, they have become vulnerable to investment and speculation by those with money, and rarely These housing units are often purchased by people or families who are already suffering from a housing crisis.   LINK

Oil: 50 Thousand Cars Running On The Gas System In Iraq

Information/Baghdad..  The Director of the Automotive Gas Department at the Ministry of Oil, Azhar Fasil, revealed on Thursday that more than 100 gas stations have been established and the gas system installed for more than 50,000 cars in Iraq so far.

Fadel said in a statement reported by the official newspaper and seen by the “Information” agency, “We have established stations in the filling plants of the gas filling company, and there is a plan to provide gas at all gas stations,” adding: “There are 104 stations throughout Iraq, including 20 in Baghdad.” While there are 105 stations under construction.

He stated that "work is progressing steadily to convert all stations to gas, with the exception of stations that do not meet safety conditions, as there are millions of cars that operate on gasoline, while the number of cars that operate on gas is about 50 thousand cars," noting that "there are 26 workshops - including 8 in Baghdad - to install the gas system for cars, and the addresses of these workshops are available on the company’s website.

Fadel continued, “These workshops are conducting an inspection of the car and setting a date soon to install the system,” stressing that “there are no problems or complaints regarding the preparation or installation.” End/25   LINK

Parliamentary Finance: The Current Dollar Exchange Rate On The Black Market Has Increased Only

Read: 1,066 times  {Local: Al-Furat News} The Parliamentary Finance Committee confirmed, today, Wednesday, that the current rise in the dollar exchange rates on the black market is only.

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Committee member, Moeen Al-Kazemi, said {to Al-Furat News} that: “The government is responsible for the official rate, which is provided through the currency window and remittances, which provide from 150 to 200 million dollars on a daily basis.”

He added, "Therefore, we notice stability in market prices for electrical, food, and other appliances."

Al-Kadhimi continued, "As for the black market, it is a problem created by America due to the ban on financial transfers and the conditions of the US Federal Reserve that prevent the stability of the Iraqi market."

Today, with the closure of the Al-Kifah and Al-Harithiya stock exchanges, the dollar prices recorded 159,800 dinars against 100 dollars, while the dollar prices this morning were 160,100 Iraqi dinars against 100 dollars.

Selling prices in exchange shops in local markets in Baghdad also recorded 160,750 Iraqi dinars for 100 dollars, while purchasing prices reached 158,750 dinars for 100 dollars. From: Raghad Dahham   LINK

The Dollar Crisis In Iraq... “Poor” Government Measures And “Psychological Anxiety” Afflict Citizens

Economy |Baghdad today – Baghdad   There are many measures that the government has taken in order to control the price of the dollar, but day after day it proves its failure to control it, which reflects negatively on the lives of citizens day after day because it is closely linked to their trade and their ability to purchase consumer goods.

The Dollar Is On The Minds Of Iraqis

Professor of Psychology, Ali Al-Zubaidi, confirmed in an interview with “Baghdad Today” today, Wednesday (October 18, 2023), that “the dollar occupies 30% of Iraqis’ minds 24 hours a day.”

Al-Zubaidi adds, “The dollar, for several reasons, has become the compass of market movement in Iraq, and any rise or fall leads to impacts, some of which are harsh on millions of simple people and those with limited income because of its direct impact in determining the compass of prices up and down, and is accompanied by speculation and the attempt of some to create any crises to earn more money.” ".

He confirms, "The dollar occupies the minds of Iraqis by 30% 24 hours a day, and the percentages rise, especially for professions directly linked to the currency market, and large losses may lead to a psychological state that sometimes leads to suicide."

The Dollar Crisis "Worries" The Poor

Al-Zubaidi pointed out that "even simple people, the dollar has become a source of concern for them because it leads to an increase in financial burdens by raising the prices of basic materials and medicines."

He continued, “The salaries of state employees lost 25-30% of their value after the price of the dollar was 125 thousand dinars per 100 dollars, and now the barrier of 160 thousand dinars per 100% has been broken, meaning that their salaries have weakened and they must pay a higher price to purchase materials,” adding: “The dollar crisis creates varying psychological states resulting from overthinking, but it does not lead to chronic diseases.”

High Dollar Contributions

Last Saturday (October 14, 2023), economic expert Farman Hussein confirmed that transfer cards and Western Union contributed to the smuggling of millions of dollars abroad, considering that the Association of Private Banks is responsible for the rise in dollar exchange rates for the benefit of the private banks affiliated with it.

Hussein said in an interview with "Baghdad Today" that "millions of dollars were smuggled out of Iraq, especially the Emirates and Turkey, and contributed to the wealth of hundreds of merchants, money changers and private banks."

He added, "The Association of Banks is the first and last responsible for the dollar crisis, and it is the one who created the large difference in the official and parallel rates with the aim of achieving benefit for banks and private companies."

The dollar exchange rate has witnessed a noticeable increase in recent days, exceeding the barrier of 160 thousand dinars per 100 dollars, while the Central Bank is taking many measures and decisions to prevent the circulation of the dollar in local markets above the official price (1320), but to no avail, despite the fact that the dollar is its only source. The Central Bank, although those who take the dollar, namely private banks and exchange companies, are known to it, but it is unable to control them and oblige them not to leak dollars through fake transfers, according to observers.  LINK